Don’t worry, everything is “moving forward” with the financing of the $175 million expansion of the America’s Center Convention Complex in downtown St. Louis.
That was essentially the message that members of the Board of Estimate and Apportionment (E&A) — Mayor Lyda Krewson, President of the Board of Aldermen Lewis Reed and Comptroller Darlene Green — tried to send when they passed a resolution on Thursday, Oct. 31.
The resolution outlined the parameters for the project’s bond financing — which has been a source of conflict between the board members, particularly Krewson and Green. In a statement, Green thanked Krewson and Reed for their support of the resolution, which she presented to the board on October 31.
“Expansion of the convention center is an economic investment in our region, assuring the health of jobs for working families and businesses alike,” she said.
By law, the resolution was not necessary to move the bond financing forward, said Steve Conway, Krewson’s chief of staff.
“But it established the framework which is in the financing agreement,” Conway said. “As to the mayor and the comptroller, they just want to have certainty on moving forward and if [the resolution] gives everyone adequate certainty, they are all very happy.”
The next step is to schedule a meeting with the St. Louis Municipal Finance Corporation “to affirm the details of the issuance,” Green said. The finance corporation does not have regular meetings, but a meeting should be scheduled quickly, according to Green’s spokesman.
Tom Shepard, Reed’s chief of staff, is the president of the finance corporation. Shepard did not return The St. Louis American’s request for comment about when a meeting will be scheduled. Reed has not yet returned a request for comment on the resolution’s significance.
Conway said regarding the resolution, “What it means for the region is that I can begin booking the conventions four, five, 10 years out into the future with certainty.”
The convention center complex is responsible for generating $265 million in economic spending for the St. Louis region, according to Green.
However this summer, the project stalled out at the “one yard line,” and the hospitality and construction industry are not happy, business leaders said.
The City of St. Louis and St. Louis County currently pay a combined $12 million annually on the debt used to construct The Dome that is connected to the convention center – and the State of Missouri matches it with $12 million. However, those commitments expire in 2021, and the expansion could only move forward if both the city and county agree to continue making those $6 million annual payments. Both the county and city have passed the necessary legislation, but this summer a political struggle over the bond process erupted.
In brief, Green has been the primary mover on convention center-related bonds since 1997, she said, and she was elected to have oversight of the city’s credit rating. Krewson initially questioned the cost of Green’s bond process, according to her chief of staff, and wanted to switch that process over to the St. Louis Development Corporation.
Seeing the resolution pass was “very important and exciting” for the business and hospitality industries, said Andrew B. Leonard, chairman of the St. Louis Convention and Visitors Commission.
“E&A was a big step,” Leonard said. “We are delighted that the three of them worked out the political issues. We’ve got other steps to do. There could be hiccups. But we’ve got approval from everyone.”
The main goal of the improvements is to be in a position to attract conventions such as FIRST Robotics, he said.
“It fills the city,” Leonard said. “It’s an unbelievable revenue source for all businesses. It makes the city hop. We are trying to get on everyone’s next available schedule. We are itching to make the America’s Center competitive.”
