Minnesota Twins' home Target Field’s debt retirement better than expected - MLB News
Target Field, home of the Minnesota Twins is one of the friendliest ball parks in the US. It also has a significant public share in the ownership. The original timeline for the payment of the debt is scheduled in 2037; however, it may be retired early by
five to ten years as some of the payments are being made in advance.
The ball park’s total cost is around $555 million and $350 million public share has come through issued bonds. In order to retire the debt, Hennepin County in which Target Field sits, has levied a 0.15 percent sales tax until the retirement of the debt.
With the early payments, the county has already saved $53.7 million in interest. It will mean that once the ball park debt has been paid off, the sales tax levied to pay it off will also be removed.
Hennepin County is not joyous on taxing its resident and is looking to do away with the debt at the earliest. Mike Opat, Chairman of the Hennepin County Board was quite clear on the ambitions and actions of the county.
"We're not in love with having a tax on for as long as we can have it," said Mike Opat. "When there's the money, we pay down the debt."
He also made it clear that the revenue received is specifically used for this particular project as opposed to the speculation of some that it was being dumped for other programs as well.
"This is a specific tax for a specific use," Opat said.
There have been fluctuations in the revenue collection but none of them have been significant enough to damage the payment plan. The County maintains an excellent AAA bond rating and was able to borrow on a low rate for $75 million in variable rate bonds.
The routine maintenance of the ball club is managed by the Minnesota Twins, who also pay a $1 million annual rent. They also contribute to the uplifting of the ball club and have so far spent $8 million but have not asked the county for reimbursements.
The president of the Minnesota Twins, Dave St. Peter said that the ball club is looking to make use of the money for more significant projects later on.
"We would like to continue to accumulate those dollars for more significant projects," St. Peter said.
He is also pleased with the project’s revenue collection going better than expected. Dave called it ‘good news’.
"A bit of good news as it relates to these types of projects, which are very controversial," Dave said.
It’s great to see that the Hennepin County has done well in collecting revenue and should eventually save millions in interest with the early payment of the debt for the Target Field. It will also mean that the additional sales tax levied by the county will
also come to an end much earlier than originally anticipated. It’s a win-win situation for everyone.
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