MODESA 2.0 is a revival of a tax increment financing program first established in 2003 that brought about the redevelopment of the Power & Light District in Kansas City and Ballpark Village in St. Louis. MODESA 2.0 is a redevelopment incentive designed to encourage additional transformative investment around those original MODESA project areas plus up to four new projects in downtown or riverfront areas in St. Louis and Kansas City. The program uses a form of state tax increment financing to support projects that revitalize underutilized properties, strengthen commercial districts, create housing and mixed-use developments, and encourage long-term economic growth. The use of state incentives is conditioned upon local tax increment financing being committed at certain levels and durations. 

Municipalities are the applicants for this program.  Effective August 28, 2026, the Department may approve one application for St. Louis and one for Kansas City for a project that expands upon the existing MODESA projects.  The Department may also approve up to four new applications for a development project, two for St. Louis and two for Kansas City. No new application shall be approved after December 31, 2032. 

Municipalities interested in the MODESA 2.0 program are encouraged to work with the Department of Economic Development.