Thursday, April 19, 2012

Minnesohta Finance Doesn’t Make Sense


With the deadline fast approaching for a stadium deal to be completed, I'm perplexed with some of the comments I've read from fans and the public. It seems as if Minnesota's finances are confusing at best and suspect at worst.
State Capitol, St. Paul, Minnesota
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The worst comments I've heard are that people don't want to fund billionaires. I've also heard people saying that there are hungry people in Minnesota and that public funding takes food out of their mouths.
The public also says asks why shroud the state pay for Zygi Wilf's stadium?

I look into these claims below:

Why Should we Finance Zygi Wilf's Stadium?
First off, the Twins only had to finance 1/3 of their ball park through private financing. Wilfs will finance half. That's above the average for both the MLB and the NFL. The stadium bill went through the legislature and it bypassed a public vote.

Even those people who were against it, are the first ones to brag about the ball park now. Most Minnesotans are happy that they have this ball park. As far as billionaires? the Pohlads are among the richest people in America and they only put up a third of the money.

The Billionaire New Yorker is willing to put up half the cost and he's ridiculed for it. He's listened to lawmakers, changed his plans after listening to them and has remained patient for years. What did he get in response? A cold shoulder and a snub.

I hope it has nothing to do with Minnesotans supporting one for their own. Were they willing to support the Pohlads, a local family and not the rich billionaire from New York? I don't have the answer to that but it's not right how the Wilf's are being treated.

There are Hungry People In Minnesota
I'm not downplaying the plight of the hungry, homeless and jobless in this state. They are well documented. As far as I know, there isn't one program for those in need that would be diverted to fund the stadium. In fact there  have been proposals for financing the stadium through gambling/casino revenues. That plan was shot down.

Why should We Finance Billionaires?
As far as financing billionaires is concerned, Minnesota already provides loans, tax cuts and other incentives to large businesses in this state. Those billionaire handouts, help to employ the same cracker jacks who don’t want to finance Zygi Wilf the billionaire. If they don’t want to finance the stadium, they should ask lawmakers not to fund their employer. Their employer would leave town and they would be jobless.

That's hypocrisy. Of course they want jobs and don't want to put that in jeopardy but they are willing to have hundreds of Vikings employees being sacked when the team moves.

It is estimated that the team generates just over 40 million to other businesses throughout an 8 game season. that's not counting playoff games. Is the state willing to lose that plus the taxes that are paid by people employed by both the Vikings and other businesses? I guess so.

It would be more money lost when the state finances the unemployment of these people. I guess they're all for that.

Financing Through a Small Sales Tax increase
The state could finance the building through a small increase in the sales tax. Since most groceries and clothing items are exmept from the tax, the impact would be minimal, especially if the tax were 1/4 of 1 percent. For every 1,000, it amounts to $2.50. Once again, I'm not making light of anyone's finances but I do think a sales tax is doable!

Also, the same people who don’t want public financing of a stadium, because there are hungry people, aren’t asking for a sales tax increase to help the poor. The stadium doesn’t take any earmarked money for other programs.

The spinoff on restaurants, hotels and the people the team employs will be lost. In fact, with a new stadium, that would increase. We know how the Xxcel Energy center helped St. Paul and what Target Field means to Minneapolis

Minnesotah Nice? Not Really
Wilf played by the rules and was Minnesota nice. He listened to what lawmakers saisd and took their advice. he was patient. When they asked him to modify his stadium plans (Location site, financing, etc), he did. Where did that Minnesota nice get him? Nowhere. Lawmakers acted like anything but Minnesota nice. They acted like thugs.

If They Leave, there will be an added cost!
If they leave, there will be a time when Minnesota will ask for an expansion franchise. By that time it will be 2 to 3 times more expensive. Does that make financial sense? Of course not but that's financing, Minnesota style.

There's an inability of the public to see the future. They don't have that ability. The same people crying foul, will be the same idiots who are hearbroken when the team leaves. They will be the same clowns who will lobby for an expansion franchise. They will be the same bozos who are willing to pay, 2 or 3 times the cost that it takes now.

That makes no sense to me but that is Minnesotah finance in a nutshell.

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