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    The study should include an inventory of the amount of previous incentives granted by local government. It should also determine the degree to which the extensive use of incentives contributes to economic and racial disparities in the region.

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    East-West Gateway Board of Directors_Development Incentives Research Presentation

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    The study should include an inventory of the amount of previous incentives granted by local government. It should also determine the degree to which the extensive use of incentives contributes to economic and racial disparities in the region.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    24 views18 pages

    East-West Gateway Board of Directors - Development Incentives Research Presentation

    Uploaded by

    nextSTL.com
    The study should include an inventory of the amount of previous incentives granted by local government. It should also determine the degree to which the extensive use of incentives contributes to economic and racial disparities in the region.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 18

    Board of Directors

    East-West Gateway Council of Governments


    January 28, 2009
    …authorizethestafftoundertakeastudyoftheeffectivenessof local
    developmentincentivestohelpdeterminepotentialactionsbythe
    Board. Thestudyshouldincludeaninventoryoftheamountofprevious
    incentivesgrantedbylocalgovernmentandtheresultingeconomic
    activityfromtheprojectsfinancedthroughincentives. Thestudyshould
    alsodeterminetheeffectoflocaldevelopmentincentivesonthe abilityof
    localgovernmentstofinanceessentialpublicservicesandthedegreeto
    whichtheextensiveuseofincentivescontributestoeconomicandracial
    disparitiesintheregion.
     Acompleteinventoryoftheuseofdevelopmentincentives
     Anaccountingoflocalandregionaleconomiceffectsof
    incentives
     Anassessmentofthestateoflocalgovernmentfinancesand
    theeffectsofincentives
     Interviewswithexpertsandstakeholderstosolicitpolicy
    recommendations
     Conclusionsandlegislativerecommendations
     Includes:
     80%ofTIF/TDDetc.
     Regionaleconomicimpacts

     Doesnotyetinclude:
     Abatements
     Stateincentives
     Duringthelast15years,conservativelyestimated,$2.5
    billioninpublicmoneyhasbeencommittedtosupporting
    privatedevelopmentthroughTIFandtaxingdistricts
     80%ofpublicinvestmentsupportsretaildevelopment
     From1990to2007,theretailsectorgrewfromabout
    142,100to147,500,againofroughly5,400jobs
     Thistranslatesto$370,370inpublicmoneyperretailjob
    created
    Monroe$2,007,194 Jefferson
    Franklin $39,862,000
    Madison
    $12,448,695 $120,532,441

    St.Charles
    $251,228,102

    St.Louis
    St.Clair
    $864,523,668
    $347,898,516

    St.LouisCity
    $598,200,561
     Acrossallincentiveprogramstheprovisionsforuniform
    reportingofrevenues,expendituresandoutcomesarenonǦ
    existent,unenforcedorveryweak
     Nomeaningfulpenaltyforfailuretoreport
     Nolocalmechanismstorequireaprivateprojectsponsorto
    delivereconomicoutcomes
    Comparedto35metropolitancompetitors,
    St.Louisranked…
     25th injobgrowth,increaseof14%
     27th ingoodsǦproducing,adecreaseof16%
     25th inserviceǦproviding,anincreaseof23%
     31st inincomegrowth,anincreaseof1.7%
     34th ingrossregionalproduct,adecreaseof.8%
     Thereisademonstratedneedtoprovide
    developmentincentives
     Theregion’scompetitiveeconomicstandingremainsweak
     Thereisaclearpublicpurposeinaddressingactualblightand
    providingservicesinunderservedorhistoricareas
    Theinvestmentofcurrentandfuturetax
    dollarsinprivatedevelopmenthasbeen
    massive
     $2.5billionspentandcommittedsince1990
     Addingtaxabatements,stateprograms,couldaddbillions
    moretothetotal
    Identifiableregionaleconomicbenefitsof
    publicdevelopmentincentivesforretail
    developmentareminimal
     Mostincentivesarenotusedinareasofactualblight
     Mostincentives(approx.80%)areusedforretaildevelopments
     WhiledistrictsselfǦreportthecreationof32,000+jobs,netofonly
    5,400jobsretailjobswereactuallycreatedsince1990
     Regionaltaxablesalesarenotincreasing
    Salestaxeshaveaproblematicfuture;a
    regionaleconomicdevelopmentpolicybased
    defactoonretailsaleswillnotbesuccessful
     Salestaxreceiptsarenotincreasing
     Localspendingpercapitaisnotincreasing
     Highersalestaxrateswillsuppresslocalsalesanddrivehigher
    untaxedinternetsales
     Providingincentivestogrowretailsalesisaredistributive
    strategy,notastrategyforgrowth
    Reportingofrevenues,expenditures,and
    outcomesisseriouslydeficient
     Reportstostateagenciesarerequired,butnopenaltyfornonǦ
    reporting
     Onlyabout60Ǧ80%ofdistrictsreport
     Qualityofreportsishighlyvariable
    GoodlocalandregionaldecisionǦmaking
    requiresbetterinformation
     CompleteanalysisrequiredbyBoardresolution
     Datacollection
     Abatements
     Stateincentives
     DeterminelongǦtermimpactsonlocalgovernment
    finances
     Determineimpactsoneconomicandracialdisparities
     Draftmodellegislationrequiringmorecomplete
    andcentralizedrecordkeepinganddisclosureof
    costs,revenuesandoutcomesassociatedwith
    localdevelopmentincentives
     Draftmodelaccountabilitylegislationallowing
    localgovernmentstorecovercostswhen
    outcomesnotachieved

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