Legislators say time runs short for arena funding

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Some members of the Missouri House of Representatives are doubtful state funding for a Springfield arena will make it onto the calendar in time to be approved this session.|ret||ret||tab|

The southwest Missouri legislative delegation has been talking with St. Louis developer Tony Sansone Jr. about his plans to build a civic center in Jordan Valley Park. City officials and Sansone are asking the delegation to consider legislation that will rebate a portion of state sales tax generated by the arena. |ret||ret||tab|

The money rebated, which is to be a portion of the state's 4.225 percent sales tax, would go toward paying for the arena. This is money not earmarked for any other purpose, since it would be new sales tax revenue generated by the civic center itself, said Mary Lilly Smith, economic development coordinator for the city. Though the money is important, Sansone himself shied from saying it could make or break the project.|ret||ret||tab|

"It's important. I don't want to say make or break, but it's certainly something we're paying a great deal of attention to and focusing a great deal of our energies on," Sansone said.|ret||ret||tab|

Rep. Mike Schilling, a Springfield Democrat, raised several questions about the project in a letter to the mayor and members of council. Smith wrote answers to his questions. Schilling said he is opposed to what he calls "schemes like this one," and that he feels the state is often treated like a banker in these agreements.|ret||ret||tab|

"This is a new wave of public financing to luxury schemes. We're asked to divert money that should be going to human services in the state. The state doesn't have the money to spend on human services, and that should come first," Schilling said.|ret||ret||tab|

Schilling also questioned where the real benefit of the arena would be realized.|ret||ret||tab|

"I would ask, who is going to get the greatest benefit from this, the city or Mr. Sansone's company?" Schilling said.|ret||ret||tab|

City staff right now estimates the arena would generate $549,520 in state sales tax revenue each year. The city would like to capture 80 percent of that for repayment of debt on the arena, Smith said. A portion of the city and county sales tax the arena would generate would likely be rebated, also, Smith said. |ret||ret||tab|

Smith estimates that, if the arena generates $13 million each year in taxable sales, it will capture $520,000 for debt repayment from sales tax rebates from the city, county and state. The city would impose a ticket surcharge and appropriate 50 percent of new sales tax revenue generated by the arena for debt service. Likewise, Greene County would dedicate the increase the arena would generate in its general sales tax to repaying the arena's debt. |ret||ret||tab|

The city is seeking state funds for the project because of an anticipated gap between the cost of building the arena and the amount of money the city and Sansone are prepared to put up, Smith said.|ret||ret||tab|

"Right now, we're trying to fill that gap. We don't know how large it will be exactly. It could be a couple million. It could be less than that; we're still investigating that right now," she said.|ret||ret||tab|

Meanwhile, time is running short for getting something through the Missouri legislature, which has about four weeks left in its regular session. Schilling said he has not yet seen any language for a bill or for an amendment to an existing bill. The city has requested a feasibility study on the proposed center, and that is not due until the beginning of May. Schilling said he was concerned that the legislature was asked to act prior to the completion of that study.|ret||ret||tab|

Rep. Norma Champion, a Springfield Republican, said she was positive about the project and thought an arena such as this would be great for her hometown, but "there's slim chance of finding a bill for it even if we get all our questions answered."|ret||ret||tab|

Champion said she, too, wanted to see the feasibility study first, and that she and the southwest Missouri delegation "still have a lot of questions."|ret||ret||tab|

"It's my role to get as much information as I can from the city, and then ask the state for help. At this point, I've not quite finished my homework on it, but I do hope we can work it out so that we'll have an arena in Springfield. I think it could be a great advantage for Jordan Valley Park," Champion said.|ret||ret||tab|

Rep. Roy Holand, a Springfield Republican, said he wondered whether other Jordan Valley Park projects would request state funds, and whether the area should consider setting up a self-taxing community improvement district to capture funds.|ret||ret||tab|

Smith said other projects in the park could come forward with requests for state funds.|ret||ret||tab|

"We're still analyzing whether something like a CID might work in Jordan Valley Park," Smith said.|ret||ret||tab|

Downtown Springfield already has such a self-taxing district in place. |ret||ret||tab|

Rep. Jim Kreider, a Democrat from Nixa, said he was doubtful anything could happen this session.|ret||ret||tab|

"If it doesn't happen this year, it's not a dead issue at all. Hopefully, we can get ourselves educated about it, and if we have a southwest Missourian in a good leadership position next year, we can move it through," Kreider said. |ret||ret||tab|

If re-elected in the fall, Kreider plans to run for Speaker of the House. He now serves as Speaker Pro Tem.[[In-content Ad]]