ST. LOUIS — The ÃÛÑ¿´«Ã½ Development Corp. on Tuesday released a new scorecard to gauge whether a project could receive financial incentives that officials say will lend more transparency to the economic development agency’s actions.
The new process heavily weighs what impact the project could have on a neighborhood with points awarded to various community benefits like affordable housing, historic preservation and walkability. The scorecard provides a ceiling, or maximum amount, of tax abatement a developer could receive, though not guaranteed.
“Continuing to build public confidence and trust is necessary,†said SLDC President Neal Richardson.
The overhaul stems from an effort by Mayor Tishaura O. Jones’ administration to revamp the city’s development incentive process that the mayor and her allies said gave unwarranted tax breaks to developers in ÃÛÑ¿´«Ã½â€™ booming central corridor.
People are also reading…
But the shift drew criticism from developers who said the Jones administration negotiated on a deal-by-deal basis, sometimes asking for financial contributions to affordable housing funds or public schools, making it unclear as to exactly what City Hall wanted and what incentives developers could expect.
The Jones administration began addressing some of the confusion last year by having its director of policy and development, Nahuel Fefer — who was at the negotiation table with Richardson and SLDC staff — move to serve as the executive director of the city’s Community Development Administration.
SLDC hired Chicago-based accounting and consulting firm Baker Tilly in 2021 to review what the agency could do better and last year amended the contract for $145,000 to have Baker Tilly finalize a new incentive process that would be more transparent for the public and developers.
“Hopefully it shapes growth so you’re not just screening out the bad projects but (also) encouraging good projects to include more community benefits over time,†Baker Tilly’s Elias Mathes said during the meeting.
The new process, unveiled during the Land Clearance for Redevelopment Authority meeting, is tied to the city’s economic justice plan, which directs resources to disinvested areas of north and south ÃÛÑ¿´«Ã½. Residential, commercial and mixed-use projects each will have a separate scorecard.
And each scorecard contains a list of priorities that are assigned points: Mixed-use projects can score up to 50 points for having an affordable housing component; up to 30 points if it’s in a disadvantaged neighborhood; and up to two points if the developer uses state or federal grants. The more points a project scores the better chance it has to receive tax abatement.
The new process also will implement clawback provisions if a developer fails to fulfill community benefit commitments, maintain property up to code and follow minority- and women-owned business and prevailing wage compliance. Another clawback provision centers around a lack of disability accessibility for new multifamily developments.
SLDC staff also plan to tailor the scorecards to specific neighborhood plans and said in the future they can evaluate how well the scorecards are working and whether they need to be retooled.
The scorecards will be posted on SLDC’s .
Jobs outlook: With unemployment in metro ÃÛÑ¿´«Ã½ at a record low, David Nicklaus and Jim Gallagher explain what has to happen for the region to see further job gains in 2023.
