Get to ‘yes’ on Bucks arena deal

Let’s close the deal and build a new arena in downtown Milwaukee. It isn’t often that a community can pour a half-billion dollars into revitalization in a single stroke. This is one of those rare opportunities.

The details of the $500 million funding plan that have dribbled out over the past few days indicate a thoughtful and creative use of public dollars. Lawmakers need to make sure of that. The deal would keep the Milwaukee Bucks in Milwaukee and set up a potential development bonanza in the nearby Park East Corridor.

Just as important: It would avoid the loss to taxpayers of millions of dollars in revenue and the costs of maintaining an aging BMO Harris Bradley Center.

Taxpayers need to get comfortable with the details, of course, which require legislative approval. Milwaukee County’s contribution — betting on a more efficient collection of the dollars owed it — deserves particular attention.

But the deal, which has the blessing of Gov. Scott Walker, looks promising:

The state would be responsible for $55 million in bonds over 20 years — $80 million once interest costs are included. That’s far below what Walker had proposed initially, and from a taxpayer perspective, seems like a more reasonable idea. The state also would take on $20 million in debt from the Bradley Center.

The Wisconsin Center District, which runs the convention center, Milwaukee Theatre and University of Wisconsin-Milwaukee Panther Arena, would use hotel, car rental and food and beverage taxes to pay off $93 million in bonds.

The city would spend $35 million on a new parking garage and provide $12 million in tax incremental financing.

Milwaukee County would “certify” tens of millions of dollars in uncollected county debt. The county believes that turning debt collection over to the state will help it recover $4 million more a year than it does now. Over 20 years, that’s another $80 million that will be poured into the construction of the arena.

The deal would create an expanded Wisconsin Center District board that would oversee the new Bucks arena and the Marcus Center for the Performing Arts. Consolidating oversight of the various downtown attractions is wise and should tamp down infighting.

Bucks owners Marc Lasry and Wesley Edens would pony up $150 million, and former U.S. Sen. Herb Kohl, who sold the team to Lasry and Edens, would put down $100 million.

There are important questions left to answer:

What if the state Department of Revenue doesn’t meet the county’s goal of $4 million in additional debt collection (unpaid property taxes, court fines and the like)? The short answer is that either the state or county may be on the hook for the shortfall. But we are confident that the state can meet the goal.

What will tapping Wisconsin Center District Board taxes mean for a future expansion of the convention center? It probably means that without additional funding, expansion is unlikely. Taxpayers, through their representatives, have a choice: An arena now or an expanded convention center later. We vote for the arena — and a discussion of whether a convention center expansion is needed.

Who is on the hook for any cost overruns? That question, in particular, needs an answer.

The tax hawks already are swooping in to skewer the deal but they won’t like any project that isn’t 100% privately financed, and that’s not going to happen. There are risks here but the negotiators have minimized the exposure for taxpayers and found creative ways to dig up the money required to take advantage of $250 million in private investment. Just as there are risks in acting, there are risks in doing nothing. A region that believes in itself acts. And now is the time to act.