Business Journal: Sen. Fitzgerald sets Wednesday meeting with key players on Bucks arena funding
MILWAUKEE (WITI) -- Senate Majority Leader Scott Fitzgerald is organizing a meeting in Madison with key players to discuss funding for a new downtown Milwaukee Bucks arena, the Milwaukee Business Journal reports.
The meeting is set for Wednesday, April 22nd.
How the new arena would be paid for remains a big unanswered question. Two weeks ago, Bucks officials unveiled plans for a $500 million arena and $500 million sports and entertainment complex that would transform downtown Milwaukee.
Governor Scott Walker's funding plan calls for the state contributing $220 million in bonds -- with some funds coming from players' income taxes and $50 million coming from other sources, such as the city of Milwaukee and Milwaukee County.
Some lawmakers are calling Walker's plan "dead on arrival" due to its price-tag.
Senator Scott Fitzgerald (R-Juneau)'s plan calls for the state contributing $150 million via a loan through the state's "Public Lands Board."
Milwaukee Alderman Bob Bauman has suggested Milwaukee County create a one percent sales tax. Bauman says the money would cover the public funding for the project, as well as other public needs, such as parks, cultural institutions and transit, things currently covered by property taxes. The one percent sales tax would put the sales tax in Milwaukee County at 6.6%, and Bauman believes Milwaukee County's property tax levy would drop significantly.
Former owner Herb Kohl has pledged $100 million, and the new Bucks owners have pledged $150 million towards this project.
The state's contribution ($150 million to $220 million), the city/county contribution ($50 million), and the pledges from Kohl and the new Bucks owners ($250 million) combined could come up short of the $500 million needed for the arena. If the state contributes $150 million, the total would be $450 million -- $50 million short.
A Marquette University Law School poll released last Thursday, April 16th shows 79% oppose borrowing about $150 million to support a new arena, with 17% supporting the proposal. In the Milwaukee media market, 67% oppose funding for an arena and 29% support it. Those views vary by less than 2 percentage points among the city of Milwaukee, the surrounding suburban counties of Waukesha, Ozaukee and Washington counties, and the seven other southeastern Wisconsin counties included in the media market.
In the rest of the state, only 9% support borrowing for an arena, with 88% opposed.
The Business Journal reports Wednesday's funding meeting will include leaders from the Legislature, the city of Milwaukee, Gov. Scott Walker’s office and the Milwaukee Bucks.
The Bucks owners are seeking $250 million in public funding for an arena to match a combined $250 million from the current owners and former owner Herb Kohl. The Bucks owners say the estimated $500 million arena project, which they say will be a catalyst for private development of at least that amount, will not proceed without the public funding.
The NBA has mandated an arena plan be in place by 2017 -- or the Bucks are gone.