Holden signs downtown development bill

JEFFERSON CITY, Mo. -- Hoping to give Missouri's economy a boost, Gov. Bob Holden on Monday signed into law a measure intended to promote development in urban and rural areas by offering incentives to communities and developers.

The legislation, passed by lawmakers without a single dissenting vote earlier this year, allows the state to distribute up to $150 million a year for development projects in downtown sections with a majority of buildings at least 35 years old.

Cities would have to create economic stimulus authorities to be eligible to apply for the money. Projects could qualify for the funding by hitting various benchmarks in job creation and by surpassing cost thresholds.

Initially aimed at improving the downtowns of Missouri's larger cities, the law was broadened to address rural communities as well. The measure contains language allowing rural municipalities to create authorities with the power to issue bonds for development projects.

Holden said the law, which takes effect immediately, is about jobs.

"This new legislation gives us a new way to make certain we are competitive with other states and regions in our efforts to create new economic growth," said Holden, who signed the bill first in Hannibal. "Nothing is more important for the future of our state than retaining and creating jobs in all parts of Missouri."

The law provides that no state development money could be used to build, maintain or operate a sports stadium or arena. The language is intended to prevent public funds from going to professional sports teams -- a major issue last year, when some lawmakers sought to tie state funding for a new baseball stadium for the St. Louis Cardinals to other development projects.

Another section is intended to avert the planned closing of Ford Motor Co.'s suburban St. Louis plant. The measure offers tax breaks, job training incentives and other enticements, such as flexibility in some state regulations.

A separate bill already signed into law contains similar provisions.

The economic development bill was sponsored by Sen. Sarah Steelman, R-Rolla, and Rep. Tom Dempsey, R-St. Charles.

"This bill establishes a framework in which local economic development efforts are coordinated and controlled at the local level," Steelman said. "I think local citizens and businesses should have a stronger role in the economic development efforts that directly affect them, and this measure gives them that option."

Holden, who last week reluctantly signed budget bills for education despite concerns they did not provide adequate funding, said education is part of economic development.

"That is why education must remain a top priority, in spite of these budgetary problems we are facing," Holden said. "We must look at what other states are doing to advance education and make certain we are keeping up."

Downtown development bill is HB289.