McKee Got $2.5M in Tax Credits for a St. Louis Building He Didn’t Pay For

By on May 16, 2018

From St. Louis Post-Dispatch:  When the Missouri Department of Economic Development raised red flags on one of Paul McKee’s north St. Louis purchases, it clawed back nearly $2 million in state tax credits and blocked a similarly structured deal nearby from receiving them.

But at least one comparable deal flew under the radar.

A Department of Economic Development official testified Tuesday that McKee and his companies never gave back the almost $2.5 million in tax credits issued for the $4.9 million sale of a building on North 15th Street — even though they owned it for only a couple of months before deeding it back to the seller.

“There’s no process for paying it back, but I’m more than happy to sit down with the state” and discuss the tax credits issued on the purchase of the 15th Street building, McKee testified Tuesday when asked if he would pay back the credits on the 2012 sale. The transaction was unwound a few months later in 2013.

The transaction is the latest McKee deal for north St. Louis property to come under scrutiny in a trial that began last week in St. Louis Circuit Court to determine the value of the Buster Brown building at Jefferson and Cass avenues. The city took possession of the building through eminent domain to assemble a site for the National Geospatial-Intelligence Agency’s western headquarters.

Because the building’s former owner, Jim Osher, sold the building to McKee in 2011, it allowed the city to access documents from McKee’s companies as Osher battled the city over the value of the building for the last two years.

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