Category: Northside Regeneration

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Events North St. Louis Northside Regeneration

MCU Needs to Get McKee to Appear in Public

by Michael R. Allen


Rose Willis speaks at last night’s meeting. Photo by the author.

Developer Paul J. McKee’s plans for north St. Louis were the subject of last night’s packed public meeting of Metropolitan Congregations United (MCU), held at Holy Trinity Church in Hyde Park. Although invited, McKee did not attend.

The tenor of the meeting surprised critics — MCU’s leaders were openly critical of McKee. Although the matter was only discussed for 20 minutes, and no questions from the crowd entertained, MCU laid out their action plan on the issue. Lead speaker Roger Duncan laid out MCU’s four development principles: community input (an item that received thunderous applause), creation of housing at prices all can afford, no displacement of residents, respect for existing character and street grid. Duncan and Father Rich Creason, pastor of Holy Trinity, made clear that MCU was not claiming that McKee had agreed to these principles. They admitted that McKee did not accept their invitation, and that they were unsure of his intent.

While few residents of the near north side actually attended the meeting (out of the few aware of the meeting), one of their biggest concerns was discussed. 19th Ward Block Captain Rose Willis spoke about living next door to a run-down McKee-owned property and the developer’s pattern of negligence.

Creason unveiled a community stakeholders’ table that MCU is assembling to build community consensus on a development agenda for the area McKee is targeting. This group includes organizations like the Old North St. Louis Restoration Group, the JeffVanderLou Initiative and the Third Ward neighborhood Council. the group also includes the St. Louis Development Corporation, the quasi-governmental corporation that encompasses the city’s alphabet soup of development entities. Even stranger was that mayoral Chief of Staff Jeff Rainford was on hand to represent SLDC.

Creason ended the meeting by urging all in attendance to send to McKee a signed copy of a card that MCU distributed urging the developer to meet with the MCU stakeholders’ group. Creason stated that he wanted McKee to receive 2,000 cards in the mail.

MCU has put itself in a difficult spot by trying to forge communication between stakeholders and McKee. I commend MCU for making the attempt. However, I think that the process could be fruitless without real public engagement. McKee has already met with representatives of the stakeholders’ group; as part of city government, SLDC will be involved no matter what. McKee has not met with rank-and-file members of neighborhood groups. These stakeholder groups have not necessarily even communicated to members their involvement in discussions with McKee. Some stakeholder groups are missing, such as those concerned with urban design, green space and mass transit.

Essentially, the stakeholders could end up being a nice compartment for negotiations already underway outside of the public eye. What MCU needs to do is to get McKee to make good on his promise to explain himself in public — to the residents of the area he wants to develop. Anything short of that is not the starting point of a new direction, but one more step down a path without a clear end.

McKee had a great opportunity last night to make a public appearance before a tame crowd. With few affected residents present, vocal antagonism was unlikely. The developer could have cut through the polarization with even a silent appearance, and demonstrated the leadership that defenders attribute to him. He did not make that first move to address the public. If MCU wants to help, it needs to continue to urge him to do so. All residents of the near north side are at the stakeholders’ table by default. Solutions start with them, and with McKee. As long as those parties remain apart, all we have is uncertainty, fear and cynicism. We need hope.

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Media North St. Louis Northside Regeneration

Media Coverage of MCU Meeting

KMOV Channel 4: North St. Louis developer under fire from religious group

From the transcript: A spokesman for Paul McKee told News 4 it would be premature to talk to the public because “we really don’t have any plans.”

Pub Def: VIDEO: McKee a No-Show at Meeting

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North St. Louis Northside Regeneration Old North

McKee Purchases Building on Stable Block in Old North

by Michael R. Allen


Photo by the author.

Defying promises to neighborhood leaders, developer Paul J. McKee, Jr. has purchased another historic building in the Old North St. Louis neighborhood. Last Tuesday at a Sheriff’s auction, McKee’s holding company Babcock Resources LLC purchased the home at 1412 Sullivan Avenue, pictured above. Babcock’s bid was around $8,000 with bidding starting at $900.

The 1400 block of Sullivan Avenue is one of the most stable and intact blocks in the neighborhood, with only two missing buildings. Since renovation work began on another empty building on the block, the house at 1412 Sullivan is the only vacant building on the block.

McKee also owns three buildings on the 1400 block of Hebert Street, one block to the north, and a building at 2900 N. 14th street, one block east.

Since September 6, 2007, Babcock Resources LLC has been used to purchase at least nine properties with total recorded sales prices of $380,600. Eagle Realty Company owner Harvey Noble as well as Roberta M. Defiore have signed the deeds for the company. Deeds of trust report that Rice Capital Group LLC and Salvador Equity Management LLC have loaned money for the purchases.

Tonight at a public meeting Metropolitan Congregations United will be discussing McKee’s north side land acquisition project. McKee is an invited guest. The meeting begins at 6:30 p.m. at Holy Trinity Church, 3518 N. 14th Street in Hyde Park.

Categories
Events North St. Louis Northside Regeneration

McKee May Not Attend MCU Meeting

by Michael R. Allen

According to rumors, developer Paul J. McKee will not be appearing in person at Thursday’s public meeting at Holy Trinity Church sponsored by Metropolitan Congregations United.

Categories
Events Hyde Park North St. Louis Northside Regeneration

McKee May Appear at Metropolitan Congregations United Meeting at Holy Trinity Church

by Michael R. Allen

Developer Paul J. McKee, Jr. may speak about his acquisitions in north St. Louis in public next Thursday, October 25 at Holy Trinity Church in Hyde Park. McKee is an invited guest to the next regular public meeting of Metropolitan Congregations United (MCU), the interdenominational Christian alliance formed to promote social justice and high quality of life for the region’s urban core. According to MCU members, if he appears, McKee will state his agreement to a number of conditions MCU has set for their endorsement of his plans for north St. Louis.

While McKee’s willingness to make a public appearance is laudable — and some might say is an appropriate response to recent criticism of his silence — the fact is that the meeting is not a public forum intended to expose affected north side residents to the developers whose plans have altered their neighborhoods.

Given the format of MCU’s public meetings, a reasonable expectation is that McKee will make a brief statement of his intention and why he needs MCU support. A representative from MCU will list their conditions for support, which had been agreed upon by McKee and MCU prior to the meeting. McKee will state that he will abide by the four standard MCU conditions for supporting development: respect for urban character, not displacing people, affordable housing, and community participation.

Hence, the format does not allow McKee to present any substantial information. He will not be taking questions, or listening to comments. The audience will be composed mostly of MCU members, with a smattering of any near north side residents who manage to learn about the event and bother to attend. Residents whose homes are within McKee’s project area had a greater chance for engagement at the public meeting hosted by elected officials on August 30 at Vashon High School. McKee is not coming to the north side to address residents; he is coming to symbolically accept the political support of the influential MCU. Residents of north St. Louis will have to keep waiting for a meeting with McKee that is truly public.

In the meantime, perhaps MCU can consider the message sent by endorsing plans with details are unknown to the residents of the areas the plans affected; with an acquisition program fraught with allegations of fraud and deception; that has created nuisance properties on healthy blocks, driven down property values and led to displacement of poor residents; and that has created a climate of uncertainty and resignation in an area showing strong signs of revival. Does it not bother MCU leaders to endorse a development plan long before people affected by it eren know what it is?

MCU missed the chance to hold out their endorsement until McKee gave affected residents a chance for real dialog. Instead, MCU is stepping over residents of Old North St. Louis, St. Louis Place and JeffVanderLou. Hopefully McKee won’t do the same, and will meet directly with residents.

Categories
DALATC Downtown North St. Louis Northside Regeneration Public Policy South St. Louis

Baron May Seek Distressed Areas Land Assemblage Tax Credit Act; Discussion Needed

According to recent articles in both the St. Louis Business Journal and the St. Louis Post-Dispatch, developers McCormack Baron Salazar may seek the new Distressed Areas Land Assemblage Tax Credit for the massive Chouteau Lake and Greenway project that they have contemplated for nearly a decade. This possibility is based on the fact that the state Department of Economic Development considers the entire city of St. Louis a distressed area under the legal definition of the tax credit act. Thus, any project in the city that meets the tax credit’s other requirements could qualify.

This probably isn’t what the authors of the tax credit had in mind, but the use would not be a bad thing. After all, the connection between the south side and downtown historically has been weak due to the railyards and Mill Creek before that. While rail lines are important and could see greater use in future times, the visual and physical barrier along the southern edge of downtown is detrimental. On one side, we have downtown and its burgeoning vitality. On the other side, the strong historic neighborhoods of the near south side. Between, we have the rail yards, the anti-urban campuses of AmerernUE and Ralston Purina and countless marginal uses. Making connections across this expanse will be a huge and visionary undertaking.

According to Richard Baron of the firm, he and his partners already control 23 acres in the project area. The tax credit would allow them to acquire more. Their project is unlikely to involve any residential relocation at all, although it may eventually include eminent domain.

While perhaps not the most pressing need for urban development, the Chouteau Lake project could be very good for the city. The details need full and open discussion. That discussion would benefit from the participation of developer Paul J. McKee, Jr., who has big plans for the northern edge of downtown. Unlike Baron, McKee has not published any rendering or discussed many details of his project. McKee has stated that he wants to use the Distressed Areas Land Assemblage Tax Credit in north city. In fact, his attorney Steve Stone is credited with writing the first version of the tax credit act.

These two large projects on the edges of downtown could unite the central city to its neighborhoods. The Distressed Areas Land Assemblage Tax Credit could enable wonderful urban-scaled projects that resolve big, old problems in the city — or it could enable years of neighborhood fear, deferred dreams and unfulfilled promises. Baron and McKee need to engage the public, each other, city planners and neighborhood leaders so that we don’t let two good opportunities turn into huge failures.

Categories
Missouri Legislature North St. Louis Northside Regeneration Public Policy

Distressed Areas Land Assemblage Tax Credit Act Signed by Governor

by Michael R. Allen

Yesterday Governor Matt Blunt signed into law the “economic development” omnibus passed by the Missouri legislature last week. The bill contains the Distressed Areas Land Assemblage Tax Credit, a measure designed to reimburse landbanking costs in impoverished areas. Specifically, the tax credits’ authors intend for them to be used in north St. Louis for a project by developer Paul J. McKee, Jr. The details of that project are not available to elected officials or citizens.

Categories
Media North St. Louis Northside Regeneration

Two Accounts of Last Thursday’s Public Meeting

Kathleen McLaughlin, Riverfront Times: Forum on Paul McKee’s North-Side Doings Devolves into Name-Calling

Steve Patterson, Urban Review: Alderwoman Argues Against Modern Zoning, Prefers Piecemeal Approach

Categories
Missouri Legislature North St. Louis Northside Regeneration Public Policy

Distressed Areas Land Assemblage Tax Credit Act Remains Much the Same

by Michael R. Allen

Yesterday, on the last day of the legislature’s special session, the Missouri House of Representatives passed the economic development omnibus (HB1) sought by Governor Matt Blunt. The bill contained a new version of the Distressed Areas Land Assemblage Tax Credit Act (DALATCA), modified slightly in the House and Senate economic development committees and on the floor of the Senate.

The basic formula proposed by Blunt survived: The credit creates a $95 million tax credit program that covers 50% of acquisition costs and 100% of maintenance and interest costs on eligible parcels located in census tracts that meet federal and state income-based definitions of distressed areas. No more than $10 million in credits will be issued annually. The tax credit is available to applicants who have assembled at least 50 acres within a 75-acre redevelopment area established by a municipal redevelopment agreement. The 50 acres need not be contiguous, and no parcel acquired by eminent domain is eligible for the credit. The applicant can only redevelop 75% of the project area alone, and must assign redevelopment rights to other developers or create partnerships to redevelop the remaining 25%.

Obviously, the tax credit structure has changed very little since first proposed by Peter Kinder in February 2007 and drafted by Steve Stone, attorney for developer Paul J. McKee, Jr. The whole idea is still predicated on a scale that is unrealistic for urban areas and small towns. The whole idea remains predicated on rewarding McKee for an acquisition project he has already undertaken in north St. Louis. Consequently, the credit fundamentally is a reimbursement for purchases already made rather than an incentive for future development.

However, the legislature made a few changes to the tax credit, at least one of which may be of consequence:

The credits cannot be used to cover fines or bills levied by municipal government.

To be considered eligible, a parcel must have its municipal taxes, fines and bills paid in full.

The redevelopment agreement must be approved by ordinance of the governing body of a municipality.

The redevelopment agreement must include a timeline for redevelopment.

All redevelopment work conducted by the applicant must be done in compliance with Missouri fair labor and wage laws.

The tax credits are considered redevelopment tax credits under state law, requiring an applicant to furnish financial information as well as project cost and completion date.

These are small but welcome improvements to the bill. However, the only ones that alter the state’s expectations of an applicant are those relating to redevelopment timelines. These stipulations encourage actual development planning and construction, two aspects not previously part of the proposal. The two stipulations relating to municipal fines and bills are important on principle, but are of minor consequence to the nature of land assemblage rewarded by DALATCA.

The version of DALATCA headed to Governor Blunt’s desk may require McKee to make his project better, but it won’t enable other people to start new ones. DALATCA remains a gilded albatross designed for one project. The governor should veto the omnibus, but that seems unlikely. Still, the scrutiny that the tax credit act invited may lead to future amendment or scrapping of DALATCA and enactment of a tool of wide and true use to distressed areas in Missouri. After all, most legislators probably weren’t thinking about the scale, form and nature of development before this tax credit act came along. They will take some time to learn the lesson that DALATCA is a huge mistake.

Full text of HB1 is available here; DALATCA is section 99.1205.

Categories
Media North St. Louis Northside Regeneration

McLaughlin Profiles People Affected by McKee’s Plans

In this week’s Riverfront Times, Kathleen McLaughlin has a story on the impact of Paul McKee’s plans for the near north side on its residents and on other developers. In particular, McLaughlin turns up some interesting tales of McKee’s purchase methods and how people feel about selling.

Read it here: “Arrested Development”