ST. LOUIS — A developer behind a health care clinic in the Grand Center neighborhood said Tuesday it needs incentives in order to finish a deal with the U.S. Veterans Affairs.

Two out-of-town developers plan to build a $15 million, 15,000-square-foot dermatology and dialysis clinic on North Grand Boulevard, near the John Cochran VA Medical Center.

The joint venture between Iowa-based Russell and Florida-based Coharbor Group would then lease the facility to the VA. The developer is seeking 10 years of tax abatement.

But the VA has delayed signing new leases due to changes in the federal government, Russell Vice President Kelly Young told a St. Louis development board Tuesday.

Not getting the incentives, Young said, “could be a factor in us not signing a lease.”

President Donald Trump has sought to eliminate hundreds of federal programs and agencies in an effort to cut federal spending. He tasked the Department of Government Efficiency, the task force run by billionaire Elon Musk, to lead the cuts.

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The effort has been chaotic with the federal government reversing some of the cuts DOGE touted on its website.

Young said the company also is concerned with the impact tariffs, another Trump initiative, could have on construction materials.

The developer could sign a deal with the VA within the next 60 days. Construction would take up to 14 months, she said.

The board for the Land Clearance for Redevelopment Authority on Tuesday agreed to endorse the incentives. The Board of Aldermen will have final say.

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