St. Louis County Incentives
A variety of programs are available at the local level, providing cost savings to businesses whose growth plans require significant investment and job creation. The County works in concert with its municipalities to support growing businesses. While some incentives are directed specifically at the corporate user, some can be used by a developer to offset costs to be passed on to the corporate user.
St. Louis County's incentives are focused on reducing the local taxes assessed on both real and personal property investments. In addition, some programs capture taxes in certain areas to establish funds used to offset infrastructure or transportation costs.
Tax abatement programs come in many forms:
Chapter 100 Bonds
Enhanced Enterprise Zones
Chapter 353 Corporation Tax Abatement
Tax Increment Financing
Community Improvement District
Transportation Development District
Chapter 100 Bonds
The State of Missouri requires tax abatement for corporate expansion to be provided through a bond mechanism titled Chapter 100. St. Louis County Economic Council has successfully used this program for over 20 projects since 2005. The program is a user-driven program where the Economic Council and the company work together to form a plan that includes a specific level of investment, job creation and a negotiated level of tax abatement. The County takes ownership of the abated property and the company pays payments in lieu of tax (PILOT's) as part of the commitment. The bonds require legislation by St. Louis County Council and are not an obligation of the County. The participating business must either purchase the bond or arrange for the purchase to facilitate the transaction. The Economic Council's Business Development Division works with a variety of business types.
The following is an example of annual tax abatement savings realized on a hypothetical $20 million business expansion investment with a 50 percent tax abatement:
Enhanced Enterprise Zones
The State of Missouri allows localities to designate certain areas within their boundaries as Enhanced Enterprise Zones (EEZ). The zones must meet certain distressed criteria and are drawn on the census tract level. The County has two current zones, which provide for both state and local incentives. Businesses within a zone can contact the Economic Council to determine if its job growth and investment qualify the company for EEZ incentives. A minimum of two jobs and $180,000 investment is required for an existing business currently in a zone or a new business (existing businesses moving from outside the zone have different requirements). The program works as a partnership with the State, County and qualified company. Tax abatement in the amount of 50 percent is available on qualified real estate investments within the County EEZs. State benefits are a discretionary award made by the Department of Economic Development.
Central County EEZ map
North County EEZ map
Chapter 353 Corporation Tax Abatement
Tax abatement provided by a Chapter 353 is typically implemented for a large-scale redevelopment of a blighted area. The local municipality will negotiate the benefits of the 353 and designate the 353 area. Tax abatement begins when the urban redevelopment corporation takes title to the property, otherwise known as the "base year." During the first 10 years, the taxes are essentially frozen at the base level which allow for development to occur at a much lower cost to the occupants. During the following 15 years, up to 50 percent of the taxes may be abated.
Tax abatement is only available to for-profit urban redevelopment corporations organized pursuant to the Urban Redevelopment Corporations Law. The articles of association of urban redevelopment corporations must be prepared in accordance with the general corporations laws of Missouri and must contain certain items set forth in Section 353.030 of the Urban Redevelopment Corporations Law.
Current industrial sites using Chapter 353 include Aviator Park in Hazelwood, MO.
Incentives used to offset infrastructure include the following:
Tax Increment Financing
Tax Increment Financing (TIF) is a public financing tool used for community improvement and redevelopment. The benefit of TIF is achieved by issuing non-revenue bonds which provide financing to develop a site for retail or industrial use. The bonds are repaid by the incremental tax revenues generated by the project. The increased site value and investment ultimately enlarges tax revenues and recoups the initial investment. These financing tools ensure that distressed or underdeveloped areas have access to redevelopment that may not otherwise be affordable. TIFs are only available in select areas and must be approved by the St. Louis County TIF Commission.
Current industrial sites using TIF include Hazelwood Logistics Center, NorthPark and Lakeside Crossing.
Community Improvement District
A community improvement district (CID) may be created for the purpose of financing a wide range of public facilities, improvements or services within a municipality. A CID is either a separate political subdivision with the power to impose a sales tax, a special assessment or a real property tax, or a nonprofit corporation with the power to impose special assessments.
A CID that is created as a political subdivision can finance the costs of a project through the imposition of:
- Special assessments for those improvements that specifically benefit the properties within the district,
- Property taxes; or
- A sales tax up to a maximum of one percent.
The CID may also impose a combination of the aforementioned. Either type of CID may finance the costs of a project through the imposition of fees, rents and charges for district property or services or grants, gifts and donations. A CID may also issue bonds, notes and other obligations and may secure any such obligations by mortgage, pledge, assignment or deed of trust of any or all of the property and income of the district. However, the bonds or other obligations of a CID that is created as a nonprofit corporation will not be tax-exempt.
Transportation Development District
A transportation development district (TDD) is a separate political subdivision that may be created to fund, promote, plan, design, construct, improve, maintain and operate one or more transportation-related projects or to assist in such activity.
A TDD can finance the costs of a project through the imposition of
- Special assessments for those improvements that specifically benefit the properties within the district;
- A property tax in an amount not to exceed $0.10 per $100 assessed valuation;
- A sales tax up to a maximum of one percent; or
- Tolls and fees for use of the project.
A TDD may also issue bonds, notes and other obligations and may secure its obligations by mortgage, pledge, assignment or deed of trust of any or all of the property and income of the district.
For more information on incentive programs, please contact the Business Development Department:
Douglas Rasmussen 121 S. Meramec Avenue | Monica Conners 121 S. Meramec Avenue | Alison Zeidler 121 S. Meramec Avenue |
