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Yes or No: $700M on St. Louis Rams' Dome Upgrades?

The St. Louis Rams have outlined a renovation plan for the Edward Jones Dome that is estimated to cost $700 million.

 

The Rams want us to buy them a new house. Just fixing up its current home—the Edward Jones Dome—won't do. Instead, the St. Louis football franchise expects an extreme makeover, to the tune of $700 million, as it is estimated by a company hired by the St. Louis Convention and Visitors Commission (CVC) to analyze the team's counter proposal to a the CVC's own plan to upgrade the Edward Jones Dome with a $124 million facelift.

If someone doesn't cough up the $700 mil to redo the Dome, it is feared the team will take its football and go home to Los Angeles, where it came from before it was the St. Louis franchise.

All of this wrangling was set in motion in 1995 when the team negotiated a 30-year lease with the CVC. It was stipulated that the CVC had to keep the Dome in the "first tier" of NFL stadiums in the league or else it could terminate the lease and would be free to move out of St. Louis.

The current Edward Jones Dome was financed by the City of St. Louis, St. Louis County and the state with $256 million in bonds, a 30-year mortgage that ultimately will see the three entities spend $720 million to pay off.

But whether there will be a team playing in St. Louis by that time is a big question as the Rams' vision of first-tier status appears to be out of the current reach of city, county and state budgets. On KWMU's St. Louis On the Air yesterday, St. Louis Mayor Francis Slay said no, we can't spend any amount of money to retain the team.

The cold reality of the Rams "business" decision to seek a massive renovation to the Dome appears lacking in any civic partnership between the team and the fans that pay to watch its games. The football played in the Dome during the team's 17 years in St. Louis has been alternately great and frustratingly inept. There is a Super Bowl season to savor, and many losing seasons that were endured.

However, does it really matter how well the team plays? Is it important only to have a team?

Today's questions are: How far are taxpayers willing to go to support the Rams? Should the possibility the Rams leaving St. Louis be enough to persuade people to build a new house for the team? In this age of impersonal business dealings, should Rams fans expect any civic loyalty from the team they have supported for 17 years?

Please weigh in with your two cents, or 700 million cents, by commenting below.

Related Topics: Edward Jones Dome, St. Louis Rams, and renovation plan

Jim Gilbert

5:41 am on Thursday, May 17, 2012

I think we've spent enough on them. Any stipulation that the Dome be in the top 25% of the league should be matched by a requirement that the team be, I don't know, maybe at least in the top HALF of the league?

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Phil Gonzalez

7:27 am on Thursday, May 17, 2012

The state legislature just passed a bill allowing ONLY $ 75 MILLION to be given. I don't know how this is related to sports teams. Sports teams may have "Special" needs. Time to have a taxpayer revolt. Tea Paryt anyone? This Saturday, May 19th, 2 pm (1400 hours)
Rams Dome?

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Vince Burress

6:21 am on Monday, May 21, 2012

I completely agree. Someone ought to forward your statement to the Rams execs.

Roger G

7:22 am on Thursday, May 17, 2012

Everyone looks at this as a subsidy to the Rams, but the Rams don't own the dome. Whether they are here or not the facility will remain. The team, as a leasing tenant, may pay for a portion of the upgrades of a facility owned by the St. Louis Regional Sports Authority, an entity created by Missouri state statute.
This is a matter keeping a piece of infrastructure in the top tier in order to attract events. Of course it's debatable whether that's something the region should finance, but tying this to the teams poor on-field performance is foolish. Would the inverse be true?

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Phil Gonzalez

7:24 am on Thursday, May 17, 2012

St Louis could have BOUGHT the Rams for only $ 200 million but politicians GAVE THEM OUR MONEY to the tune of at least $ 240 million. A law was passed in St Louis City (county also, I think) that OUTLAWED giving tax breaks or money to businesses or sports teams or both. But a judge threw it out IN ONLY ONE CASE cause the law was passed after the idea of giving money to the sports teams was already discussed but not finalized. The Judge in this case was EVIL. This is unconstitutional. The Boston Tea Party happened BECAUSE a tax on tea was given to The East India Trading Company. The company had rights to EVERYTHING in India BUT because of CORRUPTION, it could NOT make a profit. SOMEONE PLEASE. FILE LAWSUITS, PLEASE.

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Terry Biglin

7:40 am on Thursday, May 17, 2012

No to a new facility for the Rams!

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Marie

7:44 am on Thursday, May 17, 2012

No way. What an extreme waste of money and complete disregard for the difficult situations most Americans are in.

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Joe P.

7:50 am on Thursday, May 17, 2012

Kronke has the money to build his own stadium, let him build it! People despise owners like Jerry Jones and George Steinbrenner, but they spend their own money! The Cowboys Stadium cost 1.2 billion, 900 mill was pt up by JJ, 300 mill by the city of Arlington. Arlington had their money back within one year!
The present EJ Dome will end up costing 720 mill, after 30 years of payments, now we're supposed to approve another 700 mill to be financed? Plus the 500 mill in lost revenue during construction! Also, I believe there will be a new tax on the November ballot to raise 500+million for Arch grounds improvements. Where will it end?

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Joe P.

7:51 am on Thursday, May 17, 2012

Also, Kronke is in a spot also, he can't just move back to L.A. There is already an NFL group there trying to get a team, so he's have to sell to them or buy them out.

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Peggy

8:11 am on Thursday, May 17, 2012

No way. Money would be better spent on helping poor people find homes or pay gas bills, etc. Silly to even imagine that St. Louis would agree to that massive amount of money "We" taxpayers would end up paying.

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robert ranch

8:22 am on Thursday, May 17, 2012

do not give them anything . poeple are losing there jobs, while there getting richer, let them pay for there own needs. they got more money then us.

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george theodorakos

8:28 am on Thursday, May 17, 2012

absolutely not!! eonough of public money spent on foolishness...the cardinals are the draw in downtown not the rams....look at all the sports teams kroenke owns....let him go build his own stadium....he married into the walmart fortune and certainily has taken advantage of it...and personally.....not a nice guy....

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Patrick

8:30 am on Thursday, May 17, 2012

People are jumping the gun, eventually cooler heads will prevail. Kroenke gave the city his best offer now they get to play hardball, also Kroenke is in a great situation to move the team to LA, he sits on the commission to get a stadium built in LA

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Patrick

8:33 am on Thursday, May 17, 2012

Oh yeah, the current dome design sucks and the new offer is really appealing, but the city cant afford to pay half of that let alone all 700 million

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Juanita Carl

8:49 am on Thursday, May 17, 2012

If the city had that kind of money, there are literally hundreds of better ways for it to be spent. I say tell them goodby.

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William Rapp

9:23 am on Thursday, May 17, 2012

Just viewing it from a business standpoint, a more positive position monetarily would be to set out to attract more convention activity to the dome to boost incomes both to the facility and to the downtown business opportunity. This would require a more sensible investment in the dome, the city, and the general area and stand off the sickening and repeated threat of "If you don't get down on your financial knees for us we'll take our toys (Sports venue) and run"! With a city that has an outstanding attraction of parks, zoo, and attractions that could be heavily promoted to longer staying convention attendees would make a much more solid community investment. As an aside these visitors could also be invited to attend the games of the World Series winning Cardinals and the newly invested St Louis Blues Hockey team. Further, heavily investing in a poorly performing football team along with the serious physical injury issues that the NFL is facing may further escalate negative attention and could certainly not win high marks as a stock investment

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Michael Rhodes

9:29 am on Thursday, May 17, 2012

This is a long way from being finalized. Having professional sports teams not only provides economic benefits (jobs/tourism/taxes) to the region it also provides a way for the area to get it's name out there. Think of all the exposure St. Louis got during last years World Series run. The Arch was all over national (world wide) tv and media. In the end this will probably be about a $400 million upgrade that only half would be paid for by taxpapyers. $200m is still alot of money. This is why the process was suppose to be confidential as you have people telling the team to pack up and the process has just started. I say wait until an (if) agreement is reached and then decide.

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Scott Simon

4:25 am on Monday, May 21, 2012

We had lower unemployment from 1988-1994 when we didn't have an NFL team. Wait until an agreement is reached? For their benefit at the expense of taxpayers? Gee no wonder they wanted to be confidential!

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Michael Rhodes

9:19 am on Monday, May 21, 2012

Scott: We also had a Chyrsler plant and a solid banking industry. Since then we lost the Chrysler plant, had a mortgage crises, and a near crash of the bank industry. Not sure of the relationship between not having and having an NFL team to unemployement level is suppose to prove?

Think of this another way. People are getting worked up over the $700m price tag right now. When (if) it ends up being $300/400m some people may see that as a deal now. Yet, if the process had runs it's course and a tentative agreement reached at $300/400m those same people may have been up in arms over that amount.

Don

10:18 am on Thursday, May 17, 2012

Another no (no more money for the dome from the taxpayer). Why not give the dome and it's mortgage to the Rams and let them do what they want with it.
If they want to move out of town because we don't come up with more cash, I'll help them pack.

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Earl Higgins

10:35 am on Thursday, May 17, 2012

Don, helping the Rams pack is a great way to provide jobs for the area! Where can I sign up? (Does this argument sound familiar?)

Earl Higgins

10:29 am on Thursday, May 17, 2012

I'm with most everyone here who says "no way". Think of it this way: the population of the St. Louis area is 2.8 million people. The Rams want a $700 million gift from us. That's $250 per person! Are they out of their cotton picking minds? Last time I checked, the Rams were a private business. Let them succeed or fail like any other private business! Say no to corporate welfare! If we had that kind of money, there really are far more worthwhile projects we could do.

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Devon Seddon

10:33 am on Thursday, May 17, 2012

I say no also. I believe someone said that when we built the dome, we could have bought the team with the same money. I would be suprised if the Rams are even worth $700 million. Again, buying the team would be cheaper. Not that it's for sale. But if the city puts $700 million into a stadium, doesn't that increase the price of the team if it were to be sold, even if the team doesn't own the facility?

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Michael Rhodes

12:04 pm on Thursday, May 17, 2012

I believe the value is the francshise and stadium would factor in if owned by the team. Otherwise the stadium lease and profit agreement (who gets what from sales at the stadium) would impact the value of the franchise. So, if the CVC gets 50% of the sales at the stadium than a buyer would take the other 50% into consideration when valueing the team. Also, the Rams coould end up a bilion dollar franchise or another team that ends up in LA. Forbes puts the St. Louis Rams at about $775 million.

Millie Hill

11:01 am on Thursday, May 17, 2012

Never, Never,NEVER. Just leave town and take your sulking attitude with you. We have already been stung by you for millions. The saying, "Never again", applies here.

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Michael Rhodes

11:57 am on Thursday, May 17, 2012

I am curious as to how much the no, never, leave posters would be willing to spend? Is it zero dollars or another amount?

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Earl Higgins

12:23 pm on Thursday, May 17, 2012

Michael, a very reasonable question. Let's assume I'm one of what you call the "no, never, leave" posters you speak out. Although, for the record, I really don't think that accurately describes my position. The Rams are worth SOMETHING to the area, and is reasonable for government to provide the underlying infrastructure for the private business of the Rams to prosper in our region. As always, the devil is in the details: what I call reasonable, underlying infrastructure might be much less than what someone else thinks. Personally, (not really being a big football fan) I would say it's worth to me personally maybe $10 to have a professional football team in St. Louis. So if I multiply that by 2.8 million (population of the area), that means I think the government should donate $28 million to the Rams. Obviously, that's quite a bit short of the $700 million corporate welfare check they want.

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Michael Rhodes

1:40 pm on Thursday, May 17, 2012

What I was thinking about was both tangiable and intangible benefits. There was study that said an NFL teams brings in about $160m/yr ($20m/game) to a region. The study also said it created 3000 jobs (not sure if that was per city or for all NFL cities). Just various taxes would have to top $20m each year for the area. Now, shelling out $700m for a 20 year lease sure woudn't make sense. If the taxpayer portion were to end up around $200m over 20 years than maybe it does make sense. Then there are the intangibles. All the tourism generated from having a pro sports team. Should the Rams make theplayoffs (or win the Super Bowl) the world wide exposure also has to count for something. I am a Rams fan and to me they are worth up to $300 or $400m if they can be locked into a long term lease.

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Michael Rhodes

1:45 pm on Thursday, May 17, 2012

Should also mention that the Rams plan would also qualify the Dome to host the Super Bowl. Imagine having that event here (not likely anytime soon).

I also should have stated that I would be curious to what amount anyone thinks the Rams are worth to keep them here. Not just the No, Never posters.

dexman2132

2:12 pm on Thursday, May 17, 2012

The Rams have only had 3 winning seasons in the last 22 years, and we are expected to pay this much just to bring some extra sunshine into the Dome for 10 games per year? Vote NO to extortion.

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MIKE K

2:20 pm on Thursday, May 17, 2012

very nice, let the Rams go and St. Louis becomes second class to Kansas City

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donna

2:26 pm on Thursday, May 17, 2012

I don't feel they have earned that monies, any way why not have the people that own them put their monies where they want the dome, the team has been a big disappointment for us,they have not played well since Curt and Dick.

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Angela M. DeVito Gahan

2:59 pm on Thursday, May 17, 2012

NOWAY That Dome is great!!If The Rams Feel it isn't then maybe they should pay to improve it. They play there!!! The team has the money to do the upgrades. The City of St. Louis got stuck the first time building it and now they want a whole new stadium. Thats crazy. Its like most people are barely affording to get by and The Rams want the people who don't go to see these games because they can't afford them to update it. Why not ask the people who go and pay for those psl's and stuff to update there space. If the Rams want this they should pay for it.

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Benjamin Israel

3:14 pm on Thursday, May 17, 2012

It seems that people have forgotten that voters passed initiative referendums in both the city and the county that prohibit both entities from giving any public money to a professional sports facility without first having a vote of the people. The city and county approved public funding that went into the newest Busch Stadium just before the two propositions passed. I doubt that voters in either the city and county would approve at a time when basic services are taking a hit. I certainly wouldn't. If the government found an extra $700 million somewhere and gave it to the four campuses of the University of Missouri, it would do a lot more for economic development than a building used ten times a year.

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Michael Rhodes

3:53 pm on Thursday, May 17, 2012

I believe there was an article that they could raise the money by increasing the hotel tax and other methods that would not require a vote of the public.

Not sure how many times the Dome is used per year; it is more than 10 times. I know the Home Show and Auto Show both use the Dome and the Rams play 10 games there each year. I think the NRA also used the Dome when they were here. NCAA tourney games as well.

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Phil Gonzalez

11:36 pm on Thursday, May 17, 2012

THE HANNCOCK AMENDMENT to the Missouri Constitution ( a bad constitution, by the way) PROHIBITS TAX INCREASES OR FEES for anything WITHOUT A VOTE OF THE PEOPLE. Do you people know this bit of information?

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Michael Rhodes

7:04 am on Friday, May 18, 2012

That amendment prevents an increase in state residents percentage of taxes from income. I do not believe it would cover a hotel tax or tourism tax. The two articles I saw said that there are many loop holes in the amendment. I could be wrong.

Jim Wells

3:15 pm on Thursday, May 17, 2012

If you think this is a "yes" or "no" question, you've confirmed my opinion that
you're a bunch of morons.

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Thomas J. Stein

3:19 pm on Thursday, May 17, 2012

It's no use. It's completely hopeless for the Rams remaining in St. Louis. There is absolutely nothing ANYONE can do about it. Not even Mayor Francis Slay, NFL Commissioner Roger Goodell, or even Missouri Governor Jay Nixon. Not even Missouri Government can do anything to keep the Rams in St. Louis. Just save everybody all of this aggravation and just move the Rams back to Los Angeles. Let's face it. St. Louis wasn't meant to be an NFL city in the first place, and it never will be an NFL city. LET'S GET THE NFL OUT OF ST. LOUIS ONCE AND FOR ALL!!!!! That would make everybody happy.

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Don

4:10 pm on Thursday, May 17, 2012

The dome can seat 66,965 according to Wikipedia. If each seat paid an extra $65 per game for all 8 home games for the next 20 years, they could raise the $700 million from the devoted fans that use the stadium.

I'm tired of millionaires wanting the taxpayer to cover their expenses. The taste of Bidwell's demands still leaves a bitterness in my mouth. As I was growing up, I often wondered why St Louis couldn't have a good team like the Rams of the 60's. It was like a dream when they moved here. Reality check time now. St Louis is too small a market to keep up with the larger cities in the league. No sense in trying to make a silk purse out of a sow's ear.

Thanks for the 1999 season,
Bye

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James Cleeve

4:46 pm on Thursday, May 17, 2012

I say NO. Want a better stadium? Be a better team! Win more games! Then let's talk about it. We can't fill the current stadium anymore with their poor performance as it is. The current stadium has nothing to do with team performance...

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Michael Rhodes

8:18 pm on Thursday, May 17, 2012

I doubt that would help much. Look at the Cardinals. They came of a World Series Championship and met lots of resistance to replacing Busch (old) Stadium.

Michael Rhodes

8:36 pm on Thursday, May 17, 2012

I wish I could say I am suprised by some of the comments here. Maybe the Rams are gone and maybe they aren't. This a process similar to buying a car or house. Each side is going to try and get the better deal. The hope is that they are able to meet somewhere in the middle that makes the best sense for the area and the Rams. This is why the negotiations should have remained closed until an tentative agreement was reached. Then the citizens could review the plan and comment (and vote if needed).

What is the saying: putting the cart before the horse.

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Rich Pope

11:26 pm on Thursday, May 17, 2012

The Rams suck. Let them leave.

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Rob Hudson

1:51 pm on Sunday, May 20, 2012

Why does any city want a professional football team? They play 8 home games a season. Maybe a couple more if they make the playoffs and have home field advantage. Is the economic benefit really that great?

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Michael Rhodes

6:37 pm on Sunday, May 20, 2012

Estimated at $20 million per game or $160m each year in revenue. Taxes generated would exceed $20m per year (athletes pay income tax to the city and state when they play a game here). If you have a succesful team (1999 Rams or last years Cards) the amount would go up with post season games.

Rob Hudson

7:07 pm on Sunday, May 20, 2012

Interesting. How does that compare to the revenue generated by baseball and hockey? Or basketball, if we had a team?

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Michael Rhodes

8:58 am on Monday, May 21, 2012

Quick Googole search indicates the Cards pay the city about $10m/yr in admission and other taxes. The St. Louis Regional Chamber and Growth Association (RCGA) estimates that the economic impact of the 2012 Cardinals' season on the St. Louis region will be approximately $322 million, with an estimated $160 million this year in direct impact and $162 million in in-direct regional economic activity. There was also information that each WS game last year generated $500k in taxes and $2.6m for each game in revenues.

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Michael Rhodes

9:03 am on Monday, May 21, 2012

No St. Louis basketball team. I did find the Oklahoma City Thunder numbers. It is estimated that they generate $1.3m/game in revenues.

I couldn't find anything on the St. Louis Blues. I would expect thier impact to be much lower than the NFT, MLB, and NBA though.

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Michael Rhodes

9:05 am on Monday, May 21, 2012

Typing troubles this morning. Google and the NFL!

Rob Hudson

1:48 pm on Monday, May 21, 2012

Thanks for all that extra info. I can see now the benefit of having and keeping the Rams, as long as there is no, or very minimal, public funding involved. Otherwise the revenue gains can easily be wiped out by the cost of using tax dollars to finance any stadium improvements.

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Michael Rhodes

9:01 pm on Monday, May 21, 2012

Rob: I agree with you. Any funds should be able to be recouped based on a new lease lenght, In a previous example if the public puts up $200m and the region can gain $20m/year in tax revenue than the lease should be at mimimum 10 years (break even). I would want a 20 year lease myself.

Don

10:07 pm on Monday, May 21, 2012

Maybe we can pay for the improvements to the stadium with the taxes generated by Ball Park Village?

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Michael Rhodes

7:58 am on Tuesday, May 22, 2012

Those taxes are already ear marked for the $18m in bonds being sold to develope the site. Which still has not gotten through the planning phase. There is suppose to be a new plan with financing already set by the developer and the Cardinals.

george theodorakos

11:22 am on Thursday, May 24, 2012

let them move to LA...Georgia made a small fortune immediately...about $70 million on PSL's before the first game was even played.....let Kroenke take them back to LA and get the PSL revunue from the good people in LA..plus they can build the dome stadium and the top tier for him.....enough is enough when it comes to professional sports.....i hope they price themselves right out of the market...

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