The state of Minnesota is about to issue bonds that will pay the taxpayers' $498 million share of the new $975 million Vikings stadium.
The office of Minnesota Management and Budget on Monday issued a "request for proposal" – a formal notice to banks that might want to underwrite the taxpayer shares of the cost of constructing the gleaming new stadium, the Associated Press reports. Banks are being given until Oct. 9 to submit proposals, the AP reports.
Minneapolis taxpayers are on the hook to contribute $150 million, and the state owes $348 million, for the new 65,000-seat facility to be constructed on the site of the Metrodome in downtown Minneapolis in time for the 2016 season.
Bonds are loans. In this case, financial institutions would agree to pay the city and state shares of the stadium costs, and the city and state will agree to pay the banks back with interest.
Minneapolis has devised a plan to pay its share back with an existing hospitality tax.
The state had been planning to use the tax proceeds from new electronic pulltab gaming machines, but the machines have been a flop in their first year. To help make up for that shortfall in the first year of its debt, the state is using a one-time tobacco tax
Groundbreaking on the new stadium is expected in October.