Tuesday, May 8, 2012

Vikings stadium: House votes to build team new home - if it pays more break on vikings stadium

The Minnesota House approved a bill for a new Vikings stadium by a 73-58 vote Monday, May 7, giving a huge boost to stadium supporters and sending the issue to the Senate.

House members met on the bill for 81/2 hours and took up about three dozen proposed amendments, the most significant of which cut the state's contribution by about 25 percent and specified that naming rights revenue be shared between the public and the team.

The Vikings called that provision "not workable."

Gov. Mark Dayton called the House vote "a huge step forward" and said there were "more positive votes than almost anyone expected."

Democrats put up 40 votes in favor and Republicans 33.

Many of the amendments seemed to be offered and passed in

order to give lawmakers leverage to craft a better deal for the state in conference committee.

The House bill differs significantly from the one in the Senate, and the differences would need to be resolved in conference committee, after which there would be another round of votes in the House and Senate before the bill goes to the governor.

The Senate is expected to take up the stadium bill Tuesday. The session begins at 9 a.m.

But House passage was still a significant step, and it sets up a potential end-game for a Vikings stadium push that's been under way at least 12 years and engaged in earnest for about the past three.

Bill sponsor Rep. Morrie Lanning, R-Moorhead, started the debate about 2 p.m. by substituting an amended

bill for consideration. Among the changes: new language specifying that construction cost overruns would be the responsibility of the builder, not the public.

"The time has come for Minnesota to make a decision," Lanning said.

"Whatever you think of this bill, this is our one chance," said Rep. John Kriesel, R-Cottage Grove, who has been carrying the bill along with Lanning. "This bill works, it's been fine-tuned, and it will build a stadium."

The bill was amended right off the bat to

Scott "Skolt" Asplunds of Maple Grove, with shield, leads Vikings fans as they holler and cheer after the stadium bill was passed 73-58 in the Minnesota House of Representatives votes on the stadium bill at the State Capitol in St. Paul on Monday May 7, 2012. (Pioneer Press: Richard Marshall)

lower the state's contribution.

An amendment introduced by Rep. Pat Garofalo, R-Farmington, passed 97-31. It lowers the state's contribution by $105 million and raises the team's by that amount, and allows the public to share in naming rights revenue, which had been assigned to the team.

Rep. King Banaian, R-St. Cloud, who teaches stadium economics at St. Cloud State University, spoke in favor of Garofalo's amendment. He said the team is not putting up enough money toward the project.

Of the Vikings' $427 million contribution, $200 million would come from an NFL loan, only about $50 million of which be the responsibility of the owners, Banaian said.

Naming rights and personal seat licenses could easily yield more than $100 million each, he said.

"How much of this building is actually paid for by the owner?" Banaian asked. He guessed it would be $30 million to $50 million. "That's a heckuva deal."

But Lanning warned against taking too much money away from the Vikings. "There's a limit to how much we can squeeze."

And an NFL executive said making significant amendments puts the deal in peril.

"After months of negotiation and compromise and the building of a legislative coalition, albeit a fragile one, any meaningful change of the bill drastically changes the probability of success," said Eric Grubman, NFL executive vice president of venture and business operations. "You can't change the deal at the last minute."

Other successful amendments:

-- Removed Hennepin County taxes as a backup funding source in case the planned state revenues are not sufficient.

-- Made the lease 40 years instead of 30.

-- Increased the public share if the team is sold.

Rep. Steve Simon, DFL-St. Louis Park, proposed the increased "clawback" provision, saying "this team can give more. It really can."

Some members said they didn't want to expand gaming or doubted charitable gaming could produce sufficient revenues to pay for the state's share.

Rep. Mary Franson, R-Alexandria, said she supports the gaming portion of the bill but does not support tying it to a stadium. With the connection in place, "it becomes the stadium that losers built," she said.

Rep. Tom Anzelc, DFL-Balsam Township, told gambling opponents to "get over it." Minnesotans "want to participate in games of chance that are fair, that are legal and have a purpose."

For Banaian, passing the bill comes down to "helping a monopoly."

He estimated the team will generate an additional $40 million per year in revenue with the new stadium, largely diverted from other entertainment options.

In his view, stadium momentum really got rolling "when the NFL came to town."

"They came and said, 'Nice team you got here. Shame if something happens to it.' And they're able to take advantage of a monopoly situation," Banaian said.

As for Minnesota, "we seem to be going through the throes of stadium envy," said Linda Runbeck, R-Circle Pines, and are prepared to approve "an unprecedented transfer of public wealth."

"Is this a perfect plan? No," said Paul Marquart, DFL-Dilworth. But "there never will be a perfect plan in a perfect political climate. That just is not going to happen."

In the run-up to Monday's Vikings stadium vote, some prominent stadium opponents changed their minds.

Rep. Ryan Winkler, DFL-Golden Valley, announced Sunday he would be voting for the stadium because it seemed likely to be the only job-creation measure enacted this session.

And Sen. Ann Rest, DFL-New Hope, a major sponsor of an unsuccessful 1997 Twins stadium bill that almost cost her her seat, said she would support the Vikings stadium bill as a way to keep the team in Minnesota.

In March, an agreement between the team, the city of Minneapolis and state negotiators for a $975 million stadium on the Metrodome site was struck. That became the framework for a bill that would go on to clear three House and five Senate committees in April, often on unrecorded voice votes and mostly "without recommendation," meaning the bill was forwarded without an indication of support.

The Vikings got close to passing a stadium in 2006.

A bill providing for a new stadium for the team passed the Senate but not the House. The House wound up approving a new stadium for the Twins by a vote of 71-61; the Senate passed it 34-32.

The Associated Press and staff writers Brian Murphy and Frederick Melo contributed to this report. Doug Belden can be reached at 651-228-5136. Follow him on twitter at dbeldenpipress.

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