Under the plan announced Monday, about $600 million in state and local cash will be spent over about 30 years to renovate American Family Field, with the Milwaukee Brewers pledging $100 million.
That would require approval from the Republican-controlled Legislature and Democratic Gov. Tony Evers, as well as their counterparts in Milwaukee County and the City of Milwaukee. Some legislators in Milwaukee County and the city of Milwaukee oppose spending on local stadiums. This raises the possibility that additional negotiations will take place before a final agreement is reached.
The question is whether the Brewers will remain in Milwaukee after their publicly owned stadium lease expires at the end of 2030, said Assembly Speaker Robin Vos, R-Rochester.
Vos said at a press conference at the ballpark that the bill is an “opportunity to keep Major League Baseball in Wisconsin.”
According to Rep. Robert Brooks (R-Saukville), a co-author of the bill, if the team leaves, the public will own the empty stadium and the state’s income tax revenue tied to the baseball club will be reduced. He said it would disappear.
“It’s cheaper to keep it,” Brooks said at a news conference.
Governor Evers promises to consider proposal
Evers’ office issued a statement criticizing Republicans for rejecting his stadium funding plan, but also said, “It’s good to hear that Republicans are getting serious about keeping Major League Baseball in Wisconsin. ” he also said.
“Governor Evers has reviewed the Republican proposal and plans to provide additional flexibility and minimize harm to our local partners, while ensuring the preservation of this important economic driver and thousands of jobs across the state.” I look forward to continuing our discussions.”
The proposal, announced by Vos and other Republicans, would also require the ball club to enter into a no-move agreement and extend its lease through the end of 2050.
Under this lease agreement, major capital improvements to the stadium, including renovations that bring it on par with upgraded facilities used in at least 75% of all MLB stadiums, are primarily the responsibility of the Southeast Wisconsin Baseball Park District. It is. The state-created district is the primary owner of American Family Field, which opened in 2001.
Brooks said the renovations under the Republican proposal include winterizing the ballpark so it can be used for concerts and other events during the offseason.
The team generates approximately $20 million in state income and sales tax revenue annually, totaling more than $500 million from 2024 to 2050.
In February, Evers proposed $290 million in the 2023-2025 state budget to help fund stadium renovations totaling about $450 million. This would be in addition to public funding and interest income already secured by the stadium district.
In return, his contract with the Brewers would have been extended through 2043.
Evers’ plan ran into opposition from Republicans.
Mr. Evers’ proposal faced opposition from the Legislature, with Mr. Vos and other Republicans insisting that the plan include funding from Milwaukee County and the City of Milwaukee. Lawmakers on both sides of the aisle also said the Brewers should help pay for the renovations.
Under the Republican plan, the state would spend about $411 million by 2046. After an initial $60.8 million payment to the stadium district, annual payments would be capped at $20 million, according to the bill.
An additional $50 million will be made available through 2045 through short-term state financing to the stadium district.
more:How do the Brewers’ public funding contracts compare to other professional sports teams?
Most of the state’s funding would come from income taxes on Brewers employees, including players, and visiting team players. Those payments would go directly to stadium districts, said Sen. Dan Feyen (R-Fond du Lac), a co-author of the bill.
Milwaukee County and the City of Milwaukee will each pay a combined $7.5 million a year, for a total of about $200 million. The proposal calls for annual county payments of $5 million and city payments of $2.5 million.
“They benefit the most from having professional baseball in their area,” Feyen said. Meanwhile, the state’s sales revenue generated by the Brewers benefits all Wisconsin communities, he said.
The Brewers are primarily owned by billionaire investor Mark Attanasio, who plans to invest $100 million.
That $100 million would equate to about $40 million that the Brewers would have to pay in stadium fees and renovation funds through 2050 if they extended their current lease without making any changes. said Rick Schlesinger.
Schlesinger said the Brewers’ decision to spend the additional money was a result of facing political realities as well as a desire to be a good partner with the community.
He said the spending plan amounts to the stadium district fulfilling its contractual obligations and is not a bailout.
Vos, who plans to vote on the proposal in parliament in October, said there is some urgency to passing the proposal.
He and Brooks said the stadium district renovation funding, previously estimated at $70 million, will actually be around $10 million to $15 million. This could result in the stadium district not being able to meet its lease obligations as early as 2024, Brooks said.
The funding was generated by a 0.5% sales tax on five Milwaukee-area counties that ended in 2020.
The state has a $4 billion surplus.Milwaukee faces budget challenges
Opponents of local spending argue the state has a $99 billion two-year budget, including a $4 billion surplus.
The county and city’s 2023 budgets are $1.37 billion and $1.72 billion, respectively. It also faces greater fiscal challenges, even though it generates significant state income and sales tax revenue and many out-of-state companies are relocating to Milwaukee.
Additionally, American Family Field and its parking lot, which could eventually become a hub for commercial development, are exempt from property taxes, the local government’s main source of revenue.
However, the county and city each impose sales taxes that apply to Brewers tickets and other merchandise sold at the ballpark.
“If the team leaves, we have the most to lose,” Voss said. “I think it’s a good deal for everyone.”
The city’s new sales tax and county sales tax increase were each approved by local officials in July. These actions are allowed under state law and also increased the city’s and county’s shared state revenue.
Mayor Cavalier Johnson said the Republican proposal would tax city residents twice as much because they are also county residents. He said the Brewers should push for commercial development next to the ballpark, which could generate property tax revenue if the site exemption is changed.
Johnson’s bottom line is that he wants the Brewers to stay in Milwaukee. However, American Family Field is not owned by the city, but by a district created by the state.
“So while we would like the city contributed number to be zero, please understand that that is probably unlikely given the preponderance and predominance of state law over local law,” he said. Ta.
County Executive David Crowley called the ball club an important community asset and said he wants a bipartisan stadium funding plan.
“However, it is important to recognize that Milwaukee County still faces significant budget deficits for years to come, and any new proposal by the State of Wisconsin must recognize that reality,” Crowley said in a statement. mentioned in.
Opponents include local officials and state legislators.
But even if Johnson and Crowley support the plan, several city council members and county commissioners will oppose it.
The County Commission unanimously passed a resolution in May opposing county funding for the stadium. And in July, five members of the 15-member Common Council issued a statement opposing city funding for the project.
But the bill also allows for potential reductions in state shared revenue to counties and cities to help fund stadium renovations, according to the Legislative Fiscal Service.
The bill may also have difficulty gaining approval in the state Senate, where it could lose only five of the 22 Republican votes, assuming all 11 Senate Democrats oppose it. It could be difficult to get Senate approval, said Sen. Tim Carpenter, D-Milwaukee.
“There’s a core of senators who are very fiscally conservative and I don’t think they would support state bailouts,” said Carpenter, who opposes funding for local stadiums.
Senate Minority Leader Melissa Agard (D-Madison) also characterized the plan as too burdensome for Milwaukee taxpayers and said, “The Republican plan introduced today is inadequate.”
Senate Majority Leader Devin LeMahieu (R-Oostburg) suggested there could still be changes to the proposal.
“While there is still work to be done, we are hopeful that the framework of proposals introduced today will provide the bipartisan support necessary to keep the Brewers in Milwaukee through 2050,” LeMahieu said in a statement. said.
Assembly Minority Leader Greta Neubauer (D-Racine) said her caucus would not support the bill.
Neubauer said the Republican proposal “falls short of recognizing the local benefits of American Family Field and imposes too great a financial burden on the city and county of Milwaukee.”
“We remain open to continuing dialogue and look forward to reaching bipartisan agreement,” he said.
“We know we have to bring Democrats into this deal,” Brooks said.
American Family Field supported 3,000 full- and part-time jobs in 2022, including Brewers employees and those working for concession operators and other ballpark vendors. The ballpark also averages about 1 million more fans per year than the team’s previous home, County Stadium.
But skeptics say there are numerous studies that show these benefits are overstated, with most of them going to team owners, executives and players. Economists point out that the money spent at ballparks is discretionary income that would likely be shifted to other activities if the stadiums were closed.
Attanasio has repeatedly said he wants the Brewers to stay in Milwaukee long-term.
Relocations for MLB teams are rare, but the Oakland Athletics reached an agreement in May to move from the publicly owned Oakland-Alameda County Coliseum to Las Vegas, where it will receive $1.5 billion in public funds and $380 million in public funding. A stadium was to be built. MLB owner I plan to vote in November. Regarding whether or not to approve the transfer.
Both Brooks and Voss thanked the Brewers for their desire to remain in Wisconsin.
“Baseball is a very competitive industry,” Brooks said. “I’m just grateful they’re here to stay.”
Reporters Molly Beck, Alison Dear, Jesse Opoyen and Vanessa Swales contributed to this article.
Email Tom Daykin at: tdaykin@jrn.com And then Instagram, twitter and Facebook.
