Dive Brief:
- Missouri’s governor-elect has come out in opposition to a public funding plan that could possibly contribute up to $80 million toward a 20,000-seat, $200 million Major League Soccer stadium in St. Louis and provide an additional $40 million in tax credits, according to the St. Louis Post-Dispatch.
- Republican Gov.-elect Eric Greitens called the deal "welfare for millionaires" and said the state didn’t have enough money to cover basic government responsibilities, let alone millions to spend on a stadium.
- If voters approve a measure to increase the city sales tax and another to use part of those proceeds to fund an MLS venue, the city would own the stadium in return for its 60% financing position, and the team would lease the stadium back from St. Louis for at least 30 years.
Dive Insight:
For the most part, states and cities have been eager to work with developers in order to bring MLS franchises and stadiums their way. In addition to the potential long-term economic benefit fueled by fan attendance and the typical new development around sports facilities, these projects also can result in thousands of new construction jobs. However, disagreement over the use of public funds has been a contentious issue across the U.S.
Despite a rocky design process and some public protest, Washington, DC, is getting ready for a new $300 million D.C. United soccer stadium, which is expected to gain final approval from the DC Zoning Commission in February. The project is expected to generate 1,000 construction and permanent jobs and increase economic activity in the surrounding area by $1 billion.
St. Paul, MN, also is welcoming a new MLS franchise and a $150 million stadium to the city. Private interest will fund the project itself, but the city has already approved more than $18 million in spending to make some necessary infrastructure improvements. The stadium is expected to create approximately 1,000 construction and permanent jobs and an extra $1 billion in economic activity. City officials also said that 50% of the commercial space developed around the new venue will be set aside for local businesses.