GLOBAL SOLUTION

REDEFINE THE PROBLEM

Part of the challenge on the stadium issue seems to stem from fatigue associated with dealing with
stadiums year after year. Since 1994, the legislature and public have wrestled with these issues
seemingly non-stop. In the face of constant budget crises, divisive elections, and divided
government stalemates, this topic has provided yet another reason to keep policy makers and the
public divided.

Amidst this challenge, there is an opportunity to redefine the problem and hit “reset” with a global
solution that once and for all solves the long-term question of how to responsibly plan and maintain
sports facilities. A way to keep our pro sports teams competitive –without over-indulging owners
and players.

This redefinition also helps extract the conversation from the history associated with other stadium
conversations. By making this about all teams and facilities, we engage the widest possible
political base and create public confidence that we will resolve these issues for decades to come.

Finally, this is an opportunity to really, truly solve the problem long-term. The Vikings stadium
solution is so large that you can roll up all the other buildings and they collectively make up only
1/3rd of the project. Meaning that if you are going to have the pain of solving for a Vikings stadium,
you can clean up a larger landscape for just a little more.

BROADEN THE SUPPORT

By broadening the solution, you also broaden the potential for support. The coalition effort to
renovate Target Center, along with other sports teams, business groups, labor leaders and local
government bodies can help quickly build bi-partisan support for the global solution.

A REGIONAL SPORTS AUTHORITY

There are two basic kinds of statewide or regional sports authorities and commissions. The first kind
is an advocate/promotional/marketing group. This is similar to a convention and visitors bureau like
Meet Minneapolis that focuses on attracting sporting events to their communities. Oregon, Utah,
North Carolina Kentucky have these types of organizations.

The other type of statewide or regional authorities are state-created entities which own, operate or
oversee sports facilities and other similar buildings. Ohio, Maryland, New Jersey, Arizona and the
City of Pittsburgh have this type of organization and California has a bill in the legislature this year
to create an agency along those lines. In most cases, the Authority consists of members appointed

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by the executive and serve four-year terms. The Authority usually has direct sources of revenue,
consisting of a combination of a dedicated tax, rent from the tenants and a percentage of revenue
from the building. The revenue generally goes toward debt service, operating the buildings and a
reserve/investment fund.

If we seek a global solution, we can either pursue a reconstitution of the MSFC (to better include St.
Paul and suburban interests) or the establishment of a statewide board along one of the two lines
listed above.

Additional Benefits of regional sports authority

• Create economies of scale in the administration of the facilities
• Create maximum leverage in various contracts (ticketing, catering, concessions, etc.)
• Gain booking revenue by not allowing facilities to bid away rents and fees
• Coordination of year-round regional efforts to attract professional and amateur sporting
events

GLOBAL SOLUTION COSTS

ACQUISITION/RENOVATION COSTS
A global solution would cover the acquisition of existing facilities, construction of two new facilities
and renovations. These initial costs can be covered by the issuance of 25 year municipal bonds
through the Metropolitan Council.

1. Minnesota Vikings Stadium $ 700,000,000

a. Infrastructure 100,000,000
2. Target Center 155,000,000
a. Existing Debt 59,000,000
3. Xcel Center 20,000,000
a. Existing Debt 94,000,000
4. St. Paul Saints Stadium 45,000,000
5. HHH Metrodome (keep it) 0

Total Costs $1,173,000,000

OPERATION & MAINTENANCE COSTS

Operational costs will vary by facility and periodically may need to be subsidized. Additionally,
regular maintenance will need to be performed that falls outside normal operational budgets.
Finally, if the Metrodome is retained for public use, there is need for somewhere between $4M and
$6M annually. This means that the Dome could operate for the next 20 years, thus providing the

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community the indoor location to for baseball, soccer, football and other community activities it
currently supports. Because of these needs, a fund of $7M-$10M will be needed annually for this.

LONG-TERM REPLACEMENT FUND COSTS

One of the primary advantages of this newly constituted board is that it will be positioned to deal
with sports facilities long-term. Therefore, it is essential to build a fund that will be used to build or
renovate the next generation of sporting facilities in Minnesota. We believe that $13M annually will
be sufficient for this.

MINNESOTA AMATEUR SPORTS COMMISSION

In seeking support of any funding source, it is likely that we will need a program to contribute back
to the communities/counties that provide the tax income. Much like the Twins project, we can fund
projects through the MN Amateur Sports Commission –thus making funding decisions easier for
policy makers.

ANNUAL COSTS TO ACCOMPLISH

Public Debt Service $ 50,000,000
Private (team) Debt Service $ 25,000,000
Operations & Maintenance $ 7,500,000
Long Term Fund $ 13,500,000
MN Amateur Sports $ 4,000,000
$ 99,000,000

Deduct private (team) payments --$25,000,000

TOTAL PUBLIC COST ANNUALLY $74M

GLOBAL SOLUTION FUNDING

SOURCES AND FUNDS FOR 25-YR BOND
We taken some general information regarding team commitments and combined it with a public
source (to be defined) and modeled out how the financing will work based upon a 25 year bond. Of
course there are a number of disclaimers listed below but felt it was important to take a “stab” at
the numbers so everyone can begin to see how it may look.

Year 1 Year 10 Year 25

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 Income
Vikings/NFL Facility Fund 21,000,000 21,000,000 21,000,000
(30 year commitment)
Wolves (20 year 2,150,000 2,150,000 2,150,000
commitment)
Wild (25 year 2,150,000 2,150,000 2,150,000
commitment)
Saints (25 yr 1,150,000 1,150,000 1,150,000
commitment)
Public Funding Source 74,000,000 83, 000,000 101,450,000
(TBD)

Totals $100,300,000 $109,450,000 $127,900,000

Expenses
Debt Service: public 50,000,000 55,500,000 50,400,000
Debt Service: private 26,450,000 26,450,000 26,450,000
Ops & Maintenance 7,000,000 8,200,000 10,050,000
Long Term Fund 13,000,000 15,300,000 37,000,000
MN Amateur Sports 4,000,000 4,000,000 4,000,000

Totals $100,450,00 $109,450,000 $127,900,000

0

Long Term Fund 146,169,506 429,925,398

Cumulative

DISCLAIMERS
• We acknowledge that all financing must comply with current U.S. Treasury regulations.
Numbers above are used to illustrate general commitments.
• We understand that actual capitalization for private entities may look very different than
presented above.
• We understand that actual pledges from sports teams are yet to be negotiated.

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