Committee advances bill to let St. Louis issue parking revenue bonds to buy Compton–Olive lot
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Summary
The Budget & Public Employees Committee gave Board Bill 98 a due-pass recommendation to authorize up to $5 million in parking revenue bonds to acquire a 143-space parcel at Compton and Olive for public parking and future redevelopment; Treasurer Adam Lane said the bonds would be repaid from parking revenues, not general-tax dollars.
The St. Louis Board of Aldermen’s Budget & Public Employees Committee advanced Board Bill 98 on Feb. 11, giving the measure a due-pass recommendation to authorize up to $5 million in parking revenue bonds so the city can acquire a 143-space parcel at the corner of Compton and Olive.
Alderwoman Lara Keyes, sponsor of Board Bill 98, said the city would use the parcel first as a secured, well-lit surface lot with surveillance and later explore mixed-use options. "We want to make sure that it's in line with what the development goals of the neighborhood are," Keyes said during the committee meeting.
Adam Lane, St. Louis City treasurer, told the committee the bonds would be paid from revenues generated by the parking asset and that no general-tax dollars would fund the acquisition. "This is a revenue bond," Lane said. "The revenues that are made from the operation of the property are used to pay for the debt that is issued." He said the parcel appraised at $3.4 million and that initial improvements are estimated at about $877,000 for paving, fencing and security.
One resident, Alec Belcher of Dogtown (Ward 4), testified in opposition during the public-comment period. "New parking would rob us of a better land use for this location, like commercial space, housing, or a walkable destination," Belcher said, and he told the committee that "43% of households in Midtown do not own a vehicle," urging aldermen to reconsider the purchase.
Vice Chair Browning and other committee members pressed Lane on the fiscal assumptions underlying the plan. Browning walked through a per-space calculation based on the $3.4 million appraisal and asked how the treasurer’s office planned to meet debt-service requirements. Lane said revenue projections include transient event parking, potential master leases to nearby developments, student parking and other local demand, and that the office builds a buffer: "we look at...1.2 to 1.9 times what the annual payment would be" for debt-service coverage.
Keyes and Lane said they had engaged neighborhood stakeholders, including the Locust Business District and nearby businesses, and proposed reserving a portion of spaces for Pappy's during daytime business hours so employees and customers would have access; remaining hours would be open to the public. Keyes said the city’s ownership would preserve flexibility for future uses and prevent the site from returning to less-desirable uses, including a gas station.
After questions and discussion, Chair Aldrich moved to pass Board Bill 98 out of committee with a due-pass recommendation. The roll call showed three 'aye' votes and one 'present,' and the committee passed the bill out with the recommendation.
What's next: A due-pass recommendation sends the bill forward in the Board of Aldermen process for further consideration by the full body; committee members asked staff to provide additional financial detail and comps for pricing and revenue assumptions as the item advances.
