Bucks quest for a new arena

[GBP4EVER]

Seems steam is picking up for the new arena. We already knew that the Bucks owners and former owner Herb Kohl have combined to pledge $200 million towards a estimated $500 million arena. There has been reports that there could be another $50 million to be used from the owners selling minority interest in the team. The state has floated a idea that would put $150 million towards an arena. The Milwaukee mayor and Milwaukee County Excutive have both said they would pledge $25 million each to be used towards infrastructure like roads and sewers. Seems like something might get done. Rumor is the site will be located near the Bradley Center and that everyone would like to have shovel's in the ground before the end of the year. The Bucks must have something underway before 2017 or face the likely outcome that the team will move out of Milwaukee.

 

[GBP4EVER]

Heard on radio that deadline for new arena will be June 30th as that is when the state budget has it's deadline and if a new arena does not have funding in it that means Bucks would be done in Milwaukee.

 

[Cheesedog]

http://www.wisconsingazette.com/mil...for-the-bucks-arena-entails-hidden-costs.html

granted this is an extreme opinion. but it does bear some truths. worth the read.

 

[Cheesedog]

http://www.jsonline.com/news/milwau...r-is-that-a-mirage-b99505176z1-305579531.html

"Would arena create pool of new jobs — or is that a mirage?"

 

[GBP4EVER]

Milwaukee needs to do something to try to boost that city back up. If they can use the arena to use as the hub of a new sports and entertainment district then need to try. Milwaukee is pretty much as bad as Detroit. It's nothing but a run down crime ridden hell hole that no one wants to put a business in or live in anymore.

 

[57packer]

I know it doesn't fit the narrative people want to use, but population in Milwaukee is again on the rise. It's incorrect to call the whole city a "crime ridden hell hole". Simply not true, and nothing like Detroit's economic situation, though it's far from great. There are parts of the city that are not in great shape and fit that narrative, but many areas are seeing major improvements and crime is hardly as rampant as it's made out to be, outside of those areas.

Harley Davidson continues to invest in Milwaukee. Manpower Inc, just build their new world headquarters in the heart of the city. Northwestern Mutual is building a new 32 story office tower in the city and the 44 story Couture proposal will likely add another 300 high-end apartments in the city. There is a new 17 story office building under construction in Michigan St., and a remodel of a building on Wisconsin Ave. to include 105 apartments because the demand is so high for housing in the downtown and near downtown area.

Milwaukee has lots of problems but is not nearly as bad as some people who don't live there try to paint it. I drive into the city almost every day and go through some of the worst areas. It's not pretty, but I also see a lot of the improvements that are going on and it's not all bad. There is some hope, and signs that things are improving. A new arena and downtown entertainment district would be another plus.

 

[FlaPack]

Milwaukee needs to do something to try to boost that city back up. If they can use the arena to use as the hub of a new sports and entertainment district then need to try. Milwaukee is pretty much as bad as Detroit. It's nothing but a run down crime ridden hell hole that no one wants to put a business in or live in anymore.

Every major city has its issues. Ever been to,downtown Atlanta ? It's basically a ghost town at night. While an arena may help it's not the lock to bring business downtown.

 

[GBP4EVER]

So 50/50 split between public and team money. Team covers anything extra. State caps amount at 80 million city and county at 170 million. After interest figured in public money will be 400 million.

 

[Cheesedog]

So 50/50 split between public and team money. Team covers anything extra. State caps amount at 80 million city and county at 170 million. After interest figured in public money will be 400 million.

Still too much IMO with the state economy and middle class hurting... But probably the best deal we could hope for.. Excellent news that they were able to write in a cap for taxpayer dollars when over runs happen.

 

[GBP4EVER]

I emailed my state rep asking him to support the arena. Here is his response.

Thank you for sharing your support for the newly announced Bucks Arena proposal. It is appreciated.



There has been much debate on the new downtown Milwaukee arena whose major tenant would be the Milwaukee Bucks. Although it appears to be headed that way, there is no requirement that this proposal be part of the state budget bill. The following are some facts that exist:

· The State of Wisconsin has current ownership of the Bucks current arena, the Bradley Center.

· The estimated cost of a new arena complex is $500 million.

· In light of the new arena discussions, the State has been deferring maintenance on the Bradley Center for several years that has amounted to $20 million.

· If the Bradley Center remains, the State would likely be obligated to pay for around $120 million of maintenance over the next 10 years.

· The State currently collects $6.5 million/year in income tax revenue from the Bucks players, opposing players, administration, etc. This is a base revenue of $130 million over the next 20 years.

· With growing salaries of NBA players due to rapidly increasing TV contracts, the additional tax revenue to the State over the next 20 years is estimated to be $169 million.

· All told, it is estimated the state would lose $419 million in revenue over the next 20 years if the Bucks left Milwaukee.

· When the current owners of the Bucks purchased the team from Sen. Herb Kohl, they agreed to a stipulation with the NBA that if a new arena was not built/being built by Nov. 2017, the team must be sold to the NBA.

· If the team is sold to the NBA, it is a near-guarantee that the league will move the franchise to another city.



In light of the preceding facts, following are the major details of the deal that was crafted between the Bucks, the City of Milwaukee, Milwaukee County, the governor and legislative leadership:

· The current and former owners of the Bucks will contribute $250 million to the building project.

· Any cost overruns on the construction would be the responsibility of the Bucks.

· The State would borrow $50 million to be paid over 20 years, which, with interest, would be capped at $80 million.

· The Bucks would be responsible for the future maintenance of the arena, administration of the year-round use of the facility, and would hold the profits/losses from its activities.

· Milwaukee County will turn over to the State collection of $80 million of debt owed to the County to be put toward the cost of the project.

· The Wisconsin Center District will contribute by borrowing $93 million to be repaid from its existing revenue stream.

· The City of Milwaukee would contribute $47 million through the creation of a TID and paying for a parking structure in upfront cash.

· Claw back provisions are included to protect taxpayers.



By examining the finances of this proposal from the perspective of the State, it is clear that it's better for the State to play a role in the deal if the alternative is the team leaving. That was the message delivered by local and state leaders and Governor Walker at a press conference at the State Capitol. In addition, although the long-term economic benefits of arenas are disputed by some economists, there are projections that the new arena would bring a $1 billion boost to the state's economy with additional related construction projects and 15,000 new jobs.

Some constituents have indicated to me that if the Bucks left Milwaukee, the State would not need to pay for the upcoming and overdue maintenance of the Bradley Center because it would likely be demolished. While this is certainly a scenario that could play out, if the building is torn down it would leave downtown Milwaukee without a major venue for Admirals' hockey, Marquette basketball, and varying concerts and other entertainment events held throughout the year.

Constituents have also expressed to me an ideological disagreement with taxpayer support for arenas and see the proposal as another chapter in the continuation of corporate welfare. Also, the point is raised as to why distant counties should be asked to pay anything for an arena that they will likely never use. Additionally, why are we considering spending money on an arena when other important portions of the pending state budget are facing cuts? While I cannot disagree with these statements, requiring the owners and/or the Milwaukee area residents to entirely foot the bill will not happen--the team will leave and a sizable revenue hole will be placed in future state budgets. The revitalization efforts of the largest economic engine in the state would clearly be hampered if the Bucks left.

These are the facts mixed with some speculation that is before us as we near the decision that must be made. It is possible that more adjustments to the proposal are to come.



Again, thank you for sharing your support. Please feel free to contact my office regarding any other issue of statewide importance.



Sincerely,



Rep. Jeremy Thiesfeldt