ST. LOUIS–(KMOX)–Missouri Governor Nixon is calling for a special session of the legislature,  after leaders from the House and Senate announced they are ready to pass a major economic incentives package that includes tax breaks for the China Hub at Lambert Airport. 

State Senator Eric Schmitt, R-Glendale, who sponsored the so-called “Aerotropolis” tax break plan for Lambert, says the $360 million in tax credits for developers who build warehouses and secure international cargo deals will pay big dividends in the future.

“As a kid who grew up in Bridgeton in the shadow of this airport, whose family members were bought out for an underutilized runway, this is a proud day,” Schmitt said. “China is looking to move from 15 percent of their own cargo to 50 percent and a place to move it to. That means jobs for us.  It means new trade routes and markets for our exports, joint ventures for our farmers, capital and new businesses in our state.  That’s what this means.”

The RCGA is projecting the China Hub tax breaks could generate over $1 billion in construction, 18,000 construction jobs and total employment over 15 years of 11,000 new jobs. 

On hand for the announcement,  St. Louis County Executive Charlie Dooley was elated.   “This is what I call a game changer,” Dooley said.

And St. Louis Mayor Francis Slay says the tax break package could turn what had been plans for three or four Chinese cargo flights a week into something big.  

“Without Aerotropolis it is unlikely that flights from China will be sustainable and almost impossible that Lambert will become China Hub,” Slay said,  “It is that important.”

The announcement featured Mo Senate Leader Robert Mayer, R-Dexter and Mo House Speaker Steve Tilley, R-Perryville — both saying they are ready to pass a wide ranging jobs package that goes beyond China Hub.

The plan includes:

    *Incentives to encourage data centers in Missouri.

    *Incentives to attract sporting events such as The Final Four to Missouri.

    *Incentives to attract high tech jobs to the state. 

    *Funds for the Kansas City region to help retain jobs that have migrated to Kansas and other states. 

Lambert Director Rhonda Hamm-Niebruegge applauds deal.

Not without contraversy, the new tax credits would be offset, in part, by cuts in existing tax credit programs. The annual cap on low-income housing tax credits would be slashed from $130 million to $110 million.   And the annual tax credit cap on historic preservation will be cut from the current level of $140 million to around $90 million.

Tilley was asked to respond to critics of the China Hub plan who call it ”corporate welfare.”

“Listen, this is a good package. We think it will create jobs,” Tilley said, “We think it has a chance to transform this state, not just St. Louis, but the whole state and I’m 100 percent supportive of it.”

Dick Fleming of the RCGA responded to questions that the China Hub tax break package would amount to a “bail out” for developer Paul McKee, who owns land near the airport and is expected to participate. 

Fleming noted that investors must pay out of their own pockets up front to build the warehouses and must have international cargo business in place before the credits are issued . 

In a separate matter,  Tilley and Mayer confirm they believe they can get the St. Louis police local control bill passed in the special session.   Mayor Slay very pleased at this news.   He’s been pushing for local control for years in an effort merge some police operations with city hall and save money.   The special session is expected to be convened in September.

Copyright KMOX