YOUR GUIDE TO THE TWIN CITIES
Governor's leadership is a positive in charged stadium debate.
Call it "Skol Bucks,'' a new instant scratch-off game from the Minnesota Lottery. Gov. Tim Pawlenty on Wednesday likely surprised both his critics and supporters by floating the idea that the state tap state lottery proceeds to help finance a new stadium for the Minnesota Vikings.
The governor deserves credit for publicly getting involved in the important conversation on the future of the team, whose Metrodome lease expires after the 2011 season. Without his leadership, a stadium bill would not get the consideration it deserves. Over the next few months we'll find out if he's willing to do what's necessary to come up with a detailed financing package and twist arms on both sides of the aisle in the Legislature to get it passed.
In the meantime, it's worth pondering the lottery idea.
Last year the lottery generated $482.2 million in revenue, with $118.2 million in profits going to state programs. Forty percent of that money is constitutionally dedicated to an environmental fund, and the other 60 percent -- $64.72 million in 2009 -- goes into the state's general fund.
The governor highlighted a new lottery game, Mega Millions, that is projected to generate another $20 million for the state this year. About $12 million in proceeds from the game will fund nonstadium needs in the governor's upcoming budget proposal. Pawlenty said Mega Millions is an example of the kind of lottery game that could be used to generate money for a stadium. For a recent case study, Minnesotans can look to the state of Washington, which is using lottery proceeds as part of the financing package for Qwest and Safeco stadiums.
"People will say it should go into schools or roads or whatever, but ... that's another way to do the [the stadium],'' Pawlenty said during a Minnesota Public Radio program.
The governor is correct: Any discussion of using lottery proceeds to help pay for a stadium must take into account that we already capture lottery money for the general fund, and any stadium money would be diverted from other public uses. Even if a new lottery game were developed specifically for a stadium, it's possible a good chunk of the revenue would come at the expense of other lottery games, said Dale McDonnell, general counsel for the Minnesota Lottery. McDonnell cautioned that the state's total revenue pot would not necessarily grow if the lottery is part of a stadium financing package.
In other words, there is no magic bullet here -- just a possible new use for existing gaming money. The Legislature may decide to include lottery proceeds in a stadium bill -- and this newspaper may end up supporting a financing package that includes lottery money -- but Minnesotans should be aware of the tradeoffs.
It also should be noted that current stadium financing proposals from the Vikings call for a public subsidy package that would generate $29 million (no roof) to $42 million (retractable roof) annually, with the Vikings contributing a total of $216 million. Even if, for example, the state used the $12 million from Mega Millions to finance the stadium, a significant gap would remain, which is why the governor and Vikings have also discussed capturing tax revenues from the stadium and team.
Bottom line: Even if Vikings owner Zygi Wilf increases his contribution -- and he should, especially in these economic times -- and the hospitality industry is hit with new stadium taxes, Minnesotans will be asked to make the largest contribution to the cause.
As we disclosed Sunday, a new stadium project on the Metrodome site could include property owned by the Star Tribune, and the Vikings previously had an option to buy some of the newspaper's land. Although the Editorial Board is reserving judgment on whether to support or oppose a stadium plan until a definitive proposal exists, we continue to believe the Vikings are important to the shared life of the community, and the team is likely to leave the area after 2011 unless the state becomes a partner in developing a stadium that strengthens the franchise and benefits the community.
The governor may be a reluctant quarterback in the stadium negotiations, but his leadership is welcome and essential in a stadium debate that is going to get even more complex in the weeks ahead.
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The Opinion section is produced by the Editorial Department to foster discussion about key issues. The Editorial Board represents the institutional voice of the Star Tribune and operates independently of the newsroom.
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