STL City Property Tax Abatement
www.stlouis.missouri.org/sldc/busdev/abate.html
Phone: 622-3287 (St. Louis Board of Alderman)
*MO Statute Chapter 353—the Urban Redevelopment Corporations (UDC) law—provides MO cities the ability to declare “blighted areas” within their limits. Once declared locally by the STL Board of Alderman, for-profit UDC’s can use real property tax abatement for redevelopment within these blighted areas.
*Tax abatement freezes real estate assessment on property improvements at the pre-development level. An improvement can be construction of a new building on raw land or improvements made to an existing building that was just acquired.
*Available for commercial, industrial or residential purposes.
*The Alderman for the ward in which the property is located must support the UDC redevelopment plan. If approved, an ordinance will be passed that grants the UDC tax-abatement privileges.
*Usual term is 10 years at full abatement, but term can be extended to 25 years (10 years at full abatement + 15 year abatement at 50%)
SLDC Revolving Loan Funds (RLF’s)
www.stlouis.missouri.org/sldc/busdev/rlf.html
Phone: 622-3400 (St. Louis Development Corporation-SLDC)
*Funded from 2 sources:
a.) Annual appropriations—between $1.0 to $1.5 million--from US HUD Dept.
via Community District Block Grant funds
b.) a one-time Economic Development Administration grant, for $1.0 million, that has been continuously recycled. The program is administered locally by the Business Development department of SLDC.
*Eligible businesses must be for-profit and located in the City of St. Louis.
*Proceeds can be used for purchasing land and buildings, machinery and equipment, working capital, renovations and leasehold improvements.
*RLF Loans can be made up to 33% of the total project costs to a maximum amount of $150,000. Financing structure is made up of 3 components: Private bank loan in a first-lien position (typically 60% project costs) RLF loan in a subordinate-lien position (30%) and an applicant’s personal equity (10%.)
*A job creation criterion is associated with RLF loans. One job must be created for every $10,000 in RLF funds borrowed. A first source employment agreement for entry level job referrals must be signed with the St. Louis Agency on Training and Employment (SLATE.)
SLDC Business Development Support Services (BDSS)www.stlouis.missouri.org/sldc/busdev/bussup.html
Phone: 622-3400 (St. Louis Development Corporation-SLDC)
*Funded from annual appropriations—between $1.0 to $1.5 million--from US HUD Dept. via Community District Block Grant funds. The program is administered locally by SLDC.
*To qualify, an expanding business must face significant barriers to development that a BDSS loan/grant can remedy. (Ex. utility relocation or removal)
*A job creation criterion is associated with BDSS funds.
*A first source employment agreement for entry level job referrals must be signed with the St. Louis Agency on Training and Employment (SLATE.)
St. Louis City Tax Increment Financing (TIF)
www.stlouis.missouri.org/sldc/busdev/tif.html
Phone: 622-3400 (St. Louis Development Corporation-SLDC)
*TIF financing is both a state and local economic development tool, although the practice of combining both into one deal is rare.
*Local TIF’s are designed to help finance improvements in designated redevelopment areas or districts in St. Louis that have been “blighted.”
*Either a private developer or a debt-issuing municipal entity can underwrite the improvements, and be reimbursed later for eligible project costs—i.e. expenses incurred for assembly, acquisition, demolition, financing or rehabilitation.
*TIF district improvements are made by using new tax revenues from two sources that are generated by a finished project. The first source—‘PILOTS’—are from any increase in property tax assessments when comparing the values before and after a project’s completion. The second source—‘EATS’—are from increases in economic activity taxes (i.e. local sales, earnings, utility) in the area that are generated by the finished project.
*100% of the increase in PILOTS taxes and 50% of the increase in EATS taxes are deposited in a Special Allocation Fund. These monies are then used to repay certain debts incurred by either the private developer or the municipality entity.
*The City TIF commission decides on a TIF’s feasibility, recommending a course of action to the Board of Alderman. If approved, the Board will designate the developer to follow the agreed upon Redevelopment Plan for the area.
*State legislation in 2006 may affect this program.
50/50 Sidewalk Repair Program
www.stlouis.missouri.org/government/cdstrts.htm
Phone: 647-3111 (St. Louis City Street Department)
*Organized and administered under the STL City Street Dept.
*City Ordinance declares that the city of STL will pay half the cost of sidewalk repair, if the property owner provides matching funds.
*When residential property owners call the above phone number, they will be placed on the repair list. Commercial property owners must first get the approval of their aldermanic representative before they can be placed on the repair list.
*STL City Budget division appropriates roughly $400,000 per year to each of the City’s 28 wards for “bricks and mortar” projects. Each ward’s alderman then determines what portion of this annual appropriation will be spent on the 50/50 Sidewalk Repair Program.
Building Façade / Neighborhood Commercial District Incentive Program
www.stlouis.missouri.org/development/commdist/facade.html
Phone: 622-3400 (St. Louis Development Corporation-SLDC)
*Funded from annual appropriations—between $1.0 to $1.5 million--from US HUD Dept. via Community District Block Grant funds. The program is administered and organized locally under the City of STL’s economic development agency—SLDC—in the business development dept., commercial district manager (CDM) division.
*Designed to assist an owner or a business in a commercial property to improve and/or restore the exterior of their building to create a greater visual appeal. By working with a CDM, a business can apply for available grant monies.
*To be eligible, a property must be located in one of the city’s Neighborhood Business Commercial Districts, where there is an active Business Association.
However, not every area in the city has an active BA--and therefore, a representative commercial district manager--including downtown St. Louis.
STL Business Development Fund
www.slbdf.com
Phone: 615-5029 (St. Louis County Economic Council)
*The Fund is a corporation, made up of a consortium of 24 local banks, which is managed by the STL County Economic Council.
*Designed to provide debt and equity investments--between $50,000 to $500,000--to for-profit businesses in the St. Louis region.
*These businesses must demonstrate the desire and ability to grow, but an inability to secure conventional financing for expansion related expenses, such as working capital, inventory, machinery and equipment, or real-estate.
*The borrower, which will pay a premium for Fund financing, must provide at least a 10% equity injection towards the project.
Justine Peterson MicroLoan Program
www.justinepetersen.org/micro.htm
Phone: 664-5051 (Justine Peterson Housing & Reinvestment-JPHR Corp.)
*Organized under the Small Business Administration (SBA) and administered locally by JPHR Corp.
*Designed to assist for-profit start-up and small companies in the City of St. Louis who cannot access capital via conventional lending.
*Proceeds are used for business equipment and inventory purchases, working capital or leasehold improvements.
*Loans range from $500 to $35,000 and terms range from one to five years.
Ameren Community Development Corporation (CDC) Grants
www.ameren.com/EconomicDevl/ADC_ED_FormationACDC.asp
Phone: 800-981-9409 (Ameren Economic Development Group)
*AmerenUE created the Ameren CDC to distribute funds raised by company shareholders for community and economic development initiatives in Ameren’s 65-county, 20,000 square mile MO service territory.
*Eligible grant applicants must demonstrate that their organization will spur economic growth and retain or attract new jobs.
*$9.0 million in funding is available from 2002-2008. Individuals and groups can get applications from now through May 1, 2006, by visiting the "AmerenCDC" link on Ameren's Web site, http://www.ameren.com/ , by e-mail at eddept@ameren.com, or by phone at 800.981.9409.
A second grant application period will run from Aug. 1, 2006, to Oct. 2, 2006.
AmerenUE Economic Development Dept. Incentives
www.stlouis.missouri.org/sldc/busdev/amue.html
Phone: 800-981-9409 (Ameren Economic Development Group)
*Ameren employs a team of business development executives that are ready to help clients with timely, innovative, and confidential assistance. At its disposal are a number of tools that include but are not limited to:
Ameren Insite - an exclusive program that provides ready-to-go sites with ready-to-go flexible building plans for new, relocating and expanding companies.
Development Finance - The Ameren Economic Development Financing Solutions Program offers innovative & flexible financing for growing companies.
Electric and Natural Gas Rates – Ameren will provide non-residential customers and prospective non-residential customers with a rate comparison based on usage information provided by customer. Certain projects also may qualify for our Economic Development Rider (Missouri only) – an incentive rate that equals a 15% reduction in annual cost of electrical power during a five year contract term.
Neighborhood Improvement Districts (NID’s)www.armstrongteasdale.com/PracticeAreas/BusinessServices/PublicLaw- Finance/NID-Act.pdf#search='Armstrong%20teasdale%2C%20NID’
Phone: 622-3287 (St. Louis Board of Alderman)
*MO General Assembly authorized the city of St. Louis to create NID’s within its boundaries. These geographically defined districts are created to help fund public infrastructure improvements such as lighting, streets, sidewalks or sewers.
*A NID area can be created by a majority vote, or a citizen petition that is signed by the majority of the property owners in the district.
*A subsequent ordinance of support from the Board of Alderman allows the City to issue bonds or notes that pay for improvements to a NID district. Property owners benefiting from these improvements then pay special assessments back to the City, which uses them to pay off the bonds or notes.
*Created by MO Statute in 1990.
Community Improvement Districts (CID’s)www.armstrongteasdale.com/PracticeAreas/BusinessServices/PublicLaw- Finance/SummaryOfTheCommunityImprovementDistrictAct.pdf#search='Communit y%20Improvement%20District%20Act%2C%20Missouri'
Phone: 622-3287 (St. Louis Board of Alderman)
*MO General Assembly authorized the city of St. Louis to create CID’s within its boundaries. These geographically defined districts allow contiguous groups of property owners to band together, decide what additional services and improvements are needed in their area, and impose special assessments on one another to pay for these added benefits.
*Additional improvements and services may include beautification, cleaning, maintenance and security provisions, as well as research and support for business activity, economic development and special events.
*For a proposed district to be approved, more than 50% of its property owners AND property owners owning more than 50% of its assessed value must agree to the creation of such a district. A successful public hearing held by the Board of Alderman is the last step in the CID approval process.
*A CID is governed by a Board of Directors.
Transportation Development Districts (TDD’s)
www.ecodev.state.mo.us/cd/TDD.htm
Phone: 622-4426 (St. Louis City Circuit Court Office)
*TDD’s are created to meet the transportation needs of a limited area. In this district, a TDD is responsible for developing, funding, improving, maintaining or operating a TDD project(s) for infrastructure upgrades. Such projects may include street, bridge, traffic signal, bus stop, garage, railroad or light rail improvements.
*TDD’s can be formed by registered voters, property owners or governing bodies
in a proposed district successfully petitioning the STL city circuit court.
*Funding of TDD projects can occur via special assessments, property tax or sales tax increases, by bond or note issuance or through the creation of toll roads. All potential funding mechanisms however, must secure TDD voter approval.
*After completion, ownership and control of a TDD project will be transferred from its Board of Directors and officers to the MO Highways & Transportation Commission, or a local public authority / subdivision, which will then assume responsibility for future TDD maintenance costs.