CHICAGO— Missouri Gov. Jay Nixon has asked civic leaders to lead a stadium review aimed at keeping to the National Football League's Rams in St. Louis.
Nixon has asked the former president of Anheuser-Busch, David Peacock, and Clayton attorney Robert Blitz, who is legal counsel to the agency that owns the team's stadium, to submit an analysis to him within 60 days with stadium options in hopes of breaking an impasse over the team's future.
"The economic impact of having an NFL team in St. Louis extends long beyond Sunday afternoon, and sends a clear signal that this city is a worldwide player. I am confident that these two outstanding civic leaders can explore paths forward that will protect taxpayers and ensure private investment," Nixon said.
The timing of the report comes ahead of a Jan. 28 deadline the Rams have set to provide notice of their intent to convert their current lease at the Edward Jones Dome to a year-to-year lease.
Managers of the stadium last year officially notified the Rams that they would not follow an arbitration panel's ruling and finance $700 million in upgrades as required under terms of the lease which expires in 2025.
An independent arbitration panel had sided with the Rams in finding that the St. Louis Convention and Visitors Commission must make the improvements to meet a lease requirement that keeps the stadium on par with the top 25% of professional football stadiums by 2015. Without the improvements, the team can cancel its lease or shift to annual renewal after the 2014 season.
Among other things, Nixon's blue-ribbon panel will ask whether upgrades should be made to Edward Jones Dome or a new stadium built.
The Regional St. Louis Regional Convention and Sports Complex Authority issued $256 million of 30-year appropriation backed bonds under a complex agreement between the city, county, state, commission and team in 1991 to finance the stadium and an expansion of the adjacent convention center. The RCSCA contracts with the Visitors Commission to operate the stadium and it leases the stadium to the team.
The final maturity date is in 2021 while the Rams' lease expires in 2025. The state, St. Louis, and St. Louis County together pay $20 million annually to cover debt service and $4 million for maintenance. The city and county tap hotel and motel taxes to cover their share.
The offering statement ahead of a stadium bond refunding last year noted the potential loss of the team could add to the appropriation risks, but state officials downplayed that risk, saying the state is unlikely to jeopardize its top rating over the bonds. The dome also hosts other college basketball and football sporting events and concerts and provides additional room for conventions.
The authority previously hired Goldman Sachs to advise it on stadium issues. That contract came under scrutiny when questions were raised over language that appeared designed to preserve the firm's ability to work in the role of broker-dealer on a potential stadium bond sale. Regulatory rules bar firms from serving as both an underwriter and financial adviser.
While at Anheuser-Busch, Peacock worked directly with the NFL on advertising and marketing and is a member of the Pro Football Hall of Fame advisory board. Peacock also has served as chairman of the St. Louis Sports Commission.
Blitz, a founding member of Blitz, Bardgett & Deutsch, was part of the legal team that helped bring the Rams to St. Louis from Los Angeles in 1995 and he serves as legal counsel to the RCSCA.
