Post editorial: no on props 1 and 2... (Ferguson, Miller: sales, neighborhood, taxi)

[MUTGR]

Editorial: As soccer fans say, nil-nil. City voters should say no to Propositions 1 and 2 | The Platform | stltoday.com

"• A city of 311,000 people — 90,000 of whom live at or below the federal poverty level — can’t carry the burden of a sports facility that would benefit surrounding county residents who aren’t being asked to pay their fair share."

[FrankMiller]

My understanding was that the aldermen confirmed that the stadium would be guaranteed revenue-positive with shortfalls coming from the ownership, as a condition to put the prop on the ballot. But I don't recall the specifics, and the PD didn't mention it.

[Scottiegal]

But think of the jobs it would create and also would bring in spending visitors.

[RisingAurvandil]

Prop 1 seems well intentioned and aimed at residents in-need. It has its drawbacks though.

Prop 2 seems odd, to me at least. It's time to stop throwing taxpayer dime into entertainment venues. The Dome is a fine reminder of that bad idea.

[marigolds6]

Originally Posted by RisingAurvandil

Prop 1 seems well intentioned and aimed at residents in-need. It has its drawbacks though.

Prop 2 seems odd, to me at least. It's time to stop throwing taxpayer dime into entertainment venues. The Dome is a fine reminder of that bad idea.

Although, ironically, Prop 2 is the one that has no impact on city residents since the use tax is only on out of state vendors. Prop 1 is the one that raises the city sales tax and would directly impact city residents.

[FrankMiller]

Prop 2 would direct some of the Prop 1 tax revenue toward the stadium though, right?

[billiken]

Prop 1 is a sales tax increase for Northside-Southside MetroLink, neighborhood revitalization, workforce development, public safety, and upgrades to the city’s infrastructure.

If the Prop 1 passes [ie: the sales tax increases], the use tax can also increase. Prop 2 is voting to use that increase in use tax to help fund the soccer stadium. If Prop 1 passes and Prop 2 doesn't, use tax will still increase, but be used for other purposes.

So, prop 1 sales tax revenue doesn't directly fund the stadium. But Prop 2 use tax revenues for the stadium can only happen if prop 1 passes (ie: the use tax can only increase if the sales tax increases).

[billiken]

And on that note, I'm still somewhat undecided, but leaning no. The City alone can't generate the money for N-S MetroLink. We already have some of the highest sales tax in the region. The article mentions 9.179% tax rate--but with the number of special taxing districts in STL (like 60...), the rates there would be even higher. Like, rates over 10% in most cases, and even 11% in various areas, mostly downtown. And sales taxes are regressive taxes.

N-S metrolink and the stadium are in my opinion regional issues that need to be funded regionally, not by the city alone. I'm very much in favor of a soccer stadium and N-S MetroLink, but this funding model is rough.

[marigolds6]

Originally Posted by FrankMiller

Prop 2 would direct some of the Prop 1 tax revenue toward the stadium though, right?

No, none of it. Prop 1 is a sales tax only. Prop 2 is a use tax only.

[marigolds6]

Originally Posted by billiken

N-S metrolink and the stadium are in my opinion regional issues that need to be funded regionally, not by the city alone. I'm very much in favor of a soccer stadium and N-S MetroLink, but this funding model is rough.

The N-S line funded by the tax runs exclusively in the city from Bayless to I-70. The county is funding the portions of the line that run in the county (from I-70 to I-270 in Ferguson and from Bayless south to I-55 at the south county boundary).
So, they are regionally funded, just that the funding is split up by section. This is part of the reason Stenger and Slay have been arguing over which line to pursue, because Stenger wants to spend county money on studying other lines, but if the city is committed solely to N-S, then that rules out two of the three other options (the Daniel Boone line is county only, but the MetroNorth and MetroSouth lines both require the city and county to commit to them).