The updated framework, based on additional research and community feedback, treats data centers even more cautiously than the initial framework, includes many changes to the minimum conditions to address specific concerns and requires a community benefits agreement for any large project.

The updated framework is available to the public. All changes, including new requirements and updated language, are highlighted in the report. Key changes include:

• Lowering the megawattage threshold between the "standard" and "major" data center types to better control appropriate development outside of industrial districts
• Establishing new e-waste recycling requirements
• Reorganization of the regulations for clarity and legibility
• Heightened standards for generators to minimize environmental health impacts
• Revising the approach to data centers Downtown and in mixed-use districts to preserve office, retail and housing opportunities, and to remove barriers to adaptive reuse projects
• Revising renewable energy requirements in accordance with technical advice, acknowledging the constraints of limited renewable supply in the region
• Requiring agreements that avoid negative impacts to the City's water system
• Requiring ongoing reporting and monitoring

Community members have shared feedback in writing and at the Feb. 11 Planning Commission public hearing. 

A second public hearing will take place in the Kennedy Room (room 208) of City Hall, 1200 Market St., at 5:30 p.m. on Monday, May 18.

The public hearing may be attended in person and virtually. The Zoom details are:

• https://stlouis-mo-gov.zoom.us/j/81699258307?pwd=Ry90QWdlc2hUZ1ZNeHB5UG4wNXVadz09
• (253) 215-8782
• Meeting ID: 816 9925 8307
• Password: 149154

Written comments may be submitted to the Planning Commission in advance of the May 18 hearing via an online form or by emailing planning-commission@stlouis-mo.gov.

Staff will also present this framework during a Zoom-based informational webinar on May 11 from 6 to 7:30 p.m. This webinar is intended to further explain the updated framework to the public to facilitate further understanding and refinement. The public can join at: https://stlouis-mo-gov.zoom.us/j/82986212175.

The Planning Commission may vote on whether to recommend approval of new data center regulations at the May 18 meeting. Any new zoning rules would only come into effect once passed by the Board of Aldermen and signed by the mayor. Once in effect, new rules would replace the interim approach established by Executive Order 92 and Resolution 111.

"With 109 parks in the City of St. Louis, maintenance and upkeep is a challenge our department faces each day." said Kim Haegele, City of St. Louis Parks Commissioner. "We welcome the support from the State Farm Red Nets Program to outfit our basketball courts where nets are missing or have become worn. These new nets will go a long way to improve the courts and the players' experience. Nothing beats the swishing sound of a basketball dropping into a net." 

An estimated 90 percent of public basketball hoops are missing nets. Throughout the country, State Farm is building community and working to turn courts back into symbols of neighborhood pride.

"Being a good neighbor means showing up for the community. For us, that includes the local basketball court, which is a hub for neighborhoods everywhere," said Alyson Griffin, Head of Marketing at State Farm. "Our Red Nets program is about more than just replacing worn or missing nets; it's about restoring the energy, pride, and joy that comes with every swish. We're teaming up with the City of St. Louis, to make sure these courts remain a space where players of all ages can gather, play, and connect. Because when a community plays together, it grows stronger together." 

Basketball courts in Sherman Park and Wohl Recreation Center, which is located within the park, are among those receiving new nets. 

"Throughout the year, St. Louis Recreation Centers provide welcoming and safe places for children and adults alike to exercise, play their favorite sport, and learn new ones," said Juakena Callion, City of St. Louis Recreation Commissioner. "Basketball is a favorite sport, and having quality courts where residents can gather and play helps provide a positive outlet and a place to build and maintain friendships. These nets are good for both the players and the neighborhoods that are home to our basketball courts."

Learn more about City of St. Louis Parks, Recreation, and Forestry and State Farm® Red Nets. 

"This is a responsible budget that ensures our City's fiscal stability while investing in our hard-working staff, better city services, and public safety," said Mayor Cara Spencer. "Budgets are the art of the possible and of compromise, and I am confident that this budget will help us make St. Louis a better place to live, work and visit."

A Balanced and Transparent Financial Future

The fiscal year 2027 budget is balanced and maintains healthy reserves despite economic uncertainties.

• Strong Reserves: The General Fund reserve stands at $154.1 million, or 24.2% of the FY27 budget, which exceeds the Government Finance Officers Association's best practice of 16.6%.
• Fiscal Stability: Revenues are stabilizing as earnings and payroll tax refunds level off. The General Fund is projected to grow by 1.7% to $637.1 million.
• Pension Management: Due to improved market performance, budgeted pension contributions will decrease by $6.5 million. Current pension systems remain fairly well-funded at approximately 80%.

Key Provisions and Community Benefits

The FY2027 budget outlines several critical initiatives designed to improve city services and quality of life for all residents:

Investing in the City Workforce

• Competitive Pay: $18 million is allocated for pay adjustments for City workers, including bringing entry-level salaries to market-competitive levels to aid recruitment.
• Retention: Most City employees will receive a 3% salary adjustment, while uniformed police and firefighters will see a 7% increase.

Enhancing Public Safety

• Police Funding: The Police Department will receive an $8.6 million (4.3%) increase to cover salary and operational needs.
• Infrastructure: $5 million in ARPA interest is reappropriated to complete the 911 Dispatch Center project.
• Emergency Planning: Funding for the City Emergency Management Agency will increase by $300,000 for additional staffing and emergency planning.
• Violence Prevention: Office of Violence Prevention funded with $8.8 million, to reduce crime and improve neighborhood safety by addressing root causes of violence, providing crisis response, youth programming, re-entry services and more.

Neighborhood Stabilization and Social Services

• Housing and Blight: The budget includes a $4 million increase for derelict building demolition (totaling $9.3 million) and $2 million for Forestry Division clean-up efforts.
• Emergency Support: $2 million is dedicated to the "Code Blue" emergency housing program.
• Community Investment: Local Use Tax funds are allocated for affordable housing ($6.7 million), violence prevention ($8.8 million), and a Health Care Trust Fund ($5 million).

Improving City Services

• Infrastructure Maintenance: Funding includes $6.8 million for road and bridge projects and $10.7 million for ward-specific improvements.
• Streets and Refuse: The Street Department will receive a $1.3 million increase for snow removal and salt, while $0.5 million is designated for street signage and striping inventory.

Summary of Funds

Applications are due June 5, 2026, and eligible applicants must be nonprofit supportive service providers with the staff and financial capacity to carry out the proposed program. 

CDA will host a virtual informational workshop on May 1, 2026, at 9 - 11 a.m. to provide general guidance on the application process. Applications must be submitted through Salesforce at CDAgrants.stlouis-mo.gov.

Eligible uses of HOME-ARP funds include a wide range of supportive services and housing-related assistance, such as case management, child care, food, legal services, mental health services, transportation, housing counseling, rental assistance, security and utility deposits, and moving costs. The NOFA also includes bonus points for programs serving people affected by the May 16, 2025, tornado who are homeless or at risk of homelessness as a result of the storm.

"CDA is committed to using federal resources in ways that help St. Louis residents find stability and move forward," said Matt Moak, Executive Director of CDA. "This funding opportunity will support trusted nonprofit partners providing critical services to people facing housing instability, while also helping the city respond to ongoing needs connected to the May 16 tornado."

All applicants must be registered with SAM.gov and meet CDA eligibility requirements, including City of St. Louis tax and business license compliance.

CDA will announce award selections after applications are reviewed and evaluated through a competitive process. Legal agreements must be executed by September 30, 2026, and all funds must be fully expended by September 30, 2030.

For more information, all application materials, and updates, visit the 2026 HOME-ARP NOFA document webpage.

About the Community Development Administration (CDA):
Established in 1974, CDA invests approximately $25 million each year in affordable housing, community development, and public services across St. Louis. As the City's housing and community development agency, CDA works in partnership with HUD, the Planning and Urban Design Agency and the St. Louis Development Corporation to ensure that funding priorities are transparent, competitive, and community-driven.

This approval comes with a significant number of required conditions to address concerns raised by the community, including noise, walkability, sustainability and the use of power and water. The City has also negotiated robust terms for a community benefits agreement to ensure the St. Louis community comes out ahead.

"While St. Louis is already home to 12 data centers, which we know are important to the modern economy and local industries like geospatial, finance and healthcare, we as a City are committed to a simple principle," said Mayor Cara Spencer. "We want St. Louis to be open for business, but business on our terms; that means we're only going to allow the development of data centers if the community benefits."

At Mayor Spencer's direction, over the last month, the City has significantly strengthened the required conditions and their enforceability, and established a foundation for ongoing monitoring. These conditions are designed to mitigate potential environmental and economic impacts to the community. 

The entire list of conditions has been made publicly available with this press release, but includes these highlighted items requiring that the developer:

• Use a closed-loop system and air-cooled chillers to minimize water consumption.
• Pay any new large load or data center-specific water rates determined by a cost-of-service study, as well as fund a hydraulic model study and rectify any detrimental impact the development may cause on existing customers. Prior to the study completion, an agreement may establish a short-term rate for this use.
• Recycle all electronic waste with the highest environmental certification (R2), which requires independent, third-party audits of facility operations, worker safety and downstream vendor tracking.
• Achieve and maintain compliance with all wastewater discharge standards set by the Metropolitan St. Louis Sewer District, once the facility is operating.
• Ensure that at least 50% of the data center's energy load comes from renewable sources within five years of commencing operations. Additional target may be set in a community benefits agreement.
• Maintain a Power Usage Effectiveness (PUE) of 1.25 or better, or 1.35 or better if more than 50% of the existing building on the parcel is repurposed.
• Annually report waste heat rejected to the outdoor environment, the quantity of waste heat recovered or reused, and the peak heat rejection rate during summer design conditions or the hottest observed days.
• Never use on-site generators as a general operating power source.
• Place noise-emitting equipment, including backup generators, away from primary frontages and enclosed within acoustically treated structures.
• Only test backup generators between 10 a.m. to 12 p.m. and 2 p.m. to 5 p.m. Monday through Friday, and never test on bad air quality days.
• Incorporate battery storage for backup power to minimize reliance on diesel generators.
• Operate the building with a cool roof, green roof, and/or rooftop photovoltaic solar panels to reduce urban heat impacts.
• Provide and maintain landscaping and/or screening to screen equipment from any proposed or existing greenways along the premises.

Should any conditions not be met, the City is able to revoke the occupancy permit if issues are not corrected.

In addition to the above conditions, the City has also negotiated key terms for a community benefits agreement with the developer to secure quantifiable economic, environmental and infrastructure benefits, and protect our community against any risks and uncertainties associated with the project.

Term sheet details are also released with this press release and include the following provisions, binding the developer to:

• Contribute $30 per square foot of approved data center development, an estimated $15 million to a City fund for the use on: 
  • Multi-modal enhancements (e.g., Brickline Greenway);
  • St. Louis Digital Access Inclusion Plan activities; and 
  • Economic and environmental justice activities, including for local distributed energy and weatherization.
• Install and maintain sidewalks adjacent to Market Street and a pedestrian pathway to the Grand Metrolink station.
• Not seek local tax abatement incentives for the data center or Armory buildings.
• Confirm tax revenue estimates and pay $15,000 in liquidated damages for every $100,000 below the projected annual tax revenues if not met by 2029.
• Meet escalating, median-wage "Job" minimums for 20 years (starting at 25 in year 1, 50 in year 2, and 100 thereafter) and pay $2,000 in liquidated damages for each job short of the required total. 
• Comply with the City's First-Source hiring ordinance to prioritize City residents for entry-level jobs. This also applies to large tenants.
• Ensure the 500 Prospect property conforms to mutually agreeable plans for pedestrian, stormwater management, and heat island mitigation enhancements if used for parking.
• Comply with all federal, state and local nondiscrimination laws, as well as specific City ordinances pertaining to minority-owned and women-owned business (M/WBE) participation, workforce development, and prevailing wage compliance. This also applies to contractors, and covenants will run with the land to prohibit discrimination in the sale, lease, or use of the property.
• Establishes a performance schedule, with the data center completely operational by the end of quarter four of 2028. Permits will not be issued until all Green Street properties are current on taxes. 
• File a decommissioning plan to safely remove and recycle electronic waste if the data center is vacant for over a year.
• Not lease the data center to tenants primarily using the premises for crypto-mining or other undesirable business uses. 
• Public disclosure of tenants unless prevented by national security interests.

The City will be able to seek legal recourse, including financial compensation, if specific provisions of the community benefits agreement are not met. To the City's knowledge, this is the only such agreement negotiated for a data center project not receiving tax incentives from a city or county.

Since the St. Louis Water Division is owned by the public and needs to invest significantly in improving its aging water infrastructure, St. Louis is in the unusual position where regular water users would benefit from large water users, such as data centers, being added to the system, because it would move some of the cost of the needed maintenance from existing users to the new large users.

The development is expected to create 200 full-time jobs once completed, including 150 in the Armory, which will be redeveloped as office space, and generate first-year tax revenue of $27.4 million for the City of St. Louis and $33.4 million for the St. Louis Public Schools.

For comparison, the fiscal year 2026 budget for the Refuse Division is $28.8 million. The Street Division budget is $12.6 million and the Forestry Division's is $11.8 million.

Over 10 years, the development is expected to generate $432.3 million in tax revenue, helping not only to fund city services and children's education, but also libraries, the Zoo Museum District, the Metropolitan Sewer District, senior services, and more.

"As mayor, I cannot responsibly ignore the amount of good this amount of tax revenue will do for city services, SLPS students and some of the most important amenities and services that our community depends on," said Mayor Spencer. "Though I share many concerns about data centers, we have negotiated hard to address the concerns we have any control over and ensure that our community reaps the benefits if this development moves forward."

Local labor and teachers unions shared their support for the City's approach to thoughtful conditions for this project, creating good-paying jobs and supporting local schools.

"This is an important new direction for working families, the schools and the City of St. Louis. This revised proposal represents what could be a national and local model for all developers. The public, city leaders and union officials had real concerns regarding any data center proposal. The Armory Project team went through the process, listened and addressed those concerns," said AFT St. Louis, Local 420 President Ray Cummings. "Unlike some other data center concepts, this revised proposal offers tangible benefits paying a fair share of taxes and public benefits it will generate for SLPS and the City. The impact on school funding, city tax revenue, union jobs and the developer's responsiveness are groundbreaking and can be emulated."

"Today, the residents of St. Louis took a big step forward. The members of the St. Louis Building and Construction Trades Council look forward to building the next generation of infrastructure for our country, right here in the City of St. Louis. We look forward to working on this 100% Union project while welcoming more residents of the City of St. Louis into life-changing careers in the construction industry," said John Stiffler, executive secretary-treasurer of the St. Louis Building and Construction Trades Council.

"This project will create good-paying union jobs right here in St. Louis, while also generating hundreds of millions of dollars for area public schools. The investments this project will make in our infrastructure, our economy and our future cannot be denied. This is a generational win for the people of St. Louis and a great opportunity for residents to join the construction industry," said Jake Hummel, president of the Missouri AFL-CIO.

This initiative was made possible through a $1.5 million award from the Missouri Department of Higher Education and Workforce Development (MDHEWD) to support residents impacted by the devastating tornado that struck the St. Louis region on May 16, 2025. 

The funding is part of a larger $4 million Disaster Recovery National Dislocated Worker Grant awarded to MDHEWD by the U.S. Department of Labor to provide temporary employment and workforce training to individuals who are unemployed, underemployed, or have been impacted by recent economic disruptions.

Participants in the program may earn up to $25 per hour while contributing to critical recovery projects, including debris removal, site cleanup, and rehabilitation efforts at impacted properties and community spaces. Current worksites include AmeriCorps St. Louis, Alpha & Omega Demolition, the Land Reutilization Authority (LRA), Golden Heights LLC, MKL Construction, NJW Construction Corp., Latter Glory Manor Apartments, Kossuth Church, and Veterans Elite Development and Construction, with additional worksites actively being identified.

"Through the Disaster Recovery Jobs Program, we are not only helping residents return to work, but also empowering them to play an active role in rebuilding their communities," said Connie L. Johnson, Executive Director of SLATE. "This initiative reflects SLATE's commitment to connecting people to meaningful employment while addressing urgent needs across the City of St. Louis."

Eligible individuals include dislocated workers, unemployed or underemployed residents, and those seeking to re-enter the workforce. The program is not limited to individuals directly impacted by the tornado.

In addition to paid work experience, participants receive a range of supportive services to ensure success, including job readiness training, career coaching, and assistance with employment-related requirements such as physicals, OSHA-10 certification, and necessary screenings.

While the program's scheduled information sessions will conclude next week, SLATE will continue enrolling participants on a rolling basis. Interested individuals are encouraged to connect with the SLATE Missouri Job Center to learn more and begin the enrollment process.

For more information about the Disaster Recovery Jobs Program or to express interest, individuals are encouraged to complete the interest form at https://tinyurl.com/TornadoJobs. 

SLATE is also inviting local businesses, contractors, and organizations engaged in tornado cleanup and recovery efforts to partner as worksites for the program. Through this partnership, employers can access a motivated workforce while contributing to the city's recovery.

Employers interested in participating are invited to contact SLATE at info@stlworks.com.

The compensation ordinances are informed by the results of the Citywide Compensation and Classification Study published by the Department of Personnel in 2025.

Pending consideration and approval by the Civil Service Commission, the proposed ordinances will then be considered by the Board of Aldermen, and finally, by the Mayor for approval.

These ordinances represent a comprehensive update to our existing pay structures (repealing Ordinance 71963) to ensure the City remains competitive in attracting and retaining a high-quality workforce.  

The primary goal of this legislation is to ensure fair and equitable rates of pay while observing the principle of "like pay for like work". The ordinances balance the needs of our dedicated civil servants with our responsibility to the taxpayers of St. Louis.

Notable Changes and Provisions

• Updated Pay Schedules: The ordinances establish new bi-weekly pay ranges for General, Management, Trades, and the St. Louis Fire Department.
• Lump Sum and Conversion Increases: Full-time employees on the General, Management, or Trades schedules as of May 31, 2026, will receive a one-time $1,000 lump sum payment in June. Furthermore, these employees will see a 3% bi-weekly rate increase for Fiscal Year 2027.  
• Public Safety Adjustments: The lowest graded employees in the Fire Schedule (suffix F) will receive a 7% increase to their bi-weekly rates in order to match the parity that SLMPD gave to the Police Officer classification. All other employees in the "F" schedule will receive increases as recommended by the consultants, with the new fiscal year.
• Updated Pay Ranges: We are updating our pay structure to move from a 30-step pay matrix to an open-range plan. This will ensure our rates remain competitive with the modern job market.

Effective:

The provisions of these ordinances will become effective after consideration and approval by the Civil Service Commission, Board of Aldermen, and the Mayor.