Public financing will help fund more than a quarter of the proposed Saint Louis University arena thanks to the passage of the Grand Center tax incremental financing district.
The Grand Center TIF plan, approved by the St. Louis Board of Aldermen on Feb. 7, would contribute $15 million to the SLU arena, upon substantial completion of its construction.
A TIF district allows for the capture and reinvestment of new tax revenue that occurs as a result of new development in a specified area for 23 years. The Grand Center TIF district would bring approximately $80 million in TIF revenue to more than $400 million in new development, such as an African-American History Museum, renovations to the Woolworth, Humboldt and Metropolitan buildings and a renovated Sun Theatre.
The Grand Center TIF district covers the area from Highway 40 to Delmar Avenue and between Vandeventer and Compton avenues. With these borders and the availability of parking in the Olive Garage, a SLU arena would likely be constructed near the corners of Olive Street and Compton Avenue.
Vice President for Facilities Management and Civic Affairs Kathleen Brady explained that SLU benefits from the TIF plan because of ‘the desire on the part of SLU, Grand Center and the City of St. Louis to locate the arena in Grand Center.’
‘If SLU were to construct the arena “on campus,” we would not incur acquisition, relocation, remediation, demolition costs, etc., that we will incur by locating in Grand Center,’ Brady explained. ‘However, the City and Grand Center would then lose the opportunity to use the arena as a catalytic project to spur additional development around the arena.’
Vince Schoemehl, president and CEO of Grand Center, Inc., explained that SLU is not the only non-profit entity receiving funding from the TIF, which also will provide funding for the Contemporary Art Museum, African-American History Museum, a not-for-profit day care and a community center.
‘While [these developments] don”t pay property taxes, they add value to the district,’ Schoemehl said. He noted that people coming to an arena or one of the museums will likely not just attend that place but also eat or shop in the area.
Schoemehl spoke highly of a SLU arena calling it the ‘linchpin of the district,’ because it will be a high-profile project and will draw students, staff and faculty members across Lindell Avenue into Grand Center during the day and throughout the week, not just on the weekends.
‘Imagine an arena with the Delmar Loop wrapped around it,’ Schoemehl envisioned.
