Holden says University of Missouri arena can help economy

Associated Press WriterLAKE OZARK, Mo. (AP) -- A quick start to the financing and construction of a new basketball arena at the University of Missouri at Columbia could provide a badly needed boost to a slumping economy, Gov. Bob Holden said Friday.

Holden said he backs plans to issue up to $35 million in state bonds for the arena before the end of the year.

State and university officials are working on a written agreement with a $25 million private donor that could put the funding in place and allow work to get started. That agreement could be finalized as early as Friday, Holden said in an interview with The Associated Press.

The donor has been identified by government sources as Columbia businessman Bill Laurie, the husband of Wal-Mart heir Nancy Walton Laurie and the owner of the St. Louis Blues hockey team.

The university has asked the state to issue bonds now as a condition for the donor to follow through with his pledge. Despite the stepped up timetable, Holden said the state would not begin paying for the debt until fiscal year 2005.

The governor cited the Sept. 11 terrorist attacks as an extra reason to sell the bonds now. The nation's economy, already slowing, has turned further downward and interest rates on bonds have fallen, making it a good time for the state to issue them regardless of the arena donor's conditions.

Issuing the bonds before the end of the year "sends the message that we're getting back to building the state and looking to our future," Holden said. "With the arena being built, I hope it triggers -- I think it will trigger -- a lot of other economic activities."

A legislative resolution Holden signed earlier this year authorizes the state to issue bonds for the 16,000-seat arena. The $15 million not covered by the state or the big donor would be paid by the university or other contributors.

University spokesman Joe Moore told the Columbia Daily Tribune that administrators expect to sign an agreement with the donor Friday. Moore said the agreement contains a "scholarship component." In January, university officials announced that the donor would create a scholarship fund, but that money has so far not materialized.

The university's Board of Curators scheduled a meeting Friday to authorize the hiring of a consultant for the arena project.