3A, TCAAP Stadium Update - Laserfiche WebLink

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