The City St. Louis will give the National Geospatial-Intelligence Agency free land if agency officials agree to build its new $1.7 billion NGA West facility in North St. Louis, according to an announcement from city and state leaders Monday, March 7 at St. Louis City Hall.
The original price tag for the North city land was $14 million – at least that’s what officials told the Board of Aldermen when they voted last year to mortgage two city buildings in exchange for the $13 million to buy and assemble properties within the 99-acre North city site.
However, the idea to offer the land for free – as their stiffest competitor in Illinois has promised – was “always in the back of our minds,” said Otis Williams, executive director of the St. Louis Development Corporation (SLDC).
“In a $1.7 billion project, $14 million is like round off,” he said.
The NGA’s current facility sits in Soulard near the Anheuser-Busch InBev Brewery. NGA leaders are currently reviewing proposals of four sites for the facility’s relocation – including two in south St. Louis County and one in Illinois. They are expected to name their desired site on April 1.
The Illinois site in St. Clair County near Scott Air Force Base is perceived to be St. Louis city’s biggest challenger. On March 4, Illinois officials announced that the state would provide $116 million in infrastructure improvements, such as road and utility upgrades. Williams said the city’s decision to drop the land cost was not a response to Illinois’ recent announcement. He also said the city has always proposed that the state would help it provide $131 million in infrastructure improvements.
“We addressed that issue up front,” Williams said. “Our legislators – both city and state – have already passed ordinances that will allow for this to occur. I’m not sure where the State of Illinois with their financial problems will find their funds.”
If SLDC can successfully retain NGA West, the state, through the Department of Economic Development, has agreed to make available up to $95 million in Tax Incremental Financing and approximately $36 million in Brownfield Tax Credits. The state’s commitment – in addition to a $1.5 million annual contribution for up to 30 years by the city – will cover site acquisition, site preparation, utility and road improvements and providing the land at no cost.
Williams said they did not want the federal government’s decision to come down to the price for land.
U.S. Senator Roy Blunt, who also spoke at the press conference, said that he told NGA Director Robert Cardillo that St. Louis city will be able to double the federal goals for minority participation on the construction site.
“He said this makes a difference,” Blunt said, “and why wouldn’t it make a difference when you are trying to do the right thing with an investment? We haven’t heard anything like that from the other side of the river.”
St. Louis’ inclusion plan states that nearly 40 percent of all labor hours on the $1.7 billion construction will go to minorities, according to a February 9 letter to Blunt from Jeff Aboussie, executive secretary-treasurer of the Building and Construction Trades Council of St. Louis (AFL-CIO). The project would create 425 construction jobs and 250 “immediate indirect jobs” connected to the construction.
NGA West, which pays an average salary of $83,000, employs more than 3,000 people, and two-thirds of those employees live in Missouri. All of those employees pay a city earnings tax. The city would lose $2.3 million in earnings tax revenue if those jobs left the city. Congressman Wm. Lacy Clay said that this would be a devastating loss to the city.
“They owe us one after the debacle of Pruitt-Igoe,” said Clay, speaking of the failed federal housing project that has left a hole in North St. Louis. The city’s proposed site for NGA West borders the former Pruitt-Igoe.
North St. Louis is the only site under consideration that has received a Promise Zone designation, which gives it preferential consideration for federal resources. Clay said that he has spoken with President Barack Obama about the importance of honoring this designation in North St. Louis.
Obama created the Promise Zone program in 2014, but the federal government has a policy dating back to the Carter administration giving a government preference for putting facilities in challenged urban areas.
Comptroller Darlene Green said the process of fighting for the NGA West site has been a united effort across the city and the state.
“I’m right with the mayor, the president of the Board of Aldermen and all of the aldermen by saying, ‘Yes, we are giving our site for free,’” Green said.
