The Gateway South redevelopment project in St. Louis secured essential funding last month to commence renovations.
The Land Clearance for Redevelopment Authority (LCRA) board approved bonds for sales tax exemptions on construction materials for the $1.2 billion project, which aims to transform the area just south of the Gateway Arch into a vibrant mixed-use district. Additionally, a dual-branded hotel project in Midtown has also received funding.
Gateway South, a multiphase development, will create a mixed-use district featuring residential, office, and industrial spaces.
Good Developments Group
The New York-based developer, Good Developments Group, is spearheading this ambitious project, which will cover over 95 acres in an area known as Chouteau’s Landing.
The first phase will focus on rehabilitating the Crunden-Martin buildings, a series of historic factory structures that will become the heart of the construction innovation district.
Economic Opportunity
The LCRA will issue up to $155 million in bonds for sales tax exemptions on construction materials for the first phase, as confirmed by Neal Richardson, Chairman, President & CEO of the St. Louis Development Corporation (SLDC).
The Gateway South project is expected to create approximately 1,200 full-time jobs with average wages around $63,000, significantly boosting the local economy.
Richardson spoke to Newsweek about the project. “These jobs are entry-level, low-skilled positions that provide a pathway for economic mobility for our youth, the unemployed, and underemployed individuals.”
Good Developments Group
The project also addresses housing affordability amidst rising construction costs and supply chain challenges. By focusing on manufactured housing, Gateway South aims to lower the cost of construction and average home values.
“It creates economic opportunities for individuals to learn new skills and earn wages that allow them to afford these homes,” Richardson added.
Incentives and Funding
The project has already secured various incentives, including tax abatement and Brownfield credits, to assist with environmental remediation.
The LCRA also approved up to $126 million in bonds for sales tax exemptions on construction materials for Midas Hospitality’s hotel projects at Jefferson Avenue and Market Street.
Good Developments Group
Richardson explained the rationale behind the tax incentives and bonds: “We provided a 15-year tax abatement at 90 percent of the assessed value for the first five years, 75 percent for the next five years, and 50 percent for the last five years. This stepped-down approach mitigates risk and ensures investment adds value to our economy and tax base.”
Integration and Community Development
The development team is exploring ways to integrate the project into the community through workforce development opportunities and other initiatives.
The Gateway South project aligns with the city’s broader strategic goals for urban development, as outlined in the SLDC’s economic justice action plan launched in partnership with Mayor Tishaura Jones in 2022.
This plan focuses on strengthening neighborhoods, closing the wealth gap, improving health and educational outcomes, increasing the tax base, and growing the city’s population.
Richardson highlighted the project’s alignment with these goals: “Gateway South embodies our objectives by revitalizing an industrial legacy area, creating jobs for marginalized communities, and driving economic growth. It’s a significant opportunity for St. Louis to become a premier manufacturing hub.”
Future Phases and Challenges
The Gateway South project will unfold over a decade, with each phase contributing to the development of a vibrant mixed-use district. Future phases will include additional industrial, office, lifestyle, and retail spaces.
One significant challenge is addressing environmental issues in the historic manufacturing area.
The state and local levels are focusing on driving Brownfield tax credits and remediation funds to support site cleanup. Richardson noted, “Ensuring a clean site is crucial for the project’s success and positive environmental impact.”
Additionally, workforce opportunities must be coordinated with local schools, trades, and unions.
The SLDC recently acquired a former manufacturing facility to train individuals in advanced manufacturing, including fabricated housing. “Aligning public sector, private sector, and educational institutions is essential to address challenges and provide opportunities for our youth and underemployed,” said Richardson.
With its comprehensive approach, the Gateway South project aims to revitalize St. Louis, creating economic and social benefits for the community while contributing to the city’s strategic goals.
Richardson told Newsweek that: “St. Louis is on the rise, and we have a chance to be the Premier manufacturing hub for the for the world. And we have to continue to invest in these types of projects like the Gateway.”
Do you have a story we should be covering? Do you have any questions about this story? Contact LiveNews@newsweek.com
Uncommon Knowledge
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.