Menominee Nation offers to help pay for new Bucks arena if Gov. Walker okays Kenosha casino
MADISON (WITI) — Menominee bucks for the Milwaukee Bucks? Two of the biggest economic development projects in Wisconsin history are now linked. The Menominee Nation and Hard Rock International offered on Tuesday, February 10th to help pay for a new Milwaukee Bucks arena if Governor Scott Walker reverses course and approves an $800 million casino in Kenosha that would create 10,000 jobs. Walker said "no" to the proposed Kenosha casino last month.
The Menominee Tribe announced Tuesday that it would contribute $220 million to cover the taxpayers' share of a new Bucks arena if Walker changes his mind. Former Bucks owner Herb Kohl has pledged $100 million to the new arena project, and the new owners, Marc Lasry and Wes Edens have pledged $150 million.
Menominee Chairman Gary Besaw said in a statement:
"Providing public funding for sports facilities is always a dicey political proposition. Our proposal eliminates a big political problem and creates a major advantage to state taxpayers. We want Wisconsin to stay big-league. But we also want to help make sure state taxpayers don’t bear the financial burden of keeping the team."
"If we can be helpful there, that's what our company does," Hard Rock International CEO Jim Allen told FOX6 News.
Governor Walker wants to issue $220 million in bonds to help pay for the new arena. Walker's spokeswoman reiterated in an email Tuesday that approving the casino would open the state up to significant litigation from the Forest County Potawatomi. That tribe operates a casino in Milwaukee, and would need to be compensated for any lost business if a casino is built in Kenosha.
Walker is in London this week -- but his spokesman issued the following statement to FOX6 News:
"It’s important to note that Governor Walker's "Pay Their Way" plan for the new arena protects current taxpayer dollars. The $220 million would not come from current GPR. Rather it is in the form of an appropriation bond to be paid back by projected growth in income taxes from the Bucks, as well as visiting teams, due to salary increases and new TV contracts. Once the bonds are paid off, tax growth would return to the state.
Governor Doyle’s compacts with the tribes open up the State of Wisconsin to significant litigation risks. Due to those compacts, the long-term economic hit to the state budget would be a potential loss of hundreds of millions of dollars."
"We can't find a lawyer anywhere who thinks that's remotely possible. It's never happened in the history of the United States when it comes to compacts between tribes and states -- but let's say it did. We're willing to put up the $275 million bond," Allen said.
Bucks President Peter Feigin says he's open to talking with the Menominee Tribe and Hard Rock International officials, but he says his focus is on Governor Walker's original plan for the arena.
"I worry about anything that takes the focus off of the legislation to build this arena," Feigin said.
Assembly Speaker Robin Vos (R) released the following statement in regards to the offer from the Menominee Tribe to help fund the Milwaukee Bucks arena.
“I commend the Menominee Tribe for not giving up on creating thousands of jobs in Racine and Kenosha counties. I continue to support the tribe’s efforts to get approval for the Kenosha casino. This proposal is an exciting opportunity and could be a win-win for everyone involved.
However, even if you believe this proposal is a game changer, we must come to terms with the real possibility that the governor may never reverse his decision.”
Assembly Minority Leader Peter Barca (D) issued the following statement:
"This is a major new development that would provide taxpayers with a double bonanza and ensure two major entertainment venues that together would bring in approximately five million new tourists to Wisconsin a year, create roughly 10,000 jobs and free up millions in state revenue. It would also allow for any tax revenue generated from the ‘jock tax’ to be utilized to start filling the massive education holes in the governor’s budget.
If Governor Walker was being up front that his sole objection was about wanting to protect taxpayers, he will take advantage of this incredible opportunity and secure a win-win for Wisconsin taxpayers."
The Menominee Tribe indicated in a news release that it is not seeking naming rights for the new arena as part of its offer. But they indicate they would welcome the opportunity to talk about cultural representation, appropriate signage and marketing opportunities and ways to enhance sustainability and green building methods at a new building.
Governor Walker’s final decision on the Kenosha casino proposal is due on February 19th. Officials with the U.S. Department of Interior’s Bureau of Indian Affairs have said they would give full consideration to a second review and determination from the governor by that deadline.
Hard Rock International CEO Jim Allen said he's hoping for one more surprise in the long, twisting saga involving the proposed Kenosha casino.
"It's a business opportunity. Business negotiations have a lot of winding turns and I think somedays you may think it's straight, and everything is fine and all of a sudden a curve ball comes at you. We're not sure what else could be out there, but we're happy to sit with Governor Walker and his team at any time to learn more," Allen said.
Only half-joking, Allen said he's willing to fly to London to meet with Governor Walker this week. In fact, London is the city where Hard Rock International was founded.
This, as Wisconsin Secretary Mike Huebsch issued this statement to FOX6 News:
"I believe the governor has made a decision and we have moved on. When you get to this point and you're starting to negotiate through press release, you recognize there are some very serious concerns over the validity of those offers."
The Menominee Tribal Legislature met with members of the tribe on Tuesday night. They are planning on marching from Keshena to Madison in protest of Walker's rejection of the proposed Kenosha casino. The march will start on Friday, February 13th at 8:00 a.m.
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