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Missouri uses power of money to prevent Israel divestment

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Inside every major contract Missouri signs with a business sits a clause about boycotting Israel.All but the smallest companies have to agree not to participate in any movement that aims to boycott, divest from or sanction companies in Israel.Missouri isn’t alone. At least 36 other states have anti-BDS (boycott, divest or sanction) measures that bar state contractors from refusing to do business in Israel, or otherwise boycotting or divesting from the country or its occupied territories.As states started passing anti-BDS legislation in 2015, the laws drew protests from First Amendment advocates. They argued that boycotting is protected by the U.S. Constitution. In some court challenges, judges agreed. So states scaled back the reach of their anti-BDS laws.After at least two years of efforts and scaling back its own law, Missouri passed its version of the legislation in 2020. Since then, a movement once restricted to boycotts of Israel has expanded to other environmental, social or governance (ESG) measures, as Missouri has pioneered, and other states look to follow a similar expansion.The beginnings of anti-BDS legislationThe BDS movement was formed by the League of Arab States in themid-1940s. It barred trade with Israel and encouraged boycotting groups that still chose to do business with Israel.In 1977, the U.S. Congress passed anti-boycott legislation that prohibited American citizens or businesses from refusing to do business with Israel at the request of other foreign governments.Opponents of the BDS movement, like the Anti-Defamation League, say it is set out to delegitimize Israel’s right to statehood.The movement lost momentum for a number of decades, but was revived in the United States in the early 2000s. In 2015, states began adopting anti-BDS laws. Illinois was the first state to pass anti-BDS legislation that barred taxpayer-funded pension funds from being invested in companies that boycott Israel. Congress has looked to follow the lead of states by introducing versions of its own, but they have yet to gain traction.Since then, dozens of other states have passed laws of their own. Kansas passed its law in 2017. And, after failing two years in a row,Missouri passed its law in 2020.States have a business interest in Israel’s success. Israel’s influence as an ally and trading partner of the United States has grown, with an annual $50 billion exchanged between the two countries for goods and services.Missouri has a trade relationship of its own with Israel. In 2022, Missouri exported over $131 million in goods and services to Israel. Kansas sent $36.5 million in goods in the same time frame.Since 1996, Missouri businesses have received more than $58 million in foreign military financing to provide materials for the Israel Defense Forces, according to the Jewish Virtual Library. Those companies include Remington Arms and Evraz Oregon Steel Mills. Missouri and Israel also rely heavily on each other for chemical production for things like fertilizers.A handful of states, including Kansas and Arkansas, have been sued by the ACLU or other First Amendment advocates. They argue that by prohibiting boycotts, states step on the constitutional rights set out in a 1982 U.S. Supreme Court ruling, NAACP v. Claiborne Hardware.ACLU attorney Brian Hauss has led some First Amendment challenges to anti-BDS laws. He said that after lower courts issued temporary pauses on some state laws, they were revised by lawmakers so that those legal challenges no longer applied. Originally, many of the state laws barred individuals and companies from boycotting Israel in any way if they wanted to become a contractor of the state.“After we won those victories, the states modified their laws,” Hauss said. To narrow the law, states then said that these limitations only apply to companies with over 10 employees and contracts over $100,000.“There was a strategy on the part of those states to evade appellate review of those decisions,” Hauss said. “So that was effectively the end of the road for all of those cases.”That’s what played out in Kansas in 2018.The ACLU sued the state, arguing that its law infringes on First Amendment rights for individuals. Kansas lawmakers amended the law after the group represented a contractor with the state’s education department, who said she could not sign the boycott disclosure in good conscience.A judge in the U.S. District Court for Kansas ruled in favor of the ACLU, offering a temporary halt to the law while it considered arguments of constitutionality further.“While the Kansas Law may have been passed by the Legislature with flying colors, that showing merely would demonstrate that one state legislature had enacted a statute,” the judge wrote in his opinion. “Such a showing would not place the Kansas Law on the same level as an amendment to our Constitution — the very first amendment adopted by our founders and one ratified by three fourths of our states.”After the judge issued the injunction, Kansas lawmakers revised the law.The effects of anti-BDS legislationIt’s difficult to measure the impact of anti-BDS legislation, Hauss said. Because states looked to narrow the scope of their laws by keeping them limited to large-dollar contracts, that inherently puts more on the line for the companies who may wish to exercise this form of freedom of expression.“It’s a lot harder in some respects for a company with a very, very large government contract on the line to walk away from the livelihood, not just at the company, but also their workers,” Hauss said.There have been few examples of states terminating contracts with companies over their refusal to work with Israel. Most famously, the Illinois state pension overseers announced in 2021 that they would divest from Unilever, the parent company of Ben and Jerry’s, over its decision to stop selling their products in the West Bank.Missouri also launched an inquiryinto investment firm Morningstar after it purchased a company with a product that suggested it would be dangerous to do business in the same area. An additional 18 states signed on to the inquiry, and the subsidiary of Morningstar changed its practices. The Missouri attorney general’s office said the investigation is ongoing.But now, what started as a prohibition on boycotting Israel has morphed into a larger movement taking aim at other political or social causes which are broadly characterized as ESG scores, or ways of measuring environmental, social or governance impact.“We predicted there’s no way this restriction is limited, ultimately, to boycotts of Israel,” Hauss said. “It will inevitably become a political football for any party in power that wants to suppress protest against whatever groups they deemed sufficient.”A Texas pension fund, for example, switched investment firms after leaders at the firm publicly recognized a business interest in investing in climate change prevention efforts. In the eyes of some Texas officials who legislate around a booming oil industry, investing in climate change prevention was akin to divesting from those companies.The move toward anti-ESG policies in state bank accounts and pensions is somewhat new. Missouri considered legislation in the 2023 session that looked to bar state pension funds from being managed by companies that promote ESG.The legislation failed, but Secretary of State Jay Ashcroft took a new step for states looking to reign in ESG practices. He created a rule, which required no legislative review, that requires financial advisers to obtain written consent on transactions that may consider ESG-minded approaches to investing.This story was originally published by The Kansas City Beacon, an online news outlet focused on local, in-depth journalism in the public interest.

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Laclede’s Landing is moving from nightlife hub to neighborhood

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Laclede’s Landing has cycled through many identities throughout the history of St. Louis. Now, some people involved with its redevelopment in recent years hope the landing’s next one will be as a residential neighborhood.The small district tucked directly north of the Gateway Arch National Park has quietly undergone a massive redevelopment with more than $75 million pouring into the rehabilitation of many of the historic buildings at the landing.“We are starting to feel that momentum, especially in the last really 60 days. Things have drastically changed around here,” said Ryan Koppy, broker and owner of Trading Post Properties and the director of commercial property for Advantes Group.Advantes alone shouldered the rehabilitation of six of the historic buildings, which now sport a mix of apartments and retail or office space, he said. Four of those buildings are completed, and of the 119 apartments available, about 90% are filled, Koppy said.“It just shows you what kind of demand we do have for the area,” he said. “We’re separated from downtown a little bit, and for the tenants, their local park where they’re walking their dogs, it’s a national park.”

Sophie Proe

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St. Louis Public RadioInterior of the Peper Lofts at Laclede’s Landing on Aug. 16

Another 40 apartments are set to come online next year along with some retail space, Koppy said. He added he’s noticed a wide range of people who are considering and moving into the newly refinished apartments.“It’s very mixed, surprisingly,” Koppy said. “We have a lot of young professionals, maybe on their second job out of [university], we have some empty nesters too.”Part of the newfound momentum comes from a new market, the Cobblestone, and coffee shop, Brew Tulum, opening recently and bringing more foot traffic to the area, said Brandyn Jones, executive director of the Laclede Landing Neighborhood Association. She added that more apartments are set to come online within the next few months.“We have a great riverfront area here and so there are plans in the works to activate those spaces, bring people in,” she said.That could be more daytime events, like a farmers market, music festivals (one of which is happening this weekend) or just bringing in food trucks to Katherine Ward Burg Garden, Jones said. It’s a departure from the identity the district held a few decades ago as a hub for nightlife and entertainment.“That’s part of what connects so many people to Laclede’s Landing,” Jones said. “It’s important to tell the story of where we’re evolving. It won’t be what it was in the same exact way, but it will still be fun, and it can be fun early morning, midday or late night.”It’s a view shared by Koppy.“It’s grown up, it’s a bit mature,” he said. “We’re not going to have 3 a.m. bars here anymore because we have residents here.”Koppy added that Advantes is joined by other developers working to rehabilitate buildings in the district.“We all work in unison,” he said. “If I get a call and [a client is] asking for something and maybe the square foot doesn’t really match up with what I have available, but I know it matches up over there, they’re getting a very warm welcome and introduction.”

Sophie Proe

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St. Louis Public RadioRyan Koppy looks out the window of Brew Tulum Specialty Coffee Experience on Aug. 16 at the Cobblestone on Laclede’s Landing in downtown St. Louis.

This push toward making Laclede’s Landing a residential neighborhood also comes alongside broader conversations about the future of downtown St. Louis more generally as it looks to move away from a dependence on office space. While the city as a whole continues to lose population, downtown added about 1,700 people between 2010 and 2020, according to U.S. Census data.“It’s been wonderful timing to have all that going on, that stress that you’re not just in downtown to work has been critical to part of this rejuvenation and energy down here,” Jones said. “Sometimes people forget Laclede’s Landing is part of downtown, really the original downtown.”And success in the small district could spread beyond its small confines and potentially serve as a model for success, Koppy added.“My idea is, if we could get all the great things of St. Louis coming in through here, we can eventually spread that,” he said. “We understand we can’t change the whole world, but we’ll just make the effort to try and change the world around us.”

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St. Louis barbecue festival Q in the Lou canceled

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The largest barbecue competition and tasting festival in St. Louis, Q in the Lou, has been canceled. The event was planned for Sept. 6-8, but organizers decided to cancel it due to poor ticket sales and insufficient corporate sponsorship.The traveling festival had low attendance in Denver last week, said Sean Hadley, a festival organizer.“We made the tough decision to cancel Q in the Lou,” said Hadley. “We’re seeing a lack of support … it’s just not there.”The traveling event first came to St. Louis in 2015 and drew hundreds of people to downtown St. Louis for barbecue, live music and a “major party.”“It shut down out of the blue … I’ve gone every year,” said Scott Thomas, local chef and food blogger. “It’s brilliant. You could take a tour of some really amazing barbecue restaurants and competition barbecue guys all in one place.”In a late July news conference, city officials touted Q in the Lou as a significant tourism draw and a boost for downtown revitalization.“Bringing a signature national festival back to downtown St. Louis … is making us stronger,” Greater St. Louis Inc. CEO Jason Hall said then.Less than a month later, ticket holders from every festival stop learned they’d be refunded. On Monday, organizers privatized the Q in the Lou website and deleted its social media accounts.Conner Kerrigan, a spokesperson for Mayor Tishaura Jones’ office, said city officials are disappointed the festival won’t be back this year.“St. Louis knows how to throw a festival … bringing people together to celebrate our culture is one of the things we do best as a city,” Kerrigan said in a statement. “Should Q in the Lou try to come back next year or any year after that, they’ll have the support of the Mayor Jones administration.”

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Alton’s Jacoby Arts Center likely to relocate permanently

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The Jacoby Arts Center, a staple of Alton for many in the Metro East community, will likely permanently move out of its downtown building at the end of September.Its departure and relocation from the historic building that the arts center has called home for the past 20 years has created a tense situation for not only the arts center’s supporters but also the local development company working to revitalize Alton’s downtown that owns the building.“It’s an unfortunate situation,” said Chad Brigham, the chief legal and administrative officer with AltonWorks, the real estate company owned by another prominent local attorney working to develop the town. “I wish there wasn’t misunderstanding and disappointment in the community. It’s difficult sometimes to clarify that.”When news of the likely departure spread in June via a letter from the Jacoby Arts Center to its supporters, an outcry on social media quickly followed. Some assumed it would be the end of the arts center.“There’s a lot of feelings right now that I think are more about the building itself than there are about the Jacoby Arts Center,” said Valerie Hoven, vice president and treasurer of the nonprofit arts center’s board.For supporters of the Jacoby, moving from the building and likely never returning will be a sad affair. Exactly what’s next for the arts center remains unclear. However, Jacoby board members believe this will not be the end of the organization. It will likely look different though.

Sophie Proe

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St. Louis Public RadioThe Jacoby Arts Center earlier this month in downtown Alton

Sophie Proe

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St. Louis Public RadioThe Alton-based Jacoby Arts Center features more than 75 St. Louis-area artists and their work.

The history of the buildingFirst dubbed the Madison County Arts Council, the nonprofit arts center renamed itself after the Jacoby family gave it the current building in 2004. AltonWorks founder John Simmons purchased the Jacoby Building in September 2018, according to property records from the county.Managing the large building, at 627 E. Broadway, became too expensive for the Jacoby Arts Center. In 2018, the organization approached Simmons to purchase it, said Dennis Scarborough, a past president of the board and a downtown business owner.“Of course, it sounded really, really good,” Scarborough said of Simmons’ purchase. “He took over the insurance, property taxes, all those kinds of things that were really, really getting into our budget, and he rented it to us at a fair price.”The two parties entered into a lease agreement initially for five years. Since then, Simmons has spent more than $1 million in upkeep, taxes, insurance and more on the building. The lease has been extended twice until the end of September this year.Over the six years, Jacoby paid $1,500 per month, which covered a portion of the utilities.“It’s been wonderfully generous of AltonWorks,” Hoven said.Because the building is aging and needs repairs, Brigham with AltonWorks and those connected to the arts center have long known the Jacoby Arts Center would need to relocate — at least temporarily.

Renovations on the Jacoby building will begin this fall. They’ll include modernizing the aging building, repairing the old elevator and putting in apartments on the second and third floors.

News of the likely departure and controversyRenovations will begin this fall. They’ll include modernizing the aging building, repairing the old elevator and putting in apartments on the second and third floors.In May, it became clear that a preliminary proposal for the arts center to return to the building after renovations finished in 2026 would not work for them, Hoven said.She estimates the first floor and basement of the Jacoby Arts Building span roughly 20,000 square feet.

Chad Brigham is a business and legal adviser for AltonWorks.

AltonWorks’ initial idea floated to the arts center would only provide 2,553 square feet, according to both Hoven and Brigham. While the board calculated the price for the new space to be at least triple the current payment, Brigham said there was never a specific price discussed.“No discussion in terms of actual rent price,” he said.AltonWorks didn’t make a specific rent offer because the organization doesn’t even know itself, Brigham said.In addition to cash from John Simmons, there will be loans, tax increment financing and state tax credits to cover the $20 million in building renovations. The entities financing the cost of renovations will also help determine the rent when the construction is complete, Brigham said.Regardless, the price required to return will be too much for the arts center to pay, Hoven said. Also, the organization would like to maintain the many programs it offers to the community — a rentable event space, a dark room and a clay studio, for example — in the future.“For us to really meet the needs of the community and be sustainable, we need a space where we can offer some of those programs — the artists’ shop, and other spaces that offer some kind of income as well — so that we can continue to give money back to the community,” she said.AltonWorks offered at least two other locations as possible alternatives from their vast stock of buildings along Broadway to house the arts center during the roughly 18 months of construction. Those alternatives came with similar deals requiring the Jacoby to cover only utilities, Brigham said.“We did put in a great deal of work behind the scenes in trying to find an interim solution,” Brigham said. “We wanted to find a place for them to go, where it was easy for them to continue programming, whether it’s 100% of it or some portion of it, that would work for them.”Initially, the arts center hoped to keep the basement during the renovations, Hoven said. When it became clear the preliminary offer to return was for much less space than the arts center anticipated, the letter to the community was sent.“The letter that came out was merely showing our surprise,” Hoven said. “Don’t misinterpret it as panic. Don’t misinterpret it as desperation.”

Sophie Proe

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St. Louis Public RadioA smorgasbord of radios are displayed at the Jacoby Arts Center in Alton.

The commentary on social media was passionate. Some critics of AltonWorks said the organization has good intentions but hasn’t executed those plans. Others said Jacoby hasn’t planned well enough for the future.For Brigham and the AltonWorks team, some of the criticism has been disappointing.“I thought that there were some decent solutions. Were they perfect? No, but they were very, I thought, very good solutions,” he said. “And the fact that it has come to the point that it is right now is a bit hurtful.”AltonWorks remains committed to the arts, Brigham said. John Simmons remains one the largest donors of the Jacoby Arts Center, Hoven and Brigham said.“I don’t think there’s ever been a question of our support of that organization — of our affinity for that organization,” Brigham said. “While some of the events were unfortunate, some of them were encouraging. The entire community rallied around the Jacoby Arts Center. That’s a good thing. It’s a good thing to have a love for the arts like that in a downtown community.”Sara McGibany, the executive director of Alton Main Street, an organization aimed at preserving the town, said AltonWorks should be commended for its vision. In many ways, her organization and AltonWorks share a vision for a thriving downtown.Even though AltonWorks hosts public meetings, McGibany believes the current situation lacks true community engagement.“We really think that if AltonWorks can get past some of the communication hurdles — and harness the community’s passion and shift to more of a bottom-up decision-making process that centers on community input — then we can turn around the growing sentiment of distrust that’s happening now,” McGibany said.Scarborough, the past board president and downtown business owner, echoed the praise for Simmons and his support of the Jacoby Arts Center. With the Jacoby likely moving, the future looks bleak, though.“It’s a community arts center that does a lot of good work,” Scarborough said. “The community is going to suffer, and they’re going to be missed by the community if they’re not there.”

Eric Lee

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St. Louis Public RadioShalanda Young, director of the federal Office of Management and Budget, talks to Illinois U.S. Rep. Nikki Budzinski, D-Springfield, during a tour of a construction project by AltonWorks last April in Alton. AltonWorks, who is building the LoveJoy Apartment Complex is receiving over $1 million in federal funding.

What does the future hold?AltonWorks will continue forging ahead with its ambitious plans to revitalize Alton. The organization hopes to conclude construction on the Wedge Innovation Center, which will have a restaurant, retail and co-working space, this fall. Lucas Row, a mix of apartments and retail space, is scheduled to be completed next spring.The remainder of the arts and innovation district, currently named after the Jacoby, will also move forward.“I believe in two years it’s going to be a much different place,” Brigham said of Alton. “It’s going to be thriving. It’s going to be new businesses, new tenants — and it’s going to be a nice proof of concept for what you can do in a small community like that.”The Jacoby board recently formed a strategic planning committee. Its task: figuring out what’s next for the arts center. The committee will reevaluate what space the Jacoby needs, what programs it wants to offer to the community and how they want to make that a reality.Keeping the arts center is essential for board members like Hoven. In her experience, it’s been a place where local aspiring artists get their start.“Art is one of the only ways to show your true authentic self,” Hoven said. “And there’s more people than I realized who do not get that opportunity every day.”The Jacoby will shut its doors to pack over the next month. Hoven said she’s optimistic the board will have concrete plans by the end of September when their lease officially ends.“Alton is such a fabulous and supportive community,” she said. “We still have lots of great options, so that the Jacoby Arts Center will continue to thrive in Alton and beyond.”

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