Committee approves up to $1M sales‑tax reimbursement to help CI Select move into Carriage Works in Cortex
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Summary
Board Bill 120 passed out of committee with a due‑pass recommendation to allow diversion of half the city's sales tax generated by CI Select into a comptroller‑controlled reimbursement account that will pay buildout costs up to $1,000,000; SLDC counsel said reimbursements are administratively reviewed with a 30‑day window.
The Housing, Urban Development and Zoning Committee advanced Board Bill 120, a sales‑tax reimbursement incentive designed to help CI Select relocate into the historic Carriage Works building in the Cortex district and pay for buildout costs up to a $1,000,000 cap.
Sponsor Autumn Browning said the mechanism diverts half of the city’s sales tax generated by the project into a reimbursement account controlled by the comptroller; Browning said earnings and property taxes are not affected. ‘‘This incentive is really to help the company move into an old historic but abandoned building,’’ Browning said, adding the program aims to move a company from the county to the city and create jobs.
Claire Rucker, CEO of CI Select, said the company expects to bring roughly 40 employees with an average compensation that the sponsor estimated at about $85,000. Rucker said the company has a 10‑year lease for the space and expects to remain in the city, noting plans to potentially relocate a 50,000‑square‑foot warehouse to St. Louis in the future.
Members of the public and several aldermen pressed for accountability. Dan Pate asked whether reimbursements would be passively approved and urged a non‑passive review process so staff would verify receipts and costs before payment. Mark Spigerman, outside counsel for the St. Louis Development Corporation (SLDC), said the incentive applies only to sales tax and that the company must submit a certificate of reimbursable project costs with invoices, lien waivers and evidence of payment; city staff (SLDC and the comptroller) have 30 days to review and raise objections or the submission is deemed approved.
SLDC staff and counsel also described performance protections: the redevelopment/performance agreement includes clawback language if the company fails to meet job thresholds, and an annual compliance report must be filed. SLDC said this form of reimbursement is not typical but that the agreement contains upfront clawback language tied to job performance.
Vice Chair Saulnier moved to advance Board Bill 120 with a due‑pass recommendation; the clerk recorded a roll‑call vote and the committee passed the bill with seven ayes. The bill advances to the full Board of Aldermen and will be accompanied by the redevelopment agreement and compliance provisions described in committee.