[EMAIL PROTECTED] wrote:
It's difficult to admit, but the Governor has just proposed a stadium
financing plan makes a lot of sense.
The way I understand it is that the State floats $330 Million worth of
bonds
for construction of a baseball stadium. Interest costs are about 6.5% a
year. The Twins pay to the State upfront $165 Million, which the state
then
invests at 8.5%. The Twins then pay the state $10 Mil a year for the next
15 or so years to pay off remaining bonds. The 2% spread in debt cost and
investments cover the last 15 years of bond costs. The result is a new
stadium with no increase in taxes or expenditure of public funds.
David Piehl writes:
They forgot the last step: When it's time to negotiate new multimillion
dollar contracts with the Twins players and management, the owners decide
they don't want to pay the bond payments of $10 million a year anymore and
the taxpayer is left holding the bag. Look up the history of "forgiven"
payments and rents from the sports teams and you'll know what to expect. I
consider this a bait and switch, it would be more respectable to simply
state the cost and let people decide. It's not just sports teams - Gavidae
Commons is playing the same game. Ask yourself, if this is a good business
decision, then where are Wells Fargo and US Bank? Both have large mortgage
departments!!
I hope it isn't the Minneapolis taxpayers that get stuck with the bill,
we've got too many creative financing situations to deal with already.
David Piehl
Central
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