Recapping the Rams Settlement
This is reposted from my newsletter, “Deep Dive.” If you enjoy this issue and want more, subscribe here.
Nearly a decade has passed since Stan Kroenke relocated the Rams from St. Louis to Los Angeles — leaving the City high and dry after investing millions of dollars in a new stadium. The St. Louis region responded by filing a lawsuit for breach of contract and misrepresenting the team’s interest in being committed city partners.
In November of 2022, the St. Louis region received $519 million from the NFL and the Rams in a settlement agreement. The settlement was split between St. Louis County and the St. Louis Regional Convention and Sports Complex Authority, leaving the City of St. Louis with the lion’s share: $280 million ($30 million of which was obligated to the Dome).
The most common questions my office receives from residents are about the Rams settlement funds — specifically, “Why hasn’t the money been spent already?” and, “Where did it go?” It’s clear that City residents are eager to invest their portion of the settlement; so in this issue, I’ll recap the process: how it started, where things stand, and what residents can expect in the near future.
Where is the money now?
The settlement funds are unique in that they are no-strings-attached funding — unlike the federal American Rescue Plan Act (ARPA) funds which must be used for specific pandemic relief programs by September 2026; any unspent funds must be returned to the federal government. The Rams settlement funds, by contrast, aren’t restricted by a timeline or to a specific use.
While St. Louis County has considered using its share of the settlement to address an overall budget deficit and cover funding gaps in infrastructure projects, St. Louis City parked its funds in a Missouri Securities Investment Program (MOSIP) — netting an additional $22 million in interest to date. This investment strategy balances short-term growth while keeping the funds available for allocation. The city is also considering the creation of a municipal endowment fund to generate the sustainable revenue needed to support multiple long-term projects.
With all of that said, the City’s priority is to meet the needs of residents by spending ARPA funds first. So far, about two-thirds of the funds have been programmed, with the remaining third due to be allocated by the end of 2024.
How have residents influenced the process?
The Board of Aldermen and I have been adamant that an extensive public engagement process is necessary to allocate the funds properly. This once-in-a-lifetime cash infusion has the potential to expand community mobility, improve access to affordable childcare, enhance city infrastructure, and so much more.
With that in mind, the public engagement process began with a baseline survey to a) understand the challenges holding city residents back and b) solicit ideas for funding directly from the public through the Board of Aldermen’s online public engagement platform.
Medical and student loan debt, street safety, childhood education, low wages, and affordable housing were frequently cited challenges. We then asked residents to — based on their personal experience — prioritize the submitted policies they believed would address those challenges.
While not an exhaustive list, the following breaks down the most popular resident-submitted ideas the Board is researching, vetting, and holding hearings on.
What are the most popular ideas?
Replacing Water Mains
Water main breaks are an inevitable and unpredictable occurrence in aging infrastructure like ours. Engineers can’t prevent every failure in the roughly 1,300 miles of water mains beneath our roadways (that’s more than the driving distance between St. Louis and Salt Lake City, UT!), but investing in water infrastructure can reduce the frequency and severity of water main breaks that impact residents.
Our 100-year-old system needs a complete overhaul to bring it up to modern standards. The total cost for major improvements identified by the Water Division — projects that would be completed over a 20- to 30-year period — is estimated to cost $129M. Many of these projects are expected to be funded through subsidized loans from the state.
The most pressing concern for residents is water service disruption caused by broken water mains. Replacing water mains throughout the city is estimated to cost roughly $27M — a fraction of the total amount of settlement funds on hand. No matter how the settlement is allocated, it is feasible that at least some of it could be invested in our water infrastructure — limiting the severity and frequency of water main breaks.
Traffic and Pedestrian Safety
The funding idea that received the most votes from participating residents was traffic safety. In last month’s issue, I discussed in detail why redesigning our streets is important and what the city is currently doing to improve our roadways.
The City has pledged over $300M to street projects, many of which are expected to be completed between 2024 and 2027. Comprehensive reviews and redesigns of major arteries are already underway, including Broadway, Grand, Gravois, Jefferson, and Kingshighway. These projects seek to reimagine how St. Louis approaches streets; between bump-outs, protected bike lanes, repaved roads/sidewalks, and redesigned intersections, these updates will make moving through our city safer for everyone.
As it stands, street infrastructure upgrades are supported by a variety of funding sources that range from hyperlocal to federal. Larger projects require coordination within City government and/or with regional planning entities, such as East-West Gateway, to apply for federal assistance. It would only take about $6–12M of the yearly interest earned from the Municipal Endowment Fund to serve as the required match when applying for federal funds.
Redevelopment Revolving Loan Fund
A revolving loan fund (RLF) is designed to lend money to individuals or businesses whose loan payments are reinvested back into a loan pool that can be tapped to make more loans. The proposed RLF program would support the redevelopment of properties in underinvested neighborhoods and provide business loans to small and disadvantaged businesses or nonprofits.
St. Louis Development Corporation (SLDC) believes they could leverage $20M of Rams Settlement Funds to attract $80M in philanthropic grants, public-private partnerships, and traditional financial institutions. With a $100M RLF, SLDC believes they could generate approximately $400M in loans over a 20-year period.
Downtown Redevelopment
Note: The Committee of the Whole will meet in October to hear stakeholder presentations that expand on Downtown’s needs and how addressing them could spur more development.
Downtown neighborhoods like St. Louis’ drive local economies across the United States. Despite a rapid increase in sprawl and the growth of regional central business districts like Clayton and Chesterfield, Downtown St. Louis remains the beating heart of the metropolitan area. It’s home to the Gateway Arch National Park, four professional sports teams, the City Museum, and thousands of residents. These attractions are a major reason why about 25 million people visit our city each year.
It’s clear downtown redevelopment pays huge dividends and momentum is building. Residential development in Laclede’s Landing is turning one of the most historic parts of the city into a growing neighborhood. In recent weeks, the City has made progress on redeveloping prominent vacant properties like the Millennium Hotel and the Railway Exchange Building. The Gateway South project is entering its first phase, transforming an empty industrial area south of the Arch into a live-work-play innovation district.
Downtown is fortunate to have a deep bench of corporations and groups who share an interest in its revitalization. There’s an opportunity here for public-private partnerships where non-governmental organizations match government funding to make greater investments in Downtown and, by extension, the surrounding region.
Improving Access to Childcare
Note: The Committee of the Whole will meet in November to hear from experts in early childhood education to better understand the costs and feasibility of a universal program.
As it stands, finding and paying for childcare can be, and often is, a burdensome cost for families. According to recent census data, the expense can be anywhere from 8% to 19% of a household’s income. This prohibitive cost limits spending on other needs like groceries or rent, and many times means at least one parent–typically the mother — is unable to pursue full-time employment.
A wide range of data shows that reducing the cost of childcare coincides with an increase in maternal employment, retirement savings, graduation rates, and positive mental health outcomes. Many high-poverty areas are also childcare deserts, lacking a sufficient supply of daycare providers for the population they serve.
It is difficult to overstate how beneficial affordable childcare is for growing families. A prominent study finds that high-quality childcare can provide a 13% return on investment, and another estimates up to a $9 return per $1 spent on childcare endeavors. A universal or subsidized program could incentivize young families to move to and stay in St. Louis — growing our tax base and reversing population trends in our city.
Moving Forward
Bringing subject matter experts, advocates, and members of the public together for these conversations has been critical to informing how the Board of Aldermen will allocate the Rams settlement funds. And thanks to Treasurer Layne’s stewardship, the funds have gained $22M in interest as of writing — bringing the City’s share of the funds up from $250M to $272M.
A thoughtful and measured process has deepened the pool of available funds and ensured decisions are made with direct public input to address public needs.
Later this year, the Committee of the Whole will meet to discuss the remaining ideas supported by the public: Downtown Redevelopment and Improving Access to Childcare. You can lend your voice to those conversations and learn more by attending these hearings virtually or in person. Those details will be made available on our website once details have been confirmed.
