Home »

Collinsville forges ahead on stadium

Tuesday, Sep. 11 2007

COLLINSVILLE — City leaders voted Monday to negotiate with a Metro East lawyer

to bring the city a multimillion-dollar professional soccer stadium along with

a housing and retail development.

Council members voted 4-1 to negotiate an annex agreement for farmland at

Horseshoe Lake Road and Interstate 255. City staff members believe that money

to be made on the project will almost double the city's investment.

The city's cost would be $3 million a year over the next 25 years, according to

its estimates. Officials believe the project will generate $5.7 million a year,

or $2.7 million annually over the investment.

City Manager Bob Knabel said the city would sell bonds totaling about $30

million to $35 million to pay for the project, though the exact amount won't be

final until the deal is complete. It's uncertain when that will be, but both

sides have said they expect a firmer deal by year's end.

Knabel said the city is not interested in just breaking even. "There has to be

a benefit coming back to the community in order for us to do this," he said.

Monday's vote formally begins the project negotiation between the city and

attorney Jeff Cooper, who has spearheaded the effort to bring big-time soccer

to St. Louis.

The council's decision puts the city on a short list to win a Major League

Soccer expansion franchise. Cooper hopes to have a team on the field by 2009.

If Cooper doesn't get a team, the stadium deal will be off, and the city will

not be tied to any commitment, he said.

Councilwoman Lisa Ciampoli voted against the project. She said she wanted more

guarantees that the Collinsville School

District wouldn't be burdened by an influx of students coming from an expected

1,600 homes that would be included in the project. She also wanted to protect

the city financially in case the city doesn't land a professional soccer team,

or if the team is sold and leaves town.

"I want the stadium, I really do," Ciampoli said. "I just want to make sure

we're protected."

Under the expected arrangement between the city and Cooper, the city would use

the first $3 million of any money it makes to pay off the bonds. The city then

would keep the next $1 million, and the city and Cooper's group, St. Louis

Soccer United, would split revenues after that.

Cooper has said that the best way to bring pro soccer to St. Louis is through a

public-private partnership, an approach that is used in most professional

sports team stadium deals, but one that is controversial because of the use of

public funds.

The city also would help pay for some of the infrastructure, such as roads and

water lines, through a tax increment financing district. The district would

collect all new property taxes at the complex and reinvest them in that area.

Cooper's plan would include about 1,600 homes.

The number of homes had been uncertain. With the homes, the total value of the

project is forecast at $572.9 million.

The school district is concerned about gaining students without accompanying

tax funds. Taxes in a TIF district typically go back into a specified area and

not to the school district. If the 1,600 homes bring in a large number of

students, the school board wants to make sure the district has the room and

money to educate them.

"The use of TIFs to support residential development is bad public policy and

unacceptable," said Mike James, a lawyer for the district. "It's unfair to

kids, students and taxpayers of the district.

"You're building a soccer stadium on the backs of schoolkids."

Stadium proposalThe project is estimated at $572.9 million and would include:•

An 18,500-seat stadium• 1,600 homes• 240 hotel rooms• At least two restaurants•

Several youth soccer fields• Nearly 500,000 square feet of office and retail

space.