Steve Ehlmann

ST°CHARLES County Executive

COUNTY Joann Leykam
Director of Administration

EXECUTIVE Jennifer George

Assistant Director of Administration

John Greifzu
Assistant Director of Administration

Mark S. Wrighton, PhD

James and Mary Wertsch Distinguished University Professor
Chancellor Emeritus
Washington University
MSC 1020
One Brookings Drive
St. Louis, MO 63130

Re: STL 2030

Dear Dr. Wrighton,

Thank you for sharing this early draft of STL 2030, Driving a Decade of
Inclusive Growth, An Action Plan to Grow Quality Jobs for All St. Louis ans,
(hereafter "the document"). I am pleased to accept your invitation to provide
feedback. I enjoyed the nearly two hours I spent talking to Bruce Katz.
Unfortunately, many of the issues I identified as holding back economic
development in the region did not even make it into STL:2030. Although my
feedback below will focus on those missing issues and actual proposals about
which I have doubts, there are certainly many proposals in the document that have
merit. Generally speaking, I believe everyone applauds the efforts to provide equal
opportunity for all our citizens to have a rewarding job or pursue their
entrepreneurial dreams. However, the step from trying to ensuring equal
opportunity to trying to ensuring equal results has always been much more
controversial and the document appears to make some fundamental assumptions
that will not be shared by all in the region.

The first proposal in STL:2030 is to "steward an inclusive economy by

creating Greater St. Louis, Inc,, a "multisectoral networks of public, private and
civic institutions that can together navigate the complexity of challenges that cities
face and work to advance inclusive, sustainable and innovative growth." I trust
when they use the word "cities" they are referring to metropolitan areas. Our
region has adopted very diverse approaches to economic development and each

100 N. Third St. - Suite 318 ! St. Charles, MO 63301 ! P 636.949.7520 ! 1.800.822.4012 ! F 636.949.7521 ! executive@sccmo.org f www.sccmo.org
Mark S. Wrighton, PhD
Washington University
December 8, 2020
Page 2

jurisdiction has shown strengths and weaknesses in their individual efforts, many
of which are set out in the document. It is important that any new regional
organization appreciate that fact and reflect the diversity of approaches to
government generally, and economic development specifically, in the region. The
diversity of values, and views of the proper role of government, were apparent in
the recent election when the region split close to fifty-fifty.

Hopefully, the executive team and board of directors of Greater St. Louis, Inc
will reflect this diversity with a near-equal number of liberal and conservative
members, and a near-equal number ofleft-leaning and right-leaning moderates.
Since more than half the people in the region do not live in St. Louis city or
county, the leadership should also reflect the geographical diversity of the region
as well. That leadership will need to represent the entire region when it appears
before the General Assembly and executive branch in Jefferson City or
Springfield. Even if we could start out with such a make-up, Conservatives like
myself, noting the prominence of liberals in the administration of most civic
organizations, are reminded of political commentator John O'Sullivan's warning
that, "All organizations that are not actually right-wing will over time become left-
wing" I believe, to have an effective regional organization, we will need to guard
against that happening with Greater St. Louis Inc.

One of the strategies Greater St. Louis, Inc. plans to implement is the STL
Pledge, committing major employers to, among other things, locate, "all or a
portion of their workforce near key nodes and districts in the city's core ... " This is
a far cry from the non-competition clause proposed by the St. Louis Economic
Partnership a few years ago in which jurisdictions were asked "not to initiate
contact with any businesses located in the jurisdictions of the counter-parties to
this Agreement, ... to attract that business to move or expand any or all of its
operations or employment base to any other jurisdiction." More recently, its
Principles and Protocols state, "It is never the intent of AllianceSTL to be involved
in intra-metro relocations and our strong bias is that it is best for businesses to
grow in their current community." We need new jobs and new investments
throughout the region. Relocating existing jobs to one jurisdiction is tantamount to
rearranging the deck chairs on the Titanic and is a serious departure from present
economic development practices.
Mark S. Wrighton, PhD
Washington University
December 8, 2020
Page 3

What are the chances businesses would voluntarily move jobs to the city for
free when they have received incentives to do it in the past? The writers of the
1945 Missouri Constitution encouraged investment in the inner cities when they
allowed different tax treatment for property in "blighted" areas. Programs like Tax
Increment Financing (TIF) have been enacted into law and used to move economic
development from one part of the St. Louis Region to another rather than create
new economic activity, all well-documented in a study by East-west Gateway
several years ago. The authors admit that job relocations to restore the core, "will
not be acts of philanthropy." Here's how that can work. A business paying
property taxes where they are in the region moves to the city in return for a
property tax abatement. While the city losses property tax revenue it makes it up
with city earnings tax revenue. The move will only cost the employees (the top
executives will probably not move) and the city schools. Unless the employee
moves to the city or an effected student is 18 years of age, no one gets to express
their disapproval at the next city election.

The Earnings Tax is a subject, by the way, that is not even mentioned in
STL:2030. If you want jobs to return to the city, do away with the earnings tax. I
introduced a bill in the Missouri Senate 25 years ago to do that and replace it with
other revenue sources. It failed to pass. In the meantime, most of those other
revenue sources have been tapped by the city, but the Earnings Tax remains.
Another topic not even discussed was tort reform. Will businesses that have tried
to avoid the courts in the City of St. Louis for decades want to relocate jobs there
before passage of meaningful tort reform in the State of Missouri?
The authors of the document contends, "Racial activism is one of the metro's
greatest assets," claiming that since Ferguson, "The St. Louis region has
experienced an exceptional rise in civic engagement and collective action to
address persistent racial disparities in policing, education, health, wealth and a
whole host of other areas." Indeed, Centene built a $25 million facility in
Ferguson, while the entire business community supported the Concordance
Academy and the St. Louis Public Schools. Nevertheless, in September 2017, after
a former police officer was acquitted on a murder charge, protestors took to the
streets of St. Louis, despite the progress that had been made, for the nation to again
see. Such protests seem to be out of the control of local black leaders.
Mark S. Wrighton, PhD
Washington University
December 8, 2020
Page4

STL2030 's second proposed solution is "to restore the STL core as the vibrant
jobs and cultural center of the metropolis." The goal is 50,000 new jobs within the
core of the city, with a good portion available to disadvantaged residents. The
authors decry "the vacuum left by decades of job sprawl. ... " The region had a
debate about urban sprawl over twenty years ago and some then argued, as the
authors of the document do, that "decentralization had undennined performance."
After that debate, even the Democrat-controlled legislature rejected calls for
"suburban growth boundaries." To their credit, the authors now suggest voluntary
pledges over governmental coercion. The City of St. Louis remains, culturally and
recreationally, the center of our region. But the Regional Employment Density
Map makes it obvious that the jobs center of the region is significantly to the west
of downtown; even to the west of Clayton. That center ought to be the starting
point for a discussion of economic development. To do otherwise will only create
resentment among the majority of people in the region who do not live in St. Louis
city or county.
While the authors present evidence of how other metro areas have solved
various problems, they have missed opportunities to highlight how jurisdictions in
our own region have successfully addressed a problem. Other than being
mentioned in the definition of the region, Jefferson, St. Clair Madison and Monroe
are not mentioned again. Franklin County is mentioned again once, and St.
Charles County is mentioned twice. As an example, the authors state, "race and
space are intertwined." Indeed, the large discrepancies in housing values on each
side of the Delmar Divide has been allowed to extend into St. Louis County. The
document contends fragmentation has hampered collaboration in St. Louis County
with its 90 municipalities. They contrasted St. Charles County, where we have
five major cities, each with neighborhoods for all types of housing. Housing
values per square foot are roughly the same in each municipality, as are the values
on both sides of the Delmar Divide line when extended into St. Charles County.
Other jurisdictions have successes that can and should be adopted by others.
The document states the "weakness of the core is also one of the central
barriers to the growth of the metropolitan region." The core has been in decline
since the 1960s. What is different the last decade is the increase in crime. That
increase, on top of the Ferguson experience, has generated so much negative media
coverage that the entire region has suffered. Can anyone expect businesses to move
Mark S. Wrighton, PhD
Washington University
December 8, 2020
Page 5

jobs to the core before we get the murder rates down and make Metrolink safe?
The document mentions crime on page 7 as one factor that contributes to health
disparities along racial lines. Eight pages later it identifies crime, in the same
sentence with racial disparities, disinvested communities, underfunded public
schools and the large number of local municipalities as "cause for concern." Those
are the only two places the word "crime" appears.

Moreover, those crime statistics, which are going to look even worse when the
city begins reporting under new FBI crime reporting standards, are harming
economic development efforts in the entire region. St. Louis is the only major city
in the country that has had more murders than COVID deaths this year.
Developers around the country and the world, when seeking a place to put their
business, used to look at the St. Louis Region and some of them were attracted to
St. Charles County. Today, because of all the bad publicity, St. Louis has been
taken off their lists and they never even find out about St. Charles County.

There is an expression of faith that the Brickline strategy, a greenway in North

St. Louis, will be a game changer. I hope it will. The incredible efforts to improve
the Arch Grounds may have increased tourism, but an increase in crime downtown
can quickly neutralize any benefit to business development. The document
specifically mentions the restoration of Fairgrounds Park, located along what the
Post-Dispatch recently identified as the deadliest mile in St. Louis. How can you
ask for a pledge to relocate jobs to the core before we solve the crime problem?

Another Restore the Core strategy states, "Contracts for the work must favor
locally owned small businesses, particularly construction firms, that are owned by
people of color." Racial preferences in contracting have been around for decades.
I am most familiar with them in the area of transportation, since Federal Highway
and MoDOT has had such a program for years. Some successful businesses have
developed through the process over the years. One hears reports, however, of
minority owned businesses hiring sub-contractors to do the work and thus failing
to develop the necessary expertise to compete in a free market. The document
offers no suggestions on how to keep the same thing from happening in the
pledge's racial preference program. Would anything be required other than to
open an office with a phone in the city to take orders for a product to be
manufactured elsewhere? Racial preferences apply to governmental entities and
Mark S. Wrighton, PhD
Washington University
December 8, 2020
Page 6

are constitutional because those entities had a history of discrimination against

minority groups. The pledge would apply to private companies and would be
entirely voluntary. Racial preferences have always been controversial, and the
voters of California last month declined to repeal a ban on such preferences that
has been in effect for at least two decades.

The third solution discussed in the document is "to build a world class
ecosystem for small business and entrepreneurs." The document points out that
small businesses employ almost half of the metropolitan workforce and proposes a
ten-year Entrepreneurial Surge to nurture development of small businesses and tech
entrepreneurs alike. The authors believe, "St. Louis needs to become a recognized
national leader in the growth of successful businesses owned by people of color
across multiple industries." Later on the same page they talk about "black and
brown communities." When they talk about "St. Louis" do they mean the city or
the region? When the authors discuss the "brown community" are they talking
about Asian-Americans, as well as people of Hispanic and Middle Eastern origin?
Are their statistics for minority-owned businesses region-wide or just city-wide?

While the document recognizes the importance of small business, there appear
to be very few small businesses that were asked to participate in its preparation.
Any of our local Chambers of Commerce could have recommended successful
small businesspeople who have direct experience. Most of the businesspeople
involved in the production of the document appear to be employees of large
business concerns rather than creators of small businesses. My experience is that
large corporation do not send entrepreneurs but rather public relations experts to
participate in such efforts.

Finally, the last solution suggested by STL:2030 is that we "become a talent

engine and magnet." The authors suggest cultivating "deep, mutually benefit
relationships between education, workforce training and industry," but seem to
understand very little about Workforce Development in the region. There is no
mention of the WIOA and the American Job Centers as part of the remedy for
workforce training. They point out that, "For those living in historically
disadvantaged areas like the north side of St. Louis, pathways into careers that pay
well are scarce," and conclude, "duplicated efforts and disjointed programs that are
Mark S. Wrighton, PhD
Washington University
December 8, 2020
Page 7

difficult for people to navigate." While an economic development program,

Workforce Development is funded like a Social Services program. While we have
many more businesses in St. Charles County asking our Workforce Development
to help them fill jobs, the Workforce Development program in the City of St. Louis
receives 280% more in workforce funds then our community, even though our
population is 115,000 higher.

The authors want every student to receive quality STEM education and
exposure to various occupations beginning in pre-Kand continuing through high
school. They claim local intermediary STEMSTL is already working with
educators, employers and families to improve STEM education. Partners for
Progress has tried for the last 12 years, under the leadership of Randy Schilling, to
promote STEM in St. Charles County. They have helped our schools begin
computer science training and usage in preschool and through K-12, started more
than 100 robotics teams and launched STEM summer camps.

The authors of the document claim, "Technical skills gaps tend to get the most
attention, but many employers report that human skills are in short supply as well.
Sometimes referred to as 'soft skills,' in reality these skills are anything but. They
encompass abilities such as critical thinking, cooperation, growth mindset, working
within a diverse team and even appropriate use of personal devices at work." My
experience talking to many employers in St. Charles County is that they see a lack of
even "softer" skills like showing up for work, being on time and focusing on the job
for eight hours. Ideally, these skills are taught in the home, but our second line of
defense is the schools.

When we were developing as an industrial society, schools reinforced

skills necessary for an industrial job. While some students will still have
industrial era jobs, they often lack the discipline displayed by their parents and
grandparents. The Missouri School Improvement Plan (MSIP) results show
that, in most successful school districts in the region around 90 percent of the
students are present 90 percent of the time. In St. Louis Public Schools, 70
percent are there 90 percent of the time. In the Normandy School District, the
percentage is 65. If students cannot master the soft skill of getting to school on
time, they have no chance of developing the higher skills that will land them a
Mark S. Wrighton, PhD
Washington University
December 8, 2020
Page 8

good job. If they cannot show up for work on time, they won't be able to keep
any job at all. At one time, the schools prohibited profanity and required the
same level of discourse that would later be required on the job. Workplace
discourse is now the stuff of lawsuits and if an employee were to use some of
the language now allowed in some of our school he or she would probably get
fired.

More thought needs to be given to the proper scope of STL:2030. As I have

already suggested many important issues have been totally ignored. A discussion
about public and private education, school choice and charter schools need to
be part of any effort to restore the core. STL Inc. will have to be involved in a
serious discussion with regional interests and the legislature on the future of the
airport, which is vital to the future of the region, but this document does not even
mention. It talks about lack of a "supportive state government" but does not
specifically address what is lacking.

The document recognizes business sectors where the region offers promise.
Among those, St. Charles County has an aerospace and defense presence with the
Boeing Plant, an automotive with the GM Plant, and distribution and logistics with
Amazon and several others. We are happy about NGA in north St. Louis, but an
almost equal investment is being made in the GM Plant in Wentzville and Amazon
has created thousands of new jobs for employees who live all over the region.

The authors explain that organizations like the Bi-State Development Agency and
the East-West Gateway Council, as well as initiatives like the St. Louis Regional
Freightways have put together multi-year plans detailing needed infrastructure
investments in the region. The document suggests, "These plans position St. Louis well
for any federal infrastructure funds that become available in the years ahead. The
recommendedfreight infrastructure investments detailed in the plans-replacement
of the Merchants Memorial Mississippi Rail Bridge, improvements of I-70 and 1-64,
additional cargo capacity at Lambert International Airport-will make it easier for St.
Louis manufacturers to obtain needed materials and ship out final products." There is
much more to be done. The logistics "Main Street" of the region is the I-70 "Truck
Route" designated by MoDOT. When a truck heads west from the "Gateway to the
West" it has to squeeze under a railroad on a two-lane lnterstate-70 at Wentzville.
Mark S. Wrighton, PhD
Washington University
December 8, 2020
Page 9

If it is headed east, it has the same problem at the Chain of Rocks Bridge. The new
bridge has been funded but the I-70 project has not been put in the STIP by MoDOT.

The document claims to reflect conversations with hundreds of St. Louisans

throughout the region over the past 12 months. Among the individuals interviewed
or otherwise involved, there are two, other than myself, from St. Charles County,
the second largest jurisdiction in the region, and nobody that I recognize from
Jefferson or Franklin counties. The Illinois side of the river seems to be
underrepresented as well. I only hope that Greater St. Louis Inc. will have more
geographical diversity. Other counties that are not in EWGCG were included in
the definition of the region but, as far as I can tell, not included in the discussion. I
question why the 2018 numbers were used for population when 2020 are available.
STL:2030 gets off to a bad start on the cover page and betrays the bias within.
The map depicted on the cover does not go past I-270 in St. Louis County. It
features the old core of the region, downtown St. Louis, in the middle, ignoring the
existing reality that the majority of the region's jobs aren't even on the map. I
hope that some discussion of the issues I have raised will be included in your final
vers10n. I will make myself available if you would like to discuss these issues
further.
Respectfully submitted,

Steve Ehlmann
St. Charles County Executive