The St. Louis Development Corporation will advertise the availability of $75 million in newly granted federal New Markets Tax Credits the week of November 28, with applicant responses due January 5.
An advisory group will review and make recommendations on which projects should receive the tax credits. The SLDC Board of Directors has the final approval.
The SLDC issues a Request for Proposals (RFP), according to a release from the mayor’s office, “to attract quality projects with the most impactful use of the tax credits.”
In a release, Mayor Francis Slay said the funds “will allow the city to assist key projects that otherwise wouldn't get off the ground, projects like charter schools, health facilities and child care providers.”
Since 2004, the U.S. Treasury Department has allocated a total of $383 million to the City of St. Louis, and the SLDC administers the program.
Previous allocations have been used to assist projects including Big Brothers Big Sisters headquarters expansion, the creation of the National Blues Museum, the expansion of the Paraquad headquarters, the 4260 Forest Park development in the Cortex Innovation Community, and the redevelopment of the historic Arcade building.
The New Markets Tax Credits program attracts private-sector capital investment into urban and rural low-income areas to help finance community development projects, stimulate economic opportunity, and create jobs in the areas that need them most. Established by Congress in December 2000, it permits individual and corporate taxpayers to receive a credit against federal income taxes for making qualified equity investments in investment vehicles called Community Development Entities. In turn, substantially all of the taxpayer’s investment must be re-invested in low-income communities. The credit provided to the investor totals 39 percent of the face value of the investment and is claimed over a seven-year credit allowance period.
Otis Williams is executive director of SLDC. The SLDC board also includes Alderman Stephen Conway, Alderman Joseph Roddy, Chris Goodson (chairman of Land Clearance for Redevelopment Authority), Loura Gilbert president of St. Louis Local Development Company), Wendy Timm (chairwoman of the Planned Industrial Expansion Authority), Gregory E. Shapiro (chairman of Industrial Development Authority), Mark H. Levison (chairman of Land Reutilization Authority), Matthew S. McBride (chairman of Port Authority of the City of St. Louis), Leslye Mitchell-Yancey (secretary) and Charles Hahn (treasurer).
The next SLDC monthly board meeting is scheduled for before when the RFP is due. The board meets 8-9 a.m. Thursday, December 15 in the SLDC Board Room, 2nd Floor, 1520 Market Street, Suite 2000. Contact the SLDC at 314-657-3700 or http://stlouis-mo.gov/sldc