In 12-3 vote, Milwaukee Common Council approves Bucks arena funding package

MILWAUKEE -- The Milwaukee Common Council on Tuesday, September 22nd approved a $47 million Bucks arena funding package on a 12-3 vote.

Around 1:15 p.m., Milwaukee Mayor Tom Barrett, members of the Common Council, Bucks President Peter Feigin and other dignitaries gathered to watch Barrett sign the deal.

Bucks officials say they've become builders after political victories in Madison and now Milwaukee.

The $47 million includes money for a new parking garage and public plaza near the new Milwaukee Bucks arena.

The Milwaukee Bucks released the following statement on the Milwaukee Common Council’s passage of the arena financing proposal:

The city's share in the Bucks funding package is $47 million, out of the $250 million in public money going towards the new arena.

Under the agreement, current and former Bucks owners will pay $250 million toward the $500 million cost of the arena. While the taxpayers’ sticker prices is $250 million, the actual cost is closer to $400 million when you factor in interest: $80 million each from the state and Milwaukee County, $47 million from the city and $200 million from the Wisconsin Center District.

$35 million of the city's portion would go toward a new parking garage, and the rest to a tax district that would help cover a new public plaza outside the arena.

City Comptroller Martin Matson says once all the costs add up, the city’s share could actually amount to about $76 million. That includes $17 million in interest, the demolition of an existing parking garage at 4th and Highland which has an appraised value of about $7 million, and about $4 million worth of street and sewer work in the proposed arena district.

In the weeks leading up to Tuesday's meeting, aldermen made last-minute changes to the arena plan.

Aldermen rejected a plan to hand over a portion of 4th Street to the Bucks to create a pedestrian walkway. That issue has been tabled for now, and was not part of Tuesday's vote.

Under the original plan, the city would give up a block of 4th Street (between Highland and Juneau), and it would become part of a public plaza next to the new arena. But Milwaukee's The Zoning, Neighborhoods and Development Committee voted last week to keep the street open -- a decision that has disappointed Bucks officials.

Again -- this issue hasn't yet been finalized.

Another issue recently agreed to: Who gets revenue from naming rights on the new parking structure? The compromise? The city and Bucks will split the money, and the city's share will be given to the organization "Common Ground," and used for playgrounds.

Additionally, the agreement calls for 25 percent of the sports and entertainment district's new retail to be locally-owned.

The committee also passed a motion that called for 40 percent of the initial construction labor to be city residents -- with an emphasis on unemployed or under-employed residents.

Alderman Nik Kovac says he considers himself a Bucks fan, but voted "no" on Tuesday.

"You make the right vote. You don`t give away taxpayer dollars, but you lose the team. So right now, I think extortion is a kind word to describe the process. I feel good about keeping the Bucks. I don`t feel good about the donation required to keep the Bucks," Kovac said.

Critics and supporters of the project agree the public benefits of the project hinge on development outside the arena, and Bucks officials are confident there will be plenty.

"This is a public-private partnership that is about economic development. This is about building something much bigger than an arena," Feigin said.

The following is a statement from Milwaukee County Executive Chris Abele on the city of Milwaukee’s vote to approve financing for the Milwaukee Bucks arena:

The following is a statement from Tim Sheehy, president of the Metropolitan Milwaukee Association of Commerce:

Marquette University President Michael Lovell issued this statement:

So what's next? Bucks officials will gear up to sign a lease agreement with the Wisconsin Center District and get city zoning permits for construction. That's when we should see more specific designs for the arena and the surrounding sports and entertainment complex.

Bucks officials hope to tip off the 2017-2018 season in that new arena downtown.