Wednesday, August 10, 2011

In Blow To The Show Me Institute, Another Business Decides to Create Jobs in Downtown St. Louis

Tim Logan at the Post-Dispatch reported on the decision of Stifel Financial Group to purchase the downtown office building that houses their corporate headquarters. Much of the subsequent analysis has focused on the fact that this is a setback for the "ballpark village" concept the Cardinals have been pushing (since the group was previously thought to be interested in building a new office building as part of the village), but I think there's another noteworthy feature of the decision. Namely, in spite of the fact that Rex Sinquefield's Show Me Institute repeatedly claims that St. Louis's tiny earnings tax of 1% acts as a major disincentive for businesses to locate in the city, Stifel has decided to remain in the City of St. Louis and add approximately 225 jobs over the next three years.

So the region apparently can add jobs and residents while still generating revenue for vital public services! Who would have thunk it?

1 comment:

  1. Not to get all tea party on you Adam, but there is the fact that Stifel is seeking about $17 million in tax credits to stay downtown. That almost seems like a break even deal. I know this keeps jobs in town and all that, but shouldn't billion dollar companies be able to finance their own buildings?