JEFFERSON CITY - Developer Paul McKee is the only person to have ever used a state program to cover the cost of buying up land in poor urban neighborhoods. And if the state commission studying Missouri's tax credit system has its way, he will be the only person who ever will.
The , meeting today in Jefferson City, voted almost unanimously to abolish the Distressed Areas Land Assemblage tax credit, the $90 million program created in 2007 to pay back developers for assembling lots of parcels of land in tough-to-develop neighborhoods. At the time, the program was widely criticized as being designed solely for McKee's benefit, and his NorthSide Regeneration LLC is so far the only company to have applied for the credts - it received $19.6 million last year.
Now the Commission, which is devising recommendations for Gov. Jay Nixon, wants to shut the door behind him.
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"I'd like to see this terminated as a concept, and not renewed," said Craig Van Matre, a development attorney who sits on the Commission.
"This program needs to go away," said co-chairman Chuck Gross.
Their decision likely won't affect McKee - even if the Commission's recommendations become law they likely won't affect ongoing projects. But it would prevent anyone else who might qualify for the program from receiving credits. And, depending on how proposals wind up, they could prevent him from collecting credits after the program's 2013 sunset.
The lone vote in favor of keeping the Distressed Areas Assemblage Tax Credit came from State Sen. Robin Wright-Jones, whose 51ºÚÁÏ district includes all of McKee's redevelopment zone. She urged commissioners to separate the man, McKee, from the credit. It still has a place in redeveloping places like north St. Louis, she said.
"We can clean (this program up)," she said. "But to cut it completely, I think that's a step backwards."
The Commission also recommended capping Brownfields Remediation Tax Credits, which pay to help clean up polluted land and buildings, at $25 million a year. That's the average usage over the last three years.
Commissioners also voted, narrowly, to recommend ending the Rebuilding Communities Tax Credit. That program reimburses companies that buy equipment and add employees in low-income areas. It has been used by a number of high-tech companies to expand in downtown 51ºÚÁÏ, but only sparingly. About $2 million a year has been spent on it in recent years.
The Commission is continuing to meet Tuesday afternoon, and will resume Wednesday to discuss changes to the state's biggest program: Historic tax credits.
Stay tuned for more updates.
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