By a 10 percent margin, the citizens of St. Louis voted to change the way professional sports facilities are financed.
Proposition S, initiated by petition, established the requirement of a vote of the people, prior to any public funding being directed toward professional sports facilities.
Some questions arose as to how this proposition might affect Saint Louis University’s potential for building an arena with public funds derived from a possible tax-incremental financing district.
According to analysis by University lawyers, the proposition will have no effect upon a possible arena, said Kathleen Brady, vice president for Facilities Management and Civic Affairs.
Brady explained that the University’s arena plans would not be affected because the proposition targets professional sports facilities, as defined with the intention “to accommodate regularly scheduled games of a professional sports team.”
Since a potential SLU arena would not host regularly scheduled games of a professional team, it would be exempt from the limitations of the new law. The University would still be allowed to host an NBA exhibition game, or something similar, Brady said.
She added that she also spoke with the mayor’s office and that no one involved in the plan seems to think this law could affect a University arena.
The TIF plan, which would provide public money of an estimated $15 million toward an arena, has entered the first stages of seeking approval from the Board of Aldermen. The TIF plan would establish a TIF district for the Grand Center area, allowing new tax revenue from development to be reinvested in that development. Supporters of the plan believe it could bring in $400 million in new development from the $80 million in TIF revenue.
Brady explained that the TIF legislation is actually three pieces. The first part, the TIF Plan ordinance, outlines the plan and what projects are to be included. The second and third parts, the Redevelopment Agreement and the TIF Note ordinance, detail the contractual and financial aspects of the agreement. The last two parts are still in development, but the TIF Plan ordinance has already received the unanimous approval of the Housing Urban Development and Zoning Committee of the Board of Aldermen.
“The bill is on track to pass and have an effective date before the end of the calendar year,” Brady said.
She explained that the goal is to pass all three parts of the plan before the board recesses in mid-February. She noted that she has not been contacted by anyone who opposes the plan.
While the political aspects of the legislative process continue, Brady said the feasibility study for an on-campus arena would continue, suggesting that the Board of Trustees could choose to approve an arena subject to approval of the TIF plan.
The next Board of Trustees meeting is scheduled for December.
