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Wednesday, January 9, 2008

McKee's Holding Companies May Be Preparing for Tax Credits

There may be movement afoot on the part of developer Paul J. McKee, Jr. to get ready for an application for Missouri's Distressed Areas Land Assemblage Tax Credit. On October 26, four holding companies owning land in north St. Louis -- Blairmont Associates, VHS Partners, Noble Development Company and N & G Ventures -- each filed deeds of trust covering all property purchases made before 2006, when McKee's holding companies began filing individual deeds of trust for each property.

Each company's portmanteau deed is for the same amount, $3 million and granted by the Corn Belt Bank & Trust Company of Pittsfield, Illinois. Two years ago, Corn Belt granted a loan of $2.8 million to McKee's Allston Alliance for the purchase of the vacant Cass Avenue Schnucks store.

Each company's deed was signed by Paul J. McKee, Jr. in capacity as manager of the other limited liability companies that act as sole members of the holding companies. Blairmont Associates's sole member is BMA Partners, VHS Partners' is Vashon Developers, Noble Development Company's is NDC Venturers and N & G Ventures' is NGV Partners.

Under the terms of the Distressed Areas Land Assemblage Tax Credit Act, a land assembler is eligible for up to 50 percent of the purchase costs of land. At the maximum eligible amount, these recent deeds of trust would entitle McKee's companies to $6 million in tax credits.

(Extensive background on McKee's project here.)

6 comments:

Anonymous said...

Didn't they say that before a project could qualify for tax credits, it had to have a budget, local support, and be a real development?

It sounded like just assembling land and redeeming tax credits would not be sufficient. There had to be an actual project.

Didn't someone from the state say that somewhere?

barbara_on_19th said...

I'm hoping that if they get the money, they will finally start selling off parcels to the many folks who have wanted to buy, rehab and LIVE IN these buildings. They could surely somehow twist the rediculously vague lelaw to count these buyers as sub-developers. And yes, the law says there has to be these things, but if McKee drops a few dollars on some pliant neighborhood organization, such as the one supporting him before the bill was made law, he can "pro forma" meet those criteria in a display of some fantasy watercolors in the coffee room at a local church. The MOST important thing to McKee is getting the $6M out of our tax coffers, and he is aware he better do that quick while his political cronies still hold office. This law is in the same category as "huge tax cuts for the super-rich" because, guess what, that is ALL this law is going to accomplish for our community. McKee has not so much as cut the grass on his northside lots. This is from a person who has a zero-lot line with a McKee lot, and if you think I'm attacking him needlessly, come visit 3206 19th St -- and bring your lawn mower. I am surrounded up here with his rotting buildings, interspersed with real developers (large and small) committing their OWN capital and working their butts off to revitalize the northside. Michael -- when McKee actually cashes in, let us know so we can visit Jeff City with some photos of McKee buildings side by side with the REAL developers' projects, showing the legislature what their $6M has paid for!

john w. said...

Has there been any indication from McKee or others as to plans for Blairmont holdings?

barbara_on_19th said...

John W -- we (meaning the neighbors in the last two northern-most blocks of Old North) haven't heard a peep about his plans. This fall, he had agreed to come speak at the local catholic church and failed to show. I imagine I will hear about his plans when I the eminent domain paperwork hits my doorstep.

john w. said...

By whose invitation was McKee to speak at the church? I'd like to find out more about his plans, and would like to attend any upcoming event that would have him present proposals or answer neighborhood questions. This, along with Built St. Louis, B.E.L.T. and Urban Review is an excellent blog, which is not to say that the many other smaller blogs are not important as well. Considering the scale of area encompassed by his holdings and in adjancency to LRA properties, what eventually unfolds in these neighborhoods could easily determine the interest any other property owner or microdeveloper would have in north city at large.

Wisdom Works said...

Come On people!!! Insanity is doing the same thing over and over again and expecting DIFFERENT results. Last time I checked, this is the United States of America. I am African American, I live on the North Side, a stone's throw away from some of the properties mentioned on this site and a hop skip and a jump from Old North. It is time for a change. I sit back and watch individuals vilify Mr. McKee, many of whom have NEVER spoken to the gentleman. He has a vision...I believe it is a comprehensive one. It's time out for piece meal, jack-legged development that does not include an a piece that will address econimics. It's time for out of the box thinking! I like people who are bold and daring, apparently Mr. McKee is. Has anyone ever spoken to him? I have, have you met with him? Have you called his office and been civil enough to merit a call back versus calling his office to curse him out or make false accusations. Fear brings torment...bottom line, we have far too many people who are satifsfied with the current status quo and fearful of real and lasting change. A comprehensive plan is needed. We need a plan that includes, market rate housing, middle income housing with and some subsidized housing as well and JOBS. We can no longer have communities that concentrate ALL lower income people in one self contained area. Remember PRUIT - IGO?! It doesn't work. St. Louis can no longer afford to be the bastian of low rent, section eight and well below market rate housing. You can not build a city or a tax base on section eight housing alone. There has to be a way to strike a balance and I believe Mr. McKee has hit the nail on the head. Insanity is also accusing him of causing problems that have existed on the north side FOR OVER 25 YEARS. He's had some of these properties for a week and a day and all the blame is being placed at his door step. People let's not be in denial and let's not get too emotional about the facts. North St. Louis NEEDS a vision and visionaries unlike those of some of the elected officials in the area. Some of which would rather continue to give "constituents" crumbs rather than empowering them to become economically free to buy the whole loaf. And quite honestly SOME of the buildings need to be torn down. For safety and a myriad of other reasons. North St. Louis is hemoraging and in need of much help! The darkest of night is just before dawn. I applaud Mr. McKee or anybody else who wants to make SIGNIFICANT CHANGE in St. Louis.