ST. LOUIS — Mayor Lyda Krewson and Comptroller Darlene Green appear to have resolved their long-standing dispute over the handling of bond financing for the planned $200 million expansion of America’s Center downtown.
The city’s Board of Estimate and Apportionment — made up of Krewson, Green and Aldermanic President Lewis Reed — voted unanimously Thursday to assign a city entity for years connected with Green’s office to issue the city’s half-share of the bonds.
“This has been held up for a long time, too long,†Krewson said after the brief estimate board meeting. “We’ve got to get these bonds issued. We don’t have a competitive convention center right now.â€
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Green in a news release said the vote means that “the business and hospitality communities can be confident†that the project is moving forward.
However, various details have yet to be finalized. And it’s unclear when the bond-issuing entity — the St. Louis Municipal Finance Corp. — will actually approve the financing package. The finance corporation’s board is made up of representatives of Krewson, Green and Reed.
Also yet to be disclosed is what agency will issue St. Louis County‘s half-share of the expansion bonds.
Last summer Green had complained that Krewson was trying to usurp her role as the city’s chief financial officer by taking charge of the financing arrangements.
The mayor said then that her administration was studying whether to use the city’s Land Clearance for Redevelopment Authority to issue the bonds instead of the municipal finance agency.
The mayor said then that it was not clear whether the municipal agency had authority to handle more than just a stand-alone city bond issue.
On Thursday, Krewson’s chief of staff, Steve Conway, said the option of using the LCRA is still there for the county’s portion of the bonds. “We’re not forcing them to do it the same way we’re doing it,†he said.
Details on what company would be chosen to serve as bond counsel also have not been announced. However, Krewson said that would be up to Green to decide.
“She’s going to figure that out,†the mayor said.
In addition to St. Louis and St. Louis County, local officials hope that the state of Missouri also will participate in funding the expansion.
The project would add 92,000 square feet of exhibit space along Cole Street and a 65,000-square-foot ballroom along Ninth Street. Also included would be a new pavilion and green space on what is now a surface parking lot.
To avoid any new taxes, the fund used to service the debt issued in 1991 to finance the Dome at America’s Center — the football stadium that formerly housed Rams games — will be used to service new 40-year bonds issued for the convention center expansion.
The dome debt is set to be paid off in 2021. The city and county each contribute about $6 million annually to that fund through hotel taxes.
Regional Convention and Visitors Commission officials have said upgraded facilities are needed to compete for conventions with cities such as Indianapolis and Nashville, Tennessee. Hundreds of millions of dollars have been spent in recent years to revamp those cities’ tourism facilities.