Debt for U.S. Bank Stadium paid off decades early, but Minneapolis taxpayers not off hook yet
MINNEAPOLIS – The debt owed for building U.S. Bank Stadium has been paid off 20 years early.
This year's tax bill allowed for nearly $400 million in reserves to be used to pay the debt. But taxpayers are still not off the hook.
"That allowed for the state to pay off the construction bonds that were used for the construction of U.S. Bank Stadium," said Katie Topinka, intergovernmental relations director for the city of Minneapolis.
It was a combination of state dollars and contributions from the city of Minneapolis: $366 million in reserve funds, and $12 million for the general fund paid off the debt and remaining interest.
There are savings in the early payoff. According to the Minnesota Department of Management and Budget, retiring the debt saves taxpayers some $226 million in interest payments.
But for Minneapolis residents, the construction debt is not completely paid off. Money is owed to the state for the city's portion of construction bonds.
"But the state is refinancing it at a zero percent interest rate," Topinka said. "That, combined with the forgiveness of a prepayment of some funds that the state paid on behalf of the city, will save the city of Minneapolis about $8.7 million a year."
RELATED: $13M approved to build anti-climb fencing around U.S. Bank Stadium
The city of Minneapolis does continue to pay towards capital and operating cost for the stadium, and the team contributes to that as well.
The new tax law also caps the city's share towards the upkeep of the stadium to 3% of the hospitality taxes, which means more savings over time for Minneapolis taxpayers.
"The initial savings on the construction bonds and that new change in the tax law, we estimate that the debt relief for Minneapolis taxpayers will be about $350 million between now and 2046," Topinka said.
Money from pull tabs helped pay off this debt. Now that money – $150 million a year – will flow into the state's general fund, where it can be used for a number of state projects.
RELATED: U.S. Bank Stadium ranked ugliest stadium in the world, survey says
