St. Louis is making downtown revitalization a central priority as the city prepares to host Olympic soccer group-stage and knockout matches in 2028. Mayor Cara Spencer has placed the urban core at the center of her administration, seeking to reverse population loss, office vacancies and years of disinvestment.
The challenges are visible in landmark properties such as the 44-story AT&T Tower and the 21-story Railway Exchange, both of which have remained vacant for years. Local officials and business leaders say the city’s cultural and tourism assets provide a strong foundation for recovery, including the Gateway Arch, Forest Park, the St. Louis Zoo and a full calendar of concerts and sporting events.
Missouri’s Downtown and Rural Economic Stimulus Act, signed by Gov. Mike Kehoe in July, is a key part of the strategy. The law creates tax incentives for downtown innovation zones, expands credits for converting vacant offices into housing, establishes an angel investment credit for startups and broadens the Missouri Works program for major capital projects.
Under the legislation, designated innovation zones can retain half of newly generated state sales and income taxes when the money is used for public safety or infrastructure. Office buildings must be at least 25 years old, with more than half of their space converted to residential use, to qualify for the expanded conversion incentives. The law also includes rebates for investments in buildings larger than 750,000 square feet.
Ron Kitchens, managing partner of the economic development nonprofit Greater St. Louis, said four major downtown buildings, including the AT&T building, are expected to use the incentives over the next five years. He estimated that between $1.5 billion and $2 billion in new and redevelopment construction is planned over the next 18 months.
A separate public-private partnership will direct $55 million from the settlement reached after the St. Louis Rams moved to Los Angeles. The city received $280 million from the $519 million 2021 settlement between the NFL and the city, county and regional sports authority. In June, the Board of Aldermen approved allocating $55 million for downtown revitalization, with the business community committing to match the amount.
Kitchens said roughly half of the private investment will support infrastructure and the other half will help incentivize small businesses. City officials hope to deploy the funding before the Olympics arrive.
The city is also using a new Downtown St. Louis Sports and Entertainment Community Improvement District to support redevelopment ahead of the games. Approved by the Board of Aldermen in February, the district is intended to address blight and improve conditions for businesses and visitors. Missouri will provide $4.5 million annually for public safety, pedestrian access, street lighting and initial funding for sports and entertainment events.
Business leader Robert O’Loughlin said the effort is designed to make downtown safer, better lit and easier to navigate. Spencer described the cooperation among city officials, state lawmakers and private businesses as unusually strong, while calling downtown St. Louis a largely untapped asset.
Sources: Smart Cities Dive.