Wednesday, September 5, 2007
Distressed Areas Land Assemblage Tax Credit Act Signed by Governor
Yesterday Governor Matt Blunt signed into law the "economic development" omnibus passed by the Missouri legislature last week. The bill contains the Distressed Areas Land Assemblage Tax Credit, a measure designed to reimburse landbanking costs in impoverished areas. Specifically, the tax credits' authors intend for them to be used in north St. Louis for a project by developer Paul J. McKee, Jr. The details of that project are not available to elected officials or citizens.
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4 comments:
The same could be said for the passage of most tax credit programs. Development projects follow financing, including tax credit programs.
The idea of providing a tax credit it to target a certain type of investment or policy priority. The policy goal of the DALATC program is to target investment into distressed communities.
Tax credits are a proven method of attracting investment in Missouri and across the country.
Think of the reverse...
The state legislature has talked for years about capping the state historic tax credit. This would have a crippling effect on unknown future projects still on the drawing boards.
Wiping the slate clean with a bulldozer is not development. It is terrorism.
What?
One can look at the layout of the land assembled and figure out what the plan will be. It will be a mixture of complete demolition and selective rehab. The price of the housing will be inflated in order to insure a high income homeowner.
As I said on Public Defender we(me) intend to go after the credit for Ward 22. Each ward targeted by Team four can begin to assemble the LRA ground and reach the 75 acre threshold. The local aspect of owning or optioning the ground will create its own market and expand the developers market within individual wards.
McKee may not get the credits, lots of avenues exist to stop him cold, competition may force a sale of all 500 land-banked buildings.
The city is unable to understand
what a clean slate is.
Improving the demolition standards and scope of work at each site will prepare the north side for sustained development.
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