Governor Scott Walker signed Wednesday morning the Bucks Arena Funding Deal at the Wisconsin State Fair.
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As regular readers may recall, the economic impact of new venues tends to be wildly exaggerated.
Taxpayers ultimately will pay about $400 million, including interest, over the next two decades, while current and former team owners will spend another $250 million. Democratic Assembly Minority Leader Peter Barca, of Kenosha, stood behind Walker and in between Republican lawmakers on Wednesday.
But his fellow Republicans who control the Legislature took the measure out of the budget and reworked the deal with some input from Democrats. “This is good for state of Wisconsin”, said Governor Walker.
Opponents argued taxpayer cash shouldn’t go towards constructing an area for a privately owned sports activities franchise.
Milwaukee County is on the hook for a $4 million annual contribution to the arena financing.
The arena’s original plan called for borrowing $220 million to help with the cost of the arena, but that plan would have cost taxpayers around $80 million.
Walker noted that the state could have lost at least $6.5 million a year in income taxes from players’ salaries, if the National Basketball Association followed through with a threat to relocate the Bucks if a new arena is not built. Over 20 years, Walker said that would have grown by another $169 million.
The city would also compensate the Bucks ownership group for their purchase of a city-owned parking structure at Fourth Street and Highland Avenue that would be demolished to clear land for an entertainment center with bars and restaurants.
“It’s critical not only for those who love sports, but the main reason I got into it was because it protected state revenues”, Walker said recently.
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Included within the legislation are “clawback” provisions which insure that if the Bucks owners were to leave and break the contract with us, they must pay back the entire amount we have invested. “When the chips are down, I’m not intimidated by anyone”.
