Governor Walker takes part in Bucks arena funding meeting for the first time; still no deal
MILWAUKEE (WITI) -- For the first time, on Thursday, April 30th, Governor Scott Walker took part in a meeting regarding funding for a new Milwaukee Bucks arena. It took place Thursday afternoon at the Milwaukee Athletic Club in downtown Milwaukee.
Walker's staff members have taken part in previous arena meetings -- but Thursday was the first time he himself was involved.
Walker said Wednesday a funding deal could come as soon as Thursday's meeting wrapped up -- but FOX6 News learned after that meeting there is no deal currently in place. A follow-up meeting hasn't yet been scheduled, but Assembly Speaker Robin Vos (R-Rochester) told FOX6 News he expects another meeting to take place within the next week or so.
"Every meeting we get a little more information and get a little closer," Senate Majority Leader Scott Fitzgerald (R-Juneau) said.
FOX6 News spoke with Milwaukee Mayor Tom Barrett following Thursday's meeting. He repeated what he said following arena meetings last week -- that everyone is negotiating in good faith, and that he's optimistic a deal can be made. However, he said at this point, no one is tossing around specific numbers as it relates to arena financing.
"I think what people don`t realize is in other communities, conversations like this have gone on for two or three years. And we`re doing this in the space of two to three months," Mayor Barrett said.
The Milwaukee Bucks have unveiled plans for a $500 million arena and a $500 million sports and entertainment complex.
The sports and entertainment district would be paid for mostly by private enterprises — but the arena requires public funding.
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. So far, the city of Milwaukee has offered $25 million. Milwaukee County hasn't offered a specific amount, but County Executive Chris Abele says he's willing to match the $25 million and possibly more.
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.