CHICAGO - The Milwaukee comptroller's office is accepting proposals from bond counsel firms for any city financing to cover its share of a new arena for the National Basketball Association's Milwaukee Bucks.
Final responses are due by Aug. 20, according to the request for proposals Comptroller
A new bond counsel was required because of the conflict of interest posed with the city current bond counsel on contract, Katten Muchin Rosenman LLP, which has represented the team in arena negotiations.
The city, based on existing plans, would provide $47 million of tax-increment financing support toward the $250 million public costs of the $500 million project. The Wisconsin Assembly will take up on Tuesday legislation that cements the financing plan.
The Senate recently signed off on the compromise plan in a 21-10 vote after it was pulled from the state budget package. Republicans who control the Assembly say more than a dozen Democratic votes are needed.
The financing plan was crafted with the support of Gov. Scott Walker, city and county officials, and team owners. Walker has warned that without public help for a new arena the team could leave the state taking with it tax revenues generated by the team.
A $2 ticket surcharge was added to help cover the public's share of the tab with a portion going to the state and the remainder going to pay down debt on the arena, instead toward operating costs as does the same surcharge at the Bucks' current home, BMO Harris Bradley Center.
The financing plan relies on a mix of borrowing and other funding from the state, the city, Milwaukee County, and the Wisconsin Center District, which manages the city's convention center.
The other $250 million comes from the Bucks' owners, Wes Edens and Marc Lasry, and the previous owner, former U.S. Sen. Herb Kohl, D-Wis.
Under the plan, the state would provide an annual subsidy of $4 million annually over 20 years for a total of $80 million.
The county would also provide $4 million annually for a total of $80 million and the Wisconsin Center District would issue $93 million of new debt backed by existing taxes on hotel rooms, food and beverage sales at restaurants, and car rentals.
The district could issue additional debt leveraging the state and county's annual subsidy. Officials said the state and county subsidies could each be leveraged to generate $55 million in additional borrowing, bringing the district's total possible bonding for the project to about $200 million while the city would borrow on its own.
