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Never a good time for this discussion (USB Stadium)
#1
Vikings want $20 million a year for U.S. Bank Stadium upkeep

The nine-year-old facility will need $300 million in maintenance over the next decade, and lawmakers are considering tapping tax revenue from e-pulltabs.

The Minnesota Vikings want state lawmakers to put up to $20 million a year in tax revenue from electronic pulltab gambling toward the future upkeep of U.S. Bank Stadium.

The Minnesota Sports Facilities Authority (MSFA), which operates the state-owned stadium, estimates the nine-year-old facility will need nearly $300 million in maintenance over the coming decade.

Sen. Nick Frentz, a North Mankato DFLer and primary sponsor of the proposal, told the Senate Taxes Committee Tuesday that an ongoing stream of revenue for capital improvements was key to keeping the stadium in top shape. He noted NFL stadiums in other cities have waited on maintenance projects and then needed significant public support for an overhaul.

“Do we want to have to come back to the Legislature every time there is a capital need?” Frentz said. “This is a better way for Minnesota.”
The proposal has bipartisan support in both chambers, but faces uncertainty. Tuesday was the first time a committee considered the proposal, and the five-month legislative session is expected to wrap up in less than two weeks.

Questions about e-pulltabs
The amount of tax revenue generated by e-pulltabs, an electronic version of the paper gambling ticket game, is in question after a 2023 change to make the games less like slot machines operated by Minnesota’s American Indian tribes.

E-pulltab revenue dropped after the change, and Frentz’s bill depends on growing tax proceeds from the games. Lawmakers are considering more changes to e-pulltabs at the urging of charities that rely on the games for revenue.

In 2022, Minnesota raised $330 million from charitable gambling, and e-pulltabs accounted for more than half.

The Legislature created the electronic games to pay for the $350 million state share of the stadium. They were so successful the state debt was repaid 23 years early and lawmakers decided to put future proceeds into the general fund.

That move frustrated Sen. Jeremy Miller, R-Winonna, who’s also a sponsor of the bill, because he says lawmakers initially intended for some e-pulltab revenue to be used for stadium upkeep.

“This is an asset of the state of Minnesota and it is our responsibility to maintain the stadium,” Miller said.

Minneapolis still owes money on its portion of the construction debt and makes other annual contributions to the stadium that city leaders would like to modify if the Legislature OKs ongoing state funding.

The Vikings’ case
Vikings representatives and stadium officials noted the team pays roughly $12 million a year in rent and contributions towards capital improvements.

Team and stadium officials also touted the stadium’s economic impact, noting Vikings games and concerts bring in tens of thousands of fans who might not otherwise visit Minneapolis. More than 9 million people have visited U.S. Bank Stadium since it opened in 2016.

Mike Vekich, chair of the MSFA, said the stadium has met or exceeded “all promises and original intentions for the venue as an economic engine for the state of Minnesota and the city of Minneapolis.”

But many sports economists, including J.C. Bradbury of Georgia’s Kennesaw State University, are skeptical of the long-term impact. Bradbury says sports facilities typically shift spending already occurring in the community, rather than bring in lots of new money.

“There really doesn’t seem to be much policy justification at all for stadium subsidies,” Bradbury said.

This isn’t the only sports facility funding request at the Capitol. The stadium has a separate $30 million request for the next phase of a secure perimeter project.

The Minnesota Wild have asked for $50 million towards a rehab of the Xcel Energy Center and the St. Paul Saints want $9 million for upgrades to CHS Field in Lowertown.

Time is tight at the Capitol, as the narrowly divided Legislature works to finish the next two-year budget before the required adjournment May 19. Lawmakers may need a special session to complete the spending plan because the government will shut down if one is not in place by the end of June.

Startribune
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#2
Shocker: owners want taxpayers to fund expense overruns. You know....because they can't afford it.
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#3
(Yesterday, 03:55 AM)StickierBuns Wrote: Shocker: owners want taxpayers to fund expense overruns. You know....because they can't afford it.

Who owns the building?  The state sees a lot of revenue off that place outside of the Vikings,  why shouldnt the state help maintain it?  The article is correct,  a portion of that excess money was originally supposed to be set aside in a fund for future upkeep, not diverted to the GF to get pissed away. 

And since the source is completely optional and was set up specifically to fund the stadium,  seems disingenuous to use the "taxpayers" angle,   if the people didnt want it,  they would use the other ways to gamble in MN to get their fix.

This is really a non issue,  it was all in the agreements when this came together over a decade ago.  Either maintin ot now or replace it much sooner.  Just going to cost more later.
Why isn't Chuck Foreman in the Hall of Fame?
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#4
(Yesterday, 06:04 AM)JimmyinSD Wrote: This is really a non issue,  it was all in the agreements when this came together over a decade ago.  Either maintin ot now or replace it much sooner.  Just going to cost more later.

When all the blathering is done, this is the truth. A story that isn't a story. Another shocker. The whole deal for the stadium turned out to be well thought out and successful beyond even what the architects of the deal thought. But owners still gonna owner.....and I love the Wilfs. Its how the game is played.
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#5
(Yesterday, 06:09 AM)StickierBuns Wrote: When all the blathering is done, this is the truth. A story that isn't a story. Another shocker. The whole deal for the stadium turned out to be well thought out and successful beyond even what the architects of the deal thought. But owners still gonna owner.....and I love the Wilfs. Its how the game is played.

Iirc i think the team has a share of the future upgrades in the agreement also.
Why isn't Chuck Foreman in the Hall of Fame?
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#6
In the grand scheme of things $20mm seems like a lot - but...
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#7
The Vikings are a tenant. They pay $12mm/year (roughly $1+mm / home game to rent it).
In the first three years, it hosted over 1,100 events (not every event rents the entire stadium seating).
Last year, it hosted 400 events, including the Vikings home games.
primarily financed through a combination of public and private funds. The Minnesota Vikings, along with other private entities, contributed approximately $620 million, while the state and city of Minneapolis covered around $500 million. This includes financing costs, construction costs, and operations costs over the stadium's 30-year life.

Here's a more detailed breakdown:
Private Contributions:
The Minnesota Vikings and other private entities provided approximately $620 million.
Public Funding:
The state of Minnesota contributed $348 million, and the city of Minneapolis contributed $150 million.
Financing:
The public share was financed through the issuance of bonds, which were scheduled to be paid off by 2043.
Early Payoff:
The public portion of the debt was paid off 23 years early, saving taxpayers over $226 million in interest.
Revenue Sources:
Tax revenue from electronic pull-tabs and a Minneapolis special local sales tax were reserved for paying off the bond debt.

What they are asking for is an annual allotment to maintain/upkeep the stadium (for all users), funded out of the e-pull tabs (which were created by the legislature in the first place to help fund the bonds).
It seems like a reasonable request to maintain such an asset.
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#8
So, about 2% of the value of the stadium for annual upkeep. 

I spend a higher percentage on our HOA fee. 

Pffffffft
“Hell is empty and all the devils are here”

Shakespeare 
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#9
My initial reaction, was holy crap what an overreach. Then when you realize the stadium is state owned, then its a completely different situation. I would be curious what the financials are for the state authority for operating the stadium and what the profits are if there any. The next is what is the financial situation to pay for the repairs in the future. If there is minimal cash from operations to use for repairs or maintenance, this could be a viable way to maintain the asset. Its crazy to think its nearly 10 years old.
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#10
USB stadium, now do I go in this way, no that's wrong. This way? No that's wrong too. Let me try the first way again. That worked.
“Hell is empty and all the devils are here”

Shakespeare 
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