“If you’re spending somebody else’s money, who wouldn’t like that? Right?” said state Sen. Brad Lager(R)

https://www.stlbeacon.org/#!/content/31667/downtown_historic_tax_credit_part_one

 

As is the case for Mr. Loesch, rehabilitating this historic structure into mixed-use commercial and residential uses was unusual and extraordinary costs made the project financially unfeasible in the market.

Free market works but it can be a bitch sometimes.

Gov.  Piece Of Shit (Matt Blunt) Announces Brownfield Tax Credit (AKA Government Cheese) for Mr. Loesch

 

Update: from epa.gov

NOTE: The Federal Brownfields Tax Incentive sunset on December 31, 2011. Congress has not renewed the Brownfields Tax Incentive. Therefore, the tax incentive cannot be claimed for tax years beyond 2011.

A $9.8 million commercial and residential project in south St. Louis has received about $4.4 million in federal and state historic tax credits, tax increment financing from the city and brownfield redevelopment credits.  Chris Loesch and Doug Firley — who head Soulard-based Shock City Studios LLC, Shock City Records LLC and Shock City Music Works LLC — are rehabilitated a 40,000-square-foot building at 2200 Gravois Avenue.

(see St. Louis City Ordinance 67472 and ORDINANCE #67236

 here > http://www.slpl.lib.mo.us/cco/ords/data/ord7472.htm

here > http://dynamic.stlouis-mo.gov/Document/City-Journal-2001-2010/90_12_b.pdf and

 http://dynamic.stlouis-mo.gov/Document/City-Journal-2001-2010/89_35_b.pdf

Learn  what Brownfield is: http://www.epa.gov/brownfields/tax/ 

 

The Missouri Historic Tax Credit is responsible for

  • 43,000 jobs, more jobs than have been created by any other economic development tool in the state’s history
  • $1 billion boost to Missouri’s economy every year
  • Revenue 1.5 times its cost . . . for every $1 issued through the credit $1.50 is returned in state and local taxes, and is therefore a net benefit to the state
  • Critical revitalization of formerly unproductive downtowns in both urban and rural communities. As a result, it provides a major increase to the state tax base
  • A more stable source of school funding through increased local property taxes
  • the only widespread economic development tool that the state has to offer

 

Government can’t always create jobs. But it can create job-creators such as Mr. Loesch. Today, Shock City Studios employs dozens of people.  

According to cherokee street news, Mr. Chris Loesch’s 2200 GRAVOIS, L.L.C, the developer of The Polar Wave Ice Building at 2200 Gravois,  has helped in creating a neighborhood asset that attracts vibrant new businesses and people to Benton Park. The Polar Wave Ice Building, a historic structure – on the verge of collapse- was preserved through Historic tax credits.  It cost more than $900 million to rehab the structure, a price tag off-set by assistance that included $280 thousand in brownfield remediation for lead and asbestos abatement; $1 million in Tax Increment Financing (TIF) from St. Louis; and state and federal historic tax credits that will provide for about 45% of the build-out costs.

ANTICIPATED SOURCES AND USES OF FUNDS
USES (excluding Developer Fees)
Acquisition $572,000
Construction Costs $5,715,500
Construction Contingency $560,000
Architectural Fee $345,153
Engineering Fee $100,000
Survey $2,500
Property Appraisal $6,000
Historic Certification $4,000
Environmental Report $4,000
Reimbursable Expenses $15,000
Soft Cost Contingency $145,403
Acquisition Legal Fee $10,000
Tax Credit Legal Fee $25,000
TIF Legal Fee $15,000
Construction Loan Legal Fee $50,000
Accounting/Cost Certification $25,000
TIF Fees $30,000
Disbursement Fee $9,413
Other Closing Costs $7,500
Construction Period Interest $251,403
Construction Period Taxes $7,500
Construction Period Insurance $15,000
Permanent Loan Fee $12,500
TIF Loan Fee $4,675
Construction Loan Fee $55,000
TOTAL USES $7,987,547
SOURCES (term)
Owner Equity (permanent) $500,000
State Historic Tax Credit Bridge Loan (construction period) $1,815,931
Federal Historic Tax Credit Equity (construction period) $1,572,382
Construction Loan (construction period) $3,099,234
Tax Increment Financing (up to 23 years) $1,000,000
TOTAL SOURCES $7,987,547

You can see annual reporting of Tax Increment Financing for 2200 Gravois, LLC and many others here