Here’s a Twist: St. Paul DFLers Seeking Break on Loans to Upgrade Center for GOP Convention

St. Paul officials and legislators have asked the state to pay off nearly $100 million in debt on the Xcel Energy Center in St. Paul, in part so the city can use the savings to upgrade the RiverCentre and the Roy Wilkins Auditorium for the GOP convention in 2008.

The money would pay off $55.8 million in bonds for the RiverCentre, and $42.7 million in an interest-free state loan. The Legislature has certainly helped cities in the past, including paying off $87 million in bonds for the Minneapolis Convention Center in 1998.

The bonds for RiverCentre are being paid off with STAR funds (citywide sales tax money), 40 percent of which goes to the RiverCentre and the rest to neighborhood and cultural grants.

[Senate Finance Committee Chairman Richard] Cohen, who is dean of St. Paul’s all-DFL legislative delegation, said that repaying state loans has become “very onerous” and St. Paul deserves a break to remain on an even footing.

“It’s pretty simple,” Cohen said. “Everybody in St. Cloud, Bemidji and Duluth wants money for hockey arenas and convention centers, and we’re potentially going to give significant dollars to these places to basically pay for these kinds of improvements.”
Star Tribune