Tax credits could be available for a proposed MLS stadium in St. Louis, as the city has submitted a $40 million request to the State of Missouri.
St. Louis’ Land Clearance for Redevelopment Authority is asking the Missouri Development Finance Board for $40 million worth of tax credits. The credits are being requested to “assist in the acquisition of real estate and construction of new infrastructure and facilities related to the efforts by the City and private investors to obtain a professional, major league soccer franchise,” according to the application.
Within this request, a few other details emerge. The estimated cost of acquiring the franchise and subsequently building a stadium is $405 million, $280 million of which would come from prospective ownership group SC STL. Additionally, the tax credits are a request that is in addition to a proposal for $80 million in city funding–or 40% of a $200 million cost–for a proposed MLS stadium in downtown St. Louis.
The tax credits would eventually be provided to SC STL, a transaction that would take place following the first $80 million in related costs. More from the St. Louis Post-Dispatch:
In a letter sent Monday to the state Development Finance Board, the board’s executive director Robert Miserez said he asked the city to provide more information to the state Economic Research and Information Center to prepare its own analysis for the state.
“There are many questions regarding the application which will not be answered by Thursday,” Miserez wrote.
Those details include the payment structure for spending eligible for tax credits, the complete composition of the ownership group and “how to quantify or assess the actual need for and sizing of the credit request, and impact to the state,” Miserez wrote.
The city and ownership group are hoping to secure $20 million in tax credits this year and again in 2017, although they likely would be used in 2017 and 2018. The tax credits would only be used if St. Louis voters approve city money for the project.
A vote on the tax credits is expected to take place on December 20. A referendum on city funding for the stadium would take place at a later date, most likely in April 2017.
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