In his weekly report, Sen. Eric Schmitt, R-St. Louis County, explains SB 390, which he describes as designed to solidify St. Louis' status as a trade hub:
We have talked a lot about job creation in the Senate this year. With more than 280,000 Missourians out of work, we are motivated to pass legislation that will help create good paying jobs for those looking for work now. But, what this recession should also teach us is the importance of thinking for the long-term and putting our state on a trajectory towards economic success. This week, Senate Bill 390, a bill I am sponsoring, was discussed on the floor of the Missouri Senate. This important piece of legislation could benefit St. Louis and the entire state for many years to come.
From the day it was established, St. Louis has been valuable for its location. In the 1800s, the abundant use of steamboats for travel and transport made St. Louis a center of commerce. Soon, cheaper forms of transportation started to emerge and the city of Chicago recognized the importance of the railroad as the next mode of transportation. By the time the Eads Bridge was completed in 1874, Chicago already had the advantage. The rest, as they say, is history.
St. Louis is still located in the center of the country, situated on the Mississippi River with a great highway network. We have an underutilized airport with the capacity and property to support much more than we currently do. These assets give us the means to seize opportunities in international trade and change the trajectory of our state.
Senate Bill 390, also called the Aerotropolis Trade Incentive and Tax Credit Act, has two parts — one to encourage global trade and one to solidify our place as a trade hub. Incentives would encourage freight forwarders, the people who organize and manage overseas shipments, to use St. Louis when transporting cargo internationally. Much of this traffic is currently moving through Chicago. The second aspect of the bill would encourage companies to establish the infrastructure necessary — the miles of refrigerated warehouse storage, assembly facilities, and distribution facilities — that makes trade possible.
Accountability is a major concern right now for all of us in the Legislature, so this legislation contains provisions to make sure no one receives these incentives without results. Before tax liability could be reduced for construction projects, the investment would need to be made and the building would need to be built and operational. Incentives would only be available for exports if trade was taking place—meaning no one would receive a benefit until the results we are looking for are realized.
Senate Bill 390 presents an opportunity for St. Louis and for our state as a whole. We need to make sure that history does not repeat itself and take this opportunity to once again become the trade-hub of the region.
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