JEFFERSON CITY — A lawsuit has been filed by Missouri Attorney General Josh Hawley against a St. Louis developer who allegedly received $4.5 million in tax credits for property purchases that never came through.
According to the Attorney General's Office, a lawsuit has been filed in Circuit Court of St. Louis City against Northside Regeneration LLC, owned by Paul McKee. The suit alleges McKee was involved in tax credit fraud, breach of tax credit application and unjust enrichment.
“My office will not tolerate the abuse of a state tax credit program designed to revitalize communities,” Hawley said in a statement. “This lawsuit will ensure that any responsible parties are held to account and Missouri dollars are returned where they belong."
The Attorney General's Office alleges in November 2012 Northside applied for a distressed areas land assemblage tax credit from the Missouri Department of Economic Development for the purchase of several properties in St. Louis and then received the credit in the beginning of 2013. Northside allegedly deeded back one of the properties and also failed to complete the sale of another property six months after receiving the tax credit.
The Attorney General's Office also states Northside failed to notify the state regarding the changes in his tax credit application and did not disclose them in annual reports or repay the state for the tax credits.