Committee rejects Vikes stadium bill III
After clearing two House committees with relative ease this month, a bill to use public money to help build a Minnesota Vikings stadium in Minneapolis was defeated Monday night, April 16, in a third, dealing a potentially fatal blow to the project's chances this legislative session.
In a 9-6 vote that was bipartisan in its opposition, the House Government Operations and Elections Committee declined to go along with even a watered-down motion to pass the bill "without recommendation" to the House Taxes Committee.
Bill sponsor Morrie Lanning, R-Moorhead, called the vote "very disappointing" and said that for the bill to have any chance now to pass this session - which is expected to conclude by the end of the month - "Somebody's going to have to pull a rabbit out of a hat."
Vikings vice president Lester Bagley called the outcome "extremely disappointing" and said "it's a mistake" for people to assume the Vikings and the NFL will continue operating under the status quo.
He said that isn't a threat that the team will leave, but "Minnesota's in control of their destiny.
"We've done everything we've been asked," Bagley said. The question for the state is: "What else would you expect us to do?"
Bagley said the team will continue to push the proposal in the remaining two weeks of the session.
A spokeswoman for Democratic Gov. Mark Dayton, who has supported the Vikings in their stadium quest, said the governor would not have an immediate comment on the committee vote.
In the Senate, the stadium bill had a hearing in committee in March, and there has been talk of holding another, but nothing has been scheduled.
The Government Operations and Elections Committee heard about three hours of testimony Monday and discussed the bill for more than an hour.
Members did approve some significant amendments.
One offered by Rep. Joyce Peppin, R-Rogers, the chair of the GOP-led committee, removed the language in the bill that exempted the stadium project from a Minneapolis charter requirement that mandates a public vote for stadium expenditures of more than $10 million. The charter language should be respected, Peppin said.
Another amendment from Rep. Ryan Winkler, DFL-Golden Valley, removed excess Hennepin County tax revenue supporting the Twins' Target Field as a potential backup funding source for the stadium project.
The hearing featured some tough questioning.
Peppin pressed Minneapolis City Council President Barb Johnson on why the project wouldn't trigger the city charter's requirement for a public vote.
Johnson said the Legislature has overridden the city's charter requirements multiple times. But Peppin said it appeared to her the city council was relying on legal niceties to avoid taking a tough vote.
In response to a question from Rep. Bev Scalze, DFL-Little Canada, Vikings finance chief Steve Poppen offered some clarity on the potential value of naming rights for the new stadium.
Based on deals in comparable markets, naming rights would be worth between $4.5 million and $7.5 million per year, he said.
Winkler asked for details on how much the value of the team would rise with a new stadium.
"How do we know we're getting a good deal?" he said. "Are we subsidizing more than we need to?"
Poppen said the amount the team would be contributing over the life of the facility is greater than what's being done with other teams in the Midwest.
He said state representatives have reviewed the team's financial statements and that the Vikings are not making money. "The Vikings are not cash-flow positive as we currently stand," Poppen said.
Metropolitan Sports Facilities Commission chair Ted Mondale, Dayton's point person on the stadium issue, estimated in December that the team was roughly breaking even financially in the Metrodome. He said at Monday's hearing that it's not realistic to think the team will continue year after year to invest in an operation that breaks even.
Representatives of labor groups and executives from Target, U.S. Bank and other corporate organizations testified on behalf of the bill.
Winkler and Rep. Frank Hornstein, DFL-Minneapolis, asked team and corporate representatives why the business community didn't step up and directly contribute to the stadium project. The response was that businesses expect to support the project by investing in naming rights, advertising, suites and other opportunities.
Some Minneapolis residents told the committee they should require a referendum in Minneapolis, as the charter requires.
The stadium plan proposed by Lanning in the House and Sen. Julie Rosen in the Senate calls for a $975 million stadium next to the Metrodome in Minneapolis. The state would kick in $398 million from the tax revenue on electronic charitable gaming; the Vikings would contribute $427 million, much of it expected to be from an NFL loan; and the Minneapolis would provide $150 million from extending and redirecting taxes that now support the convention center.
Voting against the bill were Democrats Marion Greene, Frank Hornstein, Bev Scalze, Steve Simon and Ryan Winkler and Republicans Joyce Peppin, Rich Murray, David Hancock and Duane Quam.
Voting in favor was Democrat Michael Nelson and Republicans Michael Beard, Carol McFarlane, Tim O'Driscoll, Tim Sanders and Dean Urdahl.
(source St. Paul Pioneer Press)
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