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Connecting Regional Sports and Entertainment Through Transit Dave Albersman 612-349-2778 Mark Oyaas 612-338-0330 Br uce

Connecting Regional Sports and Entertainment Through Transit

Connecting Regional Sports and Entertainment Through Transit Dave Albersman 612-349-2778 Mark Oyaas 612-338-0330 Br uce

Dave Albersman 612-349-2778

Mark Oyaas 612-338-0330

Bruce Lambrecht 612-349-2775

Sports and Entertainment Through Transit Dave Albersman 612-349-2778 Mark Oyaas 612-338-0330 Br uce Lambrecht 612-349-2775
Connecting Regional Sports and Entertainment Through Transit November 3, 2011 The Honorable Mark Dayton Governor

Connecting Regional Sports and Entertainment Through Transit

November 3, 2011

The Honorable Mark Dayton Governor of Minnesota 130 State Capitol 75 Rev. Dr. Martin Luther King Jr. Blvd. St. Paul, MN 55155

Dear Governor Dayton:

For more than a year a group of interested citizens has been crafting and refining an urban revitalization plan that includes a new downtown Minneapolis site for the Vikings stadium, a redevelopment plan for the Metrodome, an exciting vision for what could be on the site of the current building, as well as a proposal for a new structure for financing and operating the region’s sports and entertainment facilities. The Stadium-related events of this past week alone are ample evidence that we don’t have a system in place to make these important infrastructure decisions; we have merely established a 55-year-long pattern of bad behavior. This submission is made in hopes that our State’s leaders will fill the void created by the collapse of the proposed funding formulas with a new framework that recognizes the potential power of a billion dollar stadium investment and harnesses that power to maximize public benefit.

We call our efforts “The Corridor” [www.corridormn.com]. This refers to a concept which leverages current and planned fixed rail transit to connect the region’s major sports and convention facilities. It speaks to the synergies of a sports and entertainment district in Minneapolis utilizing all of the transportation and transit infrastructure the public has already paid for. From this perspective the plan is a roadmap for recruiting large scale sporting events like soccer’s Gold Cup or the Pan Am Games. If properly managed a legitimate bid for the Olympics could be in reach.

On a macro level this proposal provides a means to come to grips with the ongoing crisis management that continually clouds efforts to enhance the State’s sports infrastructure. We turn to the Metropolitan Airports Commission (MAC) as an inspiring model for managing critical public assets and submit the Metropolitan

Entertainment Commission (MEC) for your consideration. It is time to get the house in order. Between now and the regularly-scheduled legislative session it would be possible to convene a group of qualified and engaged citizens to form the MEC. They could consider governance, operations and financing options. Additionally this group could act

as an arbiter for site selection.

A MEC offers the opportunity to capture and consolidate the multiplicity of taxes and related publicly-generated

revenues that could amount to $300 million which could be used toward immediate stadium needs. When combined with team owner contributions and other private sector support we submit that it is possible that the State contribution may be a manageable $200 million. Our assumptions have been vetted by finance professionals from both the public

and private sectors, but they need the scrutiny that only State revenue officials can apply.

In close, inspired by your willingness to lead our State in this difficult discussion, we give you our best efforts with

hopes that they will continue to forward the dialogue towards a positive long-term good for the people of Minnesota.

Sincerely,

David J. Albersman, President – Albersman & Armstrong, Ltd. Bruce Lambrecht, President Investment Management Inc. Mark Oyaas, Managing Partner – Neerland & Oyaas, Inc.

cc:

Rep. Kurt Zellers, Speaker of the House Rep. Paul Thissen, Minority Leader Rep. Morrie Lanning (author)

Addresses:

Rep. Kurt Zellers (R) (District 32B) Speaker of the House

463

State Office Building

100

Rev. Dr. Martin Luther King Jr. Blvd.

Saint Paul, Minnesota 55155

Rep. Paul Thissen (DFL) (District 63A) House Minority Leader

267

State Office Building

100

Rev. Dr. Martin Luther King Jr. Blvd.

Saint Paul, Minnesota 55155

Rep. Morrie Lanning

379

State Office Building

100

Rev. Dr. Martin Luther King Jr. Blvd.

Saint Paul, Minnesota 55155

Sen. Amy Koch Senate Majority Leader

75 Rev. Dr. Martin Luther King Jr. Blvd.

Capitol Building, Room 208

St. Paul, MN 55155-1606

Senator Thomas M. Bakk Senate Minority Leader

100 Rev. Dr. Martin Luther King Jr. Blvd.

State Office Building, Room 147

St. Paul, MN 55155-1206

Sen. Julie Rosen

75 Rev. Dr. Martin Luther King Jr. Blvd.

Capitol Building, Room 322 St. Paul, MN 55155-1606

Sen. Amy Koch, Senate Majority Leader Sen. Thomas M. Bakk, Minority Leader Sen. Julie Rosen (author)

Billion Dollar Investment Maximize Public Benefit

Billion Dollar InvestmentMaximize Public Benefit

Maximize Public BenefitBillion Dollar Investment

Target Field Revisited The “Corridor” Why Farmer’s Market? Metrodome Medical Campus The “MEC” (Metropolitan

Target Field RevisitedThe “Corridor” Why Farmer’s Market? Metrodome Medical Campus The “MEC” (Metropolitan Entertainment Commission)

The “Corridor”Target Field Revisited Why Farmer’s Market? Metrodome Medical Campus The “MEC” (Metropolitan Entertainment

Why Farmer’s Market?Target Field Revisited The “Corridor” Metrodome Medical Campus The “MEC” (Metropolitan Entertainment Commission)

Metrodome Medical CampusTarget Field Revisited The “Corridor” Why Farmer’s Market? The “MEC” (Metropolitan Entertainment Commission)

The “MEC” (Metropolitan Entertainment Commission) (Metropolitan Entertainment Commission)

“Site too small and next to garbage burner”
“Site too small and next to
garbage burner”
RapidRapid ParkPark ‐‐ 19991999
RapidRapid ParkPark ‐‐ 19991999
Twins Ballpark (Rendering by Albersman & Armstrong, Ltd. – 2000)
Twins Ballpark (Rendering by Albersman & Armstrong, Ltd. – 2000)
Twins Ballpark (Rendering by Albersman & Armstrong, Ltd. – 2000)
Twins Ballpark (Rendering by Albersman & Armstrong, Ltd. – 2000)
The “Sports Corridor” – 2002 Rendering by Duncan Malloch

The “Sports Corridor” – 2002

Rendering by Duncan Malloch

Connecting Regional Sports and Entertainment Through Transit

Connecting Regional Sports and Entertainment Through Transit

? Site Arden Hills Minneapolis Saint Paul Mall of America
? Site
Arden
Hills
Minneapolis
Saint
Paul
Mall of
America
? Site Arden Hills Minneapolis Saint Paul MSP Airport Mall of America
? Site
Arden
Hills
Minneapolis
Saint
Paul
MSP Airport
Mall of
America
? Site Arden Hills Vikings Stadium Target Field Target Center Block E Convention Center HCMC
? Site
Arden
Hills
Vikings Stadium
Target Field
Target Center
Block E
Convention Center
HCMC
Minneapolis
MOA Field
U
of M Hospital
Saint
U
of M Sports
Paul
Xcel & RiverCentre
Union Depot
MSP Airport
Mall of
America

Downtown East / North Loop Master Plan Adopted October 2003

Downtown East / North Loop Master Plan Adopted October 2003
Downtown East / North Loop Master Plan Adopted October 2003
Sports & Entertainment Downtown East ALBERSMAN ALBERSMAN ARMSTRONG ARMSTRONG
Sports &
Entertainment
Downtown East
ALBERSMAN
ALBERSMAN
ARMSTRONG
ARMSTRONG
Why Farmer’s Market?

Why Farmer’s Market?

Why Farmer’s Market?

Farmer’s Market Site Location

3434 AcresAcres ALBERSMAN ALBERSMAN ARMSTRONG ARMSTRONG
3434 AcresAcres
ALBERSMAN
ALBERSMAN
ARMSTRONG
ARMSTRONG

Metrodome Site Location

2222 AcresAcres ALBERSMAN ALBERSMAN ARMSTRONG ARMSTRONG
2222 AcresAcres
ALBERSMAN
ALBERSMAN
ARMSTRONG
ARMSTRONG

Issues:

Issues: Rail, Bus and Bike Parking / Roadway Access Skyway System Bars and Restaurants Redevelopment Need

Rail, Bus and BikeIssues: Parking / Roadway Access Skyway System Bars and Restaurants Redevelopment Need Highest and Best Use

Parking / Roadway AccessIssues: Rail, Bus and Bike Skyway System Bars and Restaurants Redevelopment Need Highest and Best Use

Skyway SystemIssues: Rail, Bus and Bike Parking / Roadway Access Bars and Restaurants Redevelopment Need Highest and

Bars and RestaurantsRail, Bus and Bike Parking / Roadway Access Skyway System Redevelopment Need Highest and Best Use

Redevelopment NeedParking / Roadway Access Skyway System Bars and Restaurants Highest and Best Use Land Value Interim

Highest and Best UseParking / Roadway Access Skyway System Bars and Restaurants Redevelopment Need Land Value Interim Location Land

Land Value/ Roadway Access Skyway System Bars and Restaurants Redevelopment Need Highest and Best Use Interim Location

Interim Location/ Roadway Access Skyway System Bars and Restaurants Redevelopment Need Highest and Best Use Land Value

Land Assembly/ Roadway Access Skyway System Bars and Restaurants Redevelopment Need Highest and Best Use Land Value

Rail, Bus and Bike

Farmer’sFarmer’s MarketMarket SiteSite MetrodomeMetrodome SiteSite ALBERSMAN ALBERSMAN ARMSTRONG ARMSTRONG
Farmer’sFarmer’s MarketMarket SiteSite
MetrodomeMetrodome SiteSite
ALBERSMAN
ALBERSMAN
ARMSTRONG
ARMSTRONG

Rail, Bus and Bike

Hiawatha LRT Central Corridor LRT Southwest LRT Bottineau LRT NorthStar Rail Bike Trail Interchange Station
Hiawatha LRT
Central Corridor LRT
Southwest LRT
Bottineau LRT
NorthStar Rail
Bike Trail
Interchange Station
MTC Bus Stations
Existing Metro Bus
Existing Metro Bus
Transit Stations
Transit Stations
ALBERSMAN
ALBERSMAN
ARMSTRONG
ARMSTRONG

Issues:

Issues: Farmer’s Market Site Rail, Bus and Bike Parking / Roadway Access Skyway System Bars and

Farmer’s Market Site

Rail, Bus and BikeIssues: Farmer’s Market Site Parking / Roadway Access Skyway System Bars and Restaurants Redevelopment Need Highest

Parking / Roadway AccessIssues: Farmer’s Market Site Rail, Bus and Bike Skyway System Bars and Restaurants Redevelopment Need Highest

Skyway SystemMarket Site Rail, Bus and Bike Parking / Roadway Access Bars and Restaurants Redevelopment Need Highest

Bars and RestaurantsRail, Bus and Bike Parking / Roadway Access Skyway System Redevelopment Need Highest and Best Use

Redevelopment NeedParking / Roadway Access Skyway System Bars and Restaurants Highest and Best Use Land Value Interim

Highest and Best UseAccess Skyway System Bars and Restaurants Redevelopment Need Land Value Interim Location Land Assembly + Metrodome

Land ValueSystem Bars and Restaurants Redevelopment Need Highest and Best Use Interim Location Land Assembly + Metrodome

Interim LocationSkyway System Bars and Restaurants Redevelopment Need Highest and Best Use Land Value Land Assembly +

Land AssemblySkyway System Bars and Restaurants Redevelopment Need Highest and Best Use Land Value Interim Location +

+

Metrodome Site

-

Farmer’s Market Site – Parking

SITE Source: City of Minneapolis, and aerial survey using Google Earth Pro ALBERSMAN ALBERSMAN ARMSTRONG
SITE
Source: City of Minneapolis, and aerial survey using Google Earth Pro
ALBERSMAN
ALBERSMAN
ARMSTRONG
ARMSTRONG

Farmer’s Market Site – Parking

Garage Parking: 8,000 Surface Parking: 6,600 (55%) (45%) Total Parking: 14,600 (100%) 0 Blocks, 50
Garage Parking: 8,000
Surface Parking: 6,600
(55%)
(45%)
Total Parking:
14,600 (100%)
0 Blocks,
50 Stalls
Stadium
Footprint
Source: City of Minneapolis, and aerial survey using Google Earth Pro
ALBERSMAN
ALBERSMAN
ARMSTRONG
ARMSTRONG

Farmer’s Market Site – Parking

Average Walking Distance = 3.2 Blocks

0 Blocks, 50 Stalls Stadium Footprint ALBERSMAN ALBERSMAN ARMSTRONG ARMSTRONG
0 Blocks,
50 Stalls
Stadium
Footprint
ALBERSMAN
ALBERSMAN
ARMSTRONG
ARMSTRONG

Farmer’s Market Site – Roadway Access

53% of all parking has direct freeway access ALBERSMAN ALBERSMAN ARMSTRONG ARMSTRONG
53% of all
parking
has direct
freeway
access
ALBERSMAN
ALBERSMAN
ARMSTRONG
ARMSTRONG

Metrodome Site – Parking

SITE Source: City of Minneapolis, and aerial survey using Google Earth Pro ALBERSMAN ALBERSMAN ARMSTRONG
SITE
Source: City of Minneapolis, and aerial survey using Google Earth Pro
ALBERSMAN
ALBERSMAN
ARMSTRONG
ARMSTRONG

Metrodome Site – Parking

Garage Parking: 5,600 Surface Parking: 7,000 (44%) (56%) Total Parking: 12,600 (100%) Stadium Footprint Source:
Garage Parking: 5,600
Surface Parking: 7,000
(44%)
(56%)
Total Parking:
12,600 (100%)
Stadium
Footprint
Source: City of Minneapolis, and aerial survey using Google Earth Pro
ALBERSMAN
ALBERSMAN
ARMSTRONG
ARMSTRONG

Metrodome Site – Parking

Average Walking Distance = 3.6 Blocks Stadium Footprint ALBERSMAN ALBERSMAN ARMSTRONG ARMSTRONG
Average Walking
Distance = 3.6 Blocks
Stadium
Footprint
ALBERSMAN
ALBERSMAN
ARMSTRONG
ARMSTRONG

Metrodome Site – Roadway Access

10% of all parking has direct freeway access ALBERSMAN ALBERSMAN ARMSTRONG ARMSTRONG
10% of all
parking
has direct
freeway
access
ALBERSMAN
ALBERSMAN
ARMSTRONG
ARMSTRONG

Issues:

Issues: Farmer’s Market Site Metrodome Site Rail, Bus and Bike Parking / Roadway Access Skyway System

Farmer’s Market Site

Metrodome Site

Rail, Bus and BikeIssues: Farmer’s Market Site Metrodome Site Parking / Roadway Access Skyway System Bars and Restaurants Redevelopment

Parking / Roadway AccessFarmer’s Market Site Metrodome Site Rail, Bus and Bike Skyway System Bars and Restaurants Redevelopment Need

Skyway SystemMetrodome Site Rail, Bus and Bike Parking / Roadway Access Bars and Restaurants Redevelopment Need Interim

Bars and RestaurantsRail, Bus and Bike Parking / Roadway Access Skyway System Redevelopment Need Interim Location Interim Location

Redevelopment NeedParking / Roadway Access Skyway System Bars and Restaurants Interim Location Interim Location Land Value Land

Interim LocationAccess Skyway System Bars and Restaurants Redevelopment Need Interim Location Land Value Land Assembly + -

Interim LocationAccess Skyway System Bars and Restaurants Redevelopment Need Interim Location Land Value Land Assembly + -

Land ValueSkyway System Bars and Restaurants Redevelopment Need Interim Location Interim Location Land Assembly + - +

Land AssemblySkyway System Bars and Restaurants Redevelopment Need Interim Location Interim Location Land Value + - +

+

-

+

-

Farmer’s Market Site – Skyway System

ALBERSMAN ALBERSMAN ARMSTRONG ARMSTRONG
ALBERSMAN
ALBERSMAN
ARMSTRONG
ARMSTRONG

Metrodome Site – Skyway System

ALBERSMAN ALBERSMAN ARMSTRONG ARMSTRONG
ALBERSMAN
ALBERSMAN
ARMSTRONG
ARMSTRONG

Issues:

Issues: Farmer’s Market Site Metrodome Site Rail, Bus and Bike Parking / Roadway Access Skyway System

Farmer’s Market Site

Metrodome Site

Rail, Bus and BikeIssues: Farmer’s Market Site Metrodome Site Parking / Roadway Access Skyway System Bars and Restaurants Redevelopment

Parking / Roadway AccessFarmer’s Market Site Metrodome Site Rail, Bus and Bike Skyway System Bars and Restaurants Redevelopment Need

Skyway SystemMetrodome Site Rail, Bus and Bike Parking / Roadway Access Bars and Restaurants Redevelopment Need Highest

Bars and RestaurantsRail, Bus and Bike Parking / Roadway Access Skyway System Redevelopment Need Highest and Best Use

Redevelopment NeedParking / Roadway Access Skyway System Bars and Restaurants Highest and Best Use Land Value Interim

Highest and Best UseAccess Skyway System Bars and Restaurants Redevelopment Need Land Value Interim Location Land Assembly + -

Land ValueBars and Restaurants Redevelopment Need Highest and Best Use Interim Location Land Assembly + - +

Interim LocationSystem Bars and Restaurants Redevelopment Need Highest and Best Use Land Value Land Assembly + -

Land AssemblyBars and Restaurants Redevelopment Need Highest and Best Use Land Value Interim Location + - +

+

-

+

-

+

-

Farmer’s Market Site – Bars and Restaurants

ALBERSMAN ALBERSMAN ARMSTRONG ARMSTRONG
ALBERSMAN
ALBERSMAN
ARMSTRONG
ARMSTRONG

Metrodome Site – Bars and Restaurants

ALBERSMAN ALBERSMAN ARMSTRONG ARMSTRONG
ALBERSMAN
ALBERSMAN
ARMSTRONG
ARMSTRONG

Issues:

Issues: Farmer’s Market Site Metrodome Site Rail, Bus and Bike Parking / Roadway Access Skyway System

Farmer’s Market Site

Metrodome Site

Rail, Bus and BikeIssues: Farmer’s Market Site Metrodome Site Parking / Roadway Access Skyway System Bars and Restaurants Redevelopment

Parking / Roadway AccessFarmer’s Market Site Metrodome Site Rail, Bus and Bike Skyway System Bars and Restaurants Redevelopment Need

Skyway SystemMetrodome Site Rail, Bus and Bike Parking / Roadway Access Bars and Restaurants Redevelopment Need Highest

Bars and RestaurantsRail, Bus and Bike Parking / Roadway Access Skyway System Redevelopment Need Highest and Best Use

Redevelopment NeedParking / Roadway Access Skyway System Bars and Restaurants Highest and Best Use Land Value Interim

Highest and Best UseAccess Skyway System Bars and Restaurants Redevelopment Need Land Value Interim Location Land Assembly + -

Land ValueBars and Restaurants Redevelopment Need Highest and Best Use Interim Location Land Assembly + - +

Interim Locationand Restaurants Redevelopment Need Highest and Best Use Land Value Land Assembly + - + -

Land AssemblyRestaurants Redevelopment Need Highest and Best Use Land Value Interim Location + - + - +

+

-

+

-

+

-

+

-

Farmer’s Market Site – Redevelopment Need

Farmer’s Market Site – Redevelopment Need

Metrodome Site – Redevelopment Need

Metrodome Site – Redevelopment Need

Metrodome Site – Redevelopment Need

Metrodome Site – Redevelopment Need

Issues:

Issues: Farmer’s Market Site Metrodome Site Rail, Bus and Bike Parking / Roadway Access Skyway System

Farmer’s Market Site

Metrodome Site

Rail, Bus and BikeIssues: Farmer’s Market Site Metrodome Site Parking / Roadway Access Skyway System Bars and Restaurants Redevelopment

Parking / Roadway AccessFarmer’s Market Site Metrodome Site Rail, Bus and Bike Skyway System Bars and Restaurants Redevelopment Need

Skyway SystemMetrodome Site Rail, Bus and Bike Parking / Roadway Access Bars and Restaurants Redevelopment Need Highest

Bars and RestaurantsRail, Bus and Bike Parking / Roadway Access Skyway System Redevelopment Need Highest and Best Use

Redevelopment NeedParking / Roadway Access Skyway System Bars and Restaurants Highest and Best Use Land Value Interim

Highest and Best UseAccess Skyway System Bars and Restaurants Redevelopment Need Land Value Interim Location Land Assembly + -

Land ValueBars and Restaurants Redevelopment Need Highest and Best Use Interim Location Land Assembly + - +

Interim LocationRedevelopment Need Highest and Best Use Land Value Land Assembly + - + - + -

Land AssemblyRedevelopment Need Highest and Best Use Land Value Interim Location + - + - + -

+

-

+

-

+

-

+

-

+

-

Farmer’s Market Site – Highest and Best Use

Farmer’sFarmer’s MarketMarket SiteSite MetrodomeMetrodome SiteSite ALBERSMAN ALBERSMAN ARMSTRONG ARMSTRONG
Farmer’sFarmer’s MarketMarket SiteSite
MetrodomeMetrodome SiteSite
ALBERSMAN
ALBERSMAN
ARMSTRONG
ARMSTRONG

Farmer’s Market Site – Highest and Best Use

North Loop & North Loop & Warehouse Warehouse Mill City Mill City SportsSports District District
North Loop &
North Loop &
Warehouse
Warehouse
Mill City
Mill City
SportsSports
District
District
Restaurants
Restaurants
Central
Central
Theaters
Theaters
Business
Business
District
District
MedicalMedical
University
University
West
West
Elliot
Elliot
Neighborhood
Neighborhood
ALBERSMAN
ALBERSMAN
ARMSTRONG
ARMSTRONG

Farmer’s Market Site – Highest and Best Use

Sports and Sports and Housing, Medical Housing, Medical Entertainment Entertainment and Educational and Educational
Sports and
Sports and
Housing, Medical
Housing, Medical
Entertainment
Entertainment
and Educational
and Educational
CBDCBD
ALBERSMAN
ALBERSMAN
ARMSTRONG
ARMSTRONG

Issues:

Issues: Farmer’s Market Site Metrodome Site Rail, Bus and Bike Parking / Roadway Access Skyway System

Farmer’s Market Site

Metrodome Site

Rail, Bus and BikeIssues: Farmer’s Market Site Metrodome Site Parking / Roadway Access Skyway System Bars and Restaurants Redevelopment

Parking / Roadway AccessFarmer’s Market Site Metrodome Site Rail, Bus and Bike Skyway System Bars and Restaurants Redevelopment Need

Skyway SystemMetrodome Site Rail, Bus and Bike Parking / Roadway Access Bars and Restaurants Redevelopment Need Highest

Bars and RestaurantsRail, Bus and Bike Parking / Roadway Access Skyway System Redevelopment Need Highest and Best Use

Redevelopment NeedParking / Roadway Access Skyway System Bars and Restaurants Highest and Best Use Land Value Interim

Highest and Best UseAccess Skyway System Bars and Restaurants Redevelopment Need Land Value Interim Location Land Assembly + -

Land ValueBars and Restaurants Redevelopment Need Highest and Best Use Interim Location Land Assembly + - +

Interim LocationRedevelopment Need Highest and Best Use Land Value Land Assembly + - + - + -

Land AssemblyNeed Highest and Best Use Land Value Interim Location + - + - + - +

+

-

+

-

+

-

+

-

+

-

+

-

City of Mpls Land Cost Analysis:

City of Mpls Land Cost Analysis: Farmer’s Market Site Metrodome Site High Estimate Low Estimate $181
Farmer’s Market Site Metrodome Site High Estimate Low Estimate $181 Million $30 Million High Estimate
Farmer’s Market Site
Metrodome Site
High Estimate Low Estimate
$181 Million
$30 Million
High Estimate
$70 Million
$47 Million
$47 Million
$0
$0
$3 Million
$4 Million
$3 Million
$4 Million
$119 Million
$232 Million
$33 Million
$74 Million
$86 Million
more than
Metrodome
$158 Million
more than
Metrodome

Low Estimate Infrastructure: $69 Million

Property

Acquisition:

Demolition:

Totals:

Difference:

Source: Jim Nelson of Eberhardt Advisory

Land Valuation Comparison:

Land Valuation Comparison: Assessed Market Value: Recent Sales: 100% Cost Premium: 2 Farmer’s Market Site

Assessed Market Value:

Recent Sales:

100% Cost Premium: 2

Farmer’s Market Site Value/S.F. 1 Value $14.84 $16,160,000 $17.25 $18,785,000 $29.68 $32,320,000
Farmer’s Market Site
Value/S.F. 1
Value
$14.84
$16,160,000
$17.25
$18,785,000
$29.68
$32,320,000
Metrodome Site Value/S.F. 1 Value $32.58 $35,480,000 No Recent Sales 3 $65.16 $70,960,000
Metrodome Site
Value/S.F. 1
Value
$32.58
$35,480,000
No Recent Sales 3
$65.16
$70,960,000

Source: Hennepin County Assessor’s Office

1 Based on 25 Acres

2 100% increase over assessors market value.

3 Option in 2001 of bare land for $48.sq.ft.

Issues:

Issues: Farmer’s Market Site Metrodome Site Rail, Bus and Bike Parking / Roadway Access Skyway System

Farmer’s Market Site

Metrodome Site

Rail, Bus and BikeIssues: Farmer’s Market Site Metrodome Site Parking / Roadway Access Skyway System Bars and Restaurants Redevelopment

Parking / Roadway AccessFarmer’s Market Site Metrodome Site Rail, Bus and Bike Skyway System Bars and Restaurants Redevelopment Need

Skyway SystemMetrodome Site Rail, Bus and Bike Parking / Roadway Access Bars and Restaurants Redevelopment Need Highest

Bars and RestaurantsRail, Bus and Bike Parking / Roadway Access Skyway System Redevelopment Need Highest and Best Use

Redevelopment NeedParking / Roadway Access Skyway System Bars and Restaurants Highest and Best Use Land Value Interim

Highest and Best UseAccess Skyway System Bars and Restaurants Redevelopment Need Land Value Interim Location Land Assembly + -

Land ValueBars and Restaurants Redevelopment Need Highest and Best Use Interim Location Land Assembly + - +

Interim LocationRedevelopment Need Highest and Best Use Land Value Land Assembly + - + - + -

Land AssemblyNeed Highest and Best Use Land Value Interim Location + - + - + - +

+

-

+

-

+

-

+

-

+

-

+

-

+

-

Interim Location (est. $15 million/year)

Interim Location (est. $15 million/year)

Issues:

Issues: Farmer’s Market Site Metrodome Site Rail, Bus and Bike Parking / Roadway Access Skyway System

Farmer’s Market Site

Metrodome Site

Rail, Bus and BikeIssues: Farmer’s Market Site Metrodome Site Parking / Roadway Access Skyway System Bars and Restaurants Redevelopment

Parking / Roadway AccessFarmer’s Market Site Metrodome Site Rail, Bus and Bike Skyway System Bars and Restaurants Redevelopment Need

Skyway SystemMetrodome Site Rail, Bus and Bike Parking / Roadway Access Bars and Restaurants Redevelopment Need Highest

Bars and RestaurantsRail, Bus and Bike Parking / Roadway Access Skyway System Redevelopment Need Highest and Best Use

Redevelopment NeedParking / Roadway Access Skyway System Bars and Restaurants Highest and Best Use Land Value Interim

Highest and Best UseAccess Skyway System Bars and Restaurants Redevelopment Need Land Value Interim Location Land Assembly + -

Land ValueBars and Restaurants Redevelopment Need Highest and Best Use Interim Location Land Assembly + - +

Interim LocationRedevelopment Need Highest and Best Use Land Value Land Assembly + - + - + -

Land AssemblyNeed Highest and Best Use Land Value Interim Location + - + - + - +

+

-

+

-

+

-

+

-

+

-

+

-

+

-

+

-

Land Assembly - Metrodome

2222 AcresAcres ALBERSMAN ALBERSMAN ARMSTRONG ARMSTRONG
2222 AcresAcres
ALBERSMAN
ALBERSMAN
ARMSTRONG
ARMSTRONG

Land Assembly – Farmer’s Market

3434 AcresAcres ALBERSMAN ALBERSMAN ARMSTRONG ARMSTRONG
3434 AcresAcres
ALBERSMAN
ALBERSMAN
ARMSTRONG
ARMSTRONG

Issues:

Issues: Farmer’s Market Site Metrodome Site Rail, Bus and Bike Parking / Roadway Access Skyway System

Farmer’s Market Site

Metrodome Site

Rail, Bus and BikeIssues: Farmer’s Market Site Metrodome Site Parking / Roadway Access Skyway System Bars and Restaurants Redevelopment

Parking / Roadway AccessFarmer’s Market Site Metrodome Site Rail, Bus and Bike Skyway System Bars and Restaurants Redevelopment Need

Skyway SystemMetrodome Site Rail, Bus and Bike Parking / Roadway Access Bars and Restaurants Redevelopment Need Highest

Bars and RestaurantsRail, Bus and Bike Parking / Roadway Access Skyway System Redevelopment Need Highest and Best Use

Redevelopment NeedParking / Roadway Access Skyway System Bars and Restaurants Highest and Best Use Land Value Interim

Highest and Best UseAccess Skyway System Bars and Restaurants Redevelopment Need Land Value Interim Location Land Assembly + -

Land ValueBars and Restaurants Redevelopment Need Highest and Best Use Interim Location Land Assembly + - +

Interim LocationRedevelopment Need Highest and Best Use Land Value Land Assembly + - + - + -

Land AssemblyNeed Highest and Best Use Land Value Interim Location + - + - + - +

+

-

+

-

+

-

+

-

+

-

+

-

+

-

+

-

?

+

Summary:

Summary: Selecting the best location is more important than simple implementation A good location with flaws
Selecting the best location is more important than simple implementation

Selecting the best location is more important than simple implementation

A good location with flaws can be fixed, a flawless plan in a bad location

A good location with flaws can be fixed, a flawless plan in a bad location cannot

The stadium on the Metrodome site is not compatible with current emerging development

The stadium on the Metrodome site is not compatible with current emerging development

Farmer’s Market site would give much needed boost to this area of North Minneapolis

Farmer’s Market site would give much needed boost to this area of North Minneapolis

Sports & Entertainment Downtown East ALBERSMAN ALBERSMAN ARMSTRONG ARMSTRONG
Sports &
Entertainment
Downtown East
ALBERSMAN
ALBERSMAN
ARMSTRONG
ARMSTRONG

Site

Site ALBERSMAN ALBERSMAN ARMSTRONG ARMSTRONG
ALBERSMAN ALBERSMAN ARMSTRONG ARMSTRONG
ALBERSMAN
ALBERSMAN
ARMSTRONG
ARMSTRONG

Vikings Stadium Concept

Vikings Stadium Concept Connection Future LRT Extension 550 Stalls Connection The Interchange Farmers Tailgating,
Connection Future LRT Extension 550 Stalls Connection The Interchange Farmers Tailgating, Energy 1,500 Station
Connection
Future LRT Extension
550 Stalls
Connection
The
Interchange
Farmers
Tailgating,
Energy
1,500
Station
Market
Railgating,
Resource
Stalls
Trailgating
Center
370
1,600 Stalls
Stalls
BaseballBaseball
1,600
Stalls
Twins Plaza
1,150
FootballFootball
Stalls
LRT
Connection
BasketballBasketball
Station
4,600
Theater,
Theater,
Stalls
Entertainment
Entertainment
ALBERSMAN
ALBERSMAN
ARMSTRONG
ARMSTRONG

Vikings Stadium Concept

Vikings Stadium Concept Connection Future LRT Extension 550 Stalls Connection The Interchange Farmers Tailgating,
Connection Future LRT Extension 550 Stalls Connection The Interchange Farmers Tailgating, Energy 1,500 Station
Connection
Future LRT Extension
550 Stalls
Connection
The
Interchange
Farmers
Tailgating,
Energy
1,500
Station
Market
Railgating,
Resource
Stalls
Trailgating
Center
1,600 Stalls
Future
Future
BaseballBaseball
Development
Development
1,600
Stalls
Twins Plaza
FootballFootball
Future
Future
Development
Development
LRT
Connection
BasketballBasketball
Station
4,600
Theater,
Theater,
Stalls
Entertainment
Entertainment
ALBERSMAN
ALBERSMAN
ARMSTRONG
ARMSTRONG

Vikings Stadium Concept

Vikings Stadium Concept Connection Future LRT Extension 300 Stalls Connection The Interchange Farmers Tailgating,
Connection Future LRT Extension 300 Stalls Connection The Interchange Farmers Tailgating, 1,500 Station Market
Connection
Future LRT Extension
300 Stalls
Connection
The
Interchange
Farmers
Tailgating,
1,500
Station
Market
Railgating,
Stalls
Trailgating
1,600 Stalls
Future
Future
BaseballBaseball
Development
Development
1,600
Stalls
Twins Plaza
FootballFootball
Future
Future
Development
Development
LRT
Connection
BasketballBasketball
Station
4,600
Theater,
Theater,
Stalls
Entertainment
Entertainment
ALBERSMAN
ALBERSMAN
ARMSTRONG
ARMSTRONG

Vikings Stadium Concept

Vikings Stadium Concept ALBERSMAN ALBERSMAN ARMSTRONG ARMSTRONG
ALBERSMAN ALBERSMAN ARMSTRONG ARMSTRONG
ALBERSMAN
ALBERSMAN
ARMSTRONG
ARMSTRONG

Vikings Stadium Concept

Vikings Stadium Concept ALBERSMAN ALBERSMAN ARMSTRONG ARMSTRONG
ALBERSMAN ALBERSMAN ARMSTRONG ARMSTRONG
ALBERSMAN
ALBERSMAN
ARMSTRONG
ARMSTRONG

Vikings Stadium Concept

Vikings Stadium Concept ALBERSMAN ALBERSMAN ARMSTRONG ARMSTRONG
ALBERSMAN ALBERSMAN ARMSTRONG ARMSTRONG
ALBERSMAN
ALBERSMAN
ARMSTRONG
ARMSTRONG

Vikings Stadium Concept

Vikings Stadium Concept ALBERSMAN ALBERSMAN ARMSTRONG ARMSTRONG
ALBERSMAN ALBERSMAN ARMSTRONG ARMSTRONG
ALBERSMAN
ALBERSMAN
ARMSTRONG
ARMSTRONG

Metrodome Medical Campus

Metrodome Medical Campus

Downtown East / North Loop Master Plan Adopted October 2003

Downtown East / North Loop Master Plan Adopted October 2003

Downtown East / North Loop Master Plan Adopted October 2003

Downtown East / North Loop Master Plan Adopted October 2003

Metrodome Medical Campus

Metrodome Medical Campus U of M Medical School Mayo Satellite Specialty Clinics U of M Ambulatory
U of M Medical School

U

of M Medical School

Mayo Satellite

Mayo Satellite

Specialty Clinics

Specialty Clinics

U of M Ambulatory Care

U

of M Ambulatory Care

Medical Device Incubator

Medical Device Incubator

HCMC

HCMC

Housing

Housing

HCMC LRT Station Metrodome Site
HCMC
LRT
Station
Metrodome
Site

Metrodome re-use illustration

Why the Metrodome Medical Campus ?

Why the Metrodome Medical Campus ? Proximity to the U of M Parking Potential Access to

Proximity to the U of MWhy the Metrodome Medical Campus ? Parking Potential Access to Transit Identity Opportunity Medical Synergies Roadway

Parking PotentialWhy the Metrodome Medical Campus ? Proximity to the U of M Access to Transit Identity

Access to TransitMedical Campus ? Proximity to the U of M Parking Potential Identity Opportunity Medical Synergies Roadway

Identity OpportunityProximity to the U of M Parking Potential Access to Transit Medical Synergies Roadway Access Compatible

Medical SynergiesM Parking Potential Access to Transit Identity Opportunity Roadway Access Compatible with Emerging Development HCMC

Roadway AccessAccess to Transit Identity Opportunity Medical Synergies Compatible with Emerging Development HCMC LRT Station

Compatible with Emerging Development Emerging Development

HCMC LRT Station Metrodome Site
HCMC
LRT
Station
Metrodome
Site

Metrodome re-use illustration

Why Not?

Why Not?

The Stadium Problem

The Stadium Problem The Current System is Broken and Dysfunctional:  Competition between government jurisdictions 

The Current System is Broken and Dysfunctional:

Competition between government jurisdictions

Lack of coordinated planning

Financial burden not fairly shared

Finances difficult to understand

Duplicative facilities and management

Site selection based on crisis management

Public benefit not maximized

The MEC

“Metropolitan Entertainment Commission”
“Metropolitan Entertainment Commission”

A New Model for Development, Ownership and Management of Sports, Entertainment and Exhibition Facilities

Issues

Issues Billion Dollar Investment  Should accomplish more than just a stadium Maximize Public Benefit 

Billion Dollar InvestmentIssues  Should accomplish more than just a stadium Maximize Public Benefit  Utilize existing freeway

Should accomplish more than just a stadium

Maximize Public BenefitInvestment  Should accomplish more than just a stadium  Utilize existing freeway and major arterial

Utilize existing freeway and major arterial systems

Capitalize on existing and planned transit

Maximize existing parking infrastructure/investment

Access to jobs

Strengthen urban core

Create sports and entertainment synergies

Create operational & management efficiencies

Fixing the Problem…

Fixing the Problem… The MAC Model (Metropolitan Airports Commission)

The MAC Model

(Metropolitan Airports Commission)

The MAC Model (Metropolitan Airports Commission)

The MAC Model (Metropolitan Airports Commission) Operates and Manages:  Minneapolis/Saint Paul International Airport

Operates and Manages:

Minneapolis/Saint Paul International Airport

Saint Paul Downtown Holman Field

Flying Cloud Airport

Crystal Airport

Airlake Airport

Lake Elmo Airport

Anoka County – Blaine Airport

The MAC Model Versus Sports & Entertainment Facilities

The MAC Model Versus Sports & Entertainment Facilities Similarities:  Large publicly-owned facilities 
The MAC Model Versus Sports & Entertainment Facilities Similarities:  Large publicly-owned facilities 

Similarities:

Large publicly-owned facilities

Multiple large tenants (e.g. Twins & Vikings / Delta & Sun Country)

Multiple revenue streams

Capital & ongoing financing needs

Recognized public benefit

The MAC Model Versus Sports & Entertainment Facilities

The MAC Model Versus Sports & Entertainment Facilities Differences: MetropolitanAirports Commission Sports & Ent.
The MAC Model Versus Sports & Entertainment Facilities Differences: MetropolitanAirports Commission Sports & Ent.

Differences:

MetropolitanAirports Commission

Sports & Ent. Facilities

Compensatory – landside and terminal revenue flows to MAC

Single management

Oversight by statewide representation

Capital cost recovery based on user fees

Accountable to legislature

Residual – revenue flows to team owners

Multiple owners/management authorities

Regional and local oversight

Capital cost recovery based on taxes

Accountable to local sponsors

The MAC Model (Metropolitan Airports Commission)

A C M o d e l (Metropolitan Airports Commission) Summary:  User fees based budget

Summary:

User fees based budget

Taxing authority (not used since late 1960’s)

Oversight by benefitting jurisdiction

Professional management

Accountable to legislature

Staggered terms provide political stability

Bonding authority

Power of eminent domain

The MEC Model

(Metropolitan Entertainment Commission)

The MEC Model (Metropolitan Entertainment Commission) Summary:  User fees based budget  Taxing authority (not

Summary:

User fees based budget

Taxing authority (not used since late 1960’s)

Oversight by benefitting jurisdiction

Professional management

Accountable to legislature

Staggered terms provide political stability

Bonding authority

Power of eminent domain

The Metropolitan Entertainment Commission (MEC)

The Metropolitan Entertainment Commission (MEC) MEC Phase I:  Target Center  Target Field  Minneapolis
The Metropolitan Entertainment Commission (MEC) MEC Phase I:  Target Center  Target Field  Minneapolis

MEC Phase I:

Target Center

Target Field

Minneapolis Convention Center

Mall of America Field (Metrodome)

MEC Phase II:

Xcel Center

RiverCentre

Midway Stadium

Potential Financing Plan – Phase I

Potential Financing Plan – Phase I Metropolitan Entertainment Commission (MEC):  Lead with Private Money 

Metropolitan Entertainment Commission (MEC):

Lead with Private Money

Team owners

Corporate investment

Maximize Unencumbered Existing Revenue Streams

Capture TAD garage revenues

Refinance Minneapolis Convention Center

Sell Metrodome Development rights

Refinance Target Field

Sell naming rights / sponsorships

Realize Management Efficiencies

Finish with new public money

Example Financing Plan – Phase I

Example Financing Plan – Phase I (Estimates Only) Lead with Private Money: Finish with Public Money:

(Estimates Only)

Lead with Private Money:

Finish with Public Money:

Total:

$ 520 M $ 480 M

$ 1 Billion

Example Financing Plan – Phase I

Example Financing Plan – Phase I (Estimates Only) Lead with Private Money:     $ 400

(Estimates Only)

Lead with Private Money:

 
 

$ 400 M 1

Vikings / NFL Timberwolves MN Corporate New Market Tax Credit

 

$

50 M 2 50 M 3 20 M 4

$

$

Total:

$ 520 M

1. From Vikings published reports.

2. From City of Minneapolis Timberwolves finance plan.

3. From a combination of corporate bonds, sponsorships, naming rights, private seat licenses, philanthropic contributions. Naming rights and PSL’s would be shared with Vikings. Transit station and Farmer’s Market naming rights. HERC naming rights. Lottery user fees.

4. Availability based on Farmer’s Market site considered blighted. Sale of NMTC to Minnesota Corporate community.

Example Financing Plan – Phase I

Example Financing Plan – Phase I (Estimates Only) Finish with Public Money: Reduce Bureaucracy TAD Garages

(Estimates Only) Finish with Public Money:

Reduce Bureaucracy TAD Garages Convention Center HC Twins Bonds Twins/Vikes Ent. Tax Sale of Metrodome Add’l Public Contribution

$ 20 M 1 $ 50 M 2 $ 50 M 3 $100 M 4 $ 50 M 5 $ 30 M 6 $180 M 7

Total:

$480 M

1. Reduced admin. expenses bonded over 30 years.

2. Assumes all net revenues after 5pm weekdays and weekends from events.

3. Assumes refinance of current taxes used for Convention Center. Extend and refinance of debt., Assumes 3% food and liquor, 0.5% sales tax already in place and extended.

4. Assumes use of excess revenue already being collected for Twins games, 0.15% sales tax.

5. Assumes 3% entertainment tax already in place for Twins games as well as 3% Vikings entertainment tax.

6. From published reports.

Why MEC?

(Metropolitan Entertainment Commission)

Why MEC? (Metropolitan Entertainment Commission)  Eliminate duplicative bureaucracies  Take politics out of the

Eliminate duplicative bureaucracies

Take politics out of the planning process

Broader representation by benefiting jurisdictions

Establish ongoing funding

Reduce leverage of team owner

Transparency

Maximize public benefit

Next Steps

Next Steps  Extend Vikings Lease for One Year  Create MEC Task Force:  Governance

Extend Vikings Lease for One Year

Create MEC Task Force:

Governance

Financing

Operations

Site selection

Lead with Private Sector Investment

Prepare for Legislative Session