Authorizes the Master Redevelopment Agreement for the Soccer Stadium Redevelopment Area
Overall Purpose/Reasons for the Board Bill The Soccer Stadium Redevelopment Area consists of approximately 34.7 acres, including rights-of-way, and is generally comprised of I-64 exit and entrance ramps and associated rights-of-way, Aloe Plaza West park, surface parking, and vacant and occupied commercial buildings. The Soccer Stadium Redevelopment Plan contemplates that the Redevelopment Area will be redeveloped for use as a stadium and associated team facilities, but Aloe Plaza West will remain a public park owned by the City. The Redevelopment Plan contemplates 25 years of real property tax abatement on the value of improvements constructed within the Redevelopment Area, as well as certain other incentives. To implement those incentives, the Redevelopment Plan and the Redevelopment Area must qualify under both the LCRA Law (Chapter 99) and the Urban Redevelopment Corporation Law (Chapter 353). What the Board Bill Will Do Approves the Redevelopment Plan under Chapter 353 and authorizes the Master Redevelopment Agreement. Key points: • Declares the Redevelopment Area as “blighted” under Chapter 353. • Approves condemnation for property located at 2008-2012 Olive Street. • Requires Redeveloper to comply with all City requirements relating to non-discrimination and MBE and WBE utilization. • Approves Master Redevelopment Agreement (described below) and related documents: o Cooperation Agreement regarding improvements to Aloe Plaza West o Cooperation and Transportation Project Agreement regarding proposed CID and TDD o Encroachment Agreement regarding reconstruction of Market Street • A companion Board Bill (Board Bill Number 216) will declare the Redevelopment Area as “blighted” and approve the Redevelopment Plan under the LCRA Law The Main Components of the Board Bill The Project • Approximately 22,500-seat professional soccer stadium. • Team offices. • Practice fields. • Parking facilities. • Renovated Aloe Plaza West (which will remain a City-owned public park). • Various street, sidewalk and utility improvements. Available Incentives • 25-year real property tax abatement on the assessed value of the stadium (the Redeveloper will pay real property taxes on the value of the underlying land during this period). • Sales tax exemption on the purchase of construction materials used to complete the stadium and related team facilities. • Creation of a community improvement district and transportation development district (each imposing a 1% sales tax) to assist in funding public infrastructure components of the project. • If the port district is extended to include the project site (which would require passage of a separate board bill), the potential creation of a port improvement district (that would impose a 1% sales tax) to assist in funding public infrastructure components of the project. • Abatement of amusement tax (which is already applicable for this type of project pursuant to Chapter 8.08 of the City Code). Redeveloper Responsibilities and Obligations • Acquire the property and construct the project. • Comply with generally applicable MBE/WBE, competitive bidding, prevailing wage, First Source employment and living wage requirements. • Keep the stadium and related facilities in good repair. • Cooperate with the LCRA to identify potential locations for off-site parking that would be beneficial to both fans attending soccer matches and businesses in the downtown west area. • If the team relocates within 10 years, pay to the City the sum of $15 million reduced by $1.5 million for each year or portion thereof that the team operates within the City. City/LCRA Responsibilities and Obligations • Facilitate the incentives described above. • Cooperate with the Redeveloper to acquire the necessary property. • Cooperate with the Redeveloper to identify and obtain other funding sources, such as assistance from the State of Missouri. • Cooperate with the Redeveloper with respect to signage, security, marketing, traffic management, street maintenance, sidewalk utilization, construction staging, etc. in generally the same manner as the City cooperates with the Cardinals and the Blues. The Impact of the Board Bill to the Community The Board Bills will incentivize the Redeveloper to invest more than $500 million in the City to attract an expansion Major League Soccer franchise and construct a professional soccer stadium and related team facilities.