Boeing Tax Break Debate Opens at St. Louis County Council. Some Are Skeptical.

Jul. 25—CLAYTON — St. Louis County Council members said Tuesday they want more details before approving a tax incentive plan to help Boeing pay for new aerospace programs promised to bring $2 billion in investment and 500 new jobs.

The council officially considered the incentives for the first time at its Tuesday meeting. The deal, if approved, would give Boeing half off on the project's real and personal property taxes over 10 years in exchange for the new jobs and investment.

But council members said after the meeting that they have questions about the proposal.

The council last week rejected a property tax break for senior homeowners, said Councilwoman Kelli Dunaway, a Democrat from Chesterfield. So why should Boeing be treated differently?

"I'm trying to keep an open mind, but on the heels of not giving seniors a tax cut, it sure doesn't seem fair to give millions in corporate welfare to Boeing," Dunaway said.

News broke Friday that Boeing was looking to build another million square feet of space next to the St. Louis Lambert International Airport, and wanted tax incentives to do so. The company wouldn't further describe the project publicly, saying only that it involved advanced manufacturing production facilities for "future franchise programs."

But the aerospace industry has been ramping up for a national competition to build the next generation of U.S. fighter jets. And Boeing said in May that it was expanding its secretive research and prototype unit, "Phantom Works," with a new, 47,500-square-foot facility in north St. Louis County to focus on next-generation military aircraft.

The new proposal, if built, would be one of the biggest defense projects in the region's history, more expensive even that the $1.7 billion National Geospatial-Intelligence Agency's new headquarters in north St. Louis.

It would support the roughly 16,000 current Boeing employees in the region. But the Pentagon has been working to phase out purchases of Boeing's legacy fighters from its defense budgets in order to focus on next-generation fighters.

So the new program would provide a much-needed boost to Boeing production here.

On Tuesday, county council members said they were generally supportive, but wanted to know more.

Republican Councilman Dennis Hancock of Fenton said he's looking for details about what Boeing will buy that would be eligible for the personal property tax.

"These days it's exciting anytime somebody wants to expand in the region," Hancock said, "and I look forward to learning more about the proposal."

Democratic Councilwoman Lisa Clancy of Maplewood said she is open to the idea and "will give it close scrutiny."

Councilman Mark Harder, a Republican from Ballwin, asked Council Chair Shalonda Webb to schedule a special council meeting to discuss the plan in detail.

One skeptic from the community said it's not fair for a corporation like Boeing to get tax breaks.

"It's hard to understand why these big, wealthy corporations should get taxpayer subsidies," said Tom Sullivan, a University City resident who speaks frequently during public forum at council meetings.

Sullivan wanted to know how much tax revenue the county would miss out on because of the incentives. The county's economic development arm helped negotiate the deal, but did not respond to requests for information about the incentives' total value.

Webb, who works as an engineer at Boeing, said she planned to recuse herself from any vote on the incentives to avoid a conflict of interest.

The council could approve the plan as soon as mid-August.

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