Dive Brief:
- Arena officials, with local dignitaries, former Bucks players and the public on hand, broke ground on the new $524 million Milwaukee Bucks arena, the Journal Sentinel reported.
- Built on 30 acres of vacant land, the Wisconsin Entertainment and Sports Center entertainment district will feature entertainment, residential and office components, and the arena design will allow for a variety of other sports, as well as concerts and other special events, WKOW reported.
- The Wisconsin Center District, the arena owner, will oversee the public's $250 million investment during construction and then lease the arena back to the Bucks under a 30-year agreement. The team will keep any revenue from naming rights or sponsorship deals.
Dive Insight:
The Bucks selected Mortenson Construction, one of the biggest sports venue construction companies in the country, as the construction manager, and team officials said the company's experience with meeting labor diversity goals also influenced their choice. Mortenson most recently reached substantial completion on the new $1.1 billion Minnesota Vikings U.S. Bank Stadium and will also build the $120 million Minnesota United soccer stadium and the $1 billion Golden State Warriors arena with Clark Construction.
Late last month, the team received a vote of approval from the Milwaukee Common Council for the arena, $30 million training facility and adjacent parking structure. Bucks officials said the parking and training facilities will be constructed first, and then the arena. The team's previous cost estimates for the arena were $500 million, but that figure has increased by nearly $25 million due to labor, environmental and other costs. Team officials said the Bucks are responsible for any costs over $500 million. As part of the state's $250 million commitment, the city of Milwaukee has also pledged $47 million in exchange for a 40% city-resident hiring requirement for the arena and associated facilities.
The Bucks have also said that the new arena and training facility will lead to an additional $400 million in development around the complex, providing additional tax revenue for the city and more employment opportunities for residents.
