• Publications
    • Essay
    • Case Study
    • Policy Study
    • Report
    • Testimony
    • Other
    • Newsletter
  • Blog
    • Daily Blog
    • Podcasts and Radio
    • Video
    • Infographics
    • Commentary / Op-Eds
    • Events
  • Events
  • Donate
  • About
    • Our Team
    • Show-Me Institute Board of Directors
    • Fellows and Scholars
    • Our Authors
    • Jobs
  • Contact
  • Explore Topics
    • Education
      • Accountability
      • Education Finance
      • Performance
      • School Choice
    • Health Care
      • Free-Market Reform
      • Medicaid
    • Corporate Welfare
      • Special Taxing Districts
      • Subsidies
      • Tax Credits
    • Labor
      • Government Unions
      • Public Pensions
    • State and Local Government
      • Budget and Spending
      • Courts
      • Criminal Justice
      • Municipal Policy
      • Property Rights
      • Transparency
      • Transportation
    • Economy
      • Business Climate
      • Energy
      • Minimum Wage
      • Privatization
      • Regulation
      • Taxes
      • Welfare
      • Workforce
Show Me InstituteShow Me Institute
Show Me InstituteShow Me Institute
Support the Show-Me Institute
  • Publications
    • Essay
    • Case Study
    • Policy Study
    • Report
    • Testimony
    • Other
    • Newsletter
  • Blog
    • Daily Blog
    • Podcasts and Radio
    • Video
    • Infographics
    • Commentary / Op-Eds
    • Events
  • Events
  • Donate
  • About
    • Our Team
    • Show-Me Institute Board of Directors
    • Fellows and Scholars
    • Our Authors
    • Jobs
  • Contact
  • Explore Topics
    • Education
      • Accountability
      • Education Finance
      • Performance
      • School Choice
    • Health Care
      • Free-Market Reform
      • Medicaid
    • Corporate Welfare
      • Special Taxing Districts
      • Subsidies
      • Tax Credits
    • Labor
      • Government Unions
      • Public Pensions
    • State and Local Government
      • Budget and Spending
      • Courts
      • Criminal Justice
      • Municipal Policy
      • Property Rights
      • Transparency
      • Transportation
    • Economy
      • Business Climate
      • Energy
      • Minimum Wage
      • Privatization
      • Regulation
      • Taxes
      • Welfare
      • Workforce
Corporate Welfare

Fixing the “Delmar Divide” with a TIF?

By Corianna Baier on Nov 9, 2020
Delmar Loop
chettarin / Shutterstock

Developers are asking for millions in tax subsidies for a redevelopment project with the hopes of fixing St. Louis’s “Delmar Divide” between the Central West End and the low-income neighborhoods north of Delmar Boulevard. I work (and wrote this piece) not far from the proposed project area, and I’ll admit, it could use a facelift. But not one funded by tax dollars. Is throwing tax dollars and special perks to developers really the way to bridge this gap between a high- and low-income area?

The Kingsway Commercial Tax Increment Redevelopment Plan involves developing multiple projects where the Central West End meets Delmar Boulevard. But perhaps more importantly, a big chunk of funding for these projects would come via a tax-increment financing (TIF) district that would raise $6.2 million. This project will also be financed by a mixture of state and federal tax credits. There are additional plans to create a community improvement district (adding to Missouri’s growing special taxing district problem).

These economic development tools would help to finance this project at the expense of taxpayers; they give developers cash, reduce their tax burdens, and could increase sales taxes in the area. North of the “Delmar Divide” is generally a low-income area, so should we really be redistributing tax dollars from low-income residents to developers instead of using these dollars for public services? Especially when other publicly funded ventures like the Cerner headquarters in Kansas City or the Loop Trolley right down the street from this project haven’t delivered on their promises?

While I’m sure most can appreciate the “bridging the gap” intention of this project, TIF is a flawed economic development tool that often gives no benefit to taxpayers. TIF requires that an area be blighted (for which Missouri has a very broad definition), and that the development would not happen without the public funding. With the thriving Central West End neighborhood just steps from this development, it’s hard to believe that development in this area would not occur without millions of public dollars. Moreover, even if this area were blighted, does it really need these perks for the next 23 years? Is diverting tax dollars to a private development project really the best way to develop this area of St. Louis?

  • Share
  • Tweet
  • Share
  • Email
  • Print
About the author

Corianna Baier

More about this author >
    Footer Logo
    Support the Show-Me-Institute
    Showmeinstitute.org is brought to you by Show-Me Institute and Show-Me Opportunity.
    • Publications
    • Blog
    • Events
    • Donate
    • About
    • Contact

    Reprint permission for Show-Me Institute publications and commentaries is hereby granted, provided that proper credit is given to the author. We request, but do not require, that those who reprint our material notify us of publication for our records: [email protected]

    Mission Statement
    Advancing liberty with responsibility by promoting market solutions for Missouri public policy.

    © Copyright 2023 All Rights Reserved