Sunday, April 25, 2004
Summary of Minnesota Stadium Bill
In anticipation of legislative hearings on the bill, Jay Weiner of the Minneapolis Star Tribune summarizes the provisions of the Twins and Vikings stadium bill being considered by the Minnesota legislature.
The Twins are balking at the requirement that they pay one-third of the total cost of the project, including infrastructure work -- even though "the team's" 1/3 share can include not only the club's rent on the ballpark, but also money collected from third parties, such as naming rights fees and seat-license charges. The Twins would also be responsible for all cost overruns.
The bill provides that if the Twins are sold during the 30-year period of their lease at the new facility, the owner must share with the state the portion attributable to the increased value of the team in a new ballpark. If -- no, when -- the team and the state can't agree on this amount, the issue goes to an arbitrator.
Local governments could raise their share of the stadium money through a variety of targeted taxes, but the legislature would have to approve any general sales tax increase for this purpose. The bill also provides for tax increment financing: the club and the stadium authority would negotiate for an annual payment tied to the amount of extra tax revenue generated at the new ballpark over the average of the three final years at the Metrodome. If the expected revenues weren't realized, the Twins would be responsible for the shortfall.
Finally, the bill sets a December 31, 2004 deadline for the Twins to strike a deal with a local community and the proposed stadium authority. That's an awfully short deadline to negotiate an agreement with an entity that doesn't even exist yet.
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In anticipation of legislative hearings on the bill, Jay Weiner of the Minneapolis Star Tribune summarizes the provisions of the Twins and Vikings stadium bill being considered by the Minnesota legislature.
The Twins are balking at the requirement that they pay one-third of the total cost of the project, including infrastructure work -- even though "the team's" 1/3 share can include not only the club's rent on the ballpark, but also money collected from third parties, such as naming rights fees and seat-license charges. The Twins would also be responsible for all cost overruns.
The bill provides that if the Twins are sold during the 30-year period of their lease at the new facility, the owner must share with the state the portion attributable to the increased value of the team in a new ballpark. If -- no, when -- the team and the state can't agree on this amount, the issue goes to an arbitrator.
Local governments could raise their share of the stadium money through a variety of targeted taxes, but the legislature would have to approve any general sales tax increase for this purpose. The bill also provides for tax increment financing: the club and the stadium authority would negotiate for an annual payment tied to the amount of extra tax revenue generated at the new ballpark over the average of the three final years at the Metrodome. If the expected revenues weren't realized, the Twins would be responsible for the shortfall.
Finally, the bill sets a December 31, 2004 deadline for the Twins to strike a deal with a local community and the proposed stadium authority. That's an awfully short deadline to negotiate an agreement with an entity that doesn't even exist yet.
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