St. Paul Seeks State Funding for $769M Arena Renovation Plan

ST. PAUL, Minn. — The Minnesota Wild hockey team and the city of St. Paul are asking state taxpayers to contribute over $394 million toward a $769 million renovation project for the Xcel Energy Center and its adjacent facilities. The proposal, which entails significant upgrades to the 25-year-old arena, was pitched to lawmakers on Thursday as essential for revitalizing the downtown area and enhancing economic growth.

According to a press release from the city, the Xcel Energy Center has reached the end of its intended lifespan, and the adjoining St. Paul RiverCentre and Roy Wilkins Auditorium also require upgrades. The intended renovations aim to attract more world-class events, with St. Paul Mayor Melvin Carter describing the project as a necessary investment to sustain economic momentum. “A renovated Arena Complex will breathe new life into our city,” Carter said.

The proposed funding breakdown includes $394.6 million requested from the state, $215.8 million from the Wild, and $158.8 million from the city. This financial framework would enable a substantial refurbishment of the facilities, which serve as the economic engine of the city, generating over $383 million in revenue and hosting nearly 400 events annually.

Mayor Carter emphasized the economic potential, citing an impact study conducted by the Wild that aims for a $110 million increase in local spending following renovations. However, the significant taxpayer request has raised concerns among lawmakers regarding the state’s current economic conditions. Rep. Marj Fogelman (R – Fulda) expressed apprehension, stating, “This is a huge ask for the State of Minnesota, especially with the economy the way it is right now.”

Rep. Roger Skraba (R – Ely) noted support for the idea but acknowledged the challenges in securing necessary funds. “How we get to that dollar amount is going to be the challenge,” Skraba said. Dissent arose from area Representative María Isa Pérez-Vega (DFL- St. Paul), who voiced concerns over existing tax rates, stating, “I don’t want to raise taxes for my people. I don’t want that to be the continuance of how we are going to redevelop St. Paul.”

Wild owner Craig Leipold presented the renovation plans to the House Capital Investment Committee, urging support for the proposal. He pointed to successful partnerships between governments and teams in sharing arena costs as precedent, highlighting that past financial pitfalls contributed to the loss of the state’s original NHL franchise, the North Stars, in 1993.

Despite the struggles, Carter remains optimistic about the potential outcomes of the project. “It’s a question of whether we want to facilitate and set ourselves up for a vibrant, thriving center of activity for the next generation,” he said.

The envisioned updates include improved seating, enhanced security, new HVAC systems, and additional dining options, aligning with changes in consumer preferences and safety standards since the arena’s opening. However, concerns over the size of the funding request arise amidst impending budget constraints, as projected surpluses decrease and deficits loom.

Sen. Sandy Pappas (DFL-St. Paul) reflected on these challenges, noting, “We’re not keeping up with our deferred maintenance… Everything seems to be aging out at the same time.” As discussions continue, the city’s officials assert that the anticipated returns justify the investment. Carter declared, “We can’t retreat and fail to invest in our state… that crunch will get better over time.”

The proposed renovations could begin as early as 2026 if funding is secured, carrying hopes of revitalizing St. Paul as a hub for commerce and entertainment. Leipold concluded by emphasizing the importance of community support, saying, “When there’s people, there’s energy, and there’s safety.”