Grand Center would look a lot different with $400 million in new development. At least that’s what Grand Center, Inc., and Saint Louis University officials are hoping for if their plan to create a tax increment financing (TIF) district for Grand Center receives approval from the St. Louis Board of Aldermen in the next few months.
Peg Weathers, vice president of the nonprofit group Grand Center, Inc., explained that a TIF is “not a new tax and not an increase in taxes currently paid.” She said, “a TIF captures the increase in taxes that occur as a result of new development in a specified area.”
The TIF district would last for 23 years and is expected to bring $80 million in TIF revenue with more than $400 million in new development. The TIF revenue, as explained by Weathers, would come from 100 percent of property tax increases in the area and 50 percent of new development’s economic taxes, such as sales tax and payroll tax.
The proposed TIF district would be the first for the area, but Chicago has more than a hundred such districts.
The TIF district would cover the area from U.S. Highway 40 to Delmar Avenue and between Vandeventer and Compton avenues, excluding Cardinal Ritter High School, Veteran’s Administration Hospital and the nearby juvenile detention center.
St. Louis’ TIF commission, at its Sept. 19 meeting, unanimously recommended the plan to the Board of Aldermen, which is expected to have its first reading within the next two weeks.
Saint Louis University supports the Grand Center TIF district plan, said Kathleen Brady, vice president for Facilities Management and Civic Affairs. She added, “[SLU] is the main reason why the City backs the use of TIF for an entire district in the area.”
Weathers elaborated, “SLU’s involvement in this plan brought credibility and comfort to city hall.
They know that if [University President Lawrence Biondi, S.J.] has a strong interest in Grand Center’s success and with his support, people are really going to work towards it.”
Aside from an improved community, SLU benefits from the plan with the inclusion of a potential arena and retail space at the corner of Lindell Avenue and Grand Boulevard. The arena is budgeted at using $15 million of the TIF revenue and the corner development at $3.74 million. The development of that corner has been delayed while the University awaits approval of the TIF district, Brady said.
The TIF revenue has been divided into six categories with the approximate budgets:
- Theatres, museums and arenas–$25 million
- Parking–$6 million
- Green space and public improvements–$11 million
- Educational/housing–$5.4 million
- Historic rehabilitation–$10 million
- Retail/mixed use–$17.1 million
More specific development projects include an African-American History Museum, renovations of Woolworth, Humboldt and Metrpolitan buildings, renovated Sun Theatre and creating housing in the 3700 and 3800 blocks of Olive Street.
Weathers credits the idea for the TIF district to former St. Louis mayor Vincent Schoemehl, Jr., developer Steve Trampe, Alderman Mike McMillan (D-19th Ward) and SLU officials Biondi and Brady.
She also noted that the mayor’s office and comptroller’s office have both shown leadership in moving the plan along.
SLU and Grand Center, Inc. continue to work with city aldermen to demonstrate the benefits of approving the plan. Weathers said the aldermen are most concerned with increasing the city’s general operating fund, and she has been trying to show how a TIF district can bring new development and revenue to the entire city.
“We want to make this district what it used to be and what it can be again,” Weathers said.
If the plan clears the aldermanic committee to which it will be assigned, the full board will vote on the issue in November.Weathers said she is optimistic that the plan will be approved.
