Cortex TIF
Investing in Growth, Fueling Innovation
The Cortex Tax Increment Financing (TIF) is a commitment to the continuous growth and evolution of our community. It represents our dedication to fostering an environment where businesses and individuals can thrive.
The Cortex Innovation District, a 501(c)(3) not-for-profit, drives inclusive economic growth in St. Louis through real estate development, entrepreneur training, workforce training, company recruitment, maintaining public spaces, and security coordination. From 2014 to 2022, Cortex’s activities generated $77.9 million in net new tax revenue for the city and region.
In 2022, Cortex approved a new 5-year strategic plan with a new vision centered on equitable economic outcomes in the region. To help achieve that mission, Cortex needs to continue to build buildings in the district. Given the deteriorated condition of the land, Cortex and its development partners cannot develop those areas without TIF (Tax increment financing) assistance.
Tax Increment Financing (TIF) is an economic development tool that helps local governments fund infrastructure upgrades and other improvements within designated redevelopment areas. TIF is essential in areas suffering from disinvestment and decline, characterized by obsolete infrastructure and vacant, decaying properties. These conditions make redevelopment costs and associated risks too high for private developers or the private market to handle alone.
For an area to qualify for TIF in St. Louis City, it must be declared "blighted" through an ordinance process by the Board of Aldermen.
How Does Cortex Use TIF?
TIF (tax increment financing) is a development tool approved by the City of St. Louis for Cortex in 2013 to make land "shovel-ready" by addressing environmental remediation and public infrastructure improvements. This tool helps Cortex and its partners afford development projects, even today, as undeveloped land still requires cleanup and public improvements to proceed. Cortex has until 2023 to utilize these TIF allocations.
Cortex uses TIF by initially covering all redevelopment costs, such as street repaving and sidewalk repairs. Once a development is completed, a portion of the new tax revenue reimburses Cortex for these expenses, with the remaining revenue benefiting various regional and state jurisdictions, including the City of St. Louis and Saint Louis Public Schools. Of the $167.7 million TIF granted in 2013, Cortex has used $88.7 million, ensuring each project plan undergoes review, public input, and approval by the TIF Commission to protect public interests.
Cortex and SLPS
When Cortex was established in 2002, St. Louis Public Schools (SLPS) received minimal property tax revenue from the mostly vacant 200-acre area. By 2020, Cortex generated nearly $7.8 million in property taxes and $3 million in sales taxes for SLPS. Cortex’s ability to activate unused TIF for development will expire in February 2023. Due to slowed construction and the COVID-19 pandemic, three RPAs still need development. If action isn't taken now, Cortex will lose the ability to use the remaining allocation, forfeiting potential tax revenue, new jobs, and improved infrastructure.
Cortex has TIF bills before the St. Louis Board of Aldermen to approve one project and activate two redevelopment project areas, potentially allowing projects to be completed before the TIF deadline. Project plans will be presented to the TIF Commission for approval. Cortex values transparency in its use of TIF funds; for more information, please email info@cortexstl.org.
