Ordinance 71073

Summary

Overall Purpose/Reasons for the Board Bill This Board Bill will facilitate real and personal property tax abatement and sales and use tax exemption incentives in connection with a project at Anheuser Busch’s Soulard brewery complex. The project will accommodate new products from existing brewing material streams, further building on the Company’s global sustainability initiatives. What the Board Bill Will Do This Board Bill will authorize an industrial revenue bond transaction that will facilitate the following incentives: • 5 years of 50% real property tax abatement; • 5 years of 75% personal property tax abatement; and • Sales and use tax exemption on the purchase of construction materials used on real property improvements The industrial revenues bonds will be purchased by the Company and will be payable only from lease revenues paid by the Company, and not from any City tax revenues. The City approved similarly-structured industrial revenue bond transactions for the Company in 2018 (Ordinance No. 70921), for Huvepharma in 2017 (Ordinance No. 70590), and for Square, Inc. in 2015 (Ordinance No. 70132). The Main Components of the Board Bill The Board Bill (1) approves a Plan for an Industrial Development Project, which is attached as Exhibit A to the Board Bill, as is required by Chapter 100, RSMo. for this type of incentive, and (2) authorizes the issuance of the industrial revenue bonds to facilitate the above-described incentives. The Impact of the Board Bill to the Community The Board Bill will incentivize the Company to invest approximately $100 million in the City and enhance its St. Louis operations. A Cost/Benefit Analysis describing the financial impacts of the tax incentives on the various taxing districts is included in Exhibit A to the Board Bill and will be sent to each of the taxing districts, as required by Chapter 100, RSMo.

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