Ferguson unveils four EDST programs to rehabilitate housing, aid small businesses and fund scholarships

Ferguson City staff and members of the Economic Development Sales Tax (EDST) commission presented four draft grant and incentive programs at the May 13 Ferguson City Council meeting designed to rehabilitate vacant properties, seed small-business improvements, help disaster-affected businesses and subsidize college study for Ferguson residents.

The programs — combined under the EDST umbrella — are designed to redeploy city-owned or post‑third properties, reduce hurdles to rehabilitation, and deliver targeted grants: a Roots to Roofs housing rehabilitation program, a Ferguson Leadership Scholarship, a Revive storefront grant, and a Disaster Recovery grant. City staff said each draft includes safeguards and administrative controls and will return to EDST and council for formal approval.

City economic development staff presented Roots to Roofs as a consolidation of prior adjacent‑lot and property‑restoration efforts. Staff said the program would use post‑third properties the city acquires, provide clear title on properties acquired directly by the city, waive construction permit and inspection fees, require work to begin within 12 months of approval, and defer repayment for 12 months. Staff described a proposal to size direct assistance at 20% of construction cost with a per‑property cap of $15,000 and an occupancy preference for applicants with Ferguson ties. The draft limits awards to five properties per developer per year and includes a deed‑reversion safeguard so the city can reclaim ownership if rehabilitation fails to proceed.

Rachel St. Pierre, presenting for EDST staff, said, “we will provide a clear title because if especially it's coming from the post third, we already have a clear title,” and described additional eligibility checks such as proof of financing, construction drawings and a timeline. Council members pressed staff on whether a city deed from a post‑third purchase actually clears title, and on the legal costs of a quiet‑title process. Councilman Mike Palmer urged a batch approach: “determine all of our post third properties that have, clouded title and then go to a bulk filer attorney,” arguing bulk quiet‑title suits would be more cost‑effective than ad hoc filings.

The Ferguson Leadership Scholarship draft would offer up to $5,000 per recipient for Ferguson residents enrolled in approved leadership‑oriented programs at area colleges. Staff said recipients would have to provide enrollment documentation and a passing grade to retain the award; if a student fails, the city would seek repayment. Presenters described the program as capped at roughly $30,000 a year (about six recipients) under the current EDST budget and said recipients would be expected to provide community service, such as serving on a board or commission.

The Revive storefront grant would provide a flat $5,000 award per storefront (50% upfront and 50% on completion) to Ferguson‑based businesses with brick‑and‑mortar presence, with $50,000 budgeted for the first year and a first‑come, first‑served allocation. Staff said the program will require owner authorization for tenant applicants and proof of work completion before reimbursement.

The Disaster Recovery grant — drafted in response to recent local commercial fires — proposes up to $30,000 per applicant to help repair businesses affected by fire, flood or other disasters. Staff said the EDST commission discussed making awards grants (forgivable) or loans, and raised how insurance coverage should factor into awards; commissioners discussed allowing applicants to obtain insurance during the assistance timeline rather than requiring insurance prior to the event.

Council members repeatedly asked how the city would recover funds if recipients default, how to prevent developers from taking city funds and converting rehabilitated houses into rentals, and how to make title marketable on post‑third properties. Staff said program agreements would include monitoring, reporting and fail‑safe devices appropriate to each program and that redevelopment agreements could require city manager or assistant city manager sign‑off for awards underneath an approved program.

Council discussion flagged a range of policy tradeoffs: caps and per‑project limits to reduce exposure; deed restrictions or recorded liens to enforce owner‑occupancy periods; progress payments rather than one‑time disbursements; and stricter vetting of out‑of‑state developers. Council members asked staff to return with finished program packets and with spending plans and suggested the EDST commission and council would review program performance annually.

The presentations concluded without council votes; staff will incorporate council feedback and return draft program documents for further EDST and council consideration.