The City of St. Louis needs to own all 99 acres before it can close the deal on building a new $1.6 billion site for the National Geospatial-Intelligence Agency – if the federal agency choses the North St. Louis city location.
Otis Williams, executive director of the St. Louis Development Corporation, told the press today (Sept. 23) that the city may need to use eminent domain to secure 368 properties. Of those properties, Northside Regeneration developer Paul McKee Jr. owns 339, or about 40 acres, Williams said.
On Friday, Williams said they will present the Board of Aldermen with a list of the 19 owners – including McKee – who the city may take to court through eminent domain proceedings.
Williams said eminent domain is not optimal.
“It’s necessary for us to stay competitive and realize the benefits of having the NGA here in the city,” he said. “We need to have one owner, and we need to provide that to the [Army] Corps of Engineers by March of next year. This is one necessary step in the process.”
In April 2014, the NGA, currently located near the Anheuser-Busch In-Bev brewery, announced its plans to move and build a bigger facility that could potentially increase its current 3,100 employees – with an average salary of $83,000 – to an estimated 4,500 or more. The federal mapping agency is looking at four potential sites for its new $1.6 billion building.
The North St. Louis city location, 100 acres adjacent to the old Pruitt-Igoe site at Cass and Jefferson avenues, is the only one located within city limits.
The other locations in the running are the old Chrysler plant in Fenton, the Met Life facility in South St. Louis County and an area adjacent to Scott Air Force Base in Illinois.
Williams said landing this deal means retaining 3,100 jobs.
“It also means the NGA will become an anchor catalyst for redevelopment in North St. Louis,” he said. “There are so many opportunities around that site just because it is there. We look at all the others areas in the city where we have an anchor, and we see good things.”
In addition to McKee, he said the other properties in the eminent domain category include seven owner-occupied homes, four rental properties, 11 vacant lots, five vacant properties and two vacant commercial properties.
Williams said the list is changing daily because they have not been able to locate some of the owners and others have had issues obtaining home titles, which they are working with them to sort out. The court proceedings can stop at any time if they reach agreements with the owners. However, in order to meet the March deadline, Williams said they need to start the eminent domain process now.
In total, the 99 acres represents 110 owners. Of those, the city’s Land Clearance for Redevelopment Authority (LCRA) has signed agreements or is awaiting signed contracts with 76 owners. Williams said among those include 34 owners of homes, along with some churches and businesses. Negotiations are continuing with 15 owners, he said. And 19 owners are in the eminent domain category.
Regarding his negotiations with McKee, Williams said, “We are having frank discussions. We think we can get a deal.”
If not, McKee can fight for his desired purchase price in court, he said.
The Northside Regeneration released a statement this afternoon saying that they are “very close to finalizing an agreement” with the city on the parcels within the NGA footprint.
“Northside Regeneration’s parcels were apparently included in the city’s condemnation list out of an abundance of caution, to assure the city meets the NGA’s deadlines,” the statement read.
In February, the Board of Aldermen passed a bill that authorizes the LCRA to use the powers of eminent domain to seize the properties in the proposed NGA area. However, the bill has a provision that requires the Board of Aldermen to give its approval every time the city wants to take a property owner to court over eminent domain.
The bill introduced this Friday will ask the aldermen to approve eminent domain on the 368 properties. The board’s HUD committee will deliberate the following week, and it will most likely come back to the full board for a vote around Oct. 2, Williams said.
If approved, the city’s lawyers will file court actions, Williams said.
In June, Gov. Jay Nixon signed into law House Bill 514, which is legislation that provides additional capacity in the State Supplemental Tax Increment Financing program to aid the city in preparing the NGA site. Williams said this legislation will help them meet all the federal requirements for infrastructure and land clean up. However, the Army Corps of Engineers requires that the site have a single owner. Williams said he is confident that they can get it done.
“It is so important that we end up as one owner,” he said. “The one owner thing is our biggest problem.”
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