Dome Challenged to Measure Up

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VOL. 28 NO. 38 64 PAGES Get free daily news updates at stlouis.bizjournals.com MAY 16-22, 2008 $2.00 Sheehan, Danforth, Pyzyk get record price estate in St. Louis. the 2006 sale of The Plaza in Clayton office tower Centene’s quest to buy 3 Clayton Centene’s years-long quest to buy the three brought in $290 per square foot, then the highest buildings ends in $19 million deal buildings to build its new $215 million headquarters price ever paid for office investment property in St. has paid off handsomely for the three, who held out Louis. on selling their property. Sheehan, Danforth and Pyzyk resisted the city’s BY LISA R. BROWN The $18.8 million sale price for the three build- efforts to take their buildings through eminent [email protected] ings and land is nearly double the initial offer of domain for Centene’s new headquarters. Now Shee- $11.4 million the Medicaid managed-care company han and Danforth have closed on the sales of their For Dan Sheehan, David Danforth and Debbie made in 2006. It’s also several million dollars higher properties, and Pyzyk’s is under contract. The Pyzyk, it was a price worth waiting for. The $18.8 than an offer extended through the city of Clayton sales help move forward Centene’s plans to build its million that Centene is paying for their properties just 10 months ago. headquarters on a half block area bounded by Han- on Forsyth Boulevard in Clayton amounts to the Pyzyk’s and Danforth’s prices for their proper- highest price per square foot ever paid for real ties equaled $431 per square foot. Comparatively, See CENTENE, Page 10

PYRAMID FALLOUT Dome challenged to measure up Laundry list of Lease deal calls for it to be among top eight NFL facilities in 2015 No money available lenders totals for ‘hundreds of millions’ in upgrades $200 million plus

20 stadiums built, BY LISA R. BROWN renovated since [email protected] Dome opened Pyramid Cos.’ debt on its residential and commercial properties in the city of St. Louis, St. Lou- is County and Illinois totals more than $200 million. And that’s not ILLUSTRATION BY counting unsecured lenders. MICHAEL BEHRENS St. Louis city and county made loans to Pyramid, along with more than a dozen banks and private investors. BY CHRISTOPHER TRITTO A list that details Pyramid’s hold- [email protected] owns the Dome. “Somewhere around that time, the CVC will ings, based on public records, has have to go back to the sponsors (the city, county and state) been circulating among investors Civic leaders lured the Los Angeles Rams to St. Louis in for more money.” and potential new developers for 1995 with a sweetheart deal and the promise their stadium Going back to the well will be a tough task considering the the company’s projects, following would remain among the National Football League’s elite. funding and political participation required. the shutdown of Pyramid’s devel- But there will be no money available for the hundreds of mil- “The notion of either spending $100 million or building a opment operations in April. lions of dollars in upgrades expected to be necessary to meet new stadium for an activity that is only used eight to 10 times Pyramid, a St. Louis-based com- that “first-tier” standard at the next measuring date in 2015, a year for 60,000 people at a time stretches my public imagina- pany owned by John Steffen that and no plan is in place to address the projected shortfall. tion,” said Mike Jones, executive assistant to St. Louis County See STEFFEN, Page 12 “I can only say right now we will not have that pot of mon- Executive Charlie Dooley. ey at the 20-year mark that we had at the 10-year mark,” said “Even if there was the political will in this community to Brian McMurtry, executive director of the St. Louis Regional Also inside: Convention and Sports Complex Authority (RCSCA), which See RAMS, Page 59 LAWSUITS Page 13

Social Cancer Cell model care culture Tim Dolan plans Michelle Smith Jim Moffit raises 8 residential care provides new $3 million for expansion options for patients cellular venture 56525 10781 7 38 9 6

RAMS: Team nets CVC $1 million annually, the equivalent of 10 major conventions EXTREME DENTISTRY Continued from PAGE 1 raise that level of resources, I would not um. Extensive renovations to the Kan- argue that would be the smartest thing sas City Chiefs’ 36-year-old Arrowhead TECHNOLOGY for this community to do based on Stadium are expected to cost $375 mil- what I consider more pressing needs,” lion for completion in 2010. Dentistry With Lasers Jones said. About $250 million of Kansas City’s Single Tooth Anesthesia The Rams lease agreement with the costs are being raised through a sales Zoom!® Bleaching St. Louis Convention & Visitors Commis- tax increase approved by Jackson sion (CVC) requires the Edward Jones County voters in 2006. The remain- Beautiful Conservative Veneers Dome rank among the top eight stadi- ing $125 million is Dental Implants ums in the 32-team NFL on the Dome’s coming from the Free Consultation 20th birthday in 2015. If first-tier status family of the late is not met, the Rams lease would switch Chiefs founder, to year-to-year terms a decade ahead of Lamar Hunt. "Dentistry that will schedule and the team would have the But at the CVC, make you smile!" option to leave St. Louis. which operates “It would be prudent for both the the Dome and community and the Rams if at some subleases it to the time in the next couple of years we have Rams, no long- a thorough debate at least at the city Dan Dierdorf term planning is and county level,” Jones said. “I think happening. a snowball has a better chance in hell “Everybody is than we have in getting the state to par- really focused on getting this first 10- ticipate again.” year mark completed successfully,” Big bucks required said Bruce Sommer, director of the The politically appointed RCSCA America’s Center convention complex built the Dome with $280 million in and the Edward Jones Dome. “To look public funds and collects $4 million a at a major task down the road doesn’t year ($1 million each from the city and make much sense right now.” Cosmetic & General Dentistry county, and $2 million from the state) Economic impact for building preservation and capital If the lease agreements can’t be met 2000 Locust Located Downtown • Free Parking improvements. and the Rams were to leave St. Louis, Renovations, including some $30 mil- the economic fallout is debatable. Cosmetic Dentistry is a specialty area not 314-231-4893 lion in facility upgrades currently under The CVC maintains and operates recognized by the ADA that requires no www.karenjharrisdmd.com way using accumulated preservation the Dome as part of the America’s speciﬁ c educational training to advertise email: [email protected] funds, convinced the Rams to let the Center convention complex with an this service. Dome’s first scheduled measuring date approximately $12 million annual bud- slide on the lease agreement’s 10th anni- get. That budget is funded by a 3.75 versary in 2005. But the cost of renova- percent tax on hotel sleeping rooms tions is expected to rise dramatically for in St. Louis city and county. Ironically, the next round seven years from now. the Rams’ eight regular-season home “That will be a tougher order than games on Sunday afternoons generate it was in 2005,” said Dan Dierdorf, CVC little revenue for the local hotels that chairman and a member of the Pro Foot- pay that tax. ball Hall of Fame. “It will require a com- “We see good foot traffic in our bar munity-wide effort to get ready for that. and restaurants pre- and post-game, Everybody will need to be involved. It but not a lot of overnight rooms,” said was $30 million this last go around; $30 Dan Boyer, director of sales and market- million will not do it in 2015.” ing at the Renaissance St. Louis Grand In Miami, the Dolphins completed and Suites Hotel across the street from $250 million in renovations in 2007 to transform their now 21-year-old stadi- Continued on NEXT PAGE LAUREL WISE

The Arizona Cardinals unveiled their new home, the $356 million University of Phoenix Stadium, in 2006. 60 St. Louis Business Journal http://stlouis.bizjournals.com/ May 16-22, 2008

Continued from PRECEDING PAGE

the convention center. “Most season ends, it would have a bigger impact on rect revenue and economic intangibles Jones disagrees. ticket holders are local. They come downtown businesses, many said. the Rams provide, supporters said. “The last time I looked, L.A. was a to the game and then go home. If the “Conventions are my lifeblood. With- Vince Bommarito, owner of Tony’s big league city,” Jones said. “And I don’t Rams were to leave town, it would not out them the equation doesn’t work,” restaurant downtown, provides food know if the Raiders have made Oakland be devastating to us.” Weiss said. “I can be the busiest restau- for the Rams’ owners suite and club din- a big league city.” Cashing in on Rams games also can rant in St. Louis on a Monday night in the ing even though his restaurant is closed Growing competition be elusive for downtown restaurants. middle of January, save The Cheesecake Sundays. He points to the jobs the Rams Even if St. Louis comes up with the “Economically for the restaurants it’s Factory, because I’ll have 2,000 people support, and the gas stations, grocery money to invest in first-tier renovations a negligible factor,” said Pablo Weiss, next door and they need to eat.” stores and other businesses that ben- at the Dome, the challenge will be great. owner of Kitchen K on Washington Ave- Sommer confirmed the CVC and efit from tailgating and other game-day Twenty NFL stadiums have been built or nue near America’s Center. “I am a Rams the St. Louis region can generate more activity. extensively renovated since the Rams fan and St. Louisan first. However, with new sales taxes from out-of-town visi- “If you want to crank out numbers relocated here. Several more state-of- all due respect, if the Rams left, it would tors through a convention than a Rams that show the Rams bring a billion dol- the art facilities are in the works. The not have a deleterious effect. In fact, I game. But the CVC nets about $1 million lars to St. Louis you probably could,” Indianapolis Colts are set to move into could potentially get more convention a year from the Rams after operating Dierdorf said. “You could probably also their new, $700 million Lucas Oil Stadi- business.” and maintenance expenses. That’s the crank out numbers that show the Rams um in August. The Dallas Cowboys are The Rams lease makes the Dome equivalent of about 10 major conven- have cost the city money. But having an constructing a $1 billion stadium set to available for conventions only one week- tions, he said. And even on game week- NFL franchise goes beyond dollars and debut in 2009. The New York Giants and end a month from August through Janu- ends, the CVC has the rest of its exhibit cents. You are a big league city if you Jets are working together on a new $1.7 ary. If the CVC could bring in additional halls available. have an NFL franchise and you are not outside groups on those game week- It’s more difficult to measure the indi- if you don’t.” Continued on NEXT PAGE

How the Dome stacks up New Cowboys Stadium New Meadowlands Stadium Dallas Cowboys New York Giants/Jets Lucas Oil Field Opening 2009 Opening 2010 Edward Jones Dome Indianapolis Colts St. Louis Rams Opening August 2008 Opened 1995

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Continued from PRECEDING PAGE billion stadium scheduled to open for would likely require expensive new production company that makes family- the 2010 season. And the San Francisco technologies and physical expansion friendly motion pictures and documenta- 49ers are in talks with officials in Santa to offer more space for concourses and ries. He and his wife, Kathleen, have two Clara, Calif., about building a new sta- amenities beyond the seating bowl, children. dium there. said Dennis Wellner, a senior principal Since Rosenbloom and his sister, Essentially, 24 or more newer, big- at HOK Sport in Kansas City and the Lucia Rodriguez, inherited a 60 per- ger, brighter, flashier stadiums will have Dome’s original architect. By 2015, such cent joint ownership stake in the Rams, an edge on the Edward Jones Dome by modifications would cost “hundreds of Rosenbloom has had to make adjust- 2010. By the time the Dome is measured millions of dollars.” ments. He said he already turned down against its peers in 2015, it will be one of “Over time the buildings themselves a directing job scheduled to start this the oldest stadiums in the NFL despite have grown in gross area, and every- fall so he can attend to the Rams as We applaud the being just 20 years old. thing is larger than it used to be or the they kick off the 2008 season, and he commitment made When the RCSCA and CVC realized configuration is different,” Wellner said is still getting a feel for the ownership by the following retaining first-tier status would not be of newer NFL stadiums. “The limitation role. possible with the funding available at the that exists at the Edward Jones Dome is “The transi- corporations, professional time of the first measuring date in 2005, the fact that the building is built adjacent tion will be chal- firms, foundations and they struck a deal with the Rams. First to the streets that exist there. The site lenging. This sea- government agencies to our the date was postponed, and later it was is tight. The ability to expand, as is the son we’re taking eliminated through a formal amendment case in Kansas City and a project we did a watch, wait and organization in FY07. to the Rams lease signed last Sept. 20. in Miami where we extended the building see approach. In exchange, the CVC and RCSCA com- outward, is not possible.” We’re learning,” Anders Minkler & Diehl LLP mitted $30 million for upgrades to the Owners’ options Rosenbloom said. Armstrong Teasdale LLP Dome, ranging from new LED video and During a visit to St. Louis in April, the He plans to be Artmart Arts and Education Council scoreboards, to improvements to the Rams’ new managing owner, Dale “Chip” Chip Rosenbloom a present owner, statisticians booth where coaches sit, Rosenbloom, said he has no interest in but not a hands- Bank of America Wealth Management Bremen Bank and Trust Company to technology upgrades at concession relocating the football team. St. Louis on one like the Brinker & Doyen, LLP stands. Those improvements must be treated his late mother, longtime owner Cowboys’ Jerry Jones or the Washing- Bryan Cave LLP complete by July 31, 2009. Georgia Frontiere, well, he said. Although ton Redskins’ Daniel Snyder. And foot- Catherine Manley Gaylord Foundation “That was a heck of a deal,” Sommer Rosenbloom grew up and lives in Los ball decisions will remain in the hands CBIZ, Inc. said. “If we had measured every compo- Angeles, he has family roots and connec- of team executives, headed by the Rams’ City Property Company nent and had to make sure everything tions here. And the Rams lease terms he president and longtime Frontiere confi- Commerce Bank was first-tier, we would have had to spend inherited may be too good to give up. dant, John Shaw. CSI Leasing Cunningham, Vogel & Rost, PC a lot more than that.” In the deal St. Louis made to lure “We’re much more interested in Hochschild, Bloom & Company LLP Next time, however, the Rams might the Rams, the team pays $250,000 in the community and in supporting the James P. Holloran, PC not choose to waive the first-tier review. rent each year but keeps most of the people we have who know a lot more Husch Blackwell Sanders LLP The CVC and the Rams are scheduled to revenue from ticket sales, concessions, about running a football team,” Rosen- Illinois Arts Council exchange plans for first-tier upgrades in sponsorships, national NFL television bloom said. Innsbrook Corp 2012 and settle on a plan, through third- deals and local advertising. The Rams Shaw sat next to Rosenbloom and Kerber, Eck & Braeckel LLP Kiefer Bonfanti & Co. LLP party arbitration if necessary, by the end reported revenue of $178 million in Rodriguez during their introductory vis- Klaris, Thomson & Schroeder, Inc. of that year. 2007, a 4.7 percent increase from the it with members of the St. Louis press Kohn, Shands, Elbert, Gianoulakis & Nearly all available capital improve- previous year. Forbes magazine valued last month at the team’s Russell Train- Giljum LLP ment funds are going toward the cur- the franchise at $908 million in its latest ing Center. Shaw has given no indication Tricorbraun, a division of Kranson rent $30 million renovation plan, said review of NFL teams. he intends to leave the Rams after more Industries RCSCA’s McMurtry. That means $24 Although the Rosenbloom/Frontiere than a quarter-century as Frontiere’s KPMG, LLP million more will accumulate from 2010 family has been in the football business key adviser. But should he decide to Lashly & Baer, PC Lewis, Rice & Fingersh, LC through 2015. But most of that will be for decades, Rosenbloom has a separate resign or retire in the coming years, it’s Lopata, Flegel & Co. LLP needed for annual preservation costs career in Hollywood as a screenwriter, possible it could affect Rosenbloom’s Mary Engelbreit Studios, Inc. as the Dome ages, he said. director and producer. He is founder and interest in holding on to the team. Missouri Arts Council To keep up with its peers, the Dome owner of Open Pictures, an independent Minority owner Stan Kroenke, who Missouri Lawyers Media Inc. holds a 40 percent stake in the Rams, Musicians’ Association of St. Louis NFL stadiums built since 1995 has more experience as a controlling Law Ofﬁce of Marvin J. Nodiff, PC partner. He owns a sports empire in The Pasta House Company Paule, Camazine & Blumenthal, PC Venue Team occupant Cost (in millions) Year opened Colorado that includes the NBA’s Den- Polsinelli Shalton Flanigan Suelthaus ver Nuggets, NHL’s Colorado Avalanche, Edward Jones Dome St. Louis Rams $280 1995 PricewaterhouseCoopers LLP the Colorado Rapids of Major League Alltel Stadium Jacksonville Jaguars $135 1995 Pulaski Bank Soccer, the National Lacrosse League’s James W. Reeves d/b/a Conﬂict Bank of America Stadium Carolina Panthers $238 1996 Colorado Mammoth and a one-third Management Systems FedEx Field Washington Redskins $251 1997 interest in the Arena Football League’s Regional Arts Commission M&T Bank Stadium Baltimore Ravens $229 1998 Regional Business Council Colorado Crush, in addition to the Alti- Raymond James Stadium Tampa Bay Buccaneers $190 1998 RubinBrown LLP tude Sports & Entertainment regional Cleveland Browns Stadium Cleveland Browns $309 1999 Sachs Properties, Inc. television sports network. NFL cross- LP Field Tennesee Titans $292 1999 St. Louis Business Journal ownership rules would require he sell The St. Louis Trust Company Paul Brown Stadium Cincinnati Bengals $496 2000 his stake in the Nuggets and Avalanche, Senniger Powers Heinz Field Pittsburgh Steelers $281 2001 however, if he strikes a deal to take con- Sonnenschein Nath & Rosenthal LLP INVESCO Field at Mile High Denver Broncos $401 2001 trol of the Rams. Spencer Fane Britt and Browne LLP Ford Field Detroit Lions $400 2002 Stinson Morrison Hecker LLP Kroenke maintains strong ties to Gillette Stadium New England Patriots $395 2002 Steven J. Stogel the St. Louis region. He graduated from Qwest Field Seattle Seahawks $430 2002 The Stolar Partnership Foundation the University of Missouri and serves Reliant Stadium Houston Texans $402 2002 Fund of the Greater St. Louis as chairman of St. Louis-based com- Community Foundation Lambeau Field (renovation) Green Bay Packers $325 2003 mercial developer THF Realty. Should Thompson Coburn, LLP Lincoln Financial Field Philadelphia Eagles $530 2003 he or another owner take control of The Trio Foundation of St. Louis Soldier Field (renovation) Chicago Bears $632 2003 the Rams, however, he might scan the USA&M Alltel Stadium (renovation) Jacksonville Jaguars $64 2004 Weiss & Associates, PC sports landscape to see if the Rams Louisiana Superdome (renovation) New Orleans Saints $185 2006 Whitaker Foundation could find a more lucrative home else- University of Phoenix Stadium Arizona Cardinals $356 2006 where. Ironically, the largest market Dolphin Stadium (renovation) Miami Dolphins $250 2007 that does not have an NFL team but Lucas Oil Stadium Indianapolis Colts $700 2008 has been throwing around stadium (314) 863-6930 New Cowboys Stadium Dallas Cowboys $1,000 2009 proposals with the goal of luring a New Meadowlands New York Giants, New York Jets $1,700 2010 franchise is Los Angeles, the Rams’ old Arrowhead Stadium (renovation) Kansas City Chiefs $375 2010 stomping grounds. www.vlaa.org SOURCES: SPORTSBUSINESS JOURNAL, ST. LOUIS BUSINESS JOURNAL RESEARCH