Xcel Energy Center, RiverCentre updates could cost ‘hundreds of millions.’ City officials explain the need.

Frederick Melo, Pioneer Press
Updated ·7 min read

Remodeling, if not reinventing downtown St. Paul’s Xcel Energy Center and the city’s adjoining RiverCentre convention halls would require the state to find “hundreds of millions” of dollars, a request that has already drawn meetings between St. Paul Mayor Melvin Carter, Gov. Tim Walz and management of the Minnesota Wild.

The mayor’s office is pitching the project as the revitalization of a statewide asset that hosts more than just professional hockey games. Think of state high school sports tournaments, high school graduations, concerts, conventions and the annual Hmong New Year’s celebration.

Each year, the city sends $315 million in sales tax revenue alone to the state of Minnesota, a significant portion of which can be attributed to events at the arena complex. City officials have estimated that between hotel rooms, a hotel occupancy tax, jobs and other related spending, the facility’s overall economic impact adds up to roughly $493 million annually.

Still, there’s a general distaste in some corners for using public funds to boost privately-managed professional sports stadiums. A funding request that could exceed $300 million, by some estimates, may require the city to come up with a local match at a time when St. Paul is hard-pressed to hold the line on property taxes while filling potholes, housing the homeless and addressing other municipal priorities.

St. Paul City Council Member Mitra Jalali on Friday said she could not make an informed comment without first seeing a specific proposal, but added, “I’ll be reviewing the details very closely to make sure we can make a responsible investment in this asset.”

Deputy Mayor Jaime Tincher and St. Paul Planning Director Nicolle Goodman recently sat down with the Pioneer Press for an update on where things stand. Also in attendance were St. Paul Financial Services Director John McCarthy and Melanie McMahon, the mayor’s executive project lead for redevelopment. This interview has been edited for length and clarity.

Q: The Xcel opened in 2000. Why does it need a renovation now?

Jaime Tincher: The Xcel Energy Center and the RiverCentre complex are city-owned facilities, and from a city perspective, it’s the most important economic driver for downtown. There 130 nights where we have events, whether it’s hockey games or Hmong New Year or other events. And (the Xcel) is 23 years old. We compete really well in the concert space. But 20 years later, what the artists of today want even in terms of how they access their space, it’s way different. What was important to the hockey experience 20 years ago, that’s changed, from the fan experience, the sight lines to the games, access to food and beverages. Folks years ago maybe wanted more box suites, and 20 years ago it might have been corporate partners buying big box suites. And that’s not necessarily what the tech folks want today.

That’s a lot of what we’re learning from arenas in other parts of the country, as well as U.S. Bank Stadium in Minneapolis. In order to fund all the other priorities that we have, we have to have that economic vitality. All downtowns right now are struggling. The events that are happening in that space are supporting our restaurants downtown.

Nicolle Goodman: That’s what’s keeping our downtown going. There was a recent weekend when every downtown hotel room was booked because of what was happening at the Xcel. It was the weekend that Pearl Jam was here.

Q: What kinds of improvements are you looking at and how much would they cost?

Tincher: The city is working closely with the Wild to create a wish-list of improvements for the X and the RiverCentre, and the team has been surveying fans about their priorities. Time is short as the legislative session kicks off in January, so that list needs to come together within weeks, not months.

If we don’t need to replace the roof, that might be a good thing. We’re trying to figure out what are the things that need to be renovated. We still have supply chain issues. We still have inflation. We still have costs on construction that are somewhat volatile.

I know the $300 million number has been floated. Certainly, we want to be prepared with a number by the time we go into the legislative session and the specific items we’re looking for. You’re going to have a state surplus, which are one-time funds. We know there’s a lot of other priorities for that money. And there’s a lot of other priorities for the city as well, like the unsheltered homeless.

One area that is sure to get scrutiny is the arena loading dock. In a competitive market for concerts, conventions and sporting events, artists can go anywhere. Events can go lots of places. It’s vitally important to the functioning of that facility.

The X needs upkeep, but so does the adjoining RiverCentre convention space, their shared — and poorly aging — parking ramp across the street and the Third Street bridge connecting Kellogg Boulevard to the East Side. It’s safe to expect, according to the mayor’s office, that conversations with lawmakers and the governor will move forward on all those fronts.

Q: Some other stadiums open their doors to weekly running groups and small community events. Have you talked to the downtown neighborhood coalition, the CapitolRiver Council, or other neighborhood advocates and community partners about what they’d like to see at the X?

Tincher: Those conversations will unfold as we get more details.

Q: Asking for hundreds of millions of dollars from the state with likely require a local match, which could impact property taxpayers. Have you reached out to the city council or school board?

Tincher: I know that there are people who are opposed to public support for sports facilities. What I would say is this arena is a whole lot more than a sports facility. If that building was still there and we lost the Wild, we’d lose that $493 million of financial impact. We anticipate that (this project) is going to be a partnership between the state, the city and the Wild. Once we know what the renovations are, we can figure out what level of city spending feels fair.”

Q: Don’t taxpayers already finance the X through the city’s half-cent sales tax, as well as a tax increment finance district downtown?

John McCarthy: To pay for the construction bonds that opened the X in 2000, the arena complex is supported by up to 40% of the proceeds from the city’s half-cent sales tax, an arrangement that expires in 2042. General maintenance in and around the facility is also supported by a tax increment finance district, which redirects about $3.5 million annually in property tax increment generated within some 21 square blocks of downtown St. Paul. That TIF district was recently extended to the year 2033.

That’s why the deputy mayor talks about the Xcel being so well maintained. It’s not covering big exciting things. It’s the roof, and the HVAC.

Q: How long will construction take?

Tincher: Teams attempt to time construction around their playing schedule as much as they can. Still, Milwaukee and Atlanta stadiums followed a multi-year construction schedule. In Indianapolis, stadium construction happened to move forward during the pandemic, when no sports games were scheduled, which sped the timetable.

Q: Not every St. Paul family can afford to attend a hockey game or concert at the X, even before the surprise Ticketmaster fees are added on at check-out. Beyond hotel room bookings and spending at downtown restaurants, what would be in this deal for everyday St. Paul residents and their kids?

Tincher: Minnesota Wild owner Craig Leipold is a co-chair of the mayor’s “College Bound St. Paul” initiative, which seeks to connect every child born in the city to a college savings account. In recent months, the X has hosted blood drives in partnership with the American Red Cross and the Memorial Blood Bank, an “action day” with the United Way, “Wild University” sessions with Boys & Girls Clubs, a “Hiring Our Heroes” job fair event for veterans, girls hockey clinics, a Mite Holiday Jamboree and a Level I Youth Referee seminar and clinic.

The X hosts annual high school state tournaments for girls volleyball, boys and girls hockey and wrestling, as well as college hockey games. The state’s new professional women’s hockey team will play 11 games in the arena this season.

Melanie McMahon: The arena is more than just professional sports. I think of high school graduations, and Hmong New Year and state tournaments. This is another opportunity for the city to be reflected in that and that these values and those visions are really carried through.

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