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Thread: Arena Deal Details Today?

  1. #1

    Arena Deal Details Today?

    From the BizJournal article.

    "Key players in the arena-funding talks were holding their final meeting Tuesday morning in the governor’s conference room at the state Capitol in Madison, according to an email from the office of state Assembly Speaker Rep. Robin Vos (R-Rochester). The meeting is expected to last about two hours and news could be released after that, said his spokeswoman Kit Beyer."

    Should be interesting very soon.

    http://www.bizjournals.com/milwaukee...sday-deal.html

  2. #2
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    I had heard as of late last week, that Barrett finally caved and agreed to a 100 M TIF district to make up the last 100 million of the project.

  3. #3
    Quote Originally Posted by mufansince72 View Post
    I had heard as of late last week, that Barrett finally caved and agreed to a 100 M TIF district to make up the last 100 million of the project.

    Seriously? Good lord. The owners and the state are basically gifting this to the City, and he had to be talked into a TIF district? Look at the deal the City is getting compared to other cities for new arenas.

  4. #4
    Quote Originally Posted by TheSultan View Post
    Seriously? Good lord. The owners and the state are basically gifting this to the City, and he had to be talked into a TIF district? Look at the deal the City is getting compared to other cities for new arenas.
    Problem with the TIF district is the arena is going to be tax exempt. No property tax coming to Milwaukee from the new arena.
    The only way to ensure that a new TIF would have enough property tax revenue to pay for this would be from the other development around the arena.

    If there is no new development for 5 or even 10 years, then there are no new property taxes to pay for the borrowed money. What happens then?

    Additionally, there would be no TIF available to help to spur development in the area. Could be risky for Milwaukee, if the city is on the hook and there is not $500 mil of additional property tax eligible development around the new facility.

  5. #5
    Quote Originally Posted by Goose85 View Post
    Problem with the TIF district is the arena is going to be tax exempt. No property tax coming to Milwaukee from the new arena.
    The only way to ensure that a new TIF would have enough property tax revenue to pay for this would be from the other development around the arena.

    If there is no new development for 5 or even 10 years, then there are no new property taxes to pay for the borrowed money. What happens then?

    Additionally, there would be no TIF available to help to spur development in the area. Could be risky for Milwaukee, if the city is on the hook and there is not $500 mil of additional property tax eligible development around the new facility.

    Ahh....forgot about the tax exemption of the new arena. Thanks for clarifying.

  6. #6
    Then they would need guarantees from the Bucks owners and the other investors that the developments would be in close timeframe to the arena completion and I'm assuming that's been on the forefront of these talks. Maybe I shouldn't assume?

  7. #7
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    The 500 M arena is supposed to lead to at least another 500 M in taxable development.

  8. #8
    Quote Originally Posted by mufansince72 View Post
    The 500 M arena is supposed to lead to at least another 500 M in taxable development.
    I believe the new ownership is genuine in their plans to develop another $500 million, but sometimes other factors can affect initial plans. What if it ends up being $300 million and takes 10 years after the arena to complete?

    Over a 5 to 10 year period the economy can change, property values can change, other factors can change. Will there still be demand for more downtown housing, office space, retail space? Will some developers choose to build elsewhere in Milwaukee where they can get TIF advantages instead of around the new arena?

    I think the owners were counting on the new arena to help drive the new development, not necessarily spend the $500 million themselves on new developments. Counting on new developments being built and being successful over a long span of time to pay back 20% of the cost of the expected development could be risky.

  9. #9
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    If that moron Barrett can use TIF money to pay for part of his damn trolley project, he should be able to do it for the arena as well. Just my two cents. End of political rant.

  10. #10
    Quote Originally Posted by mufansince72 View Post
    If that moron Barrett can use TIF money to pay for part of his damn trolley project, he should be able to do it for the arena as well. Just my two cents. End of political rant.
    Different project. There is currently nothing around the new arena site you can take property taxes from in the form of a TIF. You need property taxes to pay for a TIF.

    The BC doesn't pay property taxes so you can't take tax money from the BC. Same with the UWM Arena. The projects a few blocks north, can't imagine anything coming from there. MATC and vacant lots around the proposed new area, not much coming from there.

    So basically from the new facility through the convention center there is currently no property tax money being generated to pay for a TIF. A couple bars / restaurants and the JS building and maybe the Moderne are not throwing off enough property tax revenue to cover the payments on a $100 million bond.

    So if that is the case and Milwaukee is being asked to pay with a TIF, that could be very risky if there are delays in the developments near the stadium.
    Milwaukee is not like the State, Milwaukee can't divert increases in income tax (the jock tax) to pay for a bond. It would have to come from property taxes.

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