addxb2 wrote:I’ve put some thought to the Rams settlement and tornado rebuilding. Especially now that state and FEMA are coming through in a big way.
Here is my brainstorming for those who need something to read…
Create a new designation, Emergency Community Improvement District (ECID). No sales or property tax. Geographically it would look similar to Opportunity Zone designation.
City puts in $200M from settlement. State and private sector matches 1:1. $400M fund in total. This does not include any of the recovery funding.
ECID is controlled by a governing body of 50 representatives. Mayor and Board nominate 100 potential members, governors office chooses the final 50 to a three year term. The large governing body is intentional. 75% must live or have a registered business within ECID. 100% must reside in the city.
ECID Commission is supported by real estate advisors. These advisors, with direction by ECID Commission, identify redevelopment opportunities (think 1-3 city blocks each) and release an RFP for private investment based on community desired uses. Current residents within specific redevelopment area receive lifetime property tax freeze. It would require developers preserve any vacant but salvageable building. No tax abatement can be given to the developer.
This is where it gets interesting. The ECID is not allowed to actually spend any of the original funding. Instead, they are authorized to commit some or all of the fund as collateral to guarantee the winning developer a loan. The ECID also guarantees the developer via a buy back. For example, whatever does not sell within two years will be bought by the commission at build cost. Once the development is sold/leased/rented, the agreement is voided, and the ECID is free to release another RFP with funds.
The ECID does have the ability to allocate interest earned on the fund to infrastructure projects within the district.
So here is the result.
- Community driven design that happens FAST.
- $400M has the opportunity to guarantee $2-$3B in private redevelopment in North St. Louis over 10 years.
- Since no tax abatement is given, property tax revenues start growing immediately.
- Residents are shielded from the property tax growth from improved market conditions.
- $100-$200M in infrastructure investment over 10 years from fund revenue.
- At the end of it all, fund is still intact.
This is still my best idea for the Rams settlement. Would build thousands of new homes in north city very quickly.
I'm with you on this... the city need to start the growth and spark that ignites things up and into the north side. Otherwise will will continue to wait for Northside Regeneration which is...
I'd actually be willing to do something like this completely on its own with an expanded Prop NS program that just starts building, fully renovating, and offering homes at incredibly affordable prices to prospective home buyers. ...otherwise I fear we'll be like our predecessors who have sat for decades and wonder why things haven't changed.
And, housing has so much future value... we build transit without any return, let's build homes which can/should pay for themselves over time.
