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Minnesota State Officials Remain Skeptical On Subsidy Request For MLS Stadium Effort

NASL club Minnesota United Owner Bill McGuire and other execs yesterday made their first appearance at the state Capitol to "press for a comparatively small taxpayer subsidy" for a potential MLS venue and "were met with stiff and bipartisan skepticism," according to a front-page piece by Eric Roper of the Minneapolis STAR TRIBUNE. McGuire said that the group "is seeking a property tax exemption and a sales tax break on construction materials for the new stadium," which "would host about 20 professional games a year." The ownership group would pay $30M for the land, a $100M MLS franchise fee and $120M to build the open-air stadium. Despite the tax exemptions, which could total $3M just from the sales taxes, McGuire characterized the deal as having “no public subsidy whatsoever.” Minnesota Gov. Mark Dayton, who said that he "would oppose a direct stadium subsidy, expressed an openness to the plan." State Senate Majority Leader Tom Bakk said that it "was a 'modest' request, but nearly impossible without city and county support." Minneapolis Mayor Betsy Hodges "voiced strong opposition." McGuire was joined in meetings by reps of other investors in the MLS effort, including Twins BOD member Bob Pohlad and T'Wolves President Chris Wright. The stadium-subsidy proposal "is much smaller than what was required" for Target Field and the new Vikings stadium (Minneapolis STAR TRIBUNE, 4/15). Bakk: "I'm surprised that they're making this kind of investment." Dayton said that the ratio of private-to-public financing should make taxpayers "very, very pleasantly surprised." Bakk suggested that the MLS effort "seek tax abatement or tax-increment financing from Hennepin County and possibly the City of Minneapolis, which would not require state legislation" (ST. PAUL PIONEER PRESS, 4/15).

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