MN Senate hits a wall on stadiums

04/28/2006

New finance plans for U, Twins offered

BY ARON KAHN
Pioneer Press

Stadium supporters shouldn’t line up for season tickets quite yet.

The previously nonpartisan stadium legislation became quite partisan Thursday night in the Senate Taxes Committee, where members stalemated on ways of financing a University of Minnesota football stadium and heard a plan for new Twins and Vikings stadiums that diverges radically and politically from the views of the House and Gov. Tim Pawlenty.

After the committee reached an impasse on the university bill, it adjourned until 11 a.m. today.

Chairman Larry Pogemiller, DFL-Minneapolis, told the committee and others in the hearing room he’s certain both houses and the governor will approve a compromise Gopher bill. But university backers were a bit nervous.

“It sort of increases your pulse rate,’’ said University President Robert Bruininks, who, along with many Gopher alumni, wants to start construction soon on a $248 million outdoor stadium on the Minneapolis campus.

The Pogemiller-sponsored Gopher bill under consideration in the committee eliminates three main elements of the House bill — a sale of recreational land to the state, a naming rights deal with TCF Bank and a $50 a year stadium-subsidy fee for students.

It provides $12.9 million a year in state funds, derived from a new 13 percent state sales tax on all licensed sports memorabilia, for the project. In effect, baseball, football and hockey fans of professional and amateur teams all over the state would finance the Gopher stadium.

But the bill failed on a 6-6 vote, with Sen. John Marty, DFL-Roseville, joining Republicans in opposition. At different times, Pogemiller caucused with all committee members, but could not get an agreement on a compromise bill. They will try again today.

He said a separate funding source must be found because without it, the state’s annual contribution would strain the general fund.

Meanwhile, Sen. Steve Kelley of Hopkins, a DFL candidate for governor, laid out a financing option that imposes a 0.5 percent sales tax in the seven-county metro area to pay for stadiums for the Twins and Vikings and as well as transit and transportation improvements in the region.

Kelley said the alternative sales tax, apparently supported by Pogemiller, makes more sense than a one-county tax in Hennepin County. A 0.15 percent Hennepin sales tax — approved Wednesday by the House — would finance three-fourths of a $522 million Twins ballpark project in downtown Minneapolis.

The committee likely will hear testimony on the plan today, but Republican House Speaker Steve Sviggum said there’s no chance the plan would win support outside the DFL-controlled Senate.

Republicans contended Pogemiller is trying to put the heat on the governor to either approve taxes he normally would be philosophically against, or to veto stadium bills and then be held responsible if the Twins leave Minnesota or if the university loses its stadium, thereby angering the multitude of university graduates in important positions around the state.

“To have a new funding plan pulled out of the back pocket of one senator in the ninth inning … is disingenuous to the process,’’ said Rep. Brad Finstad, R-New Ulm, chief House sponsor of the Twins bill.

Pogemiller said the financing concepts are more just for taxpayers and would eliminate the need for long-term interest payments on borrowed money.

Though some stadium supporters were dubious, he said the financing strategies brewing in his committee would lead to ultimate approval by the Legislature and governor.

“We will pass a Gophers stadium, a Twins stadium and maybe a Vikings stadium,’’ he said.