$6.9M TIF on Delmar | What this Means for Fountain Park & Lewis Place
There are over 100 TIF districts in St. Louis with the most recent addition being the Kingsway Elevation District, approved this February by St. Louis's board of Alderman. The $6.9M TIF will be deployed across 5 phases of development totaling over $80M on the Delmar corridor that stretches across Euclid.
What is a TIF?
From StLouis-Mo.gov —
Tax Increment Financing is a development tool designed to help finance certain eligible improvements to property in designated redevelopment areas (TIF Districts) by utilizing the new, or incremental, tax revenues generated by the project after completion.
Under TIF, property taxes within the TIF District are frozen for up to 23 years, the property owners then make Payments in Lieu of Taxes (PILOTS) to a special allocation fund. Additionally, 50% of any new local Economic Activity Taxes (EATS), i.e. local sales taxes and earnings and payroll taxes are also paid into the special allocation fund. The proceeds of the special allocation fund are then used to reimburse the developer for eligible project costs or to retire indebtedness incurred to cover those costs.
The Kingsway Elevation District —
Information & Images from NEXTSTL.
Kingsway's TIF district application revealed a 5 building development, that will come to life over the next four years.
Kingsway's Development Plan has been split into 5 phases:
1. Redevelopment of the former bank and Vault Club at 4915 Delmar into the "Impact Performing Arts Center".
2. Rehab 4731 Delmar into the Elevation Space — "Elevation will provide an intellectually stimulating environment that will fuel the minds of both start-up entrepreneurs and experienced professionals seeking an innovative new work environment."
3. Redevelopment of 4701 Delmar into office space for an emerging business center. This phase also includes the construction of another performing arts theater.
4. The Bridge Apartments — 155 luxury units, 10,000 sf retail. The building will feature a pool, courtyard, roof-top patio and fitness center.
5. Construction of new medical office and clinic at 709 North Taylor.
The total amount of TIF requested is $6,177,900. The total cost of the development of these 5 projects will total $84.4 Million.
Kingsway has also incorporated $3M in streetscape improvements as part of their development plan.
The estimated completion date of all phases is 2025.