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State Representative Tina Liebling
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-0573
For more information contact: Ted Modrich 651-296-5809
HOUSE BRIEFS
Vikings Stadium Update
Dear Neighbor,
The Vikings’ quest for a new football stadium is receiving some hearings at the Capitol. I have received many messages on both sides of this issue and emotions are strong.
While proposals and counterproposals have been flying, it is important to remember that there is still no firm proposal, and there are still many unanswered questions. However, I’d like to give you the flavor of the mail I have been receiving and my position on the issue.
Supporters
Some of you believe that if Minnesota does not help the Vikings build a new stadium they will surely leave the state. For many Vikings fans that is a terrible prospect and some seem willing to have the state do almost anything to stop that from happening. Some point to the team’s economic impact on the state and the increased expense of trying to attract another professional football team if we lose this one. Some talk of the construction jobs created by building another stadium. And many of the messages in support of the stadium include the following text, which presumably came from the Vikings’ lobbying effort:
“The team has proposed putting up nearly 50 percent of the cost in the amount of $437 million which would be the third largest amount ever paid by an NFL team for a stadium. The fans would help the state portion of $300 million (less than one percent of the state budget) through ticket surcharge, Vikings scratch off tickets, apparel tax, memorabilia tax and personalized Viking license plates. The remainder could be covered through a Racino at Canterbury Park, which has been estimated to generate $100 million annually, on top of creating thousands of new permanent jobs at the track and in the agricultural industry."
Opponents
Others feel strongly that the team should get no financing from the public. You have watched the state cut funding for education, healthcare, and other priorities and can’t see putting any of the state’s scarce dollars toward this. Even some of you who are true fans of the Vikings say that the franchise is a private, profit-making business that should stand or fall on its own, and that the team owner can afford to make whatever investments he needs without the public’s help.
One person wrote: “If it is good for business then let business pay for it, not taxpayers. If gambling is a reasonable source of revenue to correct the MN budget shortfall then let’s use it for property tax relief, social services, or better yet education. The taxpayers should not be in the entertainment business.” Another person wrote: “My family has been season ticket holders for many years. If the Vikings want a new stadium, they can pay for it themselves with their obscene salaries!!” The suggestion that Legacy funds might be used raised the ire of many.
My position
A professional football team is an amenity that is of value to our state in many ways and it does have economic impact on Minnesota. Professional teams also raise our state’s national profile. I also understand and appreciate the passion and worry of Vikings fans that can’t bear the thought of losing the team. But how much support can and should Minnesotans give to a highly profitable private entertainment business, particularly when budgets are so tight? Is a brand new stadium a want or a need?
I firmly believe that—especially in this tough economy—successful businesses should not receive handouts from the public. We are living in the worst economic times since the Great Depression, so the fact that other teams have received public support doesn’t persuade me. I have seen nothing to suggest that Mr. Wilf can’t afford to build this himself or find private investors to help him. Yet the state is being asked to invest hard cash and the expected increase in profits would go only to the team owner. This is not acceptable to me. Any deal with the Vikings should be a hard-headed business deal that gives Minnesota a proportionate share of the investment returns. If we let our emotions get in the way we could end up giving away the store.
Six years ago the Minnesota legislature was debating a bill to help fund the new Twins Stadium at Target Field. That debate was contentious and emotions were high because much of the public share would come from a new sales tax in Hennepin County to be imposed without a referendum—a move opposed by most of the Hennepin County legislators. I was one of the few legislators from outside the Metro area to vote against allowing that tax to be imposed on Hennepin County without a vote.
This time it is clear that the legislature will not support a forced sales tax increase for a stadium. So before Minnesota could invest in another stadium we would have to figure out how to raise the money. I am not in favor of expanding gambling in the state since I believe it has a negative effect on our overall quality of life. Gambling does not produce “free” money, but often diverts money that would otherwise be spent on necessities. And I agree with the person who said gambling money should not be treated like an extra that can be spent on entertainment.
The Vikings have also suggested a variety of taxes and fees that they say would be paid only by Vikings fans and employees. Under one proposal the stadium would capture taxes that wouldn’t be there “but for” the Vikings—such as income taxes from employees and sales taxes at the stadium. I find this idea absurd. If the Vikings are permitted to capture the taxes paid by their employees I’m sure many other businesses would want to do the same. Who would pay for the roads and parks and schools that those employees use?
I could support a tax or fee that is structured to be paid only by those who willingly support a stadium and does not siphon funds that are currently going elsewhere. If Mr. Wilf set up a fund and asked fans for voluntary contributions or sold tokens of support I would support that as well. I bet a lot of fans would pay to have their name on a seat in a new stadium.
Clearly, a special session of the legislature cannot be held without a plan that the legislature can consider and vote on. I look forward to the opportunity to learn more about the specifics of any plan and will work to make sure that any proposal is in the best interests of all Minnesotans.
As always, it is a privilege to represent you in St. Paul. Please continue to share your questions, comments, and concerns on this and other issues.
Warm regards,
Tina
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