The Missouri Development Finance Board has approved the first $15 million installment of those $50 million in tax credits Gov. Jay Nixon wants to give to the St. Louis Rams to help fund a new stadium. (The next two installments would come in 2016 and 2017.) That’s as to be expected, but the interesting part comes down in the fine print of the tax credit offering, which finally spells out how Nixon plans to cobble together $400 million or so in public stadium subsidies:
They have proposed to pay for construction with $450 million from the National Football League and the team that plays here, $201 million in bond proceeds from the state and the city of St. Louis, $160 million from the sale of seat licenses and $187 million in tax credits, according to the state application.
Let’s take those one at a time:
- $201 million in bond proceeds is about what the state could get by refinancing the existing Jones Dome bonds: They have $18 million a year in hotel-motel tax money (approved for the last Rams stadium 20 years ago, which is now unconscionably old), and about $100 million in remaining debt on the dome, so if they can get an interest rate of around 4% they should be good to go there. It’s still doesn’t explain how the city will now pay off the convention center debt that it’s currently using some of the tax money to cover, but at least it exists.
- While including $160 million from the sale of seat licenses as part of the public portion is a bold move, no doubt Rams owner Stan Kroenke is going to want PSL money to cover his share of the cost. So calling it public funding is going to be contentious, to say the least.
- $187 million in tax credits: Whaaaa? The $50 million from the Missouri Development Finance Board is discussed above, and there’s been discussion of maybe $30 million in federal Brownfield credits. Other than that, if Nixon and friends have specified what other tax credits they’re thinking of, I’ve missed it (and so has Google).
In other words, we’re still looking at a funding gap of at least $100 million here, though presumably somebody has at least an idea of where to ask for it, even if it’s not completely public yet. And even then, we’re talking about only (“only”) $388 million in public cash, which, while more than the entire last stadium cost, is still less than Nixon had promised. Whether that’d be enough to make Stan Kroenke and the NFL happy enough not to move the team to L.A., assuming it all eventually gets approved, is the $388 million question — if nothing else, it should make for some interesting conversations in NFL board rooms along the lines of “Jeez, Stan, take the free money,” though you know no one’s going to say it out loud for fear of blowing the chance to shake Missouri down for even more.
(Or maybe Kroenke really will just require the people of St. Louis to build the stadium with their bare hands. Some things, after all, money can’t buy.)