New report from Auditor Fitzpatrick finds lack of planning has created an uncertain future for the Dome at America's Center

A new report released today by Missouri State Auditor Scott Fitzpatrick paints a bleak picture for the future of the Dome at America's Center because of inadequate funding to meet the future maintenance obligations of the facility. The audit gives the Regional Convention and Sports Complex Authority (RSA) a rating of "fair" for its use of Rams Settlement Funds and also finds the RSA did not provide adequate oversight of the $19.4 million in funds spent for the planning phase of the riverfront stadium proposal that was developed in a failed attempt to keep the Rams football franchise in St. Louis.

"A massive amount of state, county, and city taxpayer funds have been invested in the Dome at America's Center and now the facility faces a perilous future. It's clear the RSA needed a stronger vision for how to manage and maintain the Dome following the departure of the Rams from St. Louis, and it's also obvious the commission should have been more accountable with taxpayer dollars when it oversaw the failed effort to keep the Rams from leaving. $19.4 million was spent on the failed riverfront stadium project with essentially no procurement process or oversight of what the RSA was getting in return for these massive expenditures.  While there have been many missteps in years past, I commend the current commission for taking the challenges they are facing seriously and beginning work towards a plan to right the ship as our audit recommends," said Fitzpatrick.

The report notes that a recent facility condition assessment conducted for the RSA found the Dome will require an estimated $155 million in repairs and maintenance over the next 10 years. As of December 31, 2023, the cash balance of the RSA was approximately $87 million. This balance includes the $70 million in NFL settlement funds the RSA received in 2023. After investment of NFL settlement funds, the cash balance of the RSA increased to approximately $89 million by December 31, 2024. While significant, this balance is still well below what is needed to complete the necessary repairs and maintenance. Despite the substantial gap in needed funding, the RSA Commission has taken no significant effort to pursue additional sources of funding.

The report also points out that revenues generated from the events and activities hosted in the Dome currently do not go toward funding the RSA and preservation of the Dome. For example, attendees of an event held at the Dome come to St. Louis, pay for admission to attend the event, pay for hotel stays that generate lodging taxes, eat at restaurants in the city and/or the county, and potentially shop and spend money on entertainment while attending the event. Currently, none of the revenues from any of these activities go toward the maintenance and preservation of the Dome. This includes a 3.5 percent Convention and Sports tax imposed by St. Louis County on hotel stays within the county. The statutory purpose of this tax is for "funding a regional convention and sports complex authority and for other recreational and entertainment purposes." St. Louis County previously used this tax to make the county's preservation payments to the RSA. While St. Louis County has stopped making preservation payments to the RSA, the county still collects this lodging tax. The RSA also has an ongoing lease agreement with the Convention and Visitors Commission (CVC) that originated in 1991. The lease agreement allows the CVC to market the space in the Dome and attract vendors and events to use the facility. According to the RSA Executive Director, the RSA does not receive any money for events hosted at the Dome, and instead all money received from events goes to the CVC. However, the lease agreement states the CVC is not responsible for assisting the RSA with preserving the Dome, which remains an obligation of the RSA. Additionally, the CVC also receives funds from a 3.75 percent Convention and Tourism tax charged on hotel stays within St. Louis County that was approved by voters in 1984, none of which is used to assist the RSA with preserving the dome.  This tax is separate from, and in addition to, the 3.5 percent Convention and Sports tax assessed on hotel stays in St. Louis County and received by the county. The report recommends the RSA pursue additional recurring sources of revenue to provide the funds necessary for expected long-range needs of the Dome, and continue to develop a maintenance plan that maximizes available resources. In addition, the RSA, City of St. Louis, and St. Louis County should engage in discussions to help ensure the preservation of the Dome to allow the facility to continue to serve the St. Louis region in the long term.

The audit also found significant weaknesses in the oversight of the planning phase of the riverfront stadium project. As noted in the report, normal commission approval procedures were overridden for expenses related to the riverfront stadium and the change resulted in the payment of invoices without sufficient detail, payment of unreasonable expenses, and payment of invoices without any formal approval. The audit judgmentally selected 30 invoices that collectively totaled $2.1 million to determine if sufficient detail was included to describe the product or service. Testing of these invoices found 20 percent of them did not indicate the product or service provided by the vendor but were approved for payment by the project consultant on behalf of the RSA. Included in this were two invoices submitted and approved by the project consultant himself. A further review of all invoices submitted and approved by the project consultant found he was paid $525,122 over 25 invoices that lacked adequate documentation. The review of expenses also found an instance in which a firm was paid $22,999.78 for services that did not appear reasonable. This firm was contracted to provide analysis and consideration of various financing options to construct the riverfront stadium. However, the RSA spent significantly more money to reimburse the firm for travel-related expenses, which included hotel charges in Austin, Texas and New York City, than for professional work products. The report also notes the RSA does not have a formal written policy for procuring professional services.

The final finding in the audit report focuses on the decision of the St. Louis County Council to approve spending $56.2 million of the $169 million received for the settlement related to the Ram's departure without a formal process to evaluate potential uses and to determine the most effective use of the funds. While the majority of the settlement funds spent have been used for infrastructure improvements, which appears to be an appropriate use of such one-time funds, the Council has not gone through a formal process to establish potential needs and identify the most effective and strategic use of settlement funds. Additionally, the Council has not established formal criteria for deciding which projects will receive settlement funding or established any potential restrictions on settlement fund use. In contrast, the City of St. Louis and the RSA have not allocated settlement funds and have instead developed plans to determine how best to use the funds.

The complete audit report is available here.