Speculation continues on financing for potential new stadium
There are many steps that must be taken for a commercial real estate development to actually get built. In addition to planning for the project, a location must be selected, the city must approve the plans and financing must be obtained. By skipping any one of these steps, the future of the project could be in jeopardy. However, these steps are not as easy as they may seem.
The financing of a major Minnesota development has recently come into question. A group of people have been lobbying to bring a professional soccer team to the Twin Cities. However, in order to do this, a stadium must be built. The group proposing the stadium have said that it would cost between $100 million and $200 million to build an 18,500 seat stadium.
The group has been considering a parcel of land near the Minneapolis Farmers Market to build the stadium. The owner of that land, has speculated about the financing for the project recently. He has claimed that the financing my need to be approved by the Legislature. He was implying that a portion of the funds for the new stadium may need to come from public funds. However, the soccer team has not made any announcement about where the funds could potentially come from.
Many believe that it could be an uphill battle to get public funds for another Minnesota sports team. However, the team must secure plans for the stadium by July or the soccer team could move to another market.
Commercial real estate developments — like a new stadium — are as much a business transaction as they are a legal transaction. By ensuring that the proper legal steps are taken during the project, developers can help to ensure the success of the project and keep costs low.
Minneapolis/St. Paul Business Journal, “Landowner hints Minnesota United group will want public subsidy for soccer stadium,” Mark Reilly, March 31, 2015
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