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Deal on City Foundry subsidies imminent after Jones pushed for north city investment

Developer New + Found had already received approval for $17 million in tax increment financing for the Midtown project
Credit: SLBJ
Retail space at City Foundry

ST. LOUIS — Officials with the City Foundry mixed-use project and St. Louis Mayor Tishaura Jones say they're close to a deal that would allow subsidy changes sought by the developer while also pumping money into north city.

Developer New + Found had already received approval for $17 million in tax increment financing for the Midtown project, which at the time called for a 100,000-square-foot office building. TIF allows developers to use the rise in tax revenues from property value growth to finance projects.

But earlier this year it decided to replace the office building with a 282-unit apartment development, and in March sought changes to its TIF agreement to reflect that shift. The request did not alter the amount of TIF requested.

The change was to be considered Wednesday by the city's TIF Commission, but was pulled from the agenda after Jones and Alderwoman Tina (Sweet-T) Pihl, who was elected in April to represent the district that includes City Foundry, indicated they wanted about 10% of the $17 million in TIF to go to a fund or other entity tasked with catalyzing investment on the north side, the St. Louis Post-Dispatch reported.

Steve Smith, CEO of New + Found, said in an email Thursday that the talks have been "positive and constructive."

He and a spokesman for Jones, Nick Dunne, said they'd have more to share on a deal, as early as next week.

Dunne did not provide specific details of the discussions, but confirmed that they included redirecting some investment into north city.

"We're in the final stages of an agreement," Dunne said.

Jones and Pihl took office promising new approaches to development incentives, and Jones made other early moves against subsidies. 

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