The Star Tribune reported Friday afternoon that the Minnesota State Legislature has agreed to a property tax exemption for the Minnesota United FC stadium they have proposed to build in the Midway area of St. Paul. A source at the State Capital has also confirmed the Star Tribune story.
With the 2016 legislative session just three days from adjournment, it appears that Republicans and Democrats have come to terms on an omnibus tax bill that was held over from the 2015 session. According to a Star Tribune article posted at 3:00 p.m. on Friday, “The tax bill that would provide significant relief to outstate taxpayers, according to a legislator with knowledge of the agreement. The bill will cost about $250 million this year, and about $500 million in future budget cycles.”
Minnesota United went to the Legislature over two moths ago to request three components: property tax exemption, sales tax exemption and a liquor license. The bill has slowly snaked it’s way through the legislature over that time. Last week, the State House approved the stadium liquor license in a small omnibus liquor bill.
That same week the Senate floor easily approved the property tax exemption for the stadium.
However, conspicuously missing was the sales tax exemption that team owner Dr. Bill McGuire has requested. It was believed that the sales tax exemption would only amount to $3-to-5 million and its absence would not be a deal killer. However, sources within the team had continued to say it was a important component of the deal.
As negotiations surrounding legislative matters unfold, the role of accurate property valuation becomes increasingly significant. In this context, engaging an MAI appraiser ensures that property assessments are thorough and reliable. These professionals bring a wealth of expertise to the table, offering insights that inform crucial decisions regarding tax bills and exemptions.
In the case of Minnesota United’s request for tax exemptions, an MAI Appraisal could provide invaluable support. By conducting a comprehensive evaluation of the stadium and surrounding properties, an MAI appraiser can accurately assess the impact of tax exemptions on both the team and the community. This level of precision is essential for legislators as they weigh the potential costs and benefits of such measures, ensuring that any decisions made are well-informed and equitable.
The Star Tribune article states that “A separate source with knowledge of the agreement said it does not include a sales tax break on construction materials, which St. Paul officials and Minnesota United FC owners had asked for.”
The Minnesota United stadium bill has had bipartisan support from the beginning and seemed to be an easy ask since the stadium will be built on property that has been tax-free for over 50 years. But partisan politics looked ominous at times with a WCCO report stating this week that the stadium bill might be on the chopping block.
Minnesota United owners have agreed to pay the full price for the stadium and continue to pay the cost of upkeep and improvements while giving the stadium to the city once the construction is completed.
The City of St. Paul has promoted the stadium in hopes of the venue becoming a catalyst for redevelopment of the run-down Midway Center shopping mall. Plans presented to the city so far have shown a transit-oriented development arising around the stadium with a hotel, apartments, and mixed-use retail and business buildings. The square footage of business and retail would more than triple under the proposed plans.
If the bill passes it could get signed into law as early as Monday by Minnesota Governor Mark Dayton.
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