RCGAction The Monthly Newsletter and Planning of the St. Louis RCGA Progress on Transportation, Tax Credits, & Life Sciences Funding Priorities; House Fails to Take up Ballpark/ Ballpark Village Legislation As the Missouri Legislative Session concluded in mid-May, three of the business community’s four regional priorities passed, but unfortunately the Legislature failed to move forward on the unique opportunity for the State of Missouri, the St. Louis region and the City of St. Louis on the Ballpark/Ballpark Village. In addition, the RCGA worked with other business groups throughout the State to stave off a number of proposed new taxes on the business community. Further, the foundation that has been built through Forward Metro St. Louis, which brought together the civic energies and political clout of Civic Progress, the Regional Business Council, and the RCGA, along with St. Charles Partners in Progress, will benefit the region going forward in dealing with other key public policy issues. Above: Missouri House members bring the 2002 legislative session to a close with the traditional “paper toss.” Critical to the progress that was made in this session of the Legislature was the extraordinary volunteer leadership provided by Forward Metro St. Louis Missouri Caucus Chair Tom Dunne throughout the session in Jefferson City, with strong support from RCGA Public Policy staff members Tom Irwin, Jim Farrell and Trent Watson. Following is a re-cap of action on the four regional priorities for the Session: Transportation – The Missouri Legislature passed a statewide transportation bill for the first time in more than a decade, through strong leadership by Sen. Morris Westfall (R-Halfway) and Rep. Don Koller (D-Summerville); Sen. Danny Staples (D-Eminence), Rep. Cindy Ostmann (R-St. Charles), and Rep. Tim Green (D-St. Louis County) also provided key leadership on the bill. This bill proposes to voters in August an incremental 1/2-cent sales tax and a 4-cent gas tax to invest in much-needed improvements to roads, bridges and public transit systems in the State. These two revenue streams are projected to generate nearly $550 million per year for these purposes, and while it is short of the $600 million level that the RCGA and the Forward Metro St. Louis coalition advocated, it is a significant step forward and is a major down payment on the future of our State’s and region’s infrastructure needs. Further, it is the first time in the history of the State that significant statewide funding resources would be dedicated to public transit, as well as roads. In addition, the Legislature passed legislation to enable “Design/Build” in the reconstruction of Highway 40. The practical effect of this legislation could reduce the forecasted 10-plus years of reconstruction in half by using Design/Build, which has been successfully used in Salt Lake City and other locations. Legislation also passed creating a Regional Taxi Commission, a bill that the Convention & Visitors Commission (CVC) had strongly urged. Economic Development Tax Credits – At a time when the State Legislature and Governor had to make more than $800 million in overall budget cuts, retention of vitally-needed tax credit programs was in serious jeopardy. Thanks in part to the rigorous documentation of the return on investment of these tax credits to the State made by the business and civic community in the Moody/Cavato Report and elsewhere, the tax credit programs remain essentially intact – including defeating several attempts to cap the historic preservation credits. These continuing tax credits are essential in rebuilding the State’s economy and fiscal base. Still in place are tax credits for historic preservation, brownfields redevelopment, and the basic BUILD Missouri economic development program. On another economic development issue, the Legislature took action to commit the State to the Old Post Office renovation. On the negative, for the third straight session, the Legislature failed to pass the statewide economic development bill; this legislation would have made key improvements to existing credits, would have refunded certain tax credit programs (such as BUILD Missouri), and would have included the Missouri Downtown Economic Stimulus Act proposed by the Mayors of Kansas City and St. Louis. Funding for Plant/Life Sciences Research – In the closing weeks of the session, when the statewide budget shortfall increased by an additional $230 million, 2002 and 2003 tobacco settlement proceeds were included in the overall budget to address this shortfall. A separate bill pledging future tobacco settlement proceeds also passed, “securitizing” tobacco settlement dollars. The latter bill also permits one-time funding for life sciences equipment and facilities, as well as research capacity. Further, as this overall issue evolved during the session, the coalition of St. Louis, Kansas City, and statewide university and health care leaders—which had devised the approach of using tobacco settlement funds for meeting both life sciences and medically indigent needs—developed an additional life sciences and health care funding approach in the form of an incremental increase in cigarette taxes statewide. If passed by voters in November, this measure will allocate more than $48 million annually for life sciences research, as well as generate $246 million per year for critical health care and medically indigent needs, trauma services, emergency preparedness, and prescription drug benefits. Ballpark/Ballpark Village – The failure of the House to bring forward and vote on the merits of the Ballpark and Ballpark Village was a real setback for the State, the Region and the City. We thank Senate President Pro Tem Peter Kinder (R-Cape Girardeau) for his outstanding leadership in successfully advancing this bill through the Senate. Notwithstanding the bi-partisan efforts of Rep. Jim Foley (D-St. Ann) and House Minority Leader Rep. Catherine Hanaway (R-Warson Woods) as co-sponsors of the bill in the House, the House leadership simply was not willing to allow this issue to be dealt with on its merits. The State, Region and City now have a great challenge in identifying ways to achieve the community benefits that would have accrued from the $600 million Ballpark Village development, as well as finding ways to meet the Cardinals’ long-term needs. We have not given up on this issue.

July 2002 - - - - - - - - - - - - - - - - - - COVER STORY Achiever At Law Steven Cousins 2002 Ernst & Young Entrepreneur Of The Year® Awards - - - - - - - - - - - - - - - - - - www.stlrcga.org - - - - - - - - - - - - - - - - - - www.technologygateway.org - - - - - - - - - - - - - - - - - - Construction Roundup The State of Construction PROFILE Local Impact, Global Perspective Patrick J. Moore, president and CEO, Smurfit-Stone Container Corp.