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,It <br /> ,i` R EN HILLS <br /> MEMORANDUM <br /> DATE: February 27, 2012 <br /> TO: Honorable Mayor and City Councilmembers <br /> FROM: Jill Hutmacher, Community Development Director -JV <br /> SUBJECT: TCAAP/Stadium Proposal Update <br /> The Star Tribune reported on February 18 that the City of Minneapolis, the Minnesota Vikings, <br /> p �`Y <br /> and the State of Minnesota had reached a tentative deal for the construction of a new stadium at <br /> or near the Metrodome site. The newspaper reported that the project would cost $975 million <br /> and funding would include $427 million from the Vikings, $398 million from the State, and $150 <br /> million from the City of Minneapolis. Minneapolis would also contribute $180 million for <br /> operating costs over the next 30 years. The project cost has increased $80 million from the $895 <br /> million that was suggested at the November and December Senate hearings. Renovations to the <br /> Target Center would not be included in the deal, although Minneapolis would be allowed to use <br /> hospitality taxes for that project. Although a formal announcement of this deal was expected last <br /> week, as of Friday, February 24, that had not occurred. <br /> Two competing stadium financing proposals emerged last week. Representative Rod Hamilton <br /> (Republican, Mountain Lake) introduced legislation to building a new stadium in Arden Hills to <br /> be largely funded from electronic bingo and pulltabs. Republican Senators proposed a plan that <br /> would limit any direct public subsidy to the team to a $300 million State loan. The non-site- <br /> specific proposal includes a sales tax exemption for construction materials and an appropriation <br /> for infrastructure improvements. The proposal also includes a phase out of the statewide <br /> business property tax beginning in 2014. <br /> Representative Greg Davids (Republican, Preston) introduced a bill that would eliminate <br /> Minneapolis sales and hospitality taxes after the existing Convention Center bonds are paid. <br /> These are the taxes that Minneapolis has proposed using for stadium financing. It has been <br /> suggested that the bill is an effort to persuade the Minneapolis City Council to support the <br /> stadium project without requiring a referendum as required by the City Charter. <br /> City of Arden Hills <br /> February 27, 2012, City Council Meeting <br /> Page 1 of 1 <br />