JS Article: Letter to mayor poorly received

[wufc]

http://www.jsonline.com/sports/socc/nov05/367946.asp

This Lauterbach guy is everywhere, DCU, RSL, and now MPS.

[Pygmalion]

"While he hasn't received the letter yet, the mayor is not interested in the idea of another publicly-financed regional sports stadium," said Andrea Rowe Richards, a Department of City Development spokesman. "This is a proposal that keeps dribbling down the field without scoring a goal."

Wow, she's good.

[kebzach]

What an inconsistent article. How can Peter Wilt decline comment, yet comment in the same article?

Also, the bigger question is this: where in the article does it say that the stadium is going to be publically-financed? That quote is pretty much straight out of left field.

[kebzach]

Local backers are expected to meet with MLS officials at the MLS Cup, which is scheduled to be played Nov. 12 in Frisco, Texas.

Are they planning on rescheduling the game for the 12th? Or is the game the 13th? I'm saying the 13th.

Don Walker is a jackass.

[Pygmalion]

If someone could give us a bit more background on Lauterbach it would be appreciated.

Aside from the other elements of this discussion I wonder why this letter went public.

It is becoming more and more evident that we are dealing with basketball guys. Mayor Barrett - basketball guy, Tim Sheehy (head of the MMAC - association of commerce) - basketball guy, Ulice Payne (all around mover and shaker) basketball guy. They went over to China, made friends and played hoops.

I don't know if Rocky Marcoux in the City Development office is a basketball guy but he sure hasn't liked anything to do with this project nor has the Mayor's Chief of Staff if I remember correctly.

I don't know anything about this international investment group nor who the investors are who are already lined up but if we can add an investor from China into the mix I would highly recommend it. If it hasn't happened already I would also talk to these guys.

http://www.jsonline.com/bym/news/oct05/365077.asp

"One of the city's chief advisers is Scott Harrison, an American who founded an Asian-based trade consultancy and worked previously as station chief in Beijing for the U.S. Central Intelligence Agency. Fluent in Chinese, Harrison spent 30 years in the CIA and won awards and medals from the secretive agency.

His partner is Zhihai Zhai, an affable Chinese businessman and investment banker with career-long ties to the Chinese government. Zhihai is a former high-ranking intelligence expert in the Chinese military who also studied at Johns Hopkins University. Together, they operate Pacific Strategies & Assessments, a consulting firm."

[fclalala]

While he hasn't received the letter yet, the mayor is not interested in the idea of another publicly-financed regional sports stadium

Ummm...shouldn't you wait to see the proposal before rejecting it outright?

[olderandwiser]

It's tough to break into a small market where you have people in high places who feel a responsibility to "protect" existing sports franchises. Also, there's hesitancy to green light a herculean project not knowing what the end result will be. This is a conservative town that way. These are politicians who want to be re-elected come re-election time. Then throw in city movers and shakers who may not be comfortable with the investment/management team. I said early on that there were an awful lot of dynamics involved and to present them as one very solid piece is, to say the least, a difficult task.

On the other hand, not too long ago Peter stated that he felt more optimistic about the project lately. I'm guessing it was because of this Lauterbach involvement. We'll have to wait and see if his group brings a necessary chunk of credibility and persuasiveness to the project. No one's going to give a go-ahead to a project of this size based on the fans' desires. That you can take to the bank.

I would like to see the project come to fruition, but I'm also a realist. This one's a tough sell.

[Peter Wilt]

To say the least, we're not pleased with the Mayor's response and the mischaracterization of the project as "another publicly financed sports stadium."

Fortunately, the Common Council leadership understands that this is a privately financed development with the TIF GUARANTEED privately by major banks. This is shaping up as a battle between the north and south ends of city hall and we believe that the north end's support of this major development for the city will prevail.

How the south end can be unilaterally opposed to a development valued at hundreds of millions of dollars with no risk is beyond me. This will be the largest development project in the city's history and fortunately, the city's aldermen get it. We hope the Mayor will support it as well, but if he doesn't the Council has the ability to see it through.

peter

[olderandwiser]

Peter, if it is truly no risk, I'm certain the north end will prevail. They have before. Continued good luck to you.

[matzek73]

Peter, thanks for keeping us informed on the progress and issues at hand.

Question - The article states:MLS currently has 12 teams, including first-year franchises in Salt Lake City and Los Angeles (Chivas USA). Garber has said the next round of expansion should come in 2007, when Toronto is expected to join the league, and 2008, with one additional team. So, what is going on here? Will there be two teams in '07 and one in '08? Or one team in '07 and one team in '08? Has Commissioner Garber actually made anything public on this decision?

[MightyMouse]

I plead the 5th!!!

[Pygmalion]

Fortunately, the Common Council leadership understands that this is a privately financed development with the TIF GUARANTEED privately by major banks. This is shaping up as a battle between the north and south ends of city hall and we believe that the north end's support of this major development for the city will prevail.

How the south end can be unilaterally opposed to a development valued at hundreds of millions of dollars with no risk is beyond me. This will be the largest development project in the city's history and fortunately, the city's aldermen get it. We hope the Mayor will support it as well, but if he doesn't the Council has the ability to see it through.

peter

The scale of this now is making me nervous. Not because it won't be a great project but because of OlderandWiser's comments about the conservative nature of this town. I actually think the town would get it, this is all going to come down to who thinks they can take political advantage of this. Given the antics, successful antics mind you, of the CRG (Citizens For Responsible Government) group during the Pabst City debacle I will be on edge about how locked in the north side of City Hall is about this. They can make a lot of unhelpful noise around this if they want to. As can the conservative talk radio folks. Then again, conservative talk radio might want to jump all over Barrett just because he seems opposed to this and say his head is in the sand.

[fclalala]

The scale of this now is making me nervous. Not because it won't be a great project but because of OlderandWiser's comments about the conservative nature of this town. I actually think the town would get it, this is all going to come down to who thinks they can take political advantage of this. Given the antics, successful antics mind you, of the CRG (Citizens For Responsible Government) group during the Pabst City debacle I will be on edge about how locked in the north side of City Hall is about this. They can make a lot of unhelpful noise around this if they want to. As can the conservative talk radio folks. Then again, conservative talk radio might want to jump all over Barrett just because he seems opposed to this and say his head is in the sand.

PabstCity failed because nobody rallied behind it and the opposition put up a vocal fight against it. That coupled with people's general misunderstanding of TIF financing, and the fact that TIF financing is one of the lone economic incentives in Wisconsin due to our constitution, doomed the project. The key for any project of a large size is to educate, educate, and then educate. This is where we come in. When the proposal is ready, I'm sure Peter will deseminate the big issues for us to educate the public with.

[Pygmalion]

I agree with everything you said. But just for practice, educate me on how a TIF is not a "subsidy," or "a tax-payer funded project," or "a high risk loan on a 'risky venture like soccer'."

Let's get those talking points together and see if they fly against "they want to build a taxpayer funded soccer stadium and they can't even afford to keep libraries and schools open, not to mention the fact they're charging me a $70 fee to pick up the garbage!!!"

[fclalala]

I agree with everything you said. But just for practice, educate me on how a TIF is not a "subsidy," or "a tax-payer funded project," or "a high risk loan on a 'risky venture like soccer'."

Let's get those talking points together and see if they fly against "they want to build a taxpayer funded soccer stadium and they can't even afford to keep libraries and schools open, not to mention the fact they're charging me a $70 fee to pick up the garbage!!!"

It depends on how the TIF is structured, so that's a difficult question to answer right now. But for fun, let's assume that the TIF district is $20 million and all of the money is used strictly for infrastructure improvements with an estimated twighlight of 15 years.

"TIF districts are a great tool to spur development. First, the money will be going to uses that are needed such as streets, sewer mains (with the new seperated system to prevent MMSD sewage dumps in the future) and other infrastructure. Secondly, the money doesn't come out of the general fund so it doesn't cost the city any money up-front. Third, when the TIF district closes it will result in $XXX million more dollars in general fund taxes."

[Pygmalion]

If Walker's article is on target, the TIF portion comes to $110 million.

[PhantomTollbooth]

[QUOTE=Pygmalion]"While he hasn't received the letter yet, the mayor is not interested in the idea of another publicly-financed regional sports stadium," said Andrea Rowe Richards, a Department of City Development spokesman. [QUOTE]

Ummm, why is this quote in the article, since the rest of it talks about Lauterbach financing the project??? All the city would need to do is help with TIF and roads/etc. This is NOT another Miller Park situation.

URRRRRRRRRRGH!!!! :mad:

[sprintjeløy1926]

What happened to the mayor's love affair with TIF?

http://www.bizjournals.com/milwaukee/stories/2005/06/27/story1.html

I guess that doesn't apply to soccer stadiums.

[fclalala]

If Walker's article is on target, the TIF portion comes to $110 million.

Yes, but it's not clear if the $110 million is the portion to TIFed or if they are requesting a $110 million TIF for $410 million of development.

[sprintjeløy1926]

for those of you who don't feel like registering:

from a June 24 story in the MKE biz journo

"The Department of City Development under Barrett plans the expansion in tax incremental districts over the next two to three years.

'Sometimes you have to seize opportunities, not walk away from them,' said Patrick Curley, Barrett's chief of staff. "