Survey
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
International Downtown Association World Congress Priming the Pump: Economic Development Incentives New York City, October 2013 Maggie Campbell, Sagacity Consulting Former President/CEO, Partnership for Downtown St. Louis Downtown St. Louis Downtown St. Louis Downtown St. Louis Downtown St. Louis Downtown St. Louis Downtown St. Louis Downtown St. Louis History behind HTC’s in Missouri: National HTC reduced Measured reduction in Historic projects nationwide, and in STL particularly Jerry Schlicter, Passionate Advocate Final twist changes history Downtown St. Louis MISSOURI’S BEST TOOL The State of Missouri created Historic Tax Credit legislation in late 1990’s – single most important incentive used in Downtown St. Louis’ revitalization. Model legislation – other states with similar legislation include Iowa and Minnesota, pending in Wisconsin and Illinois, variations in multiple other states. Downtown St. Louis Real Estate Market and Need Determine Incentives o In a go-go economy, incentives provide regulatory relief and additional development rights o In a no-go economy, incentives close funding gaps – avoiding the death of projects Downtown St. Louis EXPECTATIONS AND ENTITLEMENTS: Making the deal work In St. Louis, developers can expect for a single project: o HTC’s, if eligible o Potential for Federal HTC o CID, likely sales-tax based but can be property, even both o Tax-Increment Financing or Tax Abatement o Urban Enterprise Loans, small business support Downtown St. Louis Project Eligible for HTC if: • Listed as a single building or contributing in a National Register District • Located in local historic district certified by US Dept of Interior • Renovation costs must be at least 50% of acquisition cost of the entire project • Plans approved by SHPO Downtown St. Louis HISTORIC TAX CREDIT – HOW IT WORKS: • Equal to 25% of the eligible expenses of renovation • Used to offset Missouri income tax liability in year provided • Applicable back three years or forward five years • May be sold or exchanged by eligible applicants • Transferability is key component – allows developers to cash out, bring equity to deal Downtown St. Louis Leveraging Incentives Projects not done with HTC alone • Combined with TIF, CID, tax abatements, multi-layers of incentives • When MO’s HTC is combined with Fed HTC – provides upwards of 35% of total development cost brought in as equity Downtown St. Louis RESULTS • Progressive incentive changed difficult historic renovations from real estate gamble to credible investment • $448 Million in HTC’s allocated for $1.7B worth of development since 1998 • Success of HTC program has shifted development patterns and public policy in STL • Has transformed Downtown St. Louis into a mixed-use, residential neighborhood • Success has brought opposition – under fire by Republican State Legislators since 2009 Downtown St. Louis EAST WEST GATEWAY COUNCIL OF GOVT STUDY 2011 FINDINGS REGIONAL IMPACT OF INCENTIVES o 80% of spending on TIFs and TDD’s in the region funded retail projects o Local governments were foregoing $3.6 Billion in tax revenue over the last 20 years o Region only added 5,400 retail jobs from 1998 o Taxable sales basically flat since 2000 o Basically concluded not providing return on investment Downtown St. Louis Policy Priorities o Strengthen coalition and Advocacy efforts to continue to protect HTC from legislative attack, caps, potential loss of entitlement o Explore policy priorities for other/new incentives, leverage support for more entrepreneurship, innovation, immigration Downtown St. Louis