The West Pine Laclede Neighborhood Association will meet on Tuesday, November 8 at 7 pm at Northwest Coffee, 4251 Laclede (at Boyle). All are welcome!
The minutes from our October meeting and copied below and will be presented for approval at the upcoming meeting. Please note that to save on paper and ink, only a minimal number of hard copies will be printed for review and approval, so you are encouraged to read the minutes on line prior to coming.
We look forward to seeing you on Tuesday.
And, PLEASE REMEMBER TO VOTE ON (OR BEFORE) NOVEMBER 8!
West Pine Laclede Neighborhood Association
13 September 2022
7:10 PM The meeting was called to order by President Harold Karabell.
Harold asked for introductions of attending members.
Hard copies of August meeting Minutes were then shared for review and approval.
The Treasurer Report from Terry Werner will be given at the October meeting.
The focus of this meeting was a slide report from Alderwoman Tina Pihl focusing on tax incentives, TIF, in the 7th Ward.
Local Tax Increment Financing (Local TIF) permits the use of a portion of local property and sales taxes to assist funding the redevelopment of certain designated areas within your community.
Alderwoman Pihl informed those present of meeting to discuss TIF to be held on ZOOM on September 14, 2022.
Presentation by Alderwoman Pihl
“Tax Incentives and Community” by Alderwoman Tina Pihl and Dan Pate, a volunteer assistant to Alderwoman Pihl. (Dan lives in the Shaw neighborhood, outside of the 17th Ward).
3 questions are posed:
How has development impacted your life? What is successful development? Who says what is successful? St. Louis ranks in top 4 cities in giving tax incentives.
Are the incentives effective? In some places, yes. In other place, no.
The 17th ward has had significant population growth. Yet, the City has had a significant decline in population.
Is this growth spilling over?
TIF is an economic development tool originally intended for poor neighborhoods. In St. Louis it diverts over a period of 23 years. The investment goes to the investors rather than directly to the City.
When something is built with TIF the developer receives the up-front cost (projected increased value) of the building over 23 years in municipal bonds. For up to 23 years the payment goes to pay bond holders. There is a max of 17% overall value on TIF. e.g., $100 million receives $17 million in revenue.
Who fills this gap?
This affects services such as schools, emergency services, police, sanitation and recycling services.
With the city population decrease we are not able to fill this gap.
Opinion of Alderwoman Pihl: Incentives were necessary at one time, but how much is too much? We need more transparency. To provide transparency, the Alderwoman suggests audit of past 10 years TIF activity to be overseen by the St. Louis Development Corporation (SLDC).
41 Lindell developer has stated that all the other cities expect this incentive.
The reason this isn’t working is that our population (outside of the CWE) is declining.
An example was presented:
Forest Park Southeast (FPSE) is showing decrease, displacement, of Black population since 1990. (source?)
90% of the buildings on Manchester and Vendeventer are luxury rentals with rent of $1500/month.
What has changed in the past 10 years in FPSE? Many have moved out, properties are now AirBnb.
A chart of CORTEX projects with building projected opening and TIF incentives was presented.
CORTEX has received in $135 million in incentives. Several incentives are expiring; For these Cortex is asking for an extension of benefits.
Neighbor Barbara (Manhattan Mews) speaks of her increase in property value since 1985. There doesn’t seem to be a need for tax abatement in this neighborhood because it is now stabilized.
Harold asks whether we would like the Commissioners of the Southeast Special
Taxing District to attend one of our meetings to discuss the status of private security patrols in the neighborhood. Several people claim that the private security patrols in the neighborhood have become nearly non-existent.
One neighbor expresses that living near CORTEX has increased his property value.
Barbara expressed that her taxes have increased greatly. She is happy that the property values have gone up.
Alderwoman Pihl proposes standardization of the TIF negotiations.
Harold expressed that Joe Roddy also believed that we no longer needed tax incentives in the CWE.
The issue of crime in the CWE was briefly addressed.
Alderwoman Pihl suggests a NEXUS study to evaluate how much a district/area might allow for a developer who is seeking an audit through SLDC.
(According to landmarkcpa.com Nexus studies are performed by CPAs well-versed in multistate taxation to help determine what a business’s tax exposure truly is.)
Our Neighborhood can help by attending economic development meetings and asking questions. A CORTEX webinar will meet by ZOOM at 8:30 AM Wednesday morning.
The Alderwoman suggests that the WPLNA write a letter to the Housing and Urban Development Committee of the Board of Aldermen opposing further tax abatement in the Central Corridor.
We will share committee reports at our October meeting.
8:05 PM The meeting was adjourned by President Karabell.
Minutes submitted by Secretary Catherine Swanstrom
Thanks to Northwest Coffee for graciously offering space for our meeting.