P-D Arena Article

[davidnark]

http://tinyurl.com/2577w

Construction won't begin for another nine months at the earliest. Only $12 million has been committed. The research building has leapfrogged the arena in terms of priorities. Naming rights are still being negotiated.

Not unexpected news, but not encouraging news.

[davidnark]

According to the article, the financing will break down as follows:

$70 million total cost

--------------------------

$5 million in TIF Revenues

$25 million in Bond Revenues (payable with ticket revenues)

$15 million in naming rights

$12 million pledged to date

--------------------------

Total: $57 million

Shortfall: $13 million

Presumably a portion of the shortfall will be raised through the luxury suites (16 of which are committed) and some sort of season ticket donations/seat license

[jzstldc]

This confirms my opinion ever since I went to SLU starting in 1997 that Biondi doesn't care in teh least about SLU sports. He always has some kind of excuse. This announcement does not surprise me though however it is disappointing because I feel that for the Billikens to reach the next level (which they have a chance to do with their recent recruits) we need a better homecourt atmosphere and now that won't be until 2006.

[kshoe]

Let me first say that I have absolutely no inside information into the details of the SLU arena but it strikes me that every new stadium goes through three main stages. 1) initial excitment over the project after its announcement 2) concern and doubts that the project will ever happen and 3) the actual construction.

I can't think of any projects that have not had at least these 3 stages. The Cardianls stadium? There was serious doubt as to where they would get the financing, public or private, which side of the river, etc. It was not easy. Mizzou's new stadium? After being gifter $10mm in the early 90s the gift is taken back because not enough progress was being made. Even after the Lauries gifted $25mm in the late 90s there were serious questions on whether they would get the necessary state money to complete the project. Tigerboarders threatened to withold their votes from Holden, etc. It was not easy. The Dome downtown and the Kiel? While I don't remember the specifics too well I do remember there being issues with both. In college I lived with two Milwaukee guys who had daily updates on the Brewers new stadium. Now there is a stadium that had financing issues...but it got done.

The Billikens are clearly in stage #2 right now. Is that something to be happy about? No. But is it something for us to be overly concerned with? No. Every project goes through this. It would be nice to open the new stadium in 2005 but if its 2006 who really cares? Besides, with the players we have coming in we are going to pack the Savvis. For a team with a teribble home court we sure do seem to win a bunch of games at home.

[tseugnekillib]

jzstldc.....get real. If Fr. Biondi didn't care the least about sports SLU would not be playing D1 sports and in high profile / costly conferences such as the C-USA and A10. SLU could just as easily be like Rockhurst, Loyola-New Orleans, Regis, Wheeling, Seattle, etc., etc. (all Jesuit schools).

We should expect SLU to put academics over sports. At the same time, I am confident that Polk and Lisch will play in a beautiful on-campus arena during their careers at SLU.

[gister]

Besides, it gives me another year to attempt to save up for my seat tax, PSL, etc.!!!!

[bonwich]

While everything you say is true, I suggest that this is yet another case of utter failure in management of details and in proper setting of expectations.

When the new arena was formally announced, the President of the University said things like "groundbreaking in February or March" and "in time for the switch to C-USA" and "2005 season." Yet the very same announcement said "26 months for construction." Now, granted, my math degree is from SLU, but isn't 9 months from now next February, and 26 months for construction therefore May of 2007, making the earliest conceivable first basketball game the opener for the 2007-2008 season? And still, Bob W. is on record in today's article still calling for completion by the 2006 season.

Yes, an arena is a very complicated project, as is this level of fundraising, and there are bound to be delays. So just say that upfront, rather than just making things up according to what sounds best.

[MUTGR]

I'm happy to learn that a fine private institution like SLU is also at the public trough for handouts. Remember that next time any of you SLU alums ***** about your tax dollars going to Mizzou.

[Lobo]

This announcement doesn’t surprise me, but it does disappointment me.

My math tends to agree with yours. If all goes well 2007-08 will be the first season. The announcements have been somewhat contradictory which is probably due to having to move the site from the Lindell area, water issues at the current site and slower than expected fund-raising.

However, to have raised 200M of the 300M goal is fantastic. I think the research center should take priority. It will bring in a lot of money in research grants and enhance the reputation of the university. And the university’s first priority is academics.

I firmly believe that the arena will be built and it will be a state of the art facility.

Now someone mentioned on this board about increasing the soccer venue to MSL standards which I believe is 25,000. If St. Louis got a MSL team the university’s facilities would be the logical place for them to play. And… with the increase in size we would be in a great position to bring back football at D-II to start.

I can fantasize!

[davidnark]

What in god's name are you talking about? The $5 million in TIF money? Do you have a clue how TIF revenues work? Are you aware that they are available to most private entities? TIF money gives the developer the right to use certain tax revenues GENERATED BY THE NEW PROJECT to help finance infrastructure improvements for the project. This is completely different from the legislature allocating millions of dollars from the state's general revenues for the Mizzou arena project.

[willie]

I was told early on by a finance guy with experience in sports arenas that it could be built in 18 mo. Therefore my calculator says they could be ready by the fall of 2006.

[cheeseman]

MUTgr - clearly you do not understand what a TIF is - I work with TIFs all the time and I will attempt to educate you. First a TIF is set up to encourage development by taking the property tax dollars that are paid and allowing the developer to use it to improve infrastructure - roads, bridges, sewers, utilities, right away type things. Once the infrastructure work is completed and enough tax dollars withheld to pay for it then in theory the tax money reverts back to the taxing districts who did not get it in the first place - usually school districts and fire districts bear this burden. Normally it takes years for this to work out and sometimes the developer will apply for more TIF money if they are going to make other similar improvements so often the taxing districts never see much if any of the money. Granted this is a simplified explanation. SLU is no different then a private company if we get any TIF money. In the specific area involved, the TIF is controlled by the Grand Center Group. They are the ones giving SLU the money. If SLU did not get this money then a private developer would get it so in terms that you might understand, the $5 million was long ago lost to the taxing districts and SLU getting it is a moot point.

Now as far as the arena project goes - I agree that the research center is very important. My son is at the school - he went to MU to get his undergrad degree in biochemestry - doing research and working on his advanced degree. This is a key economic iniative that the state, city and region is pushing - read the papers. This building is one of the cornerstones of trying to help Missouri and the region retain and gain more high paying jobs. One could say that the building is SLU's way to help itself but also to help the state. Next, the arena being delayed is somewhat disappointing but the truth is the timeline orginally announced was far to optimistic and we should have understood that. Last, for those of you who are complaining about the fund raising process - look in your Universitas and you will find an envelop that allows you to earmark your donation to the Campaign for the arena fund. I suggest that all of us who are anxious to see this happen make a donation and the $13 million will start decreasing.

[davidnark]

Bob Woodruff said last week that the construction timeline is 20 months, not 26 months. See http://tinyurl.com/3exco

If ground is broken next February, then the arena should be ready in October/November 2006.

[MUTGR]

David, the article indicates that public funding, i.e. taxes, are being used by SLU directly or indirectly in two ways: (1) the first is the federal funds being used to help build the research center. I can only assume the ultimate source of these funds is tax dollars. (2) with regards to the TIF financing, I will not try to argue the mechanics or merits of TIF funding with a real estate lawyer, but your own description states that TIF provides a way for SLU to use tax revenues (even if they are generated by the project itself) in a favorable way. I am well aware that private groups use TIF financing all the time. Indeed, I imagine that not many delevopments occur without TIF financing, nor did I say there was anything wrong with it. I note that some groups, like the post-dispatch, scream bloody murder when TIF financing is used in areas like Des Peres-although I realize that has nothing to do with SLU's project.

So, based on this article, I can see that SLU, a private catholic university, is more than happy to use tax funds where available and to use, if not actual tax dollars, than preferential financing arrangments involving tax revenues. Either way, SLU is benefiting from either the direct use of public funds or indirectly through a financing mechanism involving tax revenues. So when you gripe about tax dollars going to public institutions such as MU, you should at least admit to yourself that SLU is also receiving tax dollars, directly or indirectly.

[davidnark]

What is your point? Tax incentives, grants, abatements, etc. are available to organizations and businesses of every kind. SLU's officers would be negligent if they failed to take advantage of such programs. Again, taking advantage of generally available programs is quite different than lobbying for a specific item of legislation designed to fund the new arena like MU did.

[bonwich]

Indeed, the Trojan Farce is being done on only an 18 month timeline, so it would seem that 20 is also a doable number. I'd also submit, though, that Bob should probably be paying attention to what's in the more generally read record and should be adjusting expectations accordingly.

[billiken_roy]

i love billiken basketball as much as anyone, but explain to me that from an educational institution viewpoint, the justification of prioritizing a basketball court over a world class research center? how father biondi can be ripped on that is beyond me. he should be applauded.

[Major Majerus]

concrete around the clock...waking up all the students nodding off in early morning classes, sleeping off hangovers, or nodding off after lunch. Can you imagine the noise in midtown? Then they'll have to repave Lindell and Compton after the construction vehicles tear up the streets.

[Major Majerus]

Sorry; whicle there may have been debacles, there are many more positive outcomes from TIF financing, and it doesn't come from state coffers. Nobody in Boone County is paying for this.

[billiken_roy]

but until i completely understand how the seating process is going to work, i have decided that hereforward i will decrease my donation to the billiken club to the minimum level and bank the difference in hopes that i will have the needed psl funds or at least close to it when or if they ever come knocking. for them not to share the vision of how this whole process is going to work is a terrible disadvantage to the limited funds booster like myself. i know this doesnt sound very benevolent on my part, but until my fears of how this psl or not scenario are lifted, i dont see any choice. so while i would love to help father biondi with his "if every alumni game $100" dream, until father biondi assures me of how my lifetime seats will shake out, i'm holding. like i should have been for the last 15 years apparently.

[TheBand]

The key point with TIFs is that they are based on property tax revenue. When the TIF projet begins, the current property taxes are frozen at that level, but are still paid on a regular basis based on that level. Once the TIF bonds are paid off (usually in 20 years) by the NEW REVENUE (again based on property taxes) the full amout of property taxes are then funneled to the taxing agency. The key here is that the taxing districts (school, fire, sewer etc) will continue to get money based on the current tax rate for that piece of land...no money will be taken from the tax districts over the course of the TIF bonds. Only new revenue (which wouldnt even exist without the arena) will go to pay off the TIF bonds.

[BillikenButch]

I am all for development and the jobs it creates, and SLU should take advantage of the opportunity, but let's not assume that the organizations funded by property taxes are unaffected by the explosion in TIFs. I remember the Kirkwood School District's opposition to a TIF in that area. And while revenue still comes to these groups, it is frozen for 20 years. Imagine if you could not realize the appreciation of your own personal property for 20 years.

[Billiken Rich]

I am with you Roy. I am not a donor or Billiken Club member other than my annual season ticket purchase. Mrs Billiken Rich would balk like hell if we had to pay $2500 a piece for psl's. Maybe $500 would be doable. More than that and we're in the nose bleeds, waiting for more of the old folks to die off.

[whelandj]

Last week I received an e-mail message from SluSignGuy requesting that we post an update on the arena project. The timing of his request is probably good since we suspect there are a few Billiken fans discussing the article that appeared in the Post-Dispatch this morning about the arena.

We agreed to meet with the reporter yesterday because it had been some time since an article on the arena had appeared in the paper. Our intention was to provide an update on the project and emphasize Saint Louis University's commitment to building this arena. We also wanted to remind the community that the arena project is part of a $300 million University-wide campaign that includes many important objectives, along with another major building project - the research building.

As all of you know, Fr. Biondi stated many months ago that the research building is the University's first priority. That does not mean the arena is on the "back burner." We continue to work hard every day to secure major commitments for the arena, research building, scholarships, endowed chairs and all of the funding objectives outlined in our campaign. It is understandable that our two major building projects are receiving most of the attention from alumni and friends of the University.

These are the facts:

1. We are building an arena. It is going to be a first-rate facility and a major step toward helping Brad Soderberg build a nationally prominent program.

2. There are staff and key volunteers working on this project every day.

3. Ground will be broken when 75 percent of our $40 million fund-raising goal is met. We have $12 million committed to date.

4. The current focus is on the leadership gift phase of the arena campaign and on securing a major corporate sponsor.

5. Proceeds from a naming rights deal are separate from the fund-raising goal.

6. There are large gifts in the works, and announcements will be made when they become firm commitments.

7. We are discussing naming rights with several entities and are optimistic that a deal will be finalized.

8. If you have not yet been asked to participate in the arena campaign and would like to make a gift or pledge now, my phone number is (314) 977-2472. Or, you can wait until we begin the next phase of the campaign, when every Billiken fan will have an opportunity to participate.

9. Final arena design details are still being determined. The Mill Creek water situation is being addressed. According to the engineers, it does not pose a major problem.

10. The formal process of selling suites has not yet begun, but demand for them is strong.

Some of you might have heard Brad Soderberg speak after the Billiken Classic golf tournament on Monday night. Between recruiting success and the new arena, this guy is pumped! He made everyone in the room proud to be a Billiken fan.

We hope alumni and friends of Saint Louis University trust that we are on the right track and understand that significant progress is being made on the arena. We don't mind being challenged by our stakeholders because we know that most of them have the University's best interest at heart. But we believe there are more reasons to be excited than critical about what's happening here. All of us wish things were moving more quickly, but please know that this arena is going to be built, and it will be worth the wait.

Finally, in an effort to improve communication, we will post periodic updates on this message board. As always, feel free to call me if you would like to discuss the arena project in greater detail. Thank you again for your continued support of Saint Louis University and Billiken Athletics.

Don Whelan

Saint Louis University

Vice President for Development and University Relations

[slu72]

for taking the time from what we are sure is a very busy schedule these days. It is reassuring to hear from someone in the know the arena will become a reality. Again, thank you.