St Paul wants debt forgiven

Star Tribune Sat, 05 Apr 2008 00:54:02 GMT
St. Paul's quest to get rid of debt lands at Capitol

The city is pursuing two options at the Legislature in an effort to wipe out loans for the RiverCentre Convention Center and Xcel Energy Center. St. Paul's quest to shed debt on the RiverCentre Convention Center and Xcel Energy Center continues at the Capitol. City officials say money owed on the buildings is hampering maintenance, development of nearby areas and the ability to be more competitive in attracting conventions. A provision in the Senate's supplemental budget bill, approved Thursday, calls for the forgiveness of about $35 million left on the loan for the arena. The city has paid $5.9 million to the state on the original $48 million arena loan. Under the proposal, St. Paul would continue to make payments, totaling $6.5 million, through 2011. Then the remaining balance would be forgiven. The city also would bump up its payments from August to June to help the state's books. The state's budget is estimated to be about $1 billion short. Wendy Underwood, the city's lobbyist, said St. Paul is unique in that it's paying a loan for a public facility. "It's not a $35 million check to the city," she said. The city also has $64.7 million left to pay in bonds on the arena, and it will continue to make those payments.

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