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Rybak unveils two funding plans for Vikings stadium in Mpls.

Posted by: Eric Roper Updated: October 27, 2011 - 5:58 PM

Updated at 5:35 p.m.

Mayor R.T. Rybak outlined two funding plans Thursday for building a Vikings stadium in Minneapolis: either raise the city's sales and hotel taxes or pull the money from a downtown casino.

The first plan would tack on an additional .35% sales tax to Minneapolis' existing .50% sales tax. The city's tax on hotel stays, known as the lodging tax, would rise 1% to 3.635%.

That plan faces significant hurdles at the city council, since at least six members are opposed to a city-only sales tax to pay for a stadium. 

At a news conference, Rybak said the council will support the funding plans when they consider that the tax increases will be directed partly to lowering the city's property taxes.

“The point here is that we’re delivering an option for residents of Minneapolis to broaden their sales tax in return for a lower property tax, which is an incredibly important point in the city of Minneapolis," Rybak said.

The council will ultimately decide whether that money goes to property tax relief or some other area of the budget.

The second option would annually draw 5% of the revenue from a proposed casino at Block E. That casino plan still faces many hurdles at the state level and potentially in the courts.

In all cases, the city's annual contribution to the operationgs of the stadium would be $9 million, according to a handout on the proposal. The city's net bond proceeds would range from $195 million to $300 million depending on the stadium location.

Rybak proposed three sites in Minneapolis to build the stadium. The first, called the Downtown East Site, surrounds the current Metrodome location. The second and third sites are located near the intersection of I-94 and I-394.

Jeff Anderson, director of corporate communications for the Vikings, quickly shot down the Minneapolis sites.

"We respect Mayor Rybak and the City of Minneapolis for trying to find a stadium solution," Anderson said in a statement. "However, the Minnesota Vikings have a local partner – Ramsey County – with whom we have negotiated for several months. Arden Hills is the ideal stadium site for the State, the Vikings and our fans."

Stadium Proposals

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