CHICAGO (Reuters) - Minnesota lawmakers unveiled a plan on Monday to finance a new stadium for the Vikings National Football League team mostly with revenue bonds.
The bipartisan group of legislators' bill for a $791 million stadium includes an option that calls for the team to pay $264 million in up-front construction costs, with the remaining $527 million to be raised through bond financing.
Matt Swenson, a spokesman for the lawmakers, said the bill would create a new Minnesota Stadium Authority that would issue the limited-tax revenue bonds.
The bonds would be paid off with $39.1 million raised annually from a 1.5 percent area hotel surtax, a 6.875 percent tax on sports jersey purchases, a sports team scratch-off game and a 2.5 percent rental car surtax.
Under another option, the Vikings would largely be responsible for the stadium's cost with proceeds from the scratch-off game earmarked for the roof. Minneapolis, which would own and operate the stadium, would be able to use existing downtown entertainment taxes starting in 2021 for the stadium.
The lawmakers stressed that no state funds would be used for the stadium.
"We will not pass a bill that adds a nickel to the deficit, or takes a dime from nursing homes, schools, roads, or hospitals," said State Representative Loren Solberg, a Democrat-Farm Labor Party member from Grand Rapids, in a statement.
Under both financing options, the Vikings would be locked into a 40-year lease and would be required to apply any profits from the team's sale to pay any outstanding stadium debt.
(Reporting by Karen Pierog; Editing by James Dalgleish)
