10-19-11 EDC Packet - Laserfiche WebLink

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October 12, 2011 Susan Haigh Chair Metropolitan Council St. Paul, MN 55101 Ted Mondale Chair Metropolitan Sports Facilities Commission Minneapolis, MN 55415 Dear Chairs Haigh and Mondale: On behalf of the Minnesota Vikings, we appreciate the work of the Metropolitan Council and Metropolitan Sports Facilities Commission in analyzing the proposal to build a publicly-owned, multi-purpose stadium at the TCAAP site in Arden Hills. While the Met Council study raises some questions and worst-case scenarios, the Vikings are encouraged with the overall positive findings of the report. As we expected, the study did not find any significant issues to prevent this exciting stadium project in Arden Hills from moving forward. Within the report, the following three key concerns were identified, all of which had previously been identified and all of which are already being addressed by the State, Ramsey County and the Vikings; 1) Cost Delay — The report indicates that it may be too late to complete the project by 2015 and that a one-year delay could cost an additional $46 million. We believe it is for this exact reason that we move forward now with the Arden Hills project. A delay to 2016 is inevitable if the location is changed from Arden Hills. Furthermore, we have identified a contractor who may be willing to take the responsibility to clean and demolish the site within the time frames and costs identified at the low-end cost. The schedule is aggressive, but achievable. 2) Unfunded Cost Gap of $39 Million — The parties contributions and overrun risk responsibilities are currently being negotiated with State leadership. The Vikings and Ramsey County do not believe there is an unfunded cost gap, but all three parties need to meet to finally resolve the few remaining open cost issues as soon as possible. 3) Ramsey County Sales Tax Shortfall — While we believe the County can attest to its funding capabilities, County Commissioners and staff believe their funding sources and financing methodology will cover their contribution to the project. Interest rates are at an all-time low, which will allow for significant savings to cover additional costs, if any, and we believe we can limit cost- overruns on this project. Overall, the Vikings believe the report is generally positive for the Arden Hills stadium location, which we continue to believe is the best site for the State, the County, the Vikings and our fans. We are also encouraged that the Council identified a potential $76 million of savings, which could lower the overall price tag. The Vikings and the County stand ready to proceed with constructing a new stadium in Arden Hills, and we look forward to Governor Dayton and State leadership's help in working toward the final step of passing stadium legislation during a Fall Special Session. The sooner we begin the process, the better chance we have of mitigating any risks. As importantly, moving forward now will also put thousands of construction trades workers back on the job and allow us to take advantage of low interest rates and material costs. Sincerely, 7221"-1- Mark Wi If Owner/President 9520 Viking Drive . Eden Prairie, MN 55344 . (952} 828-6500 * www,vikirigs.corn