"Good give-and-take:" After meeting in Madison, leaders optimistic arena funding deal will be reached

MADISON (WITI) -- Key players from Milwaukee and Madison on Wednesday, April 22nd met at the Capitol in Madison to discuss funding for a new Milwaukee Bucks arena. 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. The entertainment district would be paid for mostly by private enterprises -- but the arena requires public funding.

Wednesday's meeting was the second involving representatives from the Milwaukee Bucks, along with city of Milwaukee, Milwaukee County and state officials. While there were few new details, everyone involved said the same thing when the meeting wrapped up: The state cannot afford to lose the Bucks, and they're optimistic a funding agreement will be reached.

The meeting lasted about 90 minutes.

"We haven`t come up with any firm numbers as to who`s gonna do any part of it. That`s part of the negotiations we are continuing to undertake," Assembly Speaker Robin Vos (R-Rochester) said.

"We don`t come out with specifics until everybody who has to agree agrees. I take it seriously. We`re all working for taxpayers. We all wanna see this get done. We all wanna do it responsibly," Milwaukee County Executive Chris Abele said.

The estimated cost of the arena is around $500 million.



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.

State legislative leaders are hoping the local contribution (from the city and county) will exceed $50 million. Fitzgerald says a new wrinkle might be the city and county securing their own loans.

"There is kind of a willingness I think to see whether or not the county and the city can go directly to the board. If there`s any kind of change, it`s probably that -- to see what will work there," Fitzgerald said.

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.

Abele and Milwaukee Mayor Tom Barrett avoided talking specifics Wednesday, but said they're optimistic a plan will come to fruition.

"It was a good give-and-take and we`re gonna continue the negotiations to see how we can make this possible," Mayor Barrett said.

Governor Scott Walker didn't participate in Wednesday's meeting, but while in the Fox Valley, he spoke about what needs to happen to get a funding deal.

"I've said since putting out my plan that the city and county have to come to the table with a greater impact and we've been talking with the county executive and the mayor and we think there are a number of other options on the table that can get us there. Certainly for anything to pass the Legislature is going to want to see that the city and county are coming to the table heavily," Walker said.

Another meeting is planned for Thursday. Abele says he's willing to come back to Madison every day until a deal is reached.

The NBA has mandated an arena plan be in place by 2017 -- or the Bucks are gone.