HCS HB 1889 & 1946 -- STADIUM AND OTHER COMMUNITY DEVELOPMENT

SPONSOR:  Rizzo

COMMITTEE ACTION:  Voted "do pass" by the Committee on Commerce
and Economic Development by a vote of 12 to 6.

This substitute:

(1)  Allows the General Assembly to appropriate up to $9.8
million annually for projects relating to the Kansas and Missouri
Metropolitan Cultural District.  No money will be appropriated
prior to Fiscal Year 2005.  No money will be appropriated unless
the current district sales tax is renewed or extended.  No money
will be appropriated for the benefit of a sports stadium until
the lease agreement for such a stadium is renewed or extended;

(2)  Allows the Savvis Center in St. Louis to keep $3 million of
the state's portion of all sales tax revenue generated by sales
inside, on the grounds of, or for tickets to any event, provided
that at least 20 National Basketball Association games are played
at the center.  These funds are to be used for maintenance and
refurbishment.  In any fiscal year in which fewer than 20 NBA
games are played, $1 million will be distributed from the Savvis
Center's $3 million fund to the Kiel Opera House for repair,
maintenance, or refurbishment of the opera house;

(3)  Creates the Joint Sports Center Redevelopment Authority in
the City of St. Louis and St. Louis County;

(4)  Gives power to govern any the authority to a board of
commissioners.  The board will have nine commissioners.  Two will
be appointed by the mayor of the city; two will be appointed by
the county; five will be appointed by the Governor, one of whom
will be designated by the Governor as the chair of the board.
The substitute explains the term for each of the commissioners
and the powers of the board;

(5)  States that the authority will constitute a public body
corporate and politic and political instrumentality and specifies
its powers;

(6)  Requires that the authority hold public hearings before
approving the sports center redevelopment plan, that the city
find the sports center redevelopment area to be in a blighted
area or a conservation area, and that the city approve the sports
center redevelopment plan by ordinance prior to executing any
part of the redevelopment plan.  The substitute outlines the
basic required elements of a sports center redevelopment plan;

(7)  Allows the authority to issue bonds secured by any revenue
available to the authority, including those deposited in the
special allocation fund;

(8)  States that, for no more than 35 years, economic activity
taxes generated within the sports center redevelopment area will
be paid to the city and deposited in the special allocation fund;

(9)  Allows the state to make an annual appropriation of no more
than $7 million per year, for no more than 30 years, for debt
service.  The substitute states that the net sum provided by the
state cannot exceed $100 million;

(10)  Exempts the income and all properties of the authority from
taxation in the state;

(11)  Deems the authority to be exempt from taxation when
purchasing tangible personal property and materials for the
purpose of constructing, repairing, or remodeling facilities;

(12)  Requires that any lease on a stadium be for at least 35
years and that the team leasing the stadium play all home games
at the stadium during that time.  The substitute outlines other
requirements of the lessee;

(13)  Requires the St. Louis Cardinals, who will presumably be
leasing the stadium, to make at least 6,000, $12 tickets
available for each home game every season;

(14)  Requires the St. Louis Cardinals to distribute at least
100,000 complimentary tickets to youth and charitable
organizations each year;

(15)  Requires the St. Louis Cardinals to contribute at least
$100,000 per year to the development, construction, or
refurbishment of neighborhood recreational facilities that will
benefit disadvantaged youth in St. Louis City and St. Louis
County;

(16)  Requires the St. Louis Cardinals to pay all operating,
maintenance and capital improvement costs;

(17)  Requires that, if the team leasing the stadium is sold
prior to the lease-end date, the owners must pay the authority a
portion of the sales price which is attributable to the lease and
the stadium;

(18)  Requires the St. Louis Cardinals to make payments in lieu
of taxes annually to the city and other affected taxing districts
in an amount equal to the ad valorem property taxes paid in a
specified year;

(19)  Requires the St. Louis Cardinals to guarantee the
acquisition, construction, and equipping of the stadium and to be
responsible for any cost overruns;

(20)  Requires the St. Louis Cardinals to pay up to $100 million
in penalties if they fail to accomplish the commencement,
acquisition, construction, or equipping of the mixed-use
facilities;

(21)  Sets as a goal that the St. Louis Cardinals and the
developer reserve 25% of the acquisition, construction, or
equipping of the stadium for minority-owned businesses and 5% for
women-owned businesses;

(22)  Gives the naming rights of the stadium to the authority;

(23)  Requires that a complimentary luxury suite, available to
the public through a lottery, be provided if the stadium is
constructed with state appropriations;

(24)  Requires the St. Louis Cardinals to pay to the state
$150,000,000 on January 31, 2011, unless five of the following
six components of the adjacent ballpark village project are
substantially completed by December 31, 2010:

(a)  1,850 parking spaces;

(b)  400 residential units;

(c)  470,000 square feet of office space;

(d)  110,000 square feet of commercial or retail space;

(e)  A sports-related museum covering at least 16,000 square
feet;

(f)  An entertainment attraction covering at least 94,000 square
feet;

(25)  Allows the curators of the University of Missouri to
establish a research, development, and office park in Jackson
County.  The purpose of this park is to foster business
development and provide business incubator facilities.  The
curators are encouraged to reinvest any profits resulting from
these activities in other research activities of the university;
and

(26)  Allows certain small businesses to claim a tax credit equal
to the amount of new state revenue generated by a capital
expenditure of at least $25,000 in a given year.

FISCAL NOTE:  Estimated Net Cost to the General Revenue Fund of
$148,835 to Unknown in FY 2003, $63,766 to Unknown in FY 2004,
and $65,384 to over $9,800,000 in FY 2005.  Subject to
appropriation.

PROPONENTS:  Supporters say that the substitute would be a
tremendous economic boost to Kansas City, St. Louis, and the rest
of the state as well.  The substitute guarantees that the St.
Louis Cardinal's Ballpark Village will be built, and that is
essentially a promise for renewed life in downtown St. Louis.
The new revenues, new jobs, and economic development will far
outweigh the investment made by the state.  The substitute
includes several protections for taxpayers.  There are penalties
included if the Ballpark Village is not built.  There is a
provision allowing the state to participate in the sale of the
St. Louis Cardinals, if the team is sold after the stadium is
built.  With regard to Kansas City, proponents say that the
substitute is of no risk to taxpayers because it is contingent on
the bi-state tax being approved by voters in the fall of 2002.

Testifying for the bill were Representatives Foley, Hanaway,
Bonner, and Monaco; former U.S. Senator Jack Danforth, St. Louis
2004; Hotel and Restaurant Employees Local #74 (AFL-CIO);
Missouri AFL-CIO; Associated Industries of Missouri; St. Louis
Regional Chamber and Growth Association; St. Louis County
Municipal League; Ameren UE; Department of Economic Development;
Drury Inns and Drury Development Company; City of St. Louis; St.
Louis Cardinals; St. Louis Metropolitan Clergy Coalition; St.
Louis Convention and Visitors Commission; Missouri Chamber of
Commerce; Greater Kansas City Chamber of Commerce; Jackson
County; Jackson County Sports Authority; City of Kansas City;
William DeWitt, Jr.; David Newburger; Ray Wagner; and Marvin
Steele.

OPPOSITION:  There was no opposition voiced to the committee.

Alice Hurley, Legislative Analyst

Missouri House of Representatives
Last Updated October 11, 2002 at 9:02 am