CARW Applauds Local and State Legislators for Presenting a Financing Plan
financing plan is critical step to ensure economic development opportunities exist for Park East corridor
(Milwaukee-WI) The Commercial Association of REALTORS Association Wisconsin is pleased that details of financing for an arena have been announced. While the association has not publicly supported one funding plan over another, it has supported the fact that not building the arena would lead to the loss of millions of dollars in revenue to the State, loss of economic development opportunities for the region, and jobs.
“When a financing proposal is required to include no new taxes, officials and legislators must get creative in their solutions” said Paul Galbraith, Chairman for CARW, of the plan. “What we saw today is a plan that allows the arena to be built and ancillary development planning discussions on the Park East to continue.”
The Commercial Association of REALTORS® Wisconsin has stated that a catalytic project like the arena will fuel demand for retail, office, hotel and multi-family development which will increase the tax base for the City and create thousands of good paying jobs for the State. “This is a generational opportunity to continue the transformation of the Milwaukee Region. In addition to the arena there is an opportunity for an additional $500 million in ancillary development that could lead to $5 million in annual property taxes for the State,” said Jeff Hoffman of Boerke Company.
“We understand that there are many more steps to getting this deal passed through committees and other governing bodies,” said Tracy Johnson, CARW President. “We applaud local and State officials for considering this solution which does not raise taxes for Wisconsin citizens and places urgency on keeping Milwaukee on the map as one of 28 NBA cities.”
The current and former owners of the Milwaukee Bucks have committed to pay half of the $500 million projected cost of a new arena. Under the Governor’s plan, State and local governments will fund approximately $250 million, or half of the total project costs, toward building the new arena without tax increases or state bonding.
- The state would put forward $4 million per year for 20 years, with the total state investment capped at $80 million.
- The city would contribute $47 million through the creation of a TID and paying for a parking structure in upfront cash.
- The county would contribute $4 million per year over 20 years through a state debt collection agreement.
- The Wisconsin Center District would use existing revenue streams to finance roughly $93 million in bonding for the plan.
“CARW is interested in ensuring that the economic benefit is realized by everyone in our community,” added Galbraith. “If we lose this opportunity, we will likely never have it again.”