When Peggy and I moved to south county in 1979 South County Mall sold most everything you needed or wanted. It had three anchor stores – Penney’s, Stix and Famous Barr (with Sears building a big store a couple years later at the west end of the mall).
Of course, things always change. Stix became Dillards, Famous-Barr to Macy’s and Sears, well, they just up and left. Third tier discount retailers took some of the space, but burned toast had a better future.
Thus it was no surprise when the news mentioned that South County Mall would become a “mixed-use development.” Expect apartments, retail, restaurants and other neat things ‘within walking distance.’ That’s happening at Chesterfield Mall, Crestwood Plaza and now even an oversized strip mall in Town and County.
Developers love mixed-use. They’re trendy and (thanks to giant tax subsidies) great for developers’ bottom line. And, some even look successful such as The Streets of St. Charles, The Station in downtown Kirkwood, The Highlands across from Forest Park and, well you get the idea.
My question is, Successful for who?
I still believe the region contains a set amount of wealth and disposable income. Economists remind us that this region is not growing, rather we merely re-arrange where people live and dollars get spent.
In other words, the restaurants at Streets siphon diners from St. Charles’ Main Street.
Apartment living becomes a big part of each of the mixed-use projects.
They aren’t for everyone.
Oh no, they don’t discriminate (directly) by race, religion or ethnic origin. They simply price the housing out of the realm where most area residents – even those with necessary jobs such as school teachers or police officers – can afford.
A quick tutorial: most economists say you’re financially stressed if you spend more than 30% of your income on housing (rent, utilities and insurance included). In my experience in social services, most apartment managers of livable locations demand that rent be 25% or less of net income.
Okay, you’re a new teacher at a good St. Louis County district starting at about $48,000 a year. After taxes, pension participation, etc., your net income probably hits the books at around $39,000. So, 25% of $39,000 means a rent payment of $9,750 a year or $812 a month.
Studio apartments: Streets of St. Charles, $1,320 per month
The Foundry, St. Louis, $1,240 per month
One bedroom: Kirkwood Station, $1,725 per month
To put it another way, to afford that Kirkwood place you need a net income of $6,900 a month and a pre-deduction paycheck around $90,000 a year.
So, get a roommate? A two bedroom apartment at The Streets can be had for just $2,040 a month…that’s two incomes of about $55,000 each.
I know, affluent people need housing too.
Yet, just as the region’s wealth is stagnant so too is tax revenue. Subsidies for developers putting up fancy apartments for affluent people mean less money for typical family housing.
Back in my days at Joint Neighborhood Ministry, Guardian Angel Settlement (both south city) and Circle of Concern it was common to see families committing 50% or even 70% of their income towards rent. The ‘system’ encourages that, telling families to secure housing first then see what else of what you need you can afford.
Yes, a lot of people ask charities such as Circle for rent help. Unfortunately, perhaps one in ten gets help area wide, and, the help is not only rare but very, very limited. That causes homelessness and families struggling to stay together despite moving from one lousy place to another every couple of months.
Housing subsidies for developers to build affordable housing? On paper many of these mixed-use places are affordable housing thanks to fuzzy math. Subsidies for really affordable housing? That’s communism here and now.
When you see the fancy signs for new “mixed-use developments” just remember that they’re only for those [very affluent] people. Not average or necessary neighbors.
Glenn Koenen