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A plan unveiled Monday calls for about $600 million in state and local funds to be spent on renovations to American Family Field over nearly 30 years, with the Milwaukee Brewers pledging $100 million.
It would need approval from the Republican-controlled Legislature and Democratic Gov. Tony Evers, as well as their counterparts in Milwaukee County and the city of Milwaukee — where many elected officials oppose spending on local stadiums. This raises the possibility of additional negotiations before a final agreement is reached.
What’s at stake is whether the Brewers will remain in Milwaukee after the team’s lease on the publicly owned stadium expires at the end of 2030, said Assembly Speaker Robin Vos, R-Rochester.
The legislation amounts to “an opportunity for us to keep Major League Baseball in Wisconsin,” Foss said at a news conference at the stadium.
If the team left, the fans would own an empty stadium — and state income tax revenues tied to the ballclub would disappear, said Rep. Robert Brooks, R-Saukville, who co-authored the legislation.
“It’s cheaper to keep it,” Brooks said at the press conference.
Governor Evers promises to review the proposal
Evers’ office issued a statement criticizing Republicans for rejecting the stadium funding plan while also saying “it’s good to hear that Republicans are getting serious about keeping Major League Baseball in Wisconsin.”
“Governor Evers looks forward to reviewing the Republicans’ proposal and continuing conversations on a plan that provides additional flexibility and minimizes harm to local partners while ensuring we preserve this important economic engine and thousands of jobs in our state,” the statement read.
The proposal, unveiled by Vos and other Republican lawmakers, would require the ball club to extend its lease through the end of 2050 — with the company also signing a non-relocation agreement.
Under the lease, major capital improvements to the stadium, including renovations that bring it on par with the upgraded facilities used in at least 75% of all MLB stadiums, fall largely to the Southeastern Wisconsin Professional Baseball Park District. . This state-created district is the primary owner of American Family Field, which opened in 2001.
Improvements under the Republican proposal include winterizing the stadium so it can be used for concerts and other events during the off-season, Brooks said.
The team generates about $20 million in annual state income and sales tax revenue, totaling more than $500 million from 2024 through 2050.
Evers last February proposed $290 million in his 2023-25 state budget to help fund stadium renovations totaling about $450 million. This would have been combined with general funds already allocated by the stadium district plus interest earnings.
In exchange, the Brewers’ lease would have been extended until 2043.
Iver’s plan faced Republican opposition
Evers’ proposal has faced legislative opposition, with Vos and other Republicans saying the plan should include money from Milwaukee County and the city of Milwaukee. Lawmakers on both sides of the aisle also said the Brewers should help pay for the renovations.
The Republican plan calls for the state to spend about $411 million through 2046. After an initial payment of $60.8 million for the stadium district, those annual payments would be capped at $20 million, according to the legislation.
Another $50 million will be provided through short-term loans by the state for the stadium district through 2045.
more:How does the Brewers’ overall financing deal compare to other professional sports teams?
Most of the state money will come from income taxes on Brewers employees, including players, and on the team’s visiting players. Those payments would go directly to the stadium district, said Sen. Dan Vien, R-Fond du Lac, a co-author of the legislation.
Together, Milwaukee County and the city of Milwaukee will pay $7.5 million annually, for a total of about $200 million. The proposal calls for $5 million annually in payments to counties and $2.5 million in payments to the city.
“They would benefit more from having professional baseball in their community,” Fine said. At the same time, he said the state sales revenue generated by Brewers benefits all Wisconsin communities.
The Brewers, primarily owned by millionaire investor Mark Attanasio, will spend $100 million.
The $100 million compared to about $40 million the Brewers would be required to make stadium lease payments and fund renovations through 2050 if the current lease is extended without changes, said Rick Schlesinger, the Brewers’ president of business operations.
The Brewers’ decision to spend that extra money was a result of confronting political realities as well as a desire to be a good partner with the community, Schlesinger said.
He said the spending plan amounts to the stadium district fulfilling its contractual obligations and is not a bailout plan.
Vos, who plans to vote in October in the Assembly, said there is some urgency to pass the proposal.
He and Brooks said the stadium district renovation fund, previously estimated at $70 million, actually amounts to about $10 million to $15 million. That could result in the stadium district defaulting on its lease obligations by 2024, Brooks said.
This fund was created by a 0.5% Milwaukee area sales tax that expired in 2020.
The state has a $4 billion surplus. Milwaukee faces a budget challenge
Opponents of local spending say the state has a two-year budget of $99 billion, including a $4 billion surplus.
The county and city have 2023 budgets of $1.37 billion and $1.72 billion, respectively. It also faces greater financial challenges even as it generates a significant amount of state income and sales tax revenue, and as a number of outside companies shift operations to Milwaukee.
American Family Field and its parking lots, which could eventually host commercial development, are also exempt from property taxes — the main form of local government revenue.
But both the county and city have a sales tax that applies to Brewers tickets and other items sold at the stadium.
“If the team leaves, they have a lot to lose,” Voss said. “I think it’s a good deal for everyone.”
The city’s new sales tax and county sales tax increase were approved in July by local officials. These measures are permitted by state legislation that also provides an increase in combined state revenues for the city and county.
Mayor Cavalier Johnson said the Republican proposal would tax city residents double because they are also county residents. He said the Brewers should be pushed to create commercial projects next to the stadium — which would generate property tax revenue if the site exemption is changed.
Johnson’s bottom line: He wants the Brewers to stay in Milwaukee. But American Family Field is owned by a state-created district, not the city.
“So I would prefer the number contributed by the city to be zero, but I understand that is probably unlikely given the superiority or supremacy of state law over local laws,” he said.
County Executive David Crowley called the ball club an important community asset and said he wanted a bipartisan stadium funding plan.
“However, it is important to recognize that Milwaukee County continues to face a significant fiscal deficit over the next several years. Any new proposal from the state of Wisconsin must acknowledge this fact,” Crowley’s statement said.
Opposition includes local officials and state legislators
But even if Johnson and Crowley support it, the plan will be opposed by many members of the Common Council and County Council.
The County Council in May voted unanimously on a resolution opposing county funding for the stadium. Five members of the 15-member Common Council in July issued a statement opposing city funding for the project.
However, the legislation also allows for potential reductions in state shared revenue for the county and city to help fund stadium renovations, according to the Legislative Fiscal Office.
Sen. Tim Carpenter, D-Milwaukee, said the legislation could also have a hard time getting approval in the state Senate, where it could lose just five of the 22 Republican votes — assuming all 11 Senate Democrats oppose it.
“There’s a core group of senators who are very fiscally conservative and I don’t see them supporting a government bailout,” said Carpenter, who opposes funding for local stadiums.
Senate Minority Leader Melissa Agard, D-Madison, also called the plan too burdensome on Milwaukee taxpayers, saying “the Republican plan proposed today is inadequate.”
Senate Majority Leader Devin LeMahieu, R-Oostburg, indicated the proposal could see changes.
“There is still work to be done, but we are hopeful that the framework of the proposal presented today will have the bipartisan support needed to keep the Brewers in Milwaukee through 2050,” LeMahieu said in a statement.
Assembly Minority Leader Greta Neubauer, D-Racine, indicated her caucus would not support the bill.
The Republican proposal “falls short of recognizing the regional benefit of the American family space and places a significant financial burden on the city and county of Milwaukee,” Neubauer said.
She added: “We remain ready to continue talks and hope that an agreement can be reached between the two parties.”
“We know we’re going to have to get Democrats on board with this deal,” Brooks said.
The American Family Field program in 2022 supported 3,000 full- and part-time jobs, including Brewers employees and people who work for concession operators and other stadium vendors. Also, the stadium attracts on average approximately one million more fans per year than the team’s previous home stadium, County Stadium.
However, skeptics say there are numerous studies that say these benefits are overstated, with most of them going to team owners, executives and players. Economists point out that the money spent at the stadium is discretionary income that would likely be diverted to other activities if that stadium were to close.
Attanasio has repeatedly said he wants the Brewers to stay in Milwaukee long-term.
While MLB team moves are rare, the Oakland Athletics in May reached an agreement to move from the publicly owned Oakland-Alameda County Coliseum to Las Vegas — where a $1.5 billion stadium will be built with $380 million in public funds. MLB owners To vote in November On whether the move will be approved.
Both Brooks and Voss thanked the Brewers for the baseball club’s willingness to remain in Wisconsin.
“Baseball is a very competitive industry,” Brooks said. “We’re just grateful they’ll be here.”
Reporters Molly Beck, Alison Dear, Jesse O’Boin and Vanessa Swales contributed to this article.
An email can be sent to Tom Daykin [email protected] She continued Instagram, Twitter And Facebook.
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