Developers Urge City: Add Groceries and Amenities Downtown for Successful Residential Projects
ST. LOUIS, Mo. (First Alert 4) – According to some developers, the absence of facilities such as retail outlets, dining options, and grocery stores poses a difficulty for major, game-changing residential developments.
One of the reasons the St. Louis Development Corporation declared $100 thousand in grants last summer was to assist local businesses looking to expand or enhance their storefronts in the downtown area.
On Thursday, SLDC stated that it will provide the financial assistance once more to companies in 2025.
Steve Davis, who serves as the VP of Strategic Partnerships for SLDC, emphasized that nurturing a robust community of small enterprises is crucial for attracting bigger initiatives. This approach becomes particularly significant as the city aims to transform unused office spaces into living quarters.
“Once these smaller businesses move in and we begin to notice stability within these areas, bigger retail chains will observe this and think, ‘There’s potential for expansion here,’” Davis explained.
Last summer, one beneficiary was Ashley Morgan, who owns Whip It Goods. She initiated her handcrafted, plant-derived skincare venture as an online enterprise. The financial support enabled her to set up a temporary physical store on Washington Avenue. Due to her thriving presence in the area, she has opted to prolong this endeavor.
She mentioned that she had recently carried out a customer survey which showed that the majority of her clientele come from St. Louis County.
“It has been revolutionary. It has assisted me in expanding my business,” Morgan stated.
A lack of retail establishments, especially grocery stores and pharmacies, has held back other recent attempts to develop some properties downtown.
Charles Goldman, whose company purchased the former AT&T building at 909 Chestnut, said he felt that the central business district would need to add retail to support residential developments.
His company’s redevelopment of the AT&T building would include more than 600 residential units. He said it would also include significant retail space.
Many central city zones offer essential facilities just a short walk away,” Goldman stated. “However, we require additional businesses such as groceries, pharmacies, entertainment venues, and retail stores.
Goldman mentioned another factor hindering projects downtown is the absence of incentives to cover construction expenses.
This week, a bill in Missouri proposing tax incentives for converting commercial spaces into residential areas appeared to be halted in the legislative process, which disappointed Goldman.
“The situation can only be termed as a market failure, particularly in St. Louis, where the cost of construction exceeds the potential rental income,” he stated.
Goldman mentioned that certain legislators appeared to be concerned about downtown St. Louis and still held onto notions of it being an unsafe area.
Missouri Governor Mike Kehoe suggested a possible visit to the region on Thursday, indicating that talks regarding downtown incentives could proceed. However, he did not explicitly state whether a special legislative session would definitely encompass this particular bill.
It’s a positive bill,” Kehoe stated. “However, I believe some discussions are yet to take place. The focus will be on tax credits and our ultimate financial position. We can expect quite a few challenges along our path over the coming years.
FirstAlert4 contacted Schnucks, which operates a store in downtown, and Dierbergs to determine if these grocery providers might consider expansion into downtown St. Louis.
A spokesperson for Schnucks wrote, “Schnucks is proud to have served downtown residents, commuters and visitors at our current downtown location since 2009; however, we don’t have any expansion plans to announce at this time.”
A representative from Dierbergs stated, “We excel at offering our customers an extensive range of products, making a 70,000-square-foot space ideal for us. We’ve explored various potential spots within St. Louis city and across the metropolitan region, and we remain committed to finding excellent locations where we can maintain the high-quality service that defines us.”