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Lawsuit Threatens Scottrade Center
A lawsuit filed against St. Louis is attempting to block public funding for the $64 million renovation of the
Facebook.com/Scottrade Center – Scottrade Center
The suit was filed on behalf of Alderwoman Cara Spencer, former state House Rep. Jeanette Oxford and former city counselor James Wilson, and names the city, the Blues and the team’s ownership group, Kiel Center Partners.
St. Louis Comptroller Darlene Green announced she was not going to sign a financial deal that would fund the city’s commitment to the arena on the same day the suit was filed.
“The Comptroller has not approved the transaction to issue bonds for the renovation of Scottrade Center, as it would incur debt to the city’s general fund for the nonessential services and negatively impact the city’s credit,” Green’s spokesman said in a statement.
The suit alleges that a city ordinance illegally grants public funding to the project and violates Missouri’s state constitution. The arena is owned by the city through a public-private partnership signed in 1992.
Under the agreement, the city’s ownership of the Scottrade Center is limited to a “bare legal title” where the Blues have exclusive control over the venue for 50 years, according to the suit.
City board members who supported the public funding for the upgrades argue that the city is obliged to pay because it owns the building. Including interest, the city is expected to pay an estimated $105 million for the project over 30 years. The funding was narrowly approved in February.
A statement released by Deputy City Counselor Michael Garvin said the city will not comment on the litigation, but acknowledged that the funding was properly approved.
“We will vigorously defend the city, its ordinances and its agreements,” Garvin said in the statement.
Kiel Center Partners called the suit “frivolous.”
“It also has the potential to be extremely costly, not only to taxpayers, but to the regional and national reputation of St. Louis,” stated.
The first phase of the renovations is expected to be completed in early September.