HCS SS#2 SCS SB 1279, 1162 & 1164 -- COMMUNITY DEVELOPMENT

SPONSOR:  Kinder (Foley)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Commerce
and Economic Development by a vote of 11 to 9.

KANSAS AND MISSOURI METROPOLITAN CULTURAL DISTRICT

This substitute:

(1)  Allows the General Assembly to appropriate up to $9.8
million annually for improvements to the Truman Sports Complex.
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 the
stadium is renewed or extended.  Any lease agreement must include
a provision requiring the team leasing the stadium to reimburse
all states, local governments, and cultural districts for any
funds obligated to be spent during the remaining term of the
lease if team leaves Kansas City or is contracted by a
professional sports league;

(2)  Requires any major league sports team subject to the lease
agreement to annually contribute $100,000 to the African American
Community Trust Fund.  This fund will be spent in economically
disadvantaged areas and will be specifically allocated to
projects that develop, support, or enhance cultural or sports
activities within the minority community.  The fund will be
administered by a seven-member board, the membership of which is
detailed in the substitute;

(3)  Requires the Jackson County Sports Complex Authority to
require all businesses, vendors, and contractors to provide
information assuring the enforcement of an equal opportunity
employment plan and a minority and women's business enterprise
program that is based on population and availability and contains
specific goals for each business.  It also requires the authority
to implement and maintain an equal opportunity employment plan
and a minority and women's business enterprise program with
specific goals, which will be identified and reported by
ethnicity and gender.  The authority is required to hire a
monitor to assist in the implementation and enforcement of these
goals; and

(4)  Requires 5% of the state's annual appropriation to the
cultural district, up to $490,000, and 5% of all local Jackson
County sales taxes to be used for cultural activities that
benefit youth and adults in the cultural district.

SPORTS CENTER REDEVELOPMENT AUTHORITY FOR THE ST. LOUIS CARDINALS

The substitute:

(1)  Creates a joint sports center redevelopment authority in the
City of St. Louis and St. Louis County;

(2)  Gives power to govern the authority to a board of
commissioners.  The board will have nine commissioners, three of
whom must be African Americans.  Two will be appointed by the
mayor of the city; two will be appointed by the county; five will
be appointed by the Governor.  Of these five, none can be a
resident of a U.S. Congressional District that includes any part
of St. Louis County or St. Louis City; one commissioners must be
an appellate or circuit court judge who voluntarily retired
before age 70; one commissioner must be an expert in contract
law; one commissioner will be an elected state-wide office
holder; and one commissioner will be an employee of the executive
department who shall serve as the Governor's representative.  The
substitute explains the term for each of the commissioners and
the powers of the board;

(3)  States that the authority will constitute a public body
corporate and politic and political instrumentality and specifies
its powers, including the power of eminent domain;

(4)  Requires the authority to 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;

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

(6)  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;

(7)  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;

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

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

(10)  Allows the authority to establish procedures for the
design, construction, and delivery of any project associated with
the Sports Center Redevelopment Authority, with certain
provisions;

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

(12)  Requires the St. Louis Cardinals to make at least 6,000
tickets available at $12 apiece for each home game every season;

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

(14)  Requires the St. Louis Cardinals and the owner of the
Savvis Center to each contribute at least $250,000 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;

(15)  Requires the St. Louis Cardinals to pay all operating,
maintenance, and capital improvement costs; however, no funds
from the sale of naming rights can be used for these purposes;

(16)  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 profits, the state's share of which will be no
less than 12%;

(17)  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;

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

(19)  Requires the St. Louis Cardinal to pay $150 million if, by
December 31, 2010, five of the following six components of the
ballpark village are not substantially completed:

(a)  1,850 parking spaces;

(b)  400 residential units;

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

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

(e)  a 16,000 square foot sports-related museum; or

(f)  a 94,000 square foot entertainment attraction;

(20)  Requires the authority to require all businesses, vendors,
and contractors to provide information assuring the enforcement
of an equal opportunity employment plan and a minority and women
business enterprise program that is based on population and
availability and contains specific goals for each business.  The
authority is required to implement and maintain an equal
opportunity employment plan and a minority and women's business
enterprise program with specific goals, which will be identified
and reported by ethnicity and gender.  The authority is also
required to hire a monitor to assist in the implementation and
enforcement of these goals;

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

(22)  Requires that a complimentary luxury suite be available to
the public through a lottery;

(23)  Requires the St. Louis Cardinals to bear all the liability
arising from the occupation and operation of the stadium and
ballpark village;

(24)  States that the naming rights of the stadiums will be the
sole and total property of the St. Louis Sports Center
Redevelopment Authority and that all proceeds received from the
naming of the stadium will be deposited into the State Naming
Rights Fund or paid to the state as general revenue;

(25)  Requires the St. Louis Cardinals to reimburse the state for
any deficiency in the amount of revenue necessary to meet the
requirements of any bond obligation in the event of a strike or
lockout;

(26)  Requires the St. Louis Cardinals and the owner of the
Savvis Center to annually pay $150,000 to the African-American
Community Trust Fund.  This fund will be spent in economically
disadvantaged areas and will be specifically allocated to
projects that develop, support, or enhance cultural or sports
activities within the minority community.  The fund will be
administered by a seven-member board, the membership of which is
detailed in the substitute;

(27)  Requires the Attorney General to assist the Governor, the
Office of Administration, and the authority in drafting all
agreements regarding the Sports Center Redevelopment Authority
Act and requires the Attorney General to review and approve the
terms of all these agreements; and

(28)  Requires the State Auditor to conduct an annual audit of
all accounts and transactions of the St. Louis Sports
Redevelopment Authority.  All audit reports will be presented to
the General Assembly, the authority, the Governor, the State
Treasurer, and the Attorney General.  The substitute requires the
State Auditor to annually certify the amount of new state
revenues.  No appropriations may be made until the State Auditor
has provided such a certification.

SAVVIS CENTER AND THE KIEL OPERA HOUSE

The substitute:

(1)  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 (NBA) games are
played at the center annually.  These funds will be deposited
into the Specially Designated Multipurpose Facility Account and
will 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's fund to be used for repair, maintenance, or
refurbishment of the opera house; and

(2)  Requires the State Auditor to conduct an annual audit of all
accounts and transactions of the account and to certify the
amount of new state revenues created.  This information will be
presented to the General Assembly, the authority, the Governor,
the State Treasurer, and the Attorney General.  No appropriations
may be made until the State Auditor has provided certification.

ST. LOUIS UNIVERSITY

The substitute:

(1)  Allows St. Louis University to keep $400,000 of the state's
portion of all sales tax revenue generated by sales inside, on
the grounds of, or for tickets to any event at a new sports
arena.  These funds will be deposited into the Specially
Designated Multipurpose Facility Account and will be used for the
maintenance and refurbishment of the new arena; and

(2)  Requires the State Auditor to conduct an annual audit of all
accounts and transactions of the account and to certify the
amount of new state revenues created.  This information will be
presented to the General Assembly, the authority, the Governor,
the State Treasurer, and the Attorney General.  No appropriations
may be made until the State Auditor has provided certification.

LOCAL ECONOMIC OPPORTUNITIES ACT

The substitute:

(1)  Creates the Local Economic Opportunities Fund which will
contain four sub-accounts, for the Northeast Region, the
Northwest Region, the Southeast Region, and the Southwest Region,
all of which are defined in the substitute;

(2)  Requires the fund to consist of 50% of the available
economic development project revenues, which are the total
additional portion of certain state sales taxes and the state
income tax withholdings from employees within each development
area that is in excess of that which is withheld in Fiscal Year
2005.  All funds will be allocated equally to each regional sub-
account;

(3)  Requires the funds to be used for infrastructure
improvements and economic stimulus projects within the
development regions;

(4)  Prohibits St. Louis and Jackson counties and the cities of
St. Louis, Kansas City, Springfield, and Branson from receiving
money from the regional sub-accounts, although the University of
Missouri's Research Park is excluded from this prohibition and
may be eligible to use these funds; and

(5)  Requires this section to expire on June 30, 2038.

EDWARD JONES DOME

The substitute requires the State Auditor to conduct an annual
audit of all accounts and transactions of cities and counties
which participate in the operation of the Edward Jones Dome, in
addition to the audit already required by current law of the
authority which operates the dome.

CITY OF SPRINGFIELD

The substitute:

(1)  Makes Springfield eligible to receive state funding for an
exposition center, provided certain conditions are met.  The
exposition center must cost at least $12.5 million, be
constructed by the city, and be completed by September 2004.  The
state will appropriate no more than $18 million over 23 years,
and no state money will be appropriated prior to Fiscal Year
2005; and

(2)  Requires the State Auditor to conduct an annual audit of all
accounts and transactions of the city with regard to the
exposition center and certify all new revenues received by the
state.  This information will be reported to the General
Assembly, the city, the Governor, the State Treasurer, and the
Attorney General.  No appropriations may be made until the State
Auditor has provided certification.

CITY OF BRANSON

(1)  Makes Branson eligible to receive state funding for a
convention center and arena facility, if certain conditions are
met.  The convention and arena center must cost at least $75
million and construction must begin by September 2004.  The state
will appropriate no more than $32 million over 23 years, and no
state money will be appropriated prior to Fiscal Year 2005; and

(2)  Requires the State Auditor to conduct an annual audit of all
accounts and transactions of the city with regard to the
convention center and certify all new revenues received by the
state.  This information will be reported to the General
Assembly, the city, the Governor, the State Treasurer, and the
Attorney General.  No appropriations may be made until the State
Auditor has provided certification.

UNIVERSITY OF MISSOURI

The substitute allows the curators of the University of Missouri
to establish a research, development, and office park in Jackson
County 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.

HISTORIC PRESERVATION TAX CREDITS

The substitute caps the Historic Preservation Tax Credits at $60
million annually.  Certificates of eligible tax credits will be
issued in the order in which the approved applications are
received.

SPORTS CENTER REDEVELOPMENT AUTHORITY SCHOOL DISTRICT FUND

The substitute requires that any increase in general revenue
derived from all tax revenues devoted to any above-named project,
excluding any increase attributable to new state revenues that
are equal to the Consumer Price Index adjustment, be deposited
into the Sports Center Redevelopment Authority School District
Fund.  Funds will be appropriated to school districts located in
each city or county in which an above-named project is commenced.

TECHNOLOGY RETENTION ENTERPRISE DISTRICT

The substitute creates the Technology Retention Enterprise
District Joint Fund, into which the City of St. Louis and the
state may both deposit money.  The General Assembly is required
to appropriate $2 for every $1 contributed by the City of St.
Louis to the fund.  The total amount contributed by the General
Assembly cannot exceed $500,000 annually.

FISCAL NOTE:  Estimated Net Cost to the General Revenue Fund of
$519,035 to Unknown in FY 2003, $491,376 to Unknown in FY 2004,
and $503,981 to Unknown in FY 2005.  Estimated Net Income to the
African American Community Trust Fund of $350,000 in FY 2003, FY
2004, and FY 2005.  Estimated Net Effect on Sports Center
Redevelopment Authority School District Fund of $0 in FY 2003, FY
2004, and FY 2005.  Estimated Net Income to the Technology
Retention Enterprise District Joint Fund of $0 to $750,000 in FY
2003, FY 2004, and FY 2005.

PROPONENTS:  Supporters say that the substitute is necessary for
economic development in Missouri.

Testifying for the bill were Senator Kinder; Hotel Employees and
Restaurant Employees, Local 74; the Kansas City Royals; the
Savvis Center; the St. Louis Blues; St. Louis Regional Chamber
and Growth Association; Civic Progress; Regional Business
Council; Homebuilders of St. Louis; St. Louis 2004; Downtown Now;
St. Louis Convention and Visitors Commission; St. Louis Clergy
Coalition; Jefferson County Growth and Development; Herbert
Hoover Boys Club; Associated Industries of Missouri; Missouri
AFL-CIO; Missouri Chamber of Commerce; City of St. Louis; the St.
Louis Cardinals; Greater Kansas City Chamber of Commerce; Jackson
County; and the Kansas City Chiefs.

OPPONENTS:  Those who oppose the substitute say that this is a
poor use of public money and that it's too expensive for the
state at this time, especially in light of the budget shortfalls.

Testifying against the bill were Representative Murphy; Edward
Golterman; Missourians for Tax Justice; Coalition Against Public
Funding of Stadiums; Matthew Chaney; Bruce J. Calkins; and
William L. Joiner.

Alice Hurley, Legislative Analyst

Missouri House of Representatives
Last Updated October 11, 2002 at 9:04 am