Vikings stadium bill expected next week: 'The time has come'

With a little less than two months remaining in the legislative session, the long-awaited Minnesota Vikings stadium bill is expected to be introduced next week.

The authors of the bill, Senator Julie Rosen (R-Fairmont) and Rep. Morrie Lanning (R-Moorhead), on Thursday sent a letter to fellow state legislators stressing urgency of the situation and saying "the time has come to move forward on a bill that offers a framework for achieving a stadium plan for Minnesota."

As expected, the bill -- which is not site-specific -- leans on a "local partner" to share the cost of building the stadium with the team and the state, which would fund its portion through stadium naming rights, a lottery game and a variety of usage-based taxes. The stadium would have a roof, enabling multi-purpose use, and the Vikings would be required to sign a long-term lease.

The team previously has pledged one-third of the cost toward a new stadium, minus the cost of the roof, and the bill specifies it must pay "at least $1 for every $2 paid by state or local sources" as well as any cost overruns. Among the surprising inclusions in the bill is a new "pro football player income tax surcharge" that presumably would increase the roughly $11.5 million Vikings players and staff members already paid in state withholding last year.

"The Vikings look forward to beginning the public dialogue on this issue," Vikings vice president of public affairs and stadium developmentsaid Lester Bagley said in a statement. "The bill provides a framework to negotiate a deal that will resolve the stadium issue, and we appreciate State leaders' efforts to bring this forward."

The cost of building a roofed stadium has been estimated at approximately $900 million, with the roof adding $200 million to the project. That doesn't include infrastructure costs that would be far higher if a site is selected such as the one in Arden Hills, rather than on or near the site of the existing Metrodome.

The Vikings have pushed for a new stadium for roughly a decade. Their lease at the Metrodome expires on Feb. 1.

Major positions

The following is the text of a separate letter sent by Patrick McCormack, the Minnesota House Research director, outlining the bill.

The stadium bill as introduced has the following major positions:

• The state creates revenues sufficient to cover $250 million to $300 million in bonds, which would be sold by local goverments -- or the Metropolitan Council;

• Local governments are allowed to bid to be the site of the stadium, and can use local taxes to make up the financing for their bids;

• The Vikings are required to make up the remainder, including any cost overruns;

• If a site is selected, and the Vikings sign a lease, a stadium with a roof is constructed; if a site is not selected, or a lease not signed, the revenues from the state share are available for a later stadium deal and for Metrodome operations;

• The lease is not signed and construction does not start if the current labor conflict is not resolved.

This tri-level partnership is based on a reasonable state share, willing bidders from local governments, and a team that agrees to its role within this partnership.

STATE SHARE

The State role in the stadium involves both a process and a set of financial tools.

• The State solicits bids from local partners, and structures a site selection process in a fair and unbiased manner;

• The State creates a new Minnesota Stadium Authority, which will own and run the new stadium.

The State covers its share of the stadium costs as follows:

• A professional sports memorabilia tax is created;

• Naming rights to the stadium are sold by the state and used for stadium construction;

• A pro football player income tax surcharge is created;

• A sales tax on luxury boxes in the new stadium is created;

• Sales tax (during construction) and property tax exemptions for the stadium are created;

• A lottery game has its revenues dedicated to the stadium;

• A sales tax on digital video equipment designed to facilitate satellite downloads;

• The net result of these taxes is about $30 million in 2013, growing thereafter. This is sufficient to cover the necessary state share.

LOCAL SHARE

Either a local government or if necessary the Metropolitan Council would be responsible for the sale of bonds to construct the stadium. The local share of this bill comes from a series of local taxes as determined in the bid from the local governments. These sunset after bonds are paid off:

• Local government may include a 0.5 percent sales tax in their bids;

• Local governments may include taxes on entertainment, lodging, liquor, food and beverage, or admissions -- but these amounts are capped at stated rates;

• Local governments may sell the bonds, or those bonds may be sold by the Metropolitan Council;

• Special provisions allow a bid from Hennepin County to use excess Twins stadium revenues; and allow a bid from Minneapolis to use excess convention center revenues.

• Special provisions allow jurisdictions that want to cooperate with the stadium site designee to also levy local taxes, if 40 percent is given over for the Vikings stadium; 60 percent may then be retained by these "cooperating" jurisdictions for their own facilities of regional or state significance.

TEAM SHARE

The team share is specified in this draft:

• The team must pay at least $1 for every $2 paid by state or local sources -- the state and local shares are capped and the team is responsible for cost overruns.

Tom Pelissero is Senior Editor and columnist for 1500ESPN.com. He hosts from 6 to 8 p.m. weeknights and co-hosts from 10 a.m. to noon Sundays on 1500 ESPN Twin Cities.
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