Historic tax credits capped at $60 million

JEFFERSON CITY, Mo. -- Missouri's historic preservation tax credit would be capped at $60 million by 2006 under the latest version of legislation pledging money for stadiums in St. Louis and Kansas City.

Lawmakers are expected to begin debate this week on the legislation, which also includes funding pledges for an exposition center in Springfield and a convention center and arena in Branson.

By capping the historic tax credits on July 1, 2006, the credits would be awarded on a first-come, first served basis.

A recent state analysis found that in the next fiscal year, the historic tax credit could cost the state at least $94 million -- nearly four times more than any other tax credit administered by the Department of Economic Development.

"We've got to get a handle on what the historic preservation tax credit is costing the state," said Senate President Pro Tem Peter Kinder, R-Cape Girardeau, the bill's sponsor.

"I don't want to deprive anyone currently in the pipeline ... but they tell me within three years, most of the buildings that are usable on that tax credit will be rehabilitated," he said.

Savvis Center funds

Along with the tax credits cap, Kinder's bill adds funding for the Savvis Center, home of the St. Louis Blues. The arena would be allowed to keep all state sales taxes collected within the facility for maintenance and refurbishment -- an amount estimated between $2.9 million and $3.2 million annually.

The funding, however, would only be available if the Kiel Opera House is completed and a National Basketball Association team occupies the Savvis Center.

"If they do those things, that's new economic development and the Savvis Center can therefore qualify," Kinder said.

Dropped from the newest version of the bill is a provision that authorizes a downtown development plan backed by the Kansas City mayor. Kinder said he supports the concept and hopes a separate bill promoting downtown development will be passed by the House.

Kinder's bill would raise the $3 million annual state payment for Kansas City's Truman Sports Complex to $12.8 million annually for the next 30 years. The new subsidies could begin by mid-2005, but only if Kansas City area voters on both sides of the Missouri-Kansas line first renew a one-eighth-cent sales tax.

Although the details remain to be decided, the tax likely would be capped after it had generated about $600 million -- at around 15 years.

Economic development

"This is a big economic development bill. In fact, it's the biggest bill of the session," said Sen. Harry Wiggins, D-Kansas City. "We've got to pass this bill to save the teams in Kansas City."

The legislation also authorizes the state to contribute up to $210 million over 30 years to pay off bonds used to build a new St. Louis Cardinals baseball stadium. The stadium would be part of a downtown residential and commercial development. The Springfield plan in Kinder's bill would allow up to $18 million in state aid for an exposition center. Branson would get up to $32 million over 23 years as the state's share for a convention center and arena.

The legislation gives other communities the chance to tap into new economic development funds that would be split among four geographic regions.