Gov. Mark Dayton is dismissing the latest stadium financing plan floated at the state Capitol. He says a provision phasing out the state’s business property tax is a no-go.
Sen. Roger Chamberlain, R-Lino Lakes, offered to put up a $300 million loan for a new NFL venue, to be repaid by a 10 percent tax on virtually every transaction within walking distance of the new stadium. That would include tickets, concessions, personal seat licenses, naming rights, signage in and on the stadium, TV and media revenue and stadium rental.
“It will be paid for the most by those that benefit from the stadium and use the stadium,” Chamberlain said this morning.
The Vikings would be on their own to come up with the rest of the cost of a new $1 billion stadium. Team vice president Lester Bagley said it’s a non-starter. “The bottom line is the bill economics are not workable in this small to midsize market. It would not allow the team to be competitive.”
But Dayton objects mostly to an unrelated provision — a phase out of state commercial and industrial property taxes through 2022. It doesn’t directly pay for a stadium, but Chamberlain suggested it might free up business money to buy sponsorships, advertising, naming rights or other stadium-related business.
“The party of property tax increases is at it again,” Dayton said in a statement released this morning. “Some Republican legislators now want to force me into accepting their scheme for eliminating all property taxes on businesses in order to get their approval for a new ‘People’s Stadium.'”
He said dropping the business property tax would shift the tax burden to other property owners, and would add to tax hikes from the elimination of the Homestead Market Value Credit last year.
Bagley said that the team continues talks with the city of Minneapolis and the state over a proposal to build a new stadium on the Metrodome site.