St. Paul wins forgiveness of Xcel arena loan

Elsewhere, Maplewood won a TIF district for 3M but the fate of two schools remained unresolved for now.

hide

Xcel Energy Center

 

St. Paul may not have received state bonding for projects this session, but it did claim a legislative victory it’s been chasing for years: the state will forgive most of the remaining $32.7 million it loaned the city to build Xcel Energy Center.

That doesn’t mean that the Minnesota Wild will stop paying rent to St. Paul for use of the arena, money the city used to pay down the loan to the state.

What it does means is that the money now will go toward renovating the arena, a project Wild and Xcel Center spokeswoman Kathy O’Connor said is overdue. “It’s the right time for an update,” she said.

In 1998, the state made a $65 million interest-free loan toward construction of the $130 million arena, $17 million of which was forgiven when the team agreed to allow amateur and public events. That left a loan of $48 million.

Under the terms of the forgiveness deal in this year’s omnibus jobs, housing and commerce bill, St. Paul’s annual loan payment will be reduced by $500,000 in 2014 and again in 2015. The balance of the loan will be forgiven in 2016. The city still owes $56.8 million in bonds on the arena, of the $72.7 million it borrowed in 1998.

The Wild and the city will jointly decide how to use the loan windfall for arena improvements, O’Connor said. High on the team’s list: seat replacements, widening of concourses, expanding entrances and upgrading scoreboards for the digital era, she said, “All things we feel are important to keeping the arena relevant.”

She added that there are no plans to use the money for a nearby practice facility that the team has long desired.

As a tit-for-tat of sorts, the state gave Minneapolis about $33 million over several years to help pay off debt on the downtown library, a last-minute addition to the tax bill intended to right the balance with St. Paul.

“The state stepped up and helped out the Xcel Center this year because that’s a statewide asset. It just happens to be located in the city of St. Paul,” said Rep. Jim Davnie, DFL-Minneapolis. “The downtown library is a statewide asset that just happens to be located in the city of Minneapolis.”

No local projects were included in the bonding bill, including $14 million that St. Paul had sought for a planned $28 million expansion of the Minnesota Children’s Museum. Dianne Krizan, the museum’s president, said they will continue with private fund­raising and return to the Legislature next year.

But Joe Campbell, a spokesman for Mayor Chris Coleman, said that St. Paul got a $10.1 million hike in state aid, over and above the $50.3 million it received this year. “This will help us close what could be a gap in city services … and go a long way toward stabilizing property taxes,” he said.

TIF district for 3M

Maplewood won approval in the tax bill for a tax-increment financing (TIF) district for a 412,000-square-foot research and development lab building planned by 3M Co.

City Manager Jim Antonen said the TIF district was “essential for the retention of 3M jobs, not only in Maplewood, but in Minnesota.” The $150 million project will replace two older buildings. “I think it’s a recognition of the importance of 3M’s investment,” said Jacqueline Berry, a company spokeswoman.

The lab building, to be built on the corporate campus near McKnight Road and Conway Avenue, will house 700 current 3M employees. The TIF district would cover just the lab site, Antonen said, and remain for 25 years.

TIF districts are a financing mechanism to spread out the increased cost of property taxes created by the higher value of new construction over a longer period of time.

The city will have only a modest direct cost as a result of creating the TIF district, he added, while ensuring that 3M doesn’t look elsewhere.

  • get related content delivered to your inbox

  • manage my email subscriptions

ADVERTISEMENT

Kansas City - WP: J. Guthrie 3 FINAL
San Francisco - LP: T. Hudson 2
Detroit 10/26/14 8:30 AM
Atlanta
Buffalo 10/26/14 12:00 PM
NY Jets
St. Louis 10/26/14 12:00 PM
Kansas City
Houston 10/26/14 12:00 PM
Tennessee
Minnesota 10/26/14 12:00 PM
Tampa Bay
Seattle 10/26/14 12:00 PM
Carolina
Baltimore 10/26/14 12:00 PM
Cincinnati
Miami 10/26/14 12:00 PM
Jacksonville
Chicago 10/26/14 12:00 PM
New England
Philadelphia 10/26/14 3:05 PM
Arizona
Oakland 10/26/14 3:25 PM
Cleveland
Indianapolis 10/26/14 3:25 PM
Pittsburgh
Green Bay 10/26/14 7:30 PM
New Orleans
Washington 10/27/14 7:30 PM
Dallas
New Orleans 10/30/14 7:25 PM
Carolina
Dallas 117 FINAL
Orlando 92
New York 80 FINAL
Toronto 83
San Antonio 87 FINAL
Houston 96
Miami 104 FINAL
Memphis 98
Minnesota 113 FINAL
Chicago 112
Phoenix 105 FINAL
Utah 100
Sacramento 68 4th Qtr 8:20
LA Lakers 82
Denver 53 3rd Qtr
Golden State 65
Portland 62 3rd Qtr 7:36
LA Clippers 55
Dallas 3 FINAL(SO)
New Jersey 2
Tampa Bay 4 FINAL
Winnipeg 2
Vancouver 3 FINAL
Colorado 7
Carolina 3 3rd Prd 1:11
Edmonton 6
Columbus 1 3rd Prd 17:06
Anaheim 3
Connecticut 21 FINAL
(18) East Carolina 31
Miami-Florida 30 FINAL
Virginia Tech 6
So Florida 17 FINAL
Cincinnati 34
Troy 13 FINAL
South Alabama 27
BYU 23 4th Qtr 8:21
Boise State 55
(6) Oregon 38 2nd Qtr 0:30
California 28
North Texas 10/25/14 11:00 AM
Rice
UAB 10/25/14 11:00 AM
Arkansas
Rutgers 10/25/14 11:00 AM
(16) Nebraska
Maryland 10/25/14 11:00 AM
Wisconsin
Texas 10/25/14 11:00 AM
(11) Kansas State
Minnesota 10/25/14 11:00 AM
Illinois
Memphis 10/25/14 11:00 AM
SMU
North Carolina 10/25/14 11:30 AM
Virginia
San Jose St 10/25/14 12:00 PM
Navy
Northern Ill 10/25/14 12:00 PM
Eastern Mich
(25) UCLA 10/25/14 1:00 PM
Colorado
Akron 10/25/14 1:00 PM
Ball State
Massachusetts 10/25/14 1:00 PM
Toledo
Ohio U 10/25/14 1:00 PM
Western Mich
Ga Southern 10/25/14 1:00 PM
Georgia State
Kent State 10/25/14 1:30 PM
Miami-Ohio
Oregon State 10/25/14 2:30 PM
Stanford
Fla Atlantic 10/25/14 2:30 PM
(23) Marshall
Louisiana Tech 10/25/14 2:30 PM
Southern Miss
(1) Miss State 10/25/14 2:30 PM
Kentucky
Georgia Tech 10/25/14 2:30 PM
Pittsburgh
(22) West Virginia 10/25/14 2:30 PM
Oklahoma State
Texas Tech 10/25/14 2:30 PM
(10) TCU
Michigan 10/25/14 2:30 PM
(8) Michigan State
Boston College 10/25/14 2:30 PM
Wake Forest
Central Mich 10/25/14 2:30 PM
Buffalo
Vanderbilt 10/25/14 3:00 PM
Missouri
Old Dominion 10/25/14 3:00 PM
Western Ky
UNLV 10/25/14 3:00 PM
Utah State
Temple 10/25/14 4:00 PM
UCF
(15) Arizona 10/25/14 5:00 PM
Washington St
Texas-El Paso 10/25/14 6:00 PM
TX-San Antonio
Wyoming 10/25/14 6:00 PM
Colorado State
Syracuse 10/25/14 6:00 PM
(21) Clemson
Texas State 10/25/14 6:00 PM
ULM
(3) Ole Miss 10/25/14 6:15 PM
(24) LSU
(4) Alabama 10/25/14 6:30 PM
Tennessee
So Carolina 10/25/14 6:30 PM
(5) Auburn
(13) Ohio State 10/25/14 7:00 PM
Penn State
(20) USC 10/25/14 9:00 PM
(19) Utah
(14) Arizona State 10/25/14 9:45 PM
Washington
Nevada 10/25/14 10:59 PM
Hawaii
(2) Florida State 10/30/14 6:30 PM
Louisville
Troy 10/30/14 6:30 PM
Ga Southern
Cincinnati 10/31/14 7:00 PM
Tulane
Tulsa 10/31/14 7:00 PM
Memphis
Purdue 11/1/14 2:00 AM
(16) Nebraska
(17) Oklahoma 11/1/14 2:00 AM
Iowa State
Oklahoma State 11/1/14 2:00 AM
(11) Kansas State
(10) TCU 11/1/14 2:00 AM
(22) West Virginia
Texas 11/1/14 2:00 AM
Texas Tech
Northwestern 11/1/14 2:00 AM
Iowa
Maryland 11/1/14 2:00 AM
Penn State
Houston 1 FINAL
Chicago 2
Montreal 23 FINAL
Ottawa 17
Saskatchewan 27 10:33
Calgary 21
Hamilton 10/25/14 3:00 PM
Toronto
Brt Columbia 10/25/14 6:00 PM
Winnipeg
Hamilton 10/31/14 6:30 PM
Ottawa
Winnipeg 11/1/14 3:00 PM
Calgary
Brt Columbia 11/1/14 6:00 PM
Edmonton
Toronto 11/2/14 11:00 AM
Montreal
Connect with twitterConnect with facebookConnect with Google+Connect with PinterestConnect with PinterestConnect with RssfeedConnect with email newsletters

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

question of the day

Poll: Who is your favorite Wild player?

Weekly Question

ADVERTISEMENT

ADVERTISEMENT

 
Close