St. Louis Development Corporation: Economic Development Authority

The St. Louis Development Corporation (SLDC) serves as the City of St. Louis's primary economic development agency, coordinating financing tools, land disposition, and business attraction programs across the city's 65 square miles. This page covers the SLDC's statutory structure, the financing mechanisms it administers, the project types it most frequently supports, and the decision criteria that determine whether a proposed development qualifies for public assistance. Understanding the SLDC is essential for developers, property owners, neighborhood organizations, and civic stakeholders engaging with investment activity in the City of St. Louis.

Definition and scope

The St. Louis Development Corporation is a public development corporation established under Missouri statute and City of St. Louis ordinance to plan, coordinate, and implement economic development programs on behalf of the city. The SLDC operates as the administrative umbrella for four semi-autonomous development authorities:

  1. Land Clearance for Redevelopment Authority (LCRA) — executes urban renewal plans, acquires and clears blighted property, and conveys land to qualified redevelopers.
  2. Land Reutilization Authority (LRA) — holds and manages tax-delinquent and city-owned property, forming the functional backbone of the St. Louis Land Bank.
  3. St. Louis Industrial Development Authority (IDA) — issues tax-exempt industrial revenue bonds and provides financing assistance for commercial and industrial projects.
  4. St. Louis Development Corporation proper — provides administrative, planning, and program management services that connect applicants to the full range of city incentive tools.

Together these entities administer programs authorized under Missouri Revised Statutes Chapters 99 and 100, which govern urban redevelopment corporations, real property tax abatement, and industrial development financing (Missouri Revised Statutes, Chapter 99; Chapter 100).

Scope coverage and limitations: The SLDC's geographic jurisdiction is strictly the City of St. Louis. Because of the St. Louis city-county separation dating to 1876, the city operates as an independent municipality outside St. Louis County. The SLDC does not exercise authority over projects in St. Louis County municipalities, unincorporated county areas, or Illinois Metro East communities. Developers operating in St. Louis County must work through that county's separate economic development structures. Projects in East St. Louis, Belleville, or other Illinois jurisdictions are not covered by any SLDC program.

How it works

The SLDC functions as both a financial intermediary and a project facilitator. A developer or business seeking city assistance submits an application through the SLDC, which then routes the request to the appropriate authority or program based on project type, financing need, and site conditions.

The primary financing and incentive tools administered or coordinated by the SLDC include:

The SLDC also coordinates with the St. Louis Community Improvement Districts and St. Louis Special Taxing Districts where multi-tool financing packages are assembled for larger projects.

Common scenarios

Three project types account for the majority of SLDC activity:

Neighborhood commercial redevelopment: A developer acquires a vacant or blighted commercial building in an established neighborhood, applies for Chapter 353 abatement through the LCRA, and may layer a small TIF increment if the block meets blight criteria. The SLDC serves as the single point of contact coordinating the abatement designation, title review, and any LRA land disposition if city-owned parcels adjoin the site.

Industrial site reactivation: A manufacturing firm seeking to locate or expand within city limits applies to the IDA for an industrial revenue bond. IRBs have financed projects ranging from $500,000 equipment purchases to multi-million dollar facility constructions. The IDA issues bonds on behalf of the city but carries no repayment obligation on its own balance sheet — debt service is the borrower's responsibility, and the city's credit is not pledged.

Large mixed-use TIF district: For redevelopment projects exceeding $10 million, developers typically pursue a TIF designation covering a multi-block redevelopment area. The TIF Commission — a body with representation from affected taxing jurisdictions including St. Louis Public Schools — reviews the project plan before the St. Louis Board of Aldermen votes on ordinance approval.

Decision boundaries

The SLDC and its component authorities apply distinct eligibility thresholds that determine which tool applies to a given project. The central distinctions are:

TIF vs. Chapter 353 abatement: TIF is appropriate when a project generates measurable incremental tax revenue over a defined period, typically 23 years under Missouri law. Chapter 353 abatement is more commonly used for smaller rehabilitation projects where no new TIF revenue stream is realistic. TIF requires broader jurisdictional consent because it redirects revenues from St. Louis Public Schools and other overlapping taxing entities; 353 abatement does not require school district approval but caps abatement at statutory maximums.

LRA disposition vs. open market acquisition: Parcels held by the LRA — properties that completed a tax foreclosure process — are available for acquisition through the Land Bank at prices set by LRA policy rather than open market appraisal. This pathway is available only for city-owned inventory. Privately held property, even if adjacent to LRA parcels, must be acquired through negotiation or eminent domain.

Qualifying vs. non-qualifying land uses: IRBs are restricted to projects with a manufacturing, industrial, or specific commercial purpose under IRS regulations governing tax-exempt bond use (Internal Revenue Code §142). Purely residential projects do not qualify for IDA bond financing. Residential development may instead access Low Income Housing Tax Credit financing coordinated through the Missouri Housing Development Commission, which operates separately from the SLDC.

Projects seeking SLDC assistance that involve property in a National Register Historic District may additionally access Missouri's 25% Historic Preservation Tax Credit, administered by the Missouri State Historic Preservation Office (Missouri SHPO), which the SLDC commonly layers with city incentives to close financing gaps on adaptive reuse projects.

For a broader view of how SLDC activity fits within city governance structures, the St. Louis metropolitan area governance framework describes the relationships among city departments, quasi-governmental authorities, and regional bodies. The site's index provides a full directory of civic reference topics covering the St. Louis region's governmental structure.

References

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