ST. LOUIS, MO – September 3, 2026 (STL.News) Missouri Gov. Mike Kehoe joined St. Louis Mayor Cara Spencer and regional business leaders this week to highlight two new state laws designed to encourage investment, redevelopment and job creation in downtown St. Louis.
Kehoe participated in a ceremonial bill signing Wednesday, Sept. 2, at Greater St. Louis, Inc., celebrating House Bill 3231 and House Bill 3080. The governor formally signed both measures into law on July 13, and they have now taken effect.
The legislation creates and expands several economic development incentives that state and city leaders say could make it easier to finance major downtown projects, including redeveloping vacant commercial buildings and converting older office properties into new uses.
“Missouri is open for business, growth, and opportunity,” Kehoe said in remarks released by Greater St. Louis, Inc. “The passage of these bills is critical in our efforts to continue revitalizing Missouri’s main streets, central business districts, and downtowns.”
The legislation comes as St. Louis officials, developers, and civic organizations continue looking for ways to bring additional residents, employers, and investment into the downtown core.
HB 3231 expands downtown development incentives
HB 3231, known as the Missouri Innovation, Public Safety and Accountability Act, represents the broader of the two economic development measures.
State Rep. Brad Christ sponsored the legislation, and Sen. Kurtis Gregory carried it in the Senate.
According to the governor’s office and Greater St. Louis, Inc., HB 3231 expands Missouri’s economic development toolkit through several programs intended to attract private capital.
Among its provisions, the law allows communities to establish Innovation Zones, reauthorizes and expands the Missouri Downtown Economic Stimulus Act, commonly known as MODESA, and establishes incentives intended to support office-to-residential conversions.
The legislation also creates a Missouri Angel Investment Tax Credit to encourage investment in startup companies and expands the Missouri Works program for certain large-scale capital investment projects.
Kehoe’s office previously said the Missouri Works changes include a new incentive for projects involving more than $50 million in new capital investment.
Those provisions could become particularly significant in downtown St. Louis, where large office buildings have struggled with vacancy and several properties have been considered for residential, hospitality or mixed-use redevelopment.
Rather than relying on a single redevelopment program, the legislation gives state and local officials multiple tools that could potentially be combined with private financing and other available development incentives.
Mayor Spencer said the new state programs strengthen the city’s ability to attract projects.
“Today, we are putting tools in place to turn Downtown St. Louis’ potential into investment, development, jobs, and opportunity,” Spencer said.
She described the legislation as part of a growing collection of incentives involving the city, state and private sector.
Historic tax credit changes target older properties
HB 3080 focuses on Missouri’s Historic Preservation Tax Credit program.
Sponsored by state Rep. Louis Riggs, the legislation modifies the state’s historic preservation tax credit and was passed with an emergency clause.
Greater St. Louis, Inc. said the changes are intended to reduce administrative obstacles while encouraging additional private investment in historic buildings throughout Missouri’s downtowns and Main Street districts.
The program is particularly relevant to St. Louis because the city contains a substantial inventory of historic commercial and industrial properties that can qualify for rehabilitation incentives when projects meet applicable requirements.
Historic tax credits have often helped convert older St. Louis buildings into apartments, hotels, offices, and mixed-use developments.
Supporters believe making the program easier to use could improve the financial feasibility of projects that otherwise face significant rehabilitation costs.
The Missouri House describes HB 3080 as legislation modifying the historic preservation tax credit, while the governor’s legislative record confirms that Kehoe signed the measure July 13.
Downtown St. Louis remains redevelopment priority
Greater St. Louis, Inc., which advocated for the legislation, called the measures a “nationally competitive toolkit” that could help the region recruit development and secure private investment.
Ron Kitchens, president and CEO of Greater St. Louis, Inc., said the organization believes the changes could help attract hundreds of millions of dollars in private investment over time.
The immediate impact will depend on whether developers pursue projects using the newly available incentives and whether proposed developments can secure sufficient financing.
One of the central challenges facing downtown St. Louis has been finding economically viable new uses for large buildings constructed for an earlier era of office demand.
Office-to-residential conversion programs could provide another option for some properties, although building configuration, construction costs, financing conditions and market demand will determine which structures are practical candidates.
Kehoe said the state believes St. Louis can again drive Missouri’s economic growth.
“For generations, this city has been a place where people built things,” Kehoe said during Wednesday’s event, according to local reporting. “St. Louis has helped build Missouri before.”
The legislation does not guarantee that individual downtown buildings will be redeveloped. Instead, it changes the financial tools available to cities and developers attempting to structure projects.
With HB 3231 and HB 3080 now in effect, attention will shift toward which downtown properties become the first to take advantage of the expanded incentives and whether the programs generate the private investment state and local officials are seeking.
Editor’s Note: This is inspiring. Such cooperation is great to see.
