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St. Paul's quest to get rid of debt lands at Capitol
The city is pursuing two options at the Legislature in an effort to wipe out loans for the RiverCentre Convention Center and Xcel Energy Center.
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St. Paul's quest to shed debt on the RiverCentre Convention Center and Xcel Energy Center continues at the Capitol.
City officials say money owed on the buildings is hampering maintenance, development of nearby areas and the ability to be more competitive in attracting conventions.
A provision in the Senate's supplemental budget bill, approved Thursday, calls for the forgiveness of about $35 million left on the loan for the arena.
The city has paid $5.9 million to the state on the original $48 million arena loan. Under the proposal, St. Paul would continue to make payments, totaling $6.5 million, through 2011. Then the remaining balance would be forgiven.
The city also would bump up its payments from August to June to help the state's books. The state's budget is estimated to be about $1 billion short.
Wendy Underwood, the city's lobbyist, said St. Paul is unique in that it's paying a loan for a public facility. "It's not a $35 million check to the city," she said.
The city also has $64.7 million left to pay in bonds on the arena, and it will continue to make those payments.
A proposal to extend the duration of a downtown tax-increment-financing district is scheduled to be heard in the House Taxes Committee on Thursday. The extension would keep money off the tax rolls, as things are now. The money raised in the district, about $6.4 million a year, would go toward paying off debt on the convention center and new projects in the Minnesota Event District.
The district, which was created by the city this year to make a case that it's a state attraction, is a collection of venues surrounding the convention complex and arena. It would include the Ordway Center for Performing Arts and Science Museum of Minnesota. About 3.4 million people attend events in the area yearly.
At the beginning of this session, St. Paul asked that $42 million in bonds on the convention center be paid off by the state. That didn't happen. That's when the idea of extending the duration of the TIF district came up.
"We need to get this done," said Sara Grewing, chief of staff for Mayor Chris Coleman. "We really feel this is a project of serious statewide significance."
Chris Havens • 651-298-1542
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