Arena Deal Details Today?

[mufansince72]

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.

I thought they were going to tear the Bradley Center down and build something there.

[MU/Panther]

They will.

[Goose85]

But who is going to buy the land and when will it be a property tax producing parcel? That is the question, because if you are borrowing money to build the new facility, you have to begin paying that money back.

You can't say we will have to wait to begin paying back that bond on the new facility until the State decides to sell the Bradley Center, someone buys it, tears it down, and builds a hotel or parking garage or office building. That process won't begin until the new stadium is done and ready to start hosting basketball events.

[Halo]

But who is going to buy the land and when will it be a property tax producing parcel? That is the question, because if you are borrowing money to build the new facility, you have to begin paying that money back.

You can't say we will have to wait to begin paying back that bond on the new facility until the State decides to sell the Bradley Center, someone buys it, tears it down, and builds a hotel or parking garage or office building. That process won't begin until the new stadium is done and ready to start hosting basketball events.

Goose-are you Mayor Barrett? Kidding.

Hoping this goes through yet despite his pushback.

[Goose85]

Goose-are you Mayor Barrett? Kidding.

Hoping this goes through yet despite his pushback.

Ha. No, but the TIF thing for this arena project is gambling that there will be new development and quickly and enough to pay back a huge bond. If that development takes longer, then the Milwaukee property tax owners will have to pick up a pretty big tab.

I'm in the camp that thinks the state bonding to be paid for by the increase in jock tax is the best way to go.
The stadium would be paid for by the expected increase in the NBA income, and the income tax paid by Bucks employees. No hit to current state income, no impact to property taxes in Milwaukee, no sales tax like Miller Park, no hit to the pocket book of normal Wisconsin tax payers, and no using current state funds that could go elsewhere to an arena. Basically a stadium paid for by those making a living by using the facility.

That's my two cents, but I'm sure the politicians will have other interests and thoughts.

[TheSultan]

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

BTW, from what I understand, the meeting only lasted 40 minutes. I interpret that to be a good thing.

[TheSultan]

Here are some of the broad details.

http://www.jsonline.com/news/statepo...305192861.html

[TheSultan]

"The state would be responsible for bonds worth more than $55 million.

That figure covers only the amount of the initial bonds, but not interest costs. The state would commit $4 million a year over 20 years, or $80 million total, to cover its shares of principal and interest costs.

The Wisconsin Center District would add $93 million.

The City of Milwaukee would spend $35 million on a new 1,240-vehicle parking structure and provide $12 million in tax incremental financing.

In the most unusual feature of the deal, Milwaukee County would "certify" tens of millions of dollars in uncollected county debt. The county, in effect, would then count on the state to recover at least $4 million of that debt a year for 20 years, a total of $80 million that would then be funneled to the arena project."


Can someone explain the final item?

[Goose85]

"The state would be responsible for bonds worth more than $55 million.

That figure covers only the amount of the initial bonds, but not interest costs. The state would commit $4 million a year over 20 years, or $80 million total, to cover its shares of principal and interest costs.

The Wisconsin Center District would add $93 million.

The City of Milwaukee would spend $35 million on a new 1,240-vehicle parking structure and provide $12 million in tax incremental financing.

In the most unusual feature of the deal, Milwaukee County would "certify" tens of millions of dollars in uncollected county debt. The county, in effect, would then count on the state to recover at least $4 million of that debt a year for 20 years, a total of $80 million that would then be funneled to the arena project."


Can someone explain the final item?

I'm with you on that one Sultan. Not sure how that one works.

I like the expansion of the WCD to become a more encompassing entertainment board. Same level of funding though, so it will be interesting to see what happens there.

I like that there will be more synergy with the Theatre and Performing Arts Center / Arena and new facility. Might eliminate the Arena and BC being played against each other for events.

So the big question I have, who sells the naming rights? Is it the new WCD? I'd think those funds should go a long way to pay for ongoing maintenance and even helping to pay off the $93 million.

[IWB]

The WCD & BC Board should have merged long ago.

So with the WCD in control, I guess that means the state owns the facility and not the Bucks' owners?