Last week a Cole County circuit judge ruled against two Old North residents who had filed suit claiming that the Northside Regeneration redevelopment agreement with the City of St. Louis relies upon state legislation that is unconstitutional.
Judge Patricia S. Joyce ruled that the plaintiffs, Barbara Manzara and Keith Marquard, lacked standing to bring the suit, adding also that the claims themselves lack merit.
The suit targeted the Distressed Areas Land Assemblage Tax Credit Act that was pushed strongly by Paul McKee Jr., principal in the Northside Regeneration project. The suit was filed against the State of Missouri, but Northside Regeneration joined the State in mounting its defense.
Joyce agreed with the defendants that the plaintiffs lack standing to bring their complaint because the plaintiffs “have not suffered any actual harm, injury or damage.”
The plaintiffs, represented by Irene J. Smith, had claimed, “Missouri courts allow taxpayer standing so that ordinary citizens have the ability to make their government officials conform to the dictates of law when spending money.”
The court ruled, however, that a tax credit is not an expenditure of public money, but rather a “reduced tax obligation.” Joyce ruled, “Plaintiffs do not have standing to challenge the excused tax obligation of others.”
Joyce also noted that while the plaintiffs claimed the use of the tax credit would result in “reducing services to citizens,” they did not prove it. The judge also notes that the plaintiffs acknowledge that the tax credit “may induce other economic activity,” which is of course the argument typically offered by developers when seeking tax relief.
Northside Regeneration – and other redevelopment efforts in urban areas – also now have on the judicial record in Missouri a long, emphatic affirmation of the public good served by these tax credits.
Irene J. Smith, attorney for the plaintiffs, said she plans to appeal.
Dierker yet to rule
A separate suit against Northside Regeneration and the City of St. Louis has been argued before Judge Robert Dierker, who has not yet issued a ruling. The plaintiffs in that case are being assisted by Show-Me Institute board member Bevis Schock. An anonymous donor is helping to pay for expert witnesses and other court costs.
Show-Me Institute founder Rex Sinquefield has been suggested as the anonymous donor. Dierker has ruled that the donor’s anonymity is protected, and a Sinquefield spokesperson did not answer an email asking if Sinquefield is funding the legal fight against McKee or not.
Sinquefield is the single largest campaign donor of Mayor Francis G. Slay. A large number of Slay’s staff and other City of St. Louis staff devoted countless hours to regular meetings with Northside Regeneration to hammer out the redevelopment agreement that is targeted by the suit that was filed in the city.