Chicago-- A task force examining the needs and funding options for Milwaukee's cultural institutions is floating a sales tax hike to fund capital improvements for regional attractions with the notable exceptions of a new arena for the Milwaukee Bucks and convention center expansion.
The 48-member task force is also recommending further study on a tax on cigarettes, beer, and liquor.
"The option that had the clearest pathway in receiving general agreement" as the best method to fund projects was some form of a sales tax, said task force co-chair John Daniels, an attorney at Quarles & Brady LLP.
Work on the actual referendum language, timing, and number of counties that would be included will be handed to a second task force being formed by the Metropolitan Milwaukee Association of Commerce. A referendum is not expected to go on the ballot until at least the spring of 2016.
A sales tax could help fund an estimated $246 million in capital needs for the area's cultural institutions including the city's museums, zoo, and Marcus Center for the Performing Arts. Funding for parks could also be added to help build wider support.
The Cultural and Entertainment Needs Capital Task Force held its final meeting Tuesday. Task force members decided against including a new arena or convention center expansion in its recommendations to allow them to proceed on separate tracks.
A new arena to replace the Bucks current home carries an estimated price tag of $500 million, with about $350 million expected to come from the new owners of the team and other private sources. Public funding of about $200 million would be demanded.
Former Sen. Herb Kohl sold the team earlier this year for $550 million to a group of buyers led by Wes Edens and Marc Lasry. As part of the sale, Kohl pledged to contribute $100 million toward the cost of the new arena. While Kohl made keeping the team local a requirement of the sale, a clause allows the NBA to buy the team from the new owners if a deal on a new arena is not in place by late 2017. The league has been pushing for a new venue to replace the 26-year-old 18,600-seat arena.
The new owners have been meeting with local elected officials and groups to try to raise support for public funding for a new multipurpose arena and have said they hope to zero in a new site by the end of the year. The Bucks' lease runs through the 2016-2017 season.
Annual income taxes Wisconsin receives from Milwaukee Bucks basketball players and team employees would cover repayment of $150 million of 20-year state general obligation backed bonds for a new arena, according to the nonpartisan Legislative Fiscal Bureau which was asked by Republican Assembly Speaker Robin Vos to review.
