by Sen. Roger Chamberlain, Dist. 53
An Alternate Plan — SF 2127
Most of the discussion regarding the funding of a new Vikings football stadium has focused on what is becoming known as the Dayton Wilf plan.As a reminder, that plan proposes to build a $1.2 billion dollar domed stadium, primarily with public money.
There is another way to solve this problem, there is another plan, Senate file 2127. Unlike the Dayton Wilf proposal, it has passed through a senate committee. It has not received much attention because it doesn't rely on taxpayer money to pay for the stadium project. It places the burden of payment on those who will use and benefit the most from a new stadium.
Senate file 2127 fundamentally changes the conversation and business model regarding building professional sports stadiums. More importantly, it accounts for the 68% of Minnesotans who believe that any new Vikings stadium should be entirely paid for with private money. Change isn't easy. But just because we have been doing something for a period of time, doesn't mean it is right.
The idea is simple and it is fair to all parties and taxpayers across the state. Our goal is to treat the Vikings the same as we would treat any other business. It provides a framework for real negotiations to begin.
The plan is site neutral, requires no gaming money, no general fund money, no new taxes and no local contributions. The state would facilitate a low interest loan to the Vikings for construction of the stadium. Debt service on the loan would be paid for primarily with user fees on transactions within the stadium including parking.The Vikings would be allowed and encouraged to partner with other Minnesota businesses to create a reserve fund to subsidize any shortfall in debt service payments.
In addition to providing a low interest loan, the state would also provide needed infrastructure and offer a sales tax exemption for construction materials.
Minnesota Management and Budget estimated if we were to loan $300 million for 30 years at the reduced rate, the debt service would be about $23 million a year. The estimates from user fees range from $15 million to $20 million a year. The Vikings could choose to make up any difference, enter into agreements with other business partners or reduce the cost of the stadium.
There are plenty of financial resources available to the Vikings. Unlike the state, the NFL is flush with cash. At a recent senate hearing, Ted Mondale testified that the NFL is one of the most successful organizations in the country. Indeed, the NFL commissioner, Roger Caddell recently boasted on a 60 Minutes interview that in 2011 the NFL generated $6 billion in TV revenue alone. That revenue is evenly distributed among all the NFL teams.
Minnesota is blessed with many successful businesses. The top 20 Fortune 500 companies in Minnesota generated about $425 billion in gross revenue in 2011. I am not suggesting these businesses pay for all of our desires, but they have claimed business will benefit from a new stadium and have been advocating for a solution. Between the Vikings and our business community I'm certain they could find a way to partially fund a new stadium home for the Vikings.
We have been told the Vikings need $1.2 billion for a new stadium. But no one has asked why? The answer is that is what Mr. WIlf requested. And why not, if someone else will pay for it, he should get as much as he can. Mr. WIlf approached the governor and other legislators advised them he wanted a $1.2 billion stadium, they agreed and began writing legislation to accommodate Mr. Wilf's request.
However, the Vikings could do with less.Mr. Wilf has estimated the team could build an open air stadium for around $600 million. Robert Kraft, owner of the New England Patriots spent $350 million of his own money to build a new stadium which opened in 2002. Heinz Field in Pittsburgh opened in 2001 with a cost of $281 million.
The point is there are many other ways to solve the stadium problem. Senate File 2127 is a place to start. It fair and it is doable. We do not, and should not accept the premise that Minnesota taxpayers should directly or indirectly pay for a football stadium for the Vikings.It is bad policy and neither Minneapolis nor the state can afford to build, own and operate another professional sports stadium.
Info on Sen. Chamberlain is here. Info on SF 2127 is here. If legislators regarded SF 2127 as DOA, I am troubled by that, and wonder why.
___________UPDATE__________
Please, however, do not lose sight of what Wilfare is given in that bill draft which stands somewhat less generous to out-of-state interests than others would intend.
Inch-by-inch the field of discourse narrows, drop by drop the water torture continues. Yet, the public will is ignored.
No referendum, no respect. And if they do not respect us they do not deserve our votes.