One-time tobacco tax money in the bank for new Vikings stadium

  • Article by: BAIRD HELGESON , Star Tribune
  • Updated: August 21, 2013 - 12:00 AM

The one-time tax imposed on tobacco inventories raised $30 million, more than enough to cover the state’s first bond payments on the Vikings’ $975 million new home.

hide

This handout released by the Minnesota Sports Facilities Authority and the Minnesota Vikings shows the new Vikings stadium in this rendering done by HKS Sports and Entertainment Group.

 

The state has secured the money to pay the first year’s debt on the new Minnesota Vikings stadium.

A one-time tax on tobacco inventory brought in $30 million, more than enough to cover the state’s first bond payments on the $975 million new ­stadium.

The Minnesota Department of Revenue reports that the money will be available in September, months before state-backed bonds are set to be sold to pay for the project.

“We are certainly pleased that the steps that the Legislature and the governor took to provide backup sources for funding for the state’s share of stadium costs are coming in as expected,” said Bob Hume, a Dayton spokesman.

The stadium project has been dogged by funding problems since the initial revenue source — money from new electronic pulltabs and bingo games — fell profoundly short of estimates and has shown no sign of rebounding.

Dayton and legislative leaders scrambled to find alternate funding streams earlier this year that were politically viable and that did not pull taxpayer dollars directly from the general budget.

State leaders turned to the one-time tobacco inventory tax to make the first bond payment. Revenue Commissioner Myron Frans said it is the only cigarette money going toward the stadium debt.

Budget officials dedicated $26.5 million in tobacco money toward the stadium bond payments, which are expected to be about $20 million in the first year and about $33.5 million annually in subsequent years.

Those payments could change slightly once the February forecast is known and after state officials lock in an interest rate when they sell the stadium bonds this fall, Frans said.

The remaining $3.5 million in tobacco tax collected this year will go into the state’s ­general fund.

Team owners and state ­officials expect to break ground on the new stadium in October.

Aside from the funding problems, the Minnesota Sports Facilities Authority has delayed signing crucial contracts with the team until an independent audit is conducted on the finances of Vikings owners Zygi and Mark Wilf.

The Wilfs face a multimillion- dollar judgment from their dealings in a 20-year-old New Jersey development.

Team owners say the judgment will not affect their ­ability to make payments on the new stadium.

 

Baird Helgeson • 651-925-5044

  • get related content delivered to your inbox

  • manage my email subscriptions

ADVERTISEMENT

Cleveland - LP: T. Bauer 1 FINAL
Minnesota - WP: A. Swarzak 3
Cincinnati - LP: M. Leake 1 FINAL
Milwaukee - WP: K. Lohse 5
Kansas City - WP: W. Davis 2 FINAL
Chicago WSox - LP: Z. Putnam 1
Washington - LP: S. Strasburg 4 FINAL
Colorado - WP: J. De La Rosa 6
NY Mets - WP: B. Colon 3 FINAL
Seattle - LP: T. Walker 2
Detroit - WP: A. Sanchez 11 FINAL
Arizona - LP: T. Cahill 5
Los Angeles - LP: D. Haren 1 FINAL
Pittsburgh - WP: F. Liriano 6
San Francisco - WP: M. Bumgarner 3 FINAL
Philadelphia - LP: J. Papelbon 1
Texas - LP: Y. Darvish 1 FINAL
NY Yankees - WP: D. Phelps 2
Boston - LP: C. Buchholz 4 FINAL
Toronto - WP: R. Dickey 6
Miami - LP: N. Eovaldi 1 FINAL
Atlanta - WP: E. Santana 6
Tampa Bay - WP: A. Cobb 3 FINAL
St. Louis - LP: L. Lynn 0
San Diego - WP: I. Kennedy 8 FINAL
Chicago Cubs - LP: T. Wada 3
Houston - LP: B. Peacock 7 FINAL
Oakland - WP: J. Chavez 9
Baltimore - LP: T. Hunter 2 FINAL
LA Angels - WP: J. Weaver 3
Chicago 1 FINAL
San Jose 5
Calgary 8:00 PM
Edmonton
Winnipeg 7/25/14 9:00 PM
Brt Columbia
Ottawa 7/26/14 6:00 PM
Hamilton
Toronto 7/26/14 9:00 PM
Saskatchewan
Winnipeg 7/31/14 6:00 PM
Hamilton
Toronto 8/1/14 6:00 PM
Montreal
Brt Columbia 8/1/14 9:00 PM
Calgary
Saskatchewan 8/2/14 6:00 PM
Ottawa
Connecticut 75 FINAL
Washington 89
New York 66 FINAL
Los Angeles 64
Connect with twitterConnect with facebookConnect with Google+Connect with PinterestConnect with PinterestConnect with RssfeedConnect with email newsletters

ADVERTISEMENT

ADVERTISEMENT

Date/Opponent Time W L Score
2014 preseason     
Aug 8 - vs. Oakland 7 pm
Aug 16 - vs. Arizona 7:30 pm
Aug 23 - at Kansas City 7 pm
Aug 28 - at Tennessee 7 pm
2014 regular season     
Sep 7 - at St. Louis Noon
Sep 14 - vs. New England Noon
Sep 21 - at New Orleans Noon
Sep 28 - vs. Atlanta 3:25 pm
Oct 2 - at Green Bay 7:25 pm
Oct 12 - vs. Detroit Noon
Oct 19 - at. Buffalo Noon
Oct 26 - at Tampa Bay Noon
Nov 2 - vs. Washington Noon
Nov 9 - Bye
Nov 16 - at Chicago Noon
Nov. 23 - vs. Green Bay Noon
Nov. 30 - vs. Carolina Noon
Dec 7 - vs. NY Jets Noon
Dec 14 - at Detroit Noon
Dec 21 - at Miami Noon
Dec 28 - vs. Chicago Noon

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

question of the day

Poll: Which local pro team are you most excited about?

Weekly Question

ADVERTISEMENT

 
Close