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City revokes building permits for troubled Paul McKee project in north St. Louis

The site on North Jefferson Ave. is now considered abandoned after "no signs of any activity" in six months.

ST. LOUIS — UPDATE: The design builder for the project pushed back Wednesday on the claim the site has been abandoned.

In a letter to the City of St. Louis, KAI Enterprises wrote an unauthorized source reported the project as abandoned, but its plans to move forward with the project are "firmly in place."

The letter states construction should resume by June 1, 2019.

KAI Chairman Michael Kennedy, Jr. explained part of the delay is due to the government shutdown earlier this year.

He wrote that they have been waiting for New Market Tax Credits to be issued to more than 78 entities across the U.S., but that their expected issuance in January got delayed because of the shutdown.

The tax credits, according to Kennedy, are now expected to be issued in late April or early May. Otherwise, Kennedy wrote that his understanding is "all funding is in place."

He wants the city to re-issue the building permits "as a matter of urgency to avoid further delays in commencement of this vital project."

A medical complex planned for a severely undeserved portion of north St. Louis that's faced serious difficulties in getting off the ground is now dealing with even more trouble.

On Wednesday, the city's building commissioner confirmed to 5 On Your Side that all building permits have been revoked for controversial developer Paul McKee's urgent care facility on North Jefferson Ave.

The development was first reported by 5 On Your Side's broadcast media partner St. Louis Public Radio.

Building Commissioner Frank Oswald said the permits were taken back because there's been no activity on the construction site in six months.

READ MORE: This Paul McKee project in north St. Louis literally can't get off the ground

Oswald said it was a fairly unusual situation given McKee paid nearly $30,000 for the permits that were first issued in late summer 2018.

McKee has the opportunity to send a letter to the city asking for the permits to be re-issued, according to Oswald.

If the city decides to do that, Oswald said it's probable McKee would not have to pay for them again.

In December, 5 On Your Side Investigative Reporter Jacob Long exposed just how little work was happening on the project.

The few walls that had been put up were easily toppled over by strong winds. And according to neighbors, they haven't been touched since.

That's despite the fact that a McKee spokeswoman told 5 On Your Side crews would be back out to make repairs.

According to 5 On Your Side's archives, people in north St. Louis have been waiting at least four years for a new urgent care facility near Jefferson and Thomas.

It was originally intended to be the first phase of a larger, multi-million dollar medical and commercial complex pitched by controversial developer Paul McKee.

He even got more than $6 million in financial incentives from the city in a unanimous vote in 2017.

Fifth Ward Committeeman Rasheen Aldridge previously said health care and medical services are a critical need for the north side and that people have been looking forward to the facility opening.

"If any part of the community needs a medical campus, it would be this part. North of Delmar," he said.

But with continued setbacks, there's concern, Aldridge said, about the project's future.

RELATED: Pastor says falling bricks on Paul McKee property endanger churchgoers

A sign outside the project site claims the urgent care will open in spring 2019. 

McKee's spokeswoman previously declined to comment if that was still the target date. 5 On Your Side has reached out to her again for comment regarding the permits, but hasn't heard back.

Paul McKee certainly has a complicated history with St. Louis.

For about a decade, he essentially promised to transform and redevelop 1,500 acres of north St. Louis.

The city even kicked in nearly $400 million in tax credits. But as of 2018, the two sides are parting ways.

The city believes McKee is in default of their redevelopment agreement after developing next to nothing.

Residents have long complained about McKee's blighted properties for catching fire, attracting crime and hurting the neighborhood's reputation.

In addition, the city accuses him of:

  • Failure to pay real estate taxes
  • Failure to demolish more than 100 buildings beyond repair
  • More than 200 buildings with code violations

The state is also suing McKee for tax credit fraud.

READ MORE: Missouri sues developer Paul McKee

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