BY Charles Benson, Today's TMJ
It could be a game changer. According to Today's TMJ4, the Menominee Tribe is expected Tuesday to announce a way to pay a big chunk of a new Milwaukee Bucks arena. But there’s a catch.
A source confirmed with Today's TMJ4’s Charles Benson the tribe will kick in $220 million for the new arena - but that’s only if the Gov. Scott Walker goes back on his decision and approves the Kenosha casino.
A news conference has been scheduled for 10 a.m. Tuesday to apparently unveil the plan and offer what the Menominee claims is "more than 1 billion reasons to say yes to the Kenosha Casino."
There's a lot on the table, and not a lot of time to think about it. The federal government has given the state until Feb. 19. Walker has said his decision was final.
The Menominee say their Kenosha casino offer is worth more than a billion dollars over 25 years to the state if approved by the governor.
But last month, Walker rejected that offer, claiming taxpayers would be at risk for hundreds of millions because of prior agreement with the Potawatomi.
The tribe says it has also offered a $250 million bond to cover any of those potential losses. And now there’s the new offer.
A source confirms the Menominee are expected to offer $220 million to cover the taxpayer's cost for a new arena.
Walker proposed using the state’s income tax on an increase in future player salaries to fund the state portion of the arena - often referred to as the "jock tax."
The tribe’s $220 million, combined with $250 million from the current and former Bucks owners, would put the total at $470 million.
News of the tribe's offer came after Bucks co-owner Wes Edens met with city and county leaders Monday to talk about the new arena.
The offer would also eliminate any potential political battles in the Legislature over the governor's arena financing plan.
Assembly Speaker Robin Vos, a supporter of the Kenosha casino, said he was not given any details of the tribe's offer but ”it's an exciting opportunity if true."
The source said the tribe is not asking for any naming rights as part of the offer.
The Bucks have not commented on the proposed offer – saying they're waiting for more details.
Walker’s spokesperson responded Monday night by saying, “Our office has received no information about this proposal."
Press Secretary Laurel Patrick also released this statement:
"However, it's important to note that Governor Walker's "Pay Their Way" plan for the new arena protects current taxpayer dollars. The $220 million would not come from current GPR. Rather it is in the form of an appropriation bond to be paid back by projected growth in income taxes from the Bucks, as well as visiting teams, due to salary increases and new TV contracts. Once the bonds are paid off, tax growth would return to the state."
"Governor Doyle’s compacts with the tribes open up the State of Wisconsin to significant litigation risks. Due to those compacts, the long-term economic hit to the state budget would be a potential loss of hundreds of millions of dollars."