During the Wisconsin State Fair, Gov. Scott Walker signed a bill for the public financing package for a new $500 million arena in downtown Milwaukee. The arena financing plan was passed by overwhelming bipartisan votes of 52-34 in the state Assembly and 21-10 in the state Senate.
The last major hurdle for the arena deal is approval by the Milwaukee Common Council. Contrary to some media reports, the Milwaukee County Board will have no say in the arena financing deal.
The arena is planned for a site just north of the BMO Harris Bradley Center. The former and current owners of the Milwaukee Bucks have agreed to pay for half of the arena. The NBA says a new arena is needed to keep the Bucks in Milwaukee long term.
Under the bill signed by Walker, the public would pay for the other half of the arena with a combination of state, county, city and Wisconsin Center District funding sources. There would also be $2 per ticket surcharge for all arena events.
The city’s portion of the arena deal includes a $35 million parking structure and $12 million in tax incremental financing for public spaces, including a live block public plaza next to the arena.
Also under the proposed arena funding deal with the city, the Bucks ownership would purchase the parking structure at Fourth Street and Highland Avenue and the former Sydney Hih building site from the city for $8 million. But the city would pay back that $8 million after the $12 million TIF debt is paid off from property taxes generated by the additional development the Bucks owners plan to do around the arena. That arrangement would provide an incentive for the Bucks owners to make good on their ancillary development plans, Milwaukee Mayor Tom Barrett has said.
The arena financing deal is not subject to approval of the Milwaukee County Board. The county’s contribution for the arena project will come in the form of a $4 million annual reduction of state shared revenue funds for 20 years. That contribution is dictated by the bill approved by the Legislature. County Executive Chris Abele wanted the arena deal to include a provision that required the state to collect unpaid debts owed to Milwaukee County to cover that $4 million annual cost. The state Senate removed that provision, but county officials could still opt to request that the state collect the county’s debts.
The Bucks are hoping to begin construction of the arena as early as October, Bucks president Peter Feigin said.
