St. Paul recently built the Xcel Energy Center to host a professional hockey team, the Minnesota Wild, after the Twin Cities area lost the Minnesota Northstars to Dallas nearly a decade ago.
The local tax would likely be necessary to augment Gov. Jesse Ventura' stadium financing proposal, which is gathering steam at the state Capitol as well as with the Minnesota Twins. The plan relies on borrowing money and reinvesting it at a higher interest rate -- plus a $165 million up-front contribution by the team to pay for a $330 million stadium. The Twins like the plan, but say the host city would need to step up tothe plate, too.
That's why the St. Paul Chamber supports the city's proposal, in which it is asking the Minnesota Legislature for the ability to implement a tax of up to 3% on retail sales of food and beverages in the city. The St. Paul city council must also approve the tax. The tax will be eliminated once the debt has been repaid.
The city has also asked the Legislature for the ability to implement a surcharge of at least $1 per ticket for events at the new ballpark. And the city will supply the site for the ballpark.
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