State's finance approval puts new ballpark in gear

Cardinals are now in position to finalize private funding; construction could begin next month.

By David A. Lieb ~ The Associated Press

JEFFERSON CITY, Mo. -- A state board approved a revised public financing plan Tuesday for a new St. Louis Cardinals baseball stadium, and team executives said construction could begin next month.

Cardinals president Mark Lamping said the $390 million downtown ballpark -- a replacement for Busch Stadium -- still is scheduled to open for the 2006 season, although financing delays have resulted in a tighter construction timetable.

Tuesday's approval of state tax credits and a bond issuance should help the Cardinals finalize their privately financed portion of the project by Dec. 18, Lamping said. Work should begin immediately after that on the stadium's infrastructure, including the relocation of utilities and streets, the Cardinals said.

Cardinals executives have sought a new stadium for several years, first unsuccessfully asking the state Legislature for a $210 million commitment before finally settling on a plan that relies more on private funds.

Under the current plan, the state's total commitment is about $43 million, including about $12 million in transportation department spending, more than $1 million in tax credits for hazardous cleanup work and the $29.5 million in tax credits for infrastructure work.

The Missouri Development Finance Board approved a revised plan Tuesday under which about three-fourths of the $29.5 million in tax credits would be redeemed before June 30 and the rest in the next state fiscal year.

Joe Driskill, director of the state Department of Economic Development, said the tax credits were part of "a very good partnership" among the Cardinals, the state and St. Louis city and county that includes a commitment by the Cardinals for new business developments surrounding the ballpark.

Added Lamping: "The deal is better for the public than when we started" seeking state subsidies through the Legislature.

But Fred Lindecke, a spokesman for the Coalition Against Public Funding for Stadiums, said the state should not supply any financial aid to the ballpark, especially when government services are facing budget cuts.

Tuesday's vote on state tax credits was not the first for the Cardinals stadium.

The state board initially approved the $29.5 million in tax credits last November. At the time, Lamping said the quick approval of state aid was vital to the private fund-raising efforts. But in April, the Cardinals fired the group soliciting private financing for the ballpark because of concerns about some of the investors in the Washington-based Property Funding Group.

The Cardinals have since hired Banc of America Securities to drum up private equity investors.

But the private financing delay prevented the state from issuing the tax credits as initially planned, which would have included $20.9 million to be claimed during the 2003 fiscal year and $8.6 million during the 2004 fiscal year, which began this past July.

The revamped incentive approved Tuesday allows $22.5 million of tax credits to be redeemed this fiscal year and $7 million in the 2005 fiscal year.

The Cardinals are expected to sell the state tax credits, netting around $25 million that can be used for the stadium project.

The state finance board on Tuesday also authorized the sale of up to $48 million in bonds for the stadium project to be repaid in annual installments from St. Louis County hotel and motel taxes. The board said the state merely was acting as a conduit for the county and was not subject to any credit or repayment risks.

The St. Louis County Council was to meet Tuesday night to consider a loan that would be funded by the bond issue.

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Finance board: http://www.mdfb.org

St. Louis Cardinals: http://stlouis.cardinals.mlb.com

Anti-stadium funding group: http://www.stopballpork.org