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Minnesota Legislature Rejects Xcel Energy Center Renovation Funding Again

For the second year in a row, the Minnesota Legislature has denied state funding for the renovation...
Key Metrics

0

Heat Index
  • Impact Level
    Low
  • Scope Level
    Local
  • Last Update
    2025-06-29
Key Impacts
Negative Impacts (6)
St. Paul / Minnesota Municipal Bonds
Construction & Engineering Services
Hospitality & Tourism (Twin Cities area)
Live Entertainment Promoters (e.g., Live Nation Entertainment)
Advertising & Sponsorship Revenue Streams
Sports & Entertainment-focused REITs (e.g., EPR Properties)
Total impacts: 7 | Positive: 0 | Negative: 6
Event Overview

For the second year in a row, the Minnesota Legislature has denied state funding for the renovation of the Xcel Energy Center in St. Paul, a key sports and entertainment venue. The 25-year-old arena requires upgrades to stay functional, with the latest funding request set at $50 million. The $488 million project, reduced from an initial $769 million proposal, was to be partially funded by St. Paul and the Minnesota Wild. Lawmakers prioritized infrastructure like water and roads, criticizing the late proposal submission and questioning its timing. Supporters, including St. Paul Mayor Melvin Carter and Wild owner Craig Leipold, emphasized the arena's economic impact and vowed to pursue funding in future sessions.

Event Timeline
Minnesota Legislature Denies Funding for Xcel Energy Center Renovation for Second Consecutive Year
2025-06-19

For the second consecutive year, the Minnesota Legislature has denied state funding for the renovation of the Xcel Energy Center, a major sports and entertainment venue in St. Paul. The arena, which is nearly 25 years old, was initially designed with a 25-year lifespan and now requires significant upgrades to remain functional and competitive. The funding request for the renovation has fluctuated over the years, ranging from $2 million to nearly $400 million, with the most recent ask set at $50 million in state bond funding. The city of St. Paul and the Minnesota Wild, the NHL team that calls the arena home, had planned to cover the remaining costs of the $488 million project, which was pared down from an initial $769 million proposal.

The rejection of funding comes amid a focus by Minnesota lawmakers on critical infrastructure projects such as water and roads, rather than sports facilities. Some lawmakers criticized the city for not requesting funds in 2023 when the state had an $18 billion budget surplus, which is now projected to dwindle into a deficit by 2028-2029. The late submission of the proposal, approved by the St. Paul City Council on March 26, midway through the legislative session, further complicated efforts. Key lawmakers, including state Rep. Maria Isa Perez-Vega, expressed skepticism about the project's scope and timing.

St. Paul Mayor Melvin Carter and Minnesota Wild owner Craig Leipold emphasized the arena's economic importance, calling it a "vital statewide asset" that drives regional economic vitality. Despite the setback, they pledged to continue working with state lawmakers and community partners to secure funding for the modernization of the facility. The Xcel Energy Center is not only home to the Wild but also a popular concert venue, attracting visitors from across the region.

The failure to secure funding highlights broader challenges in balancing competing infrastructure priorities amid shifting fiscal conditions. The project's supporters, including state Sen. Sandy Pappas, chair of the Senate Capital Investment Committee, acknowledged the difficulties but remain committed to advancing the renovation plans in future legislative sessions.

Total events: 1
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