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Economic Development Policy Statement
The City Council of the City of Ferguson is the approving body for all projects that make use of economic development incentives. The City Council reserves its power to judiciously review the merits of all development projects on a case by case basis. Under no circumstances will incentives be approved without consent from the majority of the City Council.
To discuss your specific development project, please contact the Planning & Development office at 314-524-5257.
Overview of Financial Tools and Incentives
Purpose
Economic development incentives are a means to reduce or redirect taxes for businesses in exchange for specific desirable actions or investments that might not otherwise be financially feasible. To qualify for incentives, a project must demonstrate an ability to meet the City’s targeted outcomes.
Special Taxing Districts
The City may establish or approve the establishment of special districts that can impose special assessments and/or taxes in order to pay for public improvements and/or to eliminate blight. These districts are typically geographic areas such as a neighborhood or corridor that are contiguously connected. The most common special taxing districts are Neighborhood Improvement Districts (NID), Community Improvement Districts (CID), and Transportation Development Districts (TDD).
Property Tax Abatement
Tax abatement is offered through a variety of programs geared to job creation, private investment, and redevelopment. Typically, property taxes continue to be paid on land and improvements based on their value prior to the new investment. All, or a portion, of the incremental increase in property taxes is abated for an established period of time. This incentive is sometimes referred to by the respective Missouri Statute as Chapter 99 (Land Clearance for Redevelopment Authority), Chapter 100 (Industrial Development Bonds), or Chapter 353 (Urban Redevelopment Corporation).
Tax Increment Financing (TIF)
All taxes owed and a portion of all of the incremental increase in taxes resulting from the redevelopment is captured and redirected to pay redevelopment project costs. Taxing jurisdictions continue to receive the taxes based on the pre-development value. A Tax Increment Financing (TIF) project may also capture new economic activity taxes after the TIF is approved. All new Business Personal Property taxes created immediately flow to the respective taxing jurisdictions while the TIF is in existence. State Supplemental Tax Increment Financing program
State Incentives & Assistance Programs
- Building Use Incentives for Large-Scale Development (BUILD)
- Missouri Works Program
- Business Facility Tax Credit Program
- Work Opportunity Tax Credit
To help companies embark on major investment and job creation expansions, this program provides funding to reduce necessary infrastructure and equipment expenses through the form of bonds.
To view details on eligibility requirements and benefits provided by this program, please click the link below:
As the state’s number one incentive tool for expansion and retention, this program helps businesses access capital through withholding’s or tax credits to embark on facility expansions and create jobs. This program can also help businesses purchase equipment to maintain its facility in Missouri.
To view details on eligibility requirements and benefits provided by this program, please click the link below:
New or existing Missouri companies looking to embark on locating or expanding their headquarters in the state may be able to access incentives based on the number of news jobs and investment associated with the project.
To view details on eligibility requirements and benefits provided by this program, please click the link below:
https://ded.mo.gov/programs/business-facility-tax-credit-program
To encourage the hiring of Missourians with barriers to employment, such as unemployed Veterans or former felons, employers can access tax credits for wages paid to new employees. There is no limit on the number of hires through this program.
To view details on eligibility requirements and benefits provided by this program, please click the link below:
https://jobs.mo.gov/employer/incentives/work-opportunity-tax-credit
For a full, comprehensive list of incentives for all development types, please visit:
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Rachel St. Pierre
Community Development DirectorPhone: (314) 524-5257