10-19-11 EDC Packet - Laserfiche WebLink

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ARJJEJI HILLS MEMORANDUM DATE: October 19, 2011 EDC Agenda Item 4.A TO: Economic Development Commission Chair and Commissioners FROM: Jill Hutmacher, Community Development Director SUBJECT: TCAAP and Stadium Development Update On Tuesday, October 11, the Ramsey County Charter Commission voted 10 -6 to not include a stadium sales tax referendum on the 2012 ballot. Commissioners stated that the sales tax was a policy issue that should be decided by the County board. On Wednesday, October 12, the Metropolitan Council released the Stadium Proposal Risk Analysis requested by Governor Dayton. The executive summary is provided as Attachment A. The full report can be found at the Metropolitan Council's website which is linked to the City's website. The report makes a number of findings of risk and related measures to mitigate these risks. According to the report, the following risks present the greatest challenges to the stadium proposal. 1. Cost of Delay. The stadium proposal calls for opening the stadium in 2015. The Metropolitan Council found that an opening in 2016 is more likely, and a 2017 opening is a worst -case scenario. Each year of delay could result in approximately $46 million in inflationary costs. 2. Unfunded Cost Gap. The Metropolitan Council identified a cost gap of $39 million, or approximately 3.6% of the total $1.1 billion project. Ramsey County and the Vikings dispute that there is actually a cost gap. 3. Ramsey County Sales Tax. The Metropolitan Council confirmed that the proposed Ramsey County 0.50% sales tax and the $20 motor vehicle sales tax will fully meet the County's $350 million obligation towards the stadium. The Metropolitan Council questioned whether these funding sources would be sufficient to cover $58 million in cost overruns in a worst case scenario. City of Arden Hills Economic Development Commission October 19, 2011 Page 1of2