Kehoe says Missouri will ‘try to work’ with Springfield on convention center

Following years of attending the Springfield Area Chamber of Commerce’s annual State of the State as a spectator, Gov. Mike Kehoe took center stage Monday at the event, serving as its keynote speaker.

Taking office as governor in January, Kehoe recapped some of his and the General Assembly’s achievements during the first half of the year, covering areas such as the state budget, public safety, economic development and education. The gathering drew an attendance of 608 to Great Southern Bank Arena on Missouri State University’s campus, according to chamber officials.

Kehoe said the nearly $51 billion budget he signed late last month had around 450 items and nearly $775 million in additional spending beyond his original budget recommendation in January.

“We’ve now finished signing legislation passed by the General Assembly and enacted a balanced conservative budget that reflects the values and priorities of our state,” he said. We’ve done it with one goal in mind: To build a strong, safer and more prosperous Missouri.”

However, according to the governor’s office, the budget also had 208 vetoes totaling nearly $300 million in general revenue, and 32 expenditure restrictions, totaling $211 million in general revenue. One of those expenditure restrictions is a $30 million earmark to go toward a future convention center in Springfield. The restricted funds can be activated by Kehoe at his discretion and must be matched by the city, according to past Springfield Business Journal reporting. 

In a recent study from Hunden Strategic Partners Inc., the Chicago-based firm recommended Springfield build a $175 million event center as well as a 400-room, full-service, connected hotel at an estimated cost of $209 million. Officials believe the proposed development has the potential to bring in $1.3 billion in local spending and more than $68.7 million in tax revenue over a 30-year period, according to past reporting. No location for the center is determined.

The main mechanism proposed to help cover construction and operational costs is a 3% addition to the city’s 5% lodging tax, which is collected from guests to the city’s hotels, motels and short-term rentals. Springfield City Council voted at its meeting last night to add the additional lodging tax issue to the Nov. 4 ballot.

“They want a government that lives within its means, invests wisely and clears the way for you to thrive,” Kehoe said of what Missourians voted for and continue to tell his office. “And we know that securing Missouri’s future won't be done through rhetoric. It will be built by action. This year we've made great progress, safer streets, stronger families and a growing workforce.”

Speaking with members of the media following the chamber event, Kehoe said the Springfield project is among several budget items his office had to withhold temporarily while waiting to see how the state of the economy, revenue projections and federal government actions proceeded this fiscal year. Sen. Lincoln Hough, R-Springfield, chair of the Senate Appropriations Committee, added the earmark for the convention center to the budget proposal. 

“I’ve been in constant communication with [Springfield] Mayor [Jeff] Schrag about how important that project is,” Kehoe said, adding the convention center has multiple pieces to the puzzle. “I’m a big fan of that project. I know Sen. Hough very much is a big fan and fought very hard as well as the rest of the Springfield delegation. So, as they move certain pieces of that project forward, we’ll try to work with them on how that ends up happening.”

Kehoe said he was aware Schrag was going to be talking about the project at last night’s City Council meeting, noting action might result in the issue making it onto an upcoming election ballot.

“The community, in my opinion, even outside of the passion behind the elected officials, seem to be very supportive of this,” he said.

Monday’s event marked the eighth year for the chamber gathering, which former Gov. Mike Parson had attended since taking office in 2018. Kehoe served as lieutenant governor under Parson before being elected to the top state leadership position in November.

An expanded version of this article is scheduled to be published in Springfield Business Journal’s Aug. 4 print edition.