New Apartments Pitched for Kingshighway and I-64 Seek Big Tax Break

Earlier this year, a nonprofit research center determined that in just the past six years, the tax breaks given to developers have cost St. Louis city and county public schools more than $260 million. While the tax increment financing, or TIF, districts granted by the city have become less common in recent years, many developers have shifted to tax abatements instead.

NorthPoint Development, a Kansas City-based commercial real estate developer, recently applied to the St. Louis Development Corporation for tax abatement on a property halfway between Barnes-Jewish Hospital and the Grove district. According to city records, the abatement request is for 20 years, at 90 percent abatement for the first 10 years, and 50 percent in years 11 through 20.

The developer plans for a modern-style complex with apartment unit options ranging from studios to two bedrooms at the infamous block of 1070-1092 South Kingshighway Boulevard and 4575 Oakland Avenue, where dust still settles on what many city residents consider an egregious case of demolition by neglect .

Asked about their plans for the site, a spokesperson for NorthPoint Development said in a statement, “In alignment with city regulations and our commitment to safety, we secured an emergency demolition permit and began demolition of the condemned buildings on the site last month. We are currently working through the development approval process with the City of St. Louis and Forest Park Southeast as we work towards our goal of constructing a multi-family community.”

The Riverfront Times requested a follow-up interview to further discuss the development, but did not hear back from NorthPoint Development.

In order to obtain information regarding developer proposals, a citizen must submit a Sunshine Request through the public records center on the city website.The city has not updated its publicly available data set of tax abated parcels since 2018. Gadfly Gerry Connolly, who closely tracks development issues, sought and obtained the records in this case and shared them with the RFT.

A Developer Portal exists for developers to apply for tax incentives and track the incentives process, but the public does not have access to a similar portal.

The proposed tax break faces a four to six week approval process. First, the Land Clearance for Redevelopment Authority will review the project for initial approval of a blighting study and redevelopment plan. If approved by the LCRA, someone on the Board of Aldermen could introduce a board bill at the aldermanic session that begins on April 17.

The goal of tax abatements is to incentivize development in blighted or severely underdeveloped areas.

According to the Economic Justice Action Plan , the city’s economic development guide, the area near the intersection of Kingshighway and I-64 is categorized so that future development “should be geared toward supporting workforce development, small business development and encouraging affordable housing.”

The developer has not stated how they plan to directly address the need for affordable housing in the area. According to 2020 census data , the Forest Park Southeast neighborhood increased in population by 19 percent since 2010, but suffered a 33 percent decrease in Black population.

NorthPoint will host its next Apartments Community Engagement Meeting with an open house on Saturday, April 20, from 10 a.m. to noon at Saint Louis University High School’s Currigan Room, 4970 Oakland Avenue.