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Dome Challenged to Measure Up

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Dome Challenged to Measure Up 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 resi- dential and commercial proper- ties 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 © 2008 ST. LOUIS BUSINESS JOURNAL May 16-22, 2008 St. Louis Business Journal http://stlouis.bizjournals.com/ 59 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.
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