Category: Missouri Legislature

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Mass Transit Missouri Legislature Transportation

Legislature Gives Metro $12 Million

by Michael R. Allen

The St. Louis Beacon reports that the legislature passed a stimulus bill that contains $12 million for Metro (actually still named the Bi-State Development Agency but doing business as Metro). This is a one-time payment, of course, and short of the $20 million that Metro estimates it needs to restore all service cuts made in March.

Governor Jay Nixon, often silent on state-funded programs that support St. Louis, actually has expressed support for Metro. However, the $12 million request came from Lt. Governor Peter Kinder, not Nixon. If the governor signs the bill, Metro will be able to restore Call-a-Ride and some bus routes — for one year.

Realistically, the stimulus money is a small stop-gap. What is needed is a regional taxing district. Senator Robin Wright-Jones introduced a bill in this legislative session to allow such a district to be created, but the bill remains on the Senate’s informal calender.

No matter what the fate of the stimulus funding or Wright-Jones’ bill, Metro has a lot of work to do right now to build a strong case for its support. The longer the agency waits to start building public support, the longer people are stuck without transportation — and the longer cities that have regional investment in transportation will surpass our ability to attract new residents and jobs. We can’t have a hand-to-mouth transit system if St. Louis is going to be a competitive American city.

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Historic Preservation Missouri Legislature Public Policy

Governor Nixon Speaks on Historic Tax Credits

by Michael R. Allen

Today, Democratic Governor Jay Nixon visited the Missouri House of Representatives today where he voiced support for a “soft cap” on historic rehab tax credits that would apply to larger projects. We were wondering what Nixon thought about the future of the state’s best tax credit program.

Anyone who wonders what Republican Lieutenant Governor Peter Kinder has to say about historic rehab tax credits can check out a new video on the reborn Pub Def posted this morning. The video features interview footage with Kinder, Senator Jeff Smith, Amy Gill and Eric Friedman on the struggle to retain the historic tax credits.

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Historic Preservation Missouri Legislature Public Policy

Capping the Missouri Historic Rehab Tax Credit Would Benefit Wealthy Developers

by Michael R. Allen

My latest commentary for KWMU is online here.

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Historic Preservation Missouri Legislature Public Policy

After Late Night, Missouri Senate Still Hasn’t Passed Economic Development Bill

by Michael R. Allen

While debate went until well after 3:00 a.m. in the Missouri Senate this morning, the chamber did not pass an economic development bill that included a $75 million cap on the state’s historic rehabilitation tax credit program. Senator Jeff Smith (D-4th) deserves a lot of credit for his strong advocacy for the credits. Smith is a master of using an inquiry to block negative changes to the program, and his spirited efforts are helping grow support for the credit in the Senate.

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Historic Preservation Illinois Metro East Missouri Legislature Public Policy

Illinois Legislation Would Enact Historic Tax Credit Modeled on Missouri’s

by Michael R. Allen

Rick Bonasch at STL Rising wrote a post today asking for more information on a proposed state historic rehabilitation tax credit in Illinois.

Representative Jay Hoffman (D-Collinsville) filed HB 469 on February 4, Representative Greg Harris (D-Chicago) filed HB 586 on February 6 and Senator Dan Kotoski (D-Park Ridge) filed SB 1366 on February 10. The similar bills would enact a state historic rehabilitation tax credit modeled on Missouri’s tax credit. All bills have had a first reading and remain in committee.

While Missouri inexplicably debates the future of its model tax credit, other states are looking at copying ours. What a strange reversal of regional dynamics if Illinois had an uncapped historic rehab tax credit and Missouri did not. The tax credit would be a boon to Alton, Belleville, Granite City and other east side communities that are interested in downtown revitalization.

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Historic Preservation Missouri Legislature Public Policy

Missouri House Speaker Won’t Accept Historic Tax Credit Cap Under $150 Million

by Michael R. Allen

According to the Post-Dispatch, Missouri House Speaker Ron Richard (R) won’t accept a cap on the historic rehabilitation tax credits less than $150 million. That’s great news. As Democratic Governor Jay Nixon maintains his silence, we have a prominent Republican come forward with some support for one of the state’s most effective and democratically available economic development tools. Former Governor Matt Blunt (R) was a strong supporter of the historic tax credit, as is Lieutenant Governor Peter Kinder (R). While the attack on the program is coming mainly from Republicans using typical conservative anti-city rhetoric, other prominent conservative Republicans support the program (and, admittedly, some others of dubious utility).

While a $150 million cap could still cause a competitive environment in which big developers will have an advantage over homeowners, it’s a better stance than silence. State Senator Jeff Smith (D) has raised the stakes by calling for a cap no less than $170 million, the amount of credits issued in 2008, and Speaker Richard says that there is room to negotiate with his figure and Smith’s. That is an encouraging dialogue, although the need for any cap has not been adequately justified by its proponents, whose arguments are more arguments against the historic tax credit itself.

Speaker Richard told reporters that “I will have the last word on tax credits.” I wish that were true, but the last word comes at the desk of the governor when he decides whether to veto or approve an economic development bill sent to him by the legislature. What will the last word on historic tax credits be? Nixon has provided few clues.

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Historic Preservation Missouri Legislature Public Policy

Missouri Senate Now Considering $100 Million Cap on Historic Tax Credits

by Michael R. Allen

Yesterday, the Missouri State Senate took a few steps toward passage of the Quality Jobs bill favored by Governor Jay Nixon. The new version of the bill, which stalled but indicates the direction the Senate is heading, includes a $100 million cap on the state’s historic rehabilitation tax credit, an amount $70 million less than the figure for credits issued in 2008.

Floor debate lasted until well after 11:00 p.m., with several amendments offered. Two good amendments adopted were one by Sen. John Griesheimer (R) to remove language that would subject tax credits to appropriation by the General Assembly and another offered by Sen. Brad Lager (R) to remove prohibitions on layering different tax credits. Lager had written that prohibition but offered the removal as a compromise.

Lager, one of the most ardent opponents of the historic rehabilitation tax credit, stated yesterday that $100 million was the highest cap on the historic tax credits that he would accept.

Keep calling and writing your senators, representatives and governor. Governor Nixon has yet to make any promise to support the historic tax credit. Nixon’s influence could prevent a cap from being included in the final version of the bill.

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Historic Preservation Missouri Missouri Legislature Public Policy

Small Town Missouri Needs the Historic Tax Credit

by Michael R. Allen

The last time that I drove back from Jefferson City on Highway 94, I snapped this photograph of a historic store building in Tebbetts, Missouri. Who wants to be that this building will still be standing in ten years if Missouri greatly caps the state historic rehabilitation tax credit?

The real reason that Missouri senators should oppose the cap on historic tax credits proposed by Senator Brad Lager (R) is not because St. Louis’ “tall hogs” are hungry. The reason is because small towns across this state have only started figuring out how to use the tax credit to save their heritage and bring economic development to Main Street. In the past five years there has been a spate of tax credit activity outside of St. Louis and Kansas City. It’s not nearly as much as the activity in those big cities, but it will never grow if the credit is capped.

If the credit is capped, and the credit run through an appropriations process, issuance of the credit will become a political process. Currently, all one needs is a completed project and the right forms filled out — do the work, get the credit. A cap and appropriation will benefit the big developers who can afford to gain influence and work at getting credits full time. The Lager cap would end up benefiting those who are already good at using the credit (big cities) and stunt the growth of tax credit activity in small towns across Missouri.

I am a St. Louisan who knows this building in Tebbetts needs the historic tax credit just as much as the Mullanphy Emigrant Home, or houses in Benton Park. We can’t write off the rest of the state. Ironically, Lager’s proposal might do just that. Rural areas are always at a disadvantage when it comes to economic development. The historic tax credit is the antidote, and with time and training — would Lager support a state-funded tax credit training program? — the small towns will use this credit to remake themselves. All of the Lager changes work against small towns trying to survive, and play right into the hands of politically-connected developers.

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Missouri Legislature Public Policy

Senator Lager Introduces $75 Million Cap on Missouri Historic Rehab Tax Credit

by Michael R. Allen

At around 4:30 p.m., Senator Brad Lager (R) introduced a substitute to SB 45 that would cap the Missouri historic rehab tax credit at $75 million. Floor debate is proceeding with Senators Jeff Smith and Rita Days on the floor now speaking about the success of the program.

UPDATE at 5:50 p.m.: The Senate has moved on to the education bill. The majority pulled SB 45 from further consideration.

Listen to floor debate here here.

Categories
DALATC Missouri Legislature Public Policy

Anti-Historic Tax Credit Gang Lacking Consistent Records

by Michael R. Allen

Here’s what some Missouri state senators are saying about the successful state historic rehabilitation tax credit that they are trying to destroy (the Senate will take up one proposal today):

“Tall hogs don’t like to move off the trough. This process will move the tall hogs off the trough.” –Senator Matt Bartle (R) quoted in the Columbia Tribune (March 12, 2009)

“Why is it that tax credits only benefit big businesses when most Missourians work for small businesses?” –Senator Jason Crowell (R) quoted in the Kansas City Star (March 24, 2009)

Do they think we have short memories in Missouri?

The economic development bill (SB1) passed during the special session of the Missouri General Assembly in August 2007 contained many provisions. One of the most publicized new tax credit programs created by that bill was the Distressed Areas Land Assemblage Tax Credit (DALATC), a $95 million program with annual appropriations of no more than $12.5 million. DALATC is available to developers in economically depressed areas of the state who are assembling projects of more than 75 acres — i.e., big developers. The credit can be issued before development has started, and in fact contains few provisions to guarantee development would occur. The DALATC idea isn’t bad but the version that passed is weak public policy.

Senator Frank Barnitz (D) proposed an amendment to eliminate DALATC from HB1, and his amendment failed 8-25. Those supporting the amendment were Senators Barnitz, Maida Coleman (D), Joan Bray (D), Wes Shoemeyer (D), Chuck Purgason (R), Brad Lager (R), Matt Bartle (R) and Yvonne Wilson (D). All other Senators voted to retain the new program with an annual cost to the state of at least $12.5 million and provisions that all but state that the program would only benefit the city of St. Louis.

Among those who voted against removing this section were Senator Luann Ridgeway (R) and Sen. Jason Crowell (R), who are leading the current charge against the state historic rehabilitation tax credit along with their more consistent colleagues Lager, Bartle and Purgason. When Ridgeway and Crowell lecture us on the historic tax credit costing too much, benefiting the big cities and not producing enough economic return they aren’t explaining why less than two years ago they voted to create a new development tax credit with no guarantee for job creation that probably will be used exclusively in St. Louis and Kansas City.

When the final vote on HB 1 was taken, Bartle was the only member of the current gang pushing to cut the state historic rehab tax credit who voted “nay.” A lot of “tall hogs” were served up a big meal by HB 1, and Crowell, Purgason, Crowell, Ridgeway and Lager helped feed them. These senators voted in favor of a bill that dramatically increased the cost of tax credit programs to the state. Now they want us to forget that?