BREAKING NEWS

AG Hawley Files Suit against Northside Regeneration, LLC owned by St. Louis Developer Paul McKee


Jun 13, 2018, 11:31 AM
DateTime:
Jun 13, 2018, 11:29 AM

Jefferson City, Mo. – Attorney General Josh Hawley filed a lawsuit today against St. Louis Developer Paul McKee’s company – Northside Regeneration, LLC – in the Circuit Court of St. Louis City. The lawsuit alleges that Northside received tax credits in the amount of $4.5 million for redevelopment projects in North St. Louis, and kept these credits despite failing to complete the purchase of over $5.2 million worth of properties. Attorney General Hawley’s lawsuit brings three civil counts against the company, including tax credit fraud, breach of a tax credit application and unjust enrichment.

In November 2012, Northside applied for the Distressed Areas Land Assemblage Tax Credit, administered by the Missouri Department of Economic Development. In January 2013, the Department issued Northside a $4.5 million credit for its acquisition of numerous properties in the City of St. Louis. Less than six months after receiving and transferring the tax credit, Northside deeded back one of the properties to the seller. On another property, Northside failed to complete the transaction resulting in the Court giving the original seller an award in a condemnation case. Northside certified that it would notify the Department of any changes to any of the certifications in its application. Instead, it failed to disclose these actions in annual reports and failed to repay the State the tax credit.

“My Office will not tolerate the abuse of a state tax credit program designed to revitalize communities,” Hawley said. “This lawsuit will ensure that any responsible parties are held to account and Missouri dollars are returned where they belong.”

The case was filed by Attorney General Hawley on behalf of Plaintiffs, the State of Missouri, the Missouri Department of Revenue, and the Missouri Department of Economic Development.