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Home My WebLink About3A, TCAAP Stadium Update� �S U�EN��HILLS Request for Council Action Prepared By: Jill Hutmacher, Community Council Meeting Date: February 13, 2012 Development Director TCAAP/Stadium Proposal Update Budgeted Amount: Actual Amount: Funding Source: N/A N/A N/A Recommendation: Informational only. No action required. Supportin� Documents: 1. Memorandum dated February 13, 2012, from Jill Hutmacher, Community Uevelopment Director. i� EN HILLS MEMORANDUM DATE: February 13, 2012 TO: Honorable Mayor and City Councilmembers FROM: Jill Hutmacher, Community Development Director � SUBJECT: TCAAP/Stadium Proposal Update Minneapolis is evaluating a fourth downtown site nearby the Metrodome. Constructing a stadium on this site would allow games to be played at the Metrodome during most of stadium construction. This would allow the Vikings to minimize financial losses related to playing at TCF Stadium. An analysis of the Minneapolis financing plan has revealed that plan to have a gap of $55 million. Minneapolis Councilmembers have also raised concerns about a proposed $25 fee for on-street parking and $30 parking fee for city ramps on game days. On February 7, the Ramsey County Board of Commissioners voted to accept a$20.66 million contract with Carl Bolander and Sons for the remediation of the TCAAP site. The contract is contingent on the County receiving state funding for a new stadium or another use. The Arden Hills Public Works Director participated in the evaluation and selection of the remediation contractor. On February 10, Ramsey County released a third stadium financing proposal (see letter attached). The most recent proposal uses no countywide taxes. Instead, Ramsey County is proposing that the local share be financed through a combination of: • Stadium parking revenues; • Parking lot naming rights; • Admission surcharge; • Sales tax growth at the new stadium (this refers to sales taxes collected at the new stadium that are over and above what is currently collected at the Metrodome); • Stadium property fees comparable to those collected in Minneapolis (entertainment, bar, food and hotel taxes that match those already existing in downtown Minneapolis); • State property taxes on stadium-related businesses at the site. City of Arden Hills February 13, 2012, City Council Meeting Page 1 of 2 Although the sales tax growth and state property taxes are revenue sources that would typically flow into state coffers, Ramsey County is proposing that those revenue sources be earmarked for $100 million in road and freeway improvements near the site. City of Arden Hills February 13, 2012 Legislative Update Page 2 of 2 .�•, 4 r„ ,�- �� ;�r„n„,a. .d� hr C b:� i�• �+J"� a Fl;j\ ��'� t�� iik��`tC.��,l �' ::`�,: r'�",�� 4ii`f.-'s. ^.. � n � ii; 1`4 �°"�' �� .�.`:;y�F,:�� f i �s�:iF� ,� ��.,a,�;��;,�i�''�,, KEN [OSSO A5SISTANT TO COMMISSIONER ken.iosso(�co.ramsey.mn.us �cw.11cLU.�� o � �° ll� .Q�i�¢� Cl-iA1R B�ARD OF RAMSEY COUNTY COMMISSIONERS DISTRICT 5 February 10, 2012 Governor Mark Dayton 130 State Capitol 75 Rev. Dr. Mar�in �,uther King Jr. Blvd. St. Paul, MN 55155 Senator Julia Rosen 317 State Capitol 75 Rev. Dr. Martin Luther King Jr. Blvd. St. Paul, MN 551�5 Representative Morrie Lanning 379 State �ffice Building 1 p0 Rev. Dr. Martin l.uther Kirtg Jr, Blvd. Saint Paul, Minnesata 55155 Subject: Ramsey County User Fee Proposai for People's Siadium Dear Governor Dayton, Senator Rasen and ReprEsentative Lanning: Zzo couRx Hovs� ST. PAUL, MCNNESOTA 55102 TF1. (651) 266-8350 FAX (651} 266-8370 Ramsay County remains committed to working with you to develop a Peopie's Stadium on the TCAAP property in Arden Hills. In all of aur negotiations with the team and discussions with you and other state leaders, Ramsey County has strived to remain flexible, ta prob{em solve creatively and to work, at all times, in the best interests of the people of Ramsey County and the State of Minnesota. Below we present our third comprehensive financin� plan for the stadium development, a menu of funding aptions #hat capture user fees and site-specific taxes totaling up to $20•6 million annually, or $618 mil{ion over the 30-year life of the project. This financing plan, uniike others being discussed at the Capitol, is solid, workab{e and feasible. The anticipated financing begins immediately. It does nat diverf existing funding from other public purpases. ln the past year, we have made two previaus stadium financing proposais, but you asked us ta bring forward another alterna#ive that does not rely on a aountywide tax. We are pleased to bring a menu af entirely user-financed options that stay focused on ihe Vikings stadium and do nat complicate the proposai with other issues. We ask far your support ta make this plan a reafity. Ovar the past year, we have negotiated the purehase and clean-up of the needed land for this project. This week, #he Ramsey County Board awarded a fixed-price pollution clean-up contract Minnesota's First Home Rule County printed on recycled paper mith a minlmum ol 10� posl cansumer content � �ebruary 10, 2t?12 Page 2 that is well within the project budget, further protecting taxpayers. This i� the fourth vate taken by our Board to keep this project moving forward on time and on budget. No other elected body has yet taken an affirmative vote on any other stadium proposal. We have always believed that the Vikings ar�, and this stadium will be, a statewide asset and should be funded with a statewide source of revenue. 8ut given the State's ir�sistence on a local funding share, we have come up with a third alternative that would contribute a significant share of the overall project cost, up to $20.6 million each year that the State could use for operations and capitat costs. Those sources from user fess and other site-specific revenues include: • Stadium parking rev�nue5. • Parking fot naming rights. • An admissions surcharge. • Sales fax growth collected at th� new stadium. • Stadium district (TCAAP property) user fees comparable ta those collected in Minneapolis. • Business property taxes on ancilfary development at the TCAAP site. • Debt service far TCAAP land acquisition and remediation. We remain strongly canvinced that the TCAAP site in Arden Hills is #he best location for a People's Stadium, and is, in fact, the overwhelming choice of Minnesotans. The praject will pravide rnuch-needed upgrao Wp�� mm�°diate St and eturn faflow and�ta produ c ve use and to thousands of Minnesotans t Y the property tax rolls. We laok forward to meeting with you a# your earliest convenience to discuss this praposa! in greater detail and to get this project moving for the people of Minnesota. Sincerely, --.-- � , Com issioner Rafael E. O ga Cha�r, Ramsey County Board of Cammissioners cc: Ramsey County Board of Cammissioners RAM5EY COUNTY U5ER �EE PROpOSAL x/�.o/zox2 A menu of user fee options that can generate revenue up to an average of $20.6 million per year, or $618 milfion over 30 years, to be used for capital and/or aper�ting casts at the People's Stadium in Arden Hilis. • No cauntywide sales tax ar food and beverage taxes would be required. + User fee revenues would be generated at the 43D-acre TCAAP site (both at the 260- acre stadium site and 17�-acr� private development area). • Revenues wouid accrue to the 5#ate and 5tadium Authority and could be used for capitai ar operatin� casts. Bands wauid be issued by the State with debt service reduced by these user financing revenues. The following user fee revenues would generate $16.3 miflion beginning in 2a16, increasing by �% each year to $25.5 million in 2045 ($20.6 mifiion per year average): • Parking revenues ($5.4 miliian in 2016) calculated at $2S/vehicle x 19,OQ0 tailgatir�g spaces x 10 games per year, pius $�.0/vehicle x 6�,Q00 parkers at non-game day events each year. • Parking fot naming rights {$2 miflion in 2p16). • Admissions surcharge ($1.6 million in 2016}. 3% surcharge on tickets, compared to 14% surcharge at Mstrodome. • Haspitality taxes at the TCAAP site only, same as existing Metrodome/ Minneapaiis rates for food and beverage, sales, and lodging ($2 million in Zd16). • Redirect growth in State sales tax revenues generated at the new stadium and state business property tax revenues generated at the ancillary private deveiopment area to fund I-35W/I-694 transpartation improvements ($3.3 million in 2�16). • Caunty assumes responsibifity for TCAAP land acquisition and remediation costs ($2 million p�r year over 2Q y�ars). ' Totai project costs =$1.111 biiiion, with Vikings contribution of $425 miflion, 5iate contribution of $350 million, County user fees of $300 millian, and other sources of $36 million.