Development Subsidies in St. Louis
The Post-Dispatch today headlined an article which stated that the City of St. Louis gave away through TIFs and tax abatement $30 million instead of $17 million. This article is not written to question the error but the huge amount of subsidies St. Louis provides to developers. I know the city is not by itself always a strong market, but the level of subsidies appears out of whack.
There is not enough targeting of incentives by the city. TIFs were intended to be used in economically distressed areas, not everywhere. When the use of block grant funds to write down development costs is added to the pile, the situation gets uglier. Efforts need to be made to make the development process easier and ease off of some of the onerous historic preservation rules. Written by Paul Dribin