A lack of education. Pandering to their base. Local politicians don't understand and or downplay the difficulty and risk that is associated with any real estate development let alone development in St. Louis. If they did, they would roll out the red carpet for infill developments that will eventually hit that tax roll. The large infill urban developments that we all get excited about require institutional capital. That capital has lot of options and for it to be invested here requires as much risk as possible to be taken of the table.ldai_phs wrote: ↑1:03 AM - 1 day ago@dbInSouthCity Why is it that St. Louis City is soo stingy with tax incentives for new development? I recently read the even New York City offers an automatic 100% property tax abatement for 35 years if you build new multifamily.
The NYC program also has strict affordable housing requirements ranging from 20% to 50% of the units being affordable/rent controlled permenantly. They also have hefty prevailing wage requirements.ldai_phs wrote:@dbInSouthCity Why is it that St. Louis City is soo stingy with tax incentives for new development? I recently read the even New York City offers an automatic 100% property tax abatement for 35 years if you build new multifamily.
100% for 35 years is totally cool when 50% of the units are permenantly affordable units lol.
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^Great point and let's also remember we had 16 years of the Slay administration who's only play was to give developers large and small whatever they wanted with minimum strings attached. The present "stinginess" is a natural reaction to that profligacy.
I wish SLDC/BOA/BEA took a more long-term, strategic approach to subsidizing private development (as StlAlex describes for NYC) rather than the now-standard Community Benefit Agreement, which looks more like a "what's in it for me" shakedown by the local NGO mafia. Its a better approach than that taken by the Slay administration, but still leaves much to be desired.
The real solution of course is to phase out the "improvements" component of the real estate tax and transition to a full Land Value Tax.
I wish SLDC/BOA/BEA took a more long-term, strategic approach to subsidizing private development (as StlAlex describes for NYC) rather than the now-standard Community Benefit Agreement, which looks more like a "what's in it for me" shakedown by the local NGO mafia. Its a better approach than that taken by the Slay administration, but still leaves much to be desired.
The real solution of course is to phase out the "improvements" component of the real estate tax and transition to a full Land Value Tax.
NYC until recently only required 20% affordable at 80-135% AMI. 110%+ is what you’d call new construction market rate here.StlAlex wrote:The NYC program also has strict affordable housing requirements ranging from 20% to 50% of the units being affordable/rent controlled permenantly. They also have hefty prevailing wage requirements.ldai_phs wrote:@dbInSouthCity Why is it that St. Louis City is soo stingy with tax incentives for new development? I recently read the even New York City offers an automatic 100% property tax abatement for 35 years if you build new multifamily.
100% for 35 years is totally cool when 50% of the units are permenantly affordable units lol.
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