ST. LOUIS — The developer behind the Midtown mixed-use project City Foundry is seeking to update its tax increment financing agreement following changes to the project's later phases.
The developer, New + Found, is asking the city of St. Louis' TIF Commission to update the plan to allow for a residential component, 92 additional parking spots and less office space. The current TIF plan calls for a 100,000-square-foot office building that New + Found wants to replace with a 282-unit apartment development. The update would not change the TIF amount of $17.25 million.
The estimated project phase cost is expected to grow from $97.1 million to $138.5 million. But under the current agreement, the percentage of total project costs to be paid by the TIF would decrease from the original 17.7% to 12.5%, Steve Smith, CEO of New + Found, told the TIF Commission on Wednesday.
City Foundry is moving forward with a residential component thanks in part to new investment from an opportunity zone fund, a federal program meant to spur investment in low-income areas through breaks on capital gains for investors.
During Wednesday's meeting, Smith faced criticism from Commissioner Christina Bennett, who lambasted developers' ability to find more investors while being granted the same TIF amount.
"We're seeing private developers and investors getting returns while city residents are getting 23 years on the hook," said Bennett, referencing the TIF's time period. "We have no teeth in this structure."
Smith, meanwhile, countered by saying having a TIF makes his project more enticing in attracting investors.
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