Amid the ongoing debate to reform St. Louis’ use of tax incentives, a key economic development office appears to be paring back its use of property tax abatement in an effort to maximize revenue.
The St. Louis Land Clearance for Redevelopment Authority’s staff is now recommending some projects in rebounding neighborhoods pay at least some new taxes after redevelopment wraps up.
It’s part of the overall effort to rethink how the city does development assistance, local officials say. And it may signal a slight change in approach by the new administration of Mayor Lyda Krewson.
A report released last year by the St. Louis Development Corp., the city’s economic development arm, found that the city was missing out on millions of dollars a year in forgone revenue due to incentive use. Still, many in the development community say that lots of projects wouldn’t get financing without abatement or other breaks.
Read more: St. Louis Post-Dispatch