Development Incentives & Tax Credits

Boosting redevelopment.

Husch Blackwell guides developers in accessing federal, state, and local incentives to help fund commercially and culturally significant projects, including office buildings and parks, industrial developments, mall and shopping center redevelopment, mixed-use development, and hotels, among others. Our early and ongoing leadership in the complex field of development incentives translates into a wealth of experience that benefits clients throughout our firm’s geographic footprint. 

Our guidance to clients on development incentives includes:

• Brownfield tax credits 
• Community improvement districts (CID)
• Historic tax credits (HTC)
• Low income housing tax credits (LIHTC)
• New Markets Tax Credits (NMTC)
• Opportunity Zones
• Tax abatement
• Tax increment financing (TIF)
• Transportation development districts (TDD)

Our team is particularly adept at identifying multiple incentives for eligible projects, as well as providing comprehensive legal advice regarding the debt and equity components of a project’s capital stack. Clients rely on our team’s can-do approach and creative lawyering to overcome obstacles and get projects to the finish line.
 

Husch Blackwell has been involved with New Markets Tax Credits (NMTC) since the first allocations were made in the early 2000s. In fact, Husch Blackwell was involved in the first three NMTC transactions to close in Missouri.

Since then, we have represented community development entities (CDEs), lenders, investors, and not-for-profit and for-profit developers and businesses in NMTC transactions. Our lawyers have worked on structured NMTC transactions involving equity investments and loans, leveraged and non-leveraged transactions, and transactions combining other state and federal tax credits, local grants, TIFs and tax-exempt bond financing.

Representative Experience:

• Represented developer in a five-building historic restoration project in downtown St. Louis that included the first use of NMTC in Missouri. Our representation included acquisitions, securing other public and private financing sources and capitalization of four new businesses in these buildings.
• Represented client in a comprehensive 165-acre redevelopment project near St. Louis that required $16 million in NMTC, the closing of a $14 million Chapter 100 tax abatement bond issuance and Chapter 353 real property tax abatement. Because our client began its redevelopment after the unsuccessful development attempts of the previous owner, our efforts for the client also included rezoning and replatting the property, unwinding the previous public financing incentives, and negotiating and obtaining city approval.
• Advised developer in the restoration and redevelopment of the St. Louis Union Station, which included securing $5 million in NMTC, tax abatement and a sales tax rebate agreement with the city of St. Louis. 
• Represented Koman Group in obtaining NMTC and Historic Tax Credits for redevelopment of the historic Cupples 9 building in St. Louis, turning it into office and retail/restaurant space. We assisted our client with obtaining NMTCs and Historic Tax Credits for the project, which was later awarded LEED Silver certification and recognized as one of St. Louis’ “Developments of the Year.” 
• Counseled developer in securing significant federal, state and local incentives, including NMTC, in a $106 million multiphase project involving the acquisition, demolition and rehabilitation of a vacant mall in North St. Louis.
• Represented joint venture client in the rehabilitation of a 17-story downtown St. Louis building into a mix of retail space, affordable housing and parking. A variety of public and private sources of financing were accessed, including NMTC, federal and state Historic Tax Credits, federal and state Low-Income Housing Tax Credits, TIF, CID and multiple tranches of private debt and equity capital.
• Advised developer and investor in rehabilitation of mixed-use building in St. Louis’ Loft District using $20 million NMTC allocation. The project also developed two new businesses, each of which utilized $10 million in Missouri NMTC allocations.
• Assisted property owner in acquisition and rehabilitation of a building to retain and renovate downtown department store, financed with $12.5 million federal NMTC allocation and $10 million Missouri NMTC allocation.
• Represented CDE and investor in $11 million federal NMTC allocation used to finance the construction of a new headquarters facility for a lighting company.
• Advised CDE and investor on $8 million Missouri NMTC allocation for expansion of paper supply company.
• Advised CDE on a $10 million NMTC allocation for the equipping of retail grocery’s new distribution facility in Missouri. 
• Represented CDE on an $8.5 million NMTC allocation for the construction of new manufacturing, distribution and storage facilities in Illinois. 
• Counseled investor in the $164 million rehabilitation of a historic building into retail, hotel and loft apartments using state and federal NMTC.
• Represented bookstore in $5 million federal NMTC allocation to open downtown location.
• Advised grain operator on $10 million Illinois NMTC allocation for new loading facility.
• Represented investor and lender in $12 million federal NMTC allocation for redevelopment of downtown office tower.
• Represented not-for-profit as leverage lender and tenant in $12 million federal NMTC allocation for development of headquarters building.

TDDs are special-purpose taxing districts formed to finance improvements in municipal infrastructure, primarily roads and other thoroughfares. Missouri was one of the first states to enact TDD legislation.

Our work on behalf of developers in structuring and negotiating TDDs is extensive. Husch Blackwell created some of the first TDDs in the region, primarily in St. Louis and Kansas City, and has since created two dozen more in Missouri. Our TDD work includes large projects such as streetcars and trolleys and market-dominant mixed-use projects, as well as projects for hotels, restaurants and residential housing.

Representative Experience:

• Represented the city of Kansas City in the financing and governance of a $101 million, 2.2-mile downtown starter streetcar line, as well as a $514 million, 7.5-mile expansion. Successfully established the Kansas City Downtown Streetcar TDD through a judicial process (including appeals by opponents) and requisite districtwide elections. 
• Represented the Loop Trolley Transportation Development District, the first cross-jurisdictional TDD in St. Louis, in successful implementation and passage of the TDD. Successfully lobbied for an earlier TIF to assist in the initial funding.
• Represented retail developer in the creation and passage of a development plan that included TDD, CID and Chapter 353 tax abatement incentives for a St. Louis mixed-use project.
• Advised developer in acquiring a 350,000-square-foot shopping center in north St. Louis, including creation of a TDD and a TIF to help fund the development. 
• Represented developer in the negotiation and creation of a TDD for a significant retail project in Manchester, Missouri, situated along a major thoroughfare.
• Represented hotel developer/management company in formation of a TDD for a hotel that included a conference center and restaurant in downtown St. Joseph, Missouri.

Other experience includes the Country Club Plaza TDD in Kansas City and the City Hospital Laundry, Broadway Hotel, Fenton Crossing, Arnold Triangle, Railway Exchange Building and Cheshire Hotel TDDs in St. Louis.