ST. LOUIS — ºüÀêÊÓƵ and ºüÀêÊÓƵ County leaders have still not agreed to move $515 million in NFL Rams settlement money to investments with higher returns while negotiations over splitting the money continue.
The board of the Regional Convention and Sports Complex Authority (RSA), which owns The Dome at America’s Center and along with ºüÀêÊÓƵ and ºüÀêÊÓƵ County is one of three parties to the settlement, has been urging the move since June. Last month, its board voted unanimously to support transferring the money to investments with higher returns while talks over dividing the money between the three parties plays out. But ºüÀêÊÓƵ Mayor Tishaura O. Jones and ºüÀêÊÓƵ County Executive Sam Page have still not agreed to the move.
On Wednesday, the RSA board again voted unanimously to reinvest the money in higher-yielding securities, this time specifically endorsing three-month U.S. Treasury bills through Commerce Bank that could earn 3.25%. The money is currently in a trust fund earning 1.89% interest, up from 1.44% just a month ago. Even that rate generated about $800,000 in interest on the settlement money in just a month, RSA attorney Erv Switzer told the board.
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“We have to do something to get some movement on this,†RSA board chairman Earl Nance told reporters after the meeting. “We voted before and it’s important that we do it again and make it public that we want to see movement and see this money move. We’re starting to see some openings.â€
The RSA board also approved issuing a request for proposals for investment services. Nance said he has been “encouraged†by Jones’ comment after the RSA meeting last month that the city hopes to reach an agreement on reinvesting the money. Attorney Joseph Blanner, the board’s secretary-treasurer who made the motion to move the money, said there have been discussions with the city and county on the proposal.
“Certainly no one’s in the position in the next 90 days to spend the money,†Blanner said. “I don’t know why we wouldn’t see movement.â€
In a statement, Page spokesman Doug Moore said RSA’s action “was a necessary step in an agreement.â€
“The resolution is something we have been talking about and this is a good path forward,†Moore said. “It’s better to make the right decision than a fast decision, to maximize interest rates and minimize risk during volatile economic conditions.â€
Nick Desideri, a spokesman for Jones, said, “The City Counselor has actively been working with the parties involved on finding a high-interest investment that offers flexibility when negotiations are complete and is consistent with other ºüÀêÊÓƵ city investments.â€
The three parties have been negotiating over how to divvy up the money since the $790 million settlement — over $276.5 million of which went to law firms Blitz, Bardgett & Deutsch and Dowd Bennett to cover attorney fees — was announced in November.
Board members say chasing higher returns while negotiations continue is a no-brainer now that rising interest rates mean even low-risk securities can offer returns well above what the money is earning now. Last month, the board estimated at least $14,000 a day was being left on the table by keeping the funds in the low-interest-bearing account.
The RSA board is made up of three appointees each from the city and county, along with five appointees from the state. Gov. Mike Parson, Jones and Page have all put their stamp on the board by filling vacancies and replacing board members on expired terms. But even appointees from the city and county have voted in support of resolutions urging Jones and Page to put the money in more lucrative investments while negotiations play out.
All three parties have an argument to make about who should receive the largest share of the money. The , contending it was most damaged by the loss of game-day revenue downtown. ºüÀêÊÓƵ County initially declined to join the ill-fated 2015 effort to finance a new riverfront stadium to keep the Rams here.
The RSA exists mostly as an entity to own and maintain the Dome, but it needs money to continue paying for the upkeep of the venue that tourism officials say helps ºüÀêÊÓƵ land large conventions and other events. The RSA gets $4 million a year, half from the state and $1 million each from the city and county, for Dome maintenance and capital improvements. But that funding agreement expires in 2024, and the RSA’s director has said the entity could soon run out of operating cash.
On Wednesday, RSA Executive Director Marty Finn said the entity was down to about $275,000 in operating cash.
“I don’t want to commit to getting through the month of February at this point,†he said.
Nance acknowledged the cash crunch and said reaching agreement would be in the RSA’s best interest.
“It would be in our best interest to put a date on it,†Nance said. “I try to remain optimistic.â€
Meanwhile, the long talks over dividing up the money have precluded much if any public discussion about what to actually use the money for. ºüÀêÊÓƵ and ºüÀêÊÓƵ County are still flush with millions in federal pandemic aid and are deciding how to spend those funds.
Read previous ºüÀêÊÓƵ coverage of the relocation lawsuit against the National Football League, the Rams and team owner Stan Kroenke.Â