Tax increment financing laws have long been a contentious issue in the state capital. Much of the opposition comes from statewide organizations representing local school districts and county governments that are frustrated by the cities’ ability to establish TIF districts, then capture county sales taxes without the affected counties’ approval. The program uses taxes generated by development to help projects and is designed to provide incentives for developers to invest in blighted, often urban areas.
Growing opposition to the program has created, over the years, feuds between Kansas City and St. Louis, as well as produced strains between varied rural, urban and suburban interests. Efforts to restrict TIFs have been an annual ritual in Jefferson City. But this year the threat is enhanced.
The steady progress of downtown development in St. Louis has been impacted by a huge obstruction on a premier street: St. Louis Center on Washington Avenue. The redevelopment of St. Louis Center, a failed downtown shopping mall, which has been passed around between out-of-town real-estate speculators, and the sky bridge that connects the mall to the Dillard building are included in an ambitious proposal by John Steffen of the Pyramid Companies. Steffen, who enjoys a well-deserved reputation for his commitment to minority inclusion, controls the four-story mall property, the sky bridge and the associated 25-story One City Center office tower. Steffen’s aggressive plans to redevelop this problem property include restaurants and retail facing the street on the first floor and upscale condominiums on the upper floors.
TIF financing is absolutely critical for this project to succeed. Pyramid says it needs $34.3 million in TIF financing for this enterprise, as well as an additional $34 million in state and historic state credits.
It is helpful that all three members of the Board of Estimate and Apportionment have moved past their sometimes-divided stance on TIF projects and unanimously endorse this proposal. The board’s support affirms the members’ understanding of the special significance of this project, which will certainly produce a positive impact on this troubled section of Washington Avenue as well as surrounding areas.
The unpredictable uncertainties surrounding TIF legislation in Jefferson City compel a fast, unobstructed track for this project. There is no better example of the appropriateness of TIF financing being used to develop a distressed area that had failed over many years to attract anyone but exploitative speculators.
Although his pioneering and forward thinking have gone largely unappreciated, Steffen has once again shown a willingness to take on a difficult, but needed project, and he has demonstrated the ability and sheer moxy to get things done. He has led the way in the past. His proud, civic-minded vision and indefatigable leadership are again crucial to strengthen the momentum for vibrant, sustainable growth in downtown St. Louis.