Ballpark bill gets initial OK

LATE SENATE DEBATE

By Marc Powers ~ Southeast Missourian

JEFFERSON CITY, Mo. -- Supporters of taxpayer subsidies for a new St. Louis Cardinals ballpark outlasted a filibuster on Thursday as the Senate voted 19-14 to give proposal first-round approval.

But in exchange for state money, the team's owners would be forced to share the profits from any sale of the team and pay substantial upfront penalties for failing to deliver a promised companion development under changes made to the bill during more than eight hours of continuous debate that ended around 11 p.m.

Senate President Pro Tem Peter Kinder, R-Cape Girardeau, said he was proud of the Senate for endorsing the bill, which he says will spur economic growth in the entire state.

A second vote will be needed to send the measure to the House of Representatives. Time is working against final passage with only two weeks left before the General Assembly adjourns for the year on May 17.

Southeast Missouri's senators split 2-1 on the bill. Kinder and state Sen. Danny Staples, D-Eminence, voted for it while state Sen. Bill Foster, R-Poplar Bluff, opposed it.

Thursday's vote completed two days and more than 16 hours of debate on the ballpark bill.

During discussion Tuesday, the debate focused on philosophical differences between supporters and opponents on the role of taxpayers in financing projects for private businesses.

On Thursday senators delved into the nuts and bolts of the legislation, adding numerous amendments clarifying the team's obligations under the bill. Most of the changes came with the support of Kinder, the measure's sponsor.

"I want to say how proud I am of the Missouri Senate," said Senate President Pro Tem Peter Kinder, R-Cape Girardeau, the bill's sponsor. "Nothing worthwhile is easy."

Sen. Sarah Steelman, the leading opponent to the legislation, said passage of the bill was based on economic fantasy.

"This is a bill about wants before needs," said Steelman, R-Rolla. "We are sending a very mixed message to the public about the state of our economy and our budget in Missouri."

Ballot idea voted down

Steelman had offered an amendment seeking to send the package to a vote of the people in November, but it failed on a 20-12 vote.

The bill would cost the state up to $644 million over 30 years, including money to renovate Arrowhead and Kaufmann stadiums in Kansas City, build convention centers in Branson and Springfield and provide for upkeep at the Savvis Center in St. Louis.

The $346 million St. Louis ballpark, which would replace Busch Memorial Stadium, is the driving component of the legislation. It would cost the state $7 million a year beginning in 2005 -- $210 million over 30 years -- to retire $100 million in bonds to help fund the project.

The team has pledged $120 million in cash and land. St. Louis city and county taxpayers are also being asked to contribute.

One amendment to Kinder's bill would force team owners to share 12 percent of the profits from a total or partial sale of the team during the 30 years the state is obligated to pay off the bonds.

Another change would hit the owners with a $100 million penalty if an adjacent Ballpark Village development was not completed. The team would have to pay $35 million if the village, which would include office space, housing and entertainment facilities, wasn't substantially completed by April 2011 and the remainder if the project wasn't finished later.

State Sen. Michael Gibbons, R-Kirkwood, sponsored both amendments.

"I think it is needed to protect taxpayers," Gibbons said.

A project agreement between the team and state included less stringent profit-sharing and penalty provisions, but they weren't previously spelled out in the legislation.

The project agreement has the team sharing up to 15 percent of the proceeds from a sale, but that percentage would decrease over time with the state getting nothing after 2015.

The penalty for failing to deliver the Ballpark Village is also much weaker under the project agreement, with the team having to pay only $3 million if the project wasn't under way by April 2011.

Rural provision deleted A key provision Kinder had included to build rural support was stripped from the bill. That section would have earmarked half of new state revenue generated by projects in the bill for rural economic development grants. Kinder said it would have pumped about $250 million into rural communities.

State Sen. Larry Rohrbach, R-California, said lawmakers should be able to use any additional revenue generated by the developments, assuming supporters' financial projections come to pass, for basic needs like education instead of being set aside for local communities.

"It is ridiculous to pass a bill that eats up every speck of revenue from these projects," Rohrbach said.

The state's share of funding for the projects is also supposed to come from the new revenue they would generate.

Such promises were made a decade ago when the legislature authorized state support for a domed football stadium in St. Louis. All sides in the latest debate agree those earlier predictions didn't come true.

To provide oversight, a series of amendments were added that would require the state auditor to annually review whether each project is delivering the promised economic return. If the auditor finds broken economic promises, the state would be prevented from asking for money to be appropriated for the projects.

In addition to the Cardinals ballpark, the bill includes: n As much as $3 million a year for maintenance of the Savvis Center, home of the National Hockey League's St. Louis Blues. The subsidy would be contingent on the Blues' owners securing a National Basketball Association franchise and renovating the adjoining Kiel Opera House.

Up to $9.8 million a year for improvements at the two Kansas City stadiums and other local cultural facilities.

As much as $32 million over 23 years for a convention center and arena in Branson.

No more than $18 million over 23 years for an exposition center in Springfield.

The bill is SB 1279.

The Associated Press contributed to this report.

mpowers@semissourian.com (573) 635-4608