December 14, 2011

The Gateway City, The ‘Possibility City,’ And Hope For The Future

The guard is changing at Saint Louis’ regional chamber of commerce, the St. Louis Regional Chamber and Growth Association (RCGA).

Dick Fleming, the group’s longtime head, is stepping down from the organization he has helmed since 1994, and his replacement will come from a city just a short drive east on I-64: Louisville, Ky., also known as the “Gateway to the South.” Joe Reagan moves to Saint Louis from Louisville’s equivalent of the RCGA, the Greater Louisville Inc., or GLI. Marketed during Reagan’s tenure as “Possibility City,” Louisville will have to find a new chamber head for the first time since 2005. Louisville is already writing the postscript to Reagan’s legacy.

But the fact of the matter is that no man, or government, or organization, or even coalition of organizations, can plan an economy, or at least plan it well. That is an incredibly important point to highlight and probably the fairest thing that can be said as Reagan joins the Saint Louis community; it also is probably one of the most damaging points one can raise about how the RCGA and organizations like it behave.

Our local chamber loves to get the pat on the back for positive economic news and to pump “public-private partnerships,” oftentimes fueled with tax credits, that fail to substantively move the economic needle in the region’s favor. Meddling in the economy, local or national, destroys wealth more often than it creates it, leaving taxpayers with the promise of prosperity but little else. And it is no secret that Saint Louis city has languished for decades under one failed economic plan after another, compounded by the exodus of residents into nearby counties and driven by the continued intransigence of the city’s political class to step away from its cronyistic tendencies. In short, the economic development status quo is not a blueprint for a prosperous future for this region, and has not been for some time.

Which is why I hope that Reagan’s arrival in Saint Louis is not just more of the same. More precisely, I hope that Saint Louis — and Kansas City, and the state of Missouri — at least return to some sense of regional economic normalcy, if not runaway growth in the coming year. That is a Christmas wish of sorts, I suppose, but a wish that the RCGA, GLI, or any similar organization has limited or no power to bring to fruition.

Maybe a New Year’s resolution for the state and the city is in order instead: To simply let the market work. It does not matter if it is Saint Louis’ chamber hawking Aerotropolis, or Moberly’s chamber hawking Mamtek, or a political class increasingly disconnected from the electorate hawking Solyndra. There are no easy, centralized solutions to our economic woes. Acting like there is in Saint Louis only prolongs the municipal pain. Like all taxpayers, Saint Louisans cannot depend on a small group of decision-makers to make their lives better.

Free markets make genuine and sustainable economic growth possible, and if there is going to be a “Possibility City” in this region, let it be more than just another marketing slogan with another cartridge of development silver bullets as its driving force. Reduce taxes and regulation, get out of the way, and let the free market flourish. May RCGA’s new administration regain its faith in that formulation.

December 8, 2011

Ceux Subventionnes (The Subsidized Ones)

It is not our intention to be the Inspector Javert to the Jean Valjean of Winghaven, constantly chasing Paul McKee’s proposals around to criticize them like the fanatical French cop pursued the reformed Valjean. Nonetheless, bad proposals for Saint Louis keep coming from Paul McKee, and if it falls to us to keep saying “stop,” then so be it. (Thanks to johncombest.com for the link, and to Victor Hugo for the references.)

The latest proposal is to transfer the bottle district TIF (tax increment financing) from the original developers to the control of Mr. McKee and his entities. To be clear, McKee and his groups were not involved in the original TIF proposal, so we cannot pin all of this on him. However, unlike tax credits, the TIF law was not drafted with the intention of TIF being transferable. I do not think it is right for one stalled TIF proposal to just be assigned to someone else – and I do not care who that someone else is. (Note: I am not saying transfering the TIF is illegal, just improper.) At least some people in city government seem to be aware of this issue:

[Saint Louis Development Corporation Executive Director Rodney] Crim wouldn’t specify what, exactly, the city objects to. But he suggested officials have concerns about using TIF for one project to help fund another.

“My focus is on what can and cannot be done with the Bottle District TIF,” he said. “We just have some more talking to do.”

I think it is especially wrong to continue to subsidize property that at this very moment is being made more valuable because of major public improvements. Here is one description of the property:

Located just north of the Edward Jones Dome (home of the Rams) along Interstate-70, the site is one of the most desirable development locations left available Downtown. Once the new Mississippi Bridge is complete,  its location next to the bridge will make the site even more visible and accessible than it already is.

Former longtime New York Sen. George Washington Plunkitt would have fully understood developers seeing their opportunities and taking them, but even he would never have asked for the new land to be subsidized on top of it. If this land at the base of a major new bridge has to be subsidized, I guess we are at the point where we just admit everything gets a tax subsidy, unless, of course, you are just a small entrepreneur without political connections.

October 24, 2011

Risky Business

In 2006, Indiana leased its 157-mile toll road to private investors for a $3.8 billion lump sum payment. The lease would last for 75 years, and the money generated from the deal would fund pent-up transportation projects (which were estimated to cost $2.6 billion).

At the time, there was an incredible amount of blowback, with the deal barely squeaking through the legislature and facing court challenges.

“The whole thing stinks,” said Indiana State Rep. B. Patrick Bauer, then the House Democratic leader. The two companies, he said, “got a heck of an unbelievable deal. We got a bad deal.”

And now, Governing magazine reports that the companies that bought the lease may not be able to make payments related to the deal. The project lost more than $260 million last year.

More astonishingly, Indiana officials say that the terms of the deal mean that if the toll road project defaults or goes into bankruptcy, the companies that bought the toll road could either find new investors, or the toll road would be returned to the state, with Indiana keeping the $3.8 billion.

In this case, it appears that the Indiana government got a pretty good deal.

Compare the case above to the news that developers are asking Saint Louis County to issue $7 million more in debt to finance the NorthPark development. The NorthPark development was also launched in 2006, during the height of the real estate bubble.

From the St. Louis Post-Dispatch:

“The developers are not only seeking to refinance the mortgage, but they’re also upping the size of it by almost 50 percent,” said Brian Tournier, director of research with Ascent Investment Partners in Brentwood, which specializes in bond investments. “And the county, ultimately, will be on the hook.”

As business owners know, the reward for taking on risk is the possibility of making a profit. The risk of failure is why so many of us do not set out to build a better mousetrap, be it Pets.com, Myspace, or Zynga.

What is so shocking about the Indiana toll road case is that it was a situation where government allowed the private sector to take on risk — for a price. If the state really won’t be held financially responsible if the project continues to lose money, then the state managed to shift all of the risk associated with the project to the private companies that invested in it.

In the case of NorthPark, it looks like the county is getting ready to take on more risk. And why, exactly? NorthPark could stand to profit if the development is successful. But if it isn’t, the county could lose. Proponents may point to job or investment increase estimates. But those numbers frequently fail to materialize.

There is no better example of what can go wrong when government takes on risk than that of the fiasco in Harrisburg, Pa. The city took on $125 million in debt to rebuild and expand its incinerator, which it hoped would become a money-maker. Instead, the incinerator project is more than $288 million in debt. The city, bankrupt as a result, has to cancel Christmas (well, its annual Christmas parade).

When you hear elected officials talking breathlessly about taking risks for the promise of money or jobs, think about Harrisburg or Mamtek, right here in Moberly, Mo. Though the jobs and investment numbers promised may be little more than a dream, the risk of failure is real.

I have to say, in light of other failures, this line from Saint Louis County Councilman Steve Stenger (D-Dist. 6) about NorthPark troubles me: ”The county knew the risks going in to this development. But that’s a risk that you have to take if you want progress.”

If officials want to get into the business game of taking on big risks with the potential to make big profits, they should get out of government. In business, if you make the wrong choices and fail, you are financially responsible. When government tries to take on the risk of private businesses, taxpayers are on the hook for failure. And sadly, government officials rarely are held accountable for bad bets.

In this case, Missouri can learn from Indiana and Mamtek. A better move is to leave risk and profit to the private sector.

October 14, 2011

A Public Request of Urban Planning Firms in Missouri

I have a request of the urban planning firms in Missouri. I would like to see examples where cities, counties, etc., hired a planning firm to determine the appropriateness of a blighting, conservation, etc., declaration for the purpose of TIF (Tax Increment Financing) or other types of abatements / incentives, and were told “no, they are not applicable here” by the urban planning firm. Are there any such examples, anywhere in Missouri, where planning firms that governments hired gave a negative answer to these types of questions? And I mean a completely negative answer, not a “you can’t do this, but you can do this” answer.

If anyone with a planning firm can send me any such examples, I would appreciate it. You can send them directly to me (david.stokes@showmeinstitute.org) or post them in the comments. My guess is that a totally negative answer has never happened in Missouri, at least in the past 20 years. I won’t be totally surprised if it has happened on a very few occasions, and I’d love to be proven wrong by finding a number of examples where it has occurred.

July 22, 2011

Local Government Strikes Down Yet Another Tasty Innovation

Working at the Show-Me Institute, located in the highly walkable Central West End, my colleagues and I often take short walks to lunch. Recently, food trucks have entered the competition for our dining dollars.

Given the large crowds that form around these trucks, they seem to be a hit, but apparently this is not the case for everyone. This week, police have cracked down on food trucks in the area — allegedly in response to a complaint.

A regulation in the city code forbids street vending within the Central West End, but until recently the restriction had not been enforced. Earlier this week, officers and inspectors issued warnings to multiple food trucks asking them to leave the area or face fines for violating vending regulations.

Christine Harbin, a former SMI policy analyst, wrote numerous times on these restrictions on private enterprise. First spotting food trucks in the Central West End back in March, she later followed up on the issue in a video interviewing both food truck owners and their customers. The verdict is still clear: there exists a strong consumer demand for these food trucks. Why should government inhibit healthy competition and growth of consumer choices?

Some people worry about the safety and health concerns associated with food trucks, but like any other restaurant or food provider, they must undergo government health and safety inspections to obtain permits for legally selling their goods.

Another common concern is the potential increase in street congestion. In Dr. Donald Shoup’s book, The High Cost of Free Parking, he explains the best way to manage street traffic is to introduce market determined parking fees.  Parking is not a free good, and should not be treated as one. Busy streets with more traffic and higher demand would have higher parking fees, while quiet less crowded streets with lower demand would cost less. This would force food trucks to internalize the externality of over consuming street parking.  If the trucks wanted prime location they would have to pay extra for it.

These trucks may be “technically illegal” in the area, but clearly there is a demand here that the government is barring. Originally, the downtown area had this same restriction, but now it benefits from many popular street vendors and food trucks. Why should the Central West End or any other area be treated differently?

Consumers would benefit if this restrictive ordinance was repealed throughout St. Louis, allowing their preferences — not the preferences of bureaucrats — to dictate food trucks’ placement and success.

To follow this issue further, watch Christine’s other video on the subject in which food truck owner Jeff Pupillo and a number of customers weigh in on food trucks and the unwanted competition they provide for some local restaurants.

June 29, 2011

Where’s the Blight?

Show-Me Institute intern Bruce Stahl and I went to Del Taco to see just how bad the property was. After all, city officials have blighted, and re-blighted, the property.

The flying saucer–shaped property seems fine to us. It has an operating business, with many customers. Are city officials just blighting Del Taco in order to award tax subsidy?

June 28, 2011

Green Acres, We Are (Not) There!

If you lived in an alternate universe where Eva Gabor got her way over Eddie Albert, your version of the sitcom “Green Acres” might look a lot like this (via The Pitch):

Newly tabulated information from the Environmental Working Group, which is critical of U.S. farm policy, shows that absentee landowners and investors receive subsidies that, in the public’s mind, go to struggling family farms. The U.S. Department of Agriculture last year sent nearly $100 million to cities with more than 500,000 residents.

Not very farmy communities in this area got in on the action. In Kansas City, Missouri, 1,611 recipients collected nearly $5 million in 2010. The city’s boundaries reach into four counties, so it stands to reason that the receivers include people who drive actual tractors and combines for a living. But zip code searches indicate that the subsidies are also being mailed to downtown addresses and people who live around the Plaza.

A little back of the envelope math tells us that each Kansas City recipient received just more than $3,100 on average. As The Pitch notes, many checks are probably supporting genuine family farmers, given the expansiveness of KC’s municipal boundaries. But on the Plaza? Not likely. Pick the right high-rise apartment and telescope, and maybe urban farmers can see their fields being tilled from afar. Is that the kind of situation legislators contemplated when they crafted the law that created the subsidies?

Naturally, agricultural tax breaks aren’t the only ones subject to the ingenuity of recipients, and the malleability of tax credit language can often make for easy (and profitable) contortions of a law’s intended purpose. Case in point: Saint Louis’ blighting of Del Taco. Fellow policy analyst Audrey Spalding has an indispensable post about how cities “blight” property to award tax subsidies. A sampling (emphasis added):

Colin Gordon, author of Mapping Decline: St. Louis and the Fate of the American City highlights one of my favorite examples of a contorted blight finding: Officials blighted a thriving shopping mall because it didn’t have a Nordstrom’s.

Because every mall needs an eBar.

And, just because I can:

June 27, 2011

Del Blighto

News that the flying saucer–shaped Del Taco might be demolished has the Saint Louis community of architectural preservationists up in arms. There’s a Facebook group with 11,000 fans and growing. There’s a petition to save the building. Even the mayor has been tweeting passively pro–Del Taco tweets.

At the Del Taco with Show-Me Institute intern Bruce Stahl. Photo by Josh Smith.
At the Del Taco with Show-Me Institute intern Bruce Stahl. Photo by Josh Smith.

At the Show-Me Institute, we first heard of Del Taco’s uncertain fate at last week’s Land Clearance for Reclamation Authority (LCRA) meeting. At the meeting, the agency declared the property blighted.

Blighting sounds bad, doesn’t it? The word calls to mind disease, destruction, and decay. Yet as anyone who has visited or driven by this Del Taco can attest, there’s a functioning business on the property. You can still get your burrito and fries at 1:00 a.m. at the Del Taco.

So, why would a city agency vote to find this building blighted?

The sad fact is, blighting in city of Saint Louis and throughout Missouri frequently has very little to do with the actual condition of a property, and everything to do with awarding tax subsidy. Colin Gordon, author of Mapping Decline: St. Louis and the Fate of the American City highlights one of my favorite examples of a contorted blight finding: Officials blighted a thriving shopping mall because it didn’t have a Nordstrom’s.

In Columbia, city officials almost blighted a functioning downtown hotel in order to award the building tax increment financing (TIF). At the last minute, perhaps after realizing how strikingly apparent it was that the hotel was not diseased, destroyed, or decaying, the council used a different portion of TIF law to award the subsidy. After all, it’s really just about the money, isn’t it?

Missouri law limits forms of property tax subsidy to properties that are blighted — most notably property tax abatement and tax increment financing (TIF). So the first step for anyone hoping to get tax subsidy for their development in the city of Saint Louis is to get city officials to declare the property blighted.

This isn’t the first time that Del Taco has been blighted.

In 2008, the Saint Louis Board of Aldermen blighted the property in order to enact a TIF agreement. Under TIF law, “blight” is defined as:

[...] an area which, by reason of the predominance of defective or inadequate street layout, unsanitary or unsafe conditions, deterioration of site improvements, improper subdivision or obsolete platting, or the existence of conditions which endanger life or property by fire and other causes, or any combination of such factors, retards the provision of housing accommodations or constitutes an economic or social liability or a menace to the public health, safety, morals, or welfare in its present condition and use;

Well, for the sake of everyone who has eaten at Del Taco since the city blighted the property, I hope that the restaurant wasn’t blighted because it was a “menace to the public health,” or was “unsanitary.”

If you look at the blight definition closely, it becomes clear that certain definitions could be interpreted to include just about any property. For example, what property doesn’t have “deterioration of site improvements”? Paint fades and wood ages. And, I wonder, what qualifies as “inadequate street layout”? I find the phrase “social liability” troubling. Who decides what is a “social liability”? Would a bar qualify? How about low-income housing? And what could possibly be considered a menace to “public morals”?

In case you’re wondering, the Board of Aldermen’s TIF ordinance didn’t specify which conditions rendered the saucer-shaped building blighted.

At last week’s LCRA meeting, the agency voted to declare the Del Taco property blighted again. Apparently, the city’s earlier TIF agreement didn’t fix the problem.

If pretty much any property can be blighted under state law in order to award tax subsidy, why do only certain properties receive tax breaks? I’m going to state the obvious: If the definition of “blight” is so broad that it can be applied (and re-applied) to pretty much any property in order to award tax breaks, the application is arbitrary.

TIF and tax abatement is not being applied to the worst buildings in an area, as illustrated by the cases of Del Taco and the Regency Hotel. Instead, those tax breaks are awarded to particular properties and areas that catch a politician’s eye.

The East-West Gateway Council of Governments has studied TIF and tax abatement, and concluded that using TIF where there really wasn’t any blight didn’t make much sense. From the St. Louis Post-Dispatch:

Maggie Hales, East-West Gateway deputy executive director, reported on the study to the St. Charles County Council during a work session Monday. Hales told council members the three-year study covered eight counties in two states. She said that overall, TIFs have a negative effect on communities and there are racial and economic disparities when and where they’re used.

“The TIF statute was originally designed to alleviate blight,” Hales said after the work session. “In areas where there isn’t any blight, I don’t know as a policy matter it’s a good investment of public tax dollars. [...]“

Instead of blighting and re-blighting properties like Del Taco, here’s a better idea: Lower property taxes for everyone. Take politicians out of the process entirely.

June 23, 2011

Less for More

Have you ever heard of a property developer spending more to rehab a building than he expects to make from its sale? Thanks to Missouri tax credits, some developers are doing just that. These developers are only able make an after-tax profit because of the tax credits awarded to them. At a board meeting of the Land Clearance for Redevelopment Authority (LCRA) on Tuesday, one applicant said that he planned to spend $340,000 to redevelop a property that he expected to sell for $140,000. He told the LCRA that he would make up for the difference with tax credits. I couldn’t discern the amount by which a second developer expected to sell his property below redevelopment costs, but he too said that tax credits would make up the difference.

The LCRA reviews applications to designate properties “blighted.” This designation allows property taxes to be frozen at some base level, while development increases the property value. Many of the projects reviewed Tuesday were for development activities costing millions of dollars. Who is to say whether such projects are more worthy than smaller projects of receiving tax abatement? Why don’t people receive tax abatement for marginal projects, such as maintaining their lawn or washing their windows? Surely, the property would not be as developed if property owners never engaged in these routine activities. I can only imagine how blighted my house would be with an unkempt lawn, dirt-covered glass, and a broken fence. What about all the times I spent hedging the bushes and vacuuming the floor? Why doesn’t everyone receive abatements?

Tax credits and abatements have two types of effects: the observed and the unobserved. We all see the developer who builds a beautiful house using the tax incentives. We see the lumber producers selling more wood and the tool manufacturers selling equipment. We see the businesses and the jobs created and maintained from the endeavor. But we don’t see what does not happen because the tax incentives were awarded. We don’t see the local school that would have received additional revenue, the relatively lower taxes that would have been levied for everyone else, or the forgone purchases these taxpayers would have made. We don’t the additional teachers that could have been hired in school classrooms, or the taxpayers who could have purchased another gallon of gas. We don’t see all the jobs that would have been created and new purchases that would have been made if the money to fund those tax incentives had not been taken away from the people who would have otherwise used it. We are only able to observe the activities that have been granted official approval by the state and the LCRA.

The unobserved effects of the tax credits are that the people paying taxes are less able to purchase what they like most. Instead, they pay relatively higher taxes in order to fund incentives that generate undesirable products, such as subsidized homes costing $340,000 that will fetch only a $140,000 price.

Tax credits and abatements award businesses with revenue disproportionate to the value that consumers would place on their product. These are poor government policies, and ought to be abandoned.

June 17, 2011

Of Bikes and Birds

As a former Columbia resident, I’m not surprised that the city is working to build more bike trails. Columbia has a dedicated group of enthusiastic bikers, and some of the most beautiful trails I’ve ever seen. I put more miles on my bike than on my car during my time in Columbia. And who wouldn’t, with the MKT trail connecting the city to Missouri’s KATY trail, a stretch of more than 200 miles, some of which runs along the Missouri river?

But the cause of expanding bike trails, no matter how popular, should not give Columbia community leaders carte blanche to lay bike trails down wherever they please. If some person, business, or organization owns property and doesn’t want a bike trail running through it, they should be able to politely reject the city’s plan to construct a bike trail on their property.

Unfortunately, it appears that the city council may decide to ignore such a refusal. And, in a strange twist, the city is poised to harm the ability of some Columbia residents to enjoy the outdoors in the name of encouraging other Columbia residents to enjoy the outdoors. PedNet, the Columbia organization that promotes bike travel and the expansion of bike trails, is urging the city to use eminent domain in order to construct a bike trail on the Columbia Audubon Society’s (CAS) property.

Bill Mees, who is on the board of CAS, worries that the construction of the trail will irreparably damage the bird-friendly property. From his op-ed in the Columbia Missourian:

Actually, the trail would extend the full length of the south side of CAS property. The southwest corner is a steep forested hillside. Compliance with the Americans with Disabilities Act will require switchbacks and extensive grading. Result: 100- to 200-year-old trees cut down, and others damaged or killed by the construction.

I wonder, does the city of Columbia think that the views of people who enjoy biking matter more than the views of people who enjoy bird watching?

Some might argue that bike trails constitute a “public purpose,” and that the use of eminent domain is warranted. After all, eminent domain is used for roads. Aren’t bike trails, as a form of alternative transportation, just as valid of a public purpose?

In short: No. As much as bike enthusiasts might hope for a future when more people use bikes as their primary form of transportation, goods will not be transported by bike trail. Even the local grocery store’s stock involves road transportation. If public transportation rates were to double, roads would still be necessary — how else could buses travel?

Bike trails in general are traveled by a small set of the population. The bike trail that proponents want to construct on the Audubon Society’s property will be used by an even smaller group. Why take, and partially destroy, the Audubon’s Society’s property for use by these favored few?

It’s not as if there is no alternative. According to Mike Hood, the director of the city’s Parks and Recreation Commission, sending the bike trail through the Audubon Society’s property would cost nearly $1 million. An alternative route, along a section of existing sidewalk, would cost between $120,000 and $150,000.

I’m no city council member, but the decision seems easy. Choose the low-cost option that doesn’t require taking someone’s property.

June 3, 2011

Try Selling More Vacant City Property

Yesterday, Saint Louis city aldermen spent more than seven hours discussing cuts to the city’s budget. They made cuts to trash pickup, and to overtime pay. Then, Post-Dispatch reporter David Hunn dryly wrote, “they began transferring money into programs they preferred: for more lifeguards, building demolition and vacant-lot grass-cutting crews, as well as unspecified programs for the Affordable Housing Commission and crime prevention ‘professional services.’”

I know that there’s no simple solution to the city’s budgetary situation. If Saint Louis needs more money for building demolition and grass-cutting on vacant lots, though, perhaps the city should step up its efforts to sell its vacant property.

The city owns more than 10,000 vacant properties, and most of them are owned by the Land Reutilization Authority (LRA), an agency tasked with getting that property back into private productive use. Yet we found that the LRA had been rejecting roughly one out of every two offers to purchase vacant city property. Why? The most common reason was that the property was being held for “future development.” Unfortunately, the future development would frequently fail to materialize, and the city continues to hold these vacant lots (and pay to cut the grass).

Please, city aldermen, let’s try something different. If the city sells more of its vacant property, it will collect more in sales revenue, and more in property tax revenue. Additionally, the city won’t have to pay to cut the grass on the lots sold. Why not try? Why not take a chance on individuals with offers today instead of waiting for something “better” in the distant future?

“Speculating” is a dirty word in Saint Louis city. There is a fear that people will buy up city property and hold it vacant for many years. Unfortunately, though, when the city turns down offers today in the hope for something “better,” it is acting as a speculator itself. But a government speculator is worse — government employees deciding to hold land vacant for years don’t feel the financial consequences the way a private investor would, and so have much less incentive to find a productive use for the land. It’s time the city stopped speculating and instead let private individuals take on the risks and rewards of city development.

May 25, 2011

1252 Academy Is Approved for Sale!

Today, the Land Reutilization Authority (LRA) — the government agency that is also the largest owner of vacant land in the city of Saint Louis — finally approved Anthony Barber’s offer to purchase 1252 Academy Ave. This is an incredible departure from the LRA’s actions in recent years, and exactly the kind of response that we at the Show-Me Institute have been advocating after nearly a yearlong investigation of LRA policies.

1252 Academy Ave.

After all, the LRA had rejected Anthony Barber’s offer to purchase the property in 2010 because, the agency said, “the parcel is being held as part of a larger development site.” The LRA did not specify exactly what the larger development site was. Barber had plans to build a barbeque restaurant at 1252 Academy, he had the support of his alderman and neighborhood association, and he even had the menus for his restaurant planned out. But, in 2010, that apparently wasn’t enough for the LRA.

Nearly a year later, after the publication of Show-Me Institute research showing that the agency rejected almost one out of every two offers to purchase vacant city property, a few months after the head LRA commissioner resigned from his post, after an LRA commissioner met with the Show-Me Institute to discuss ways to change the LRA process, and soon after the LRA began to make positive changes to its administrative policies, the LRA accepted Barber’s offer.

By accepting Anthony Barber’s offer, the agency has broken its nearly decade-long track record of rejecting offers to purchase 1252 Academy. As detailed in my study of the LRA’s practices during the past eight years, the agency began rejecting offers on the property in 2001. Again and again, the LRA said that the property was “being held for development.”

Hopefully, the LRA will continue on its path of accepting more offers to purchase property. Only by doing so does the city have a chance at returning the more than 9,000 vacant properties owned by the LRA back into private, productive use.

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