GREEN BAY, WI (WTAQ-WLUK) – Negotiations to extend the lease for Lambeau Field between the Packers and the city of Green Bay have come to a halt.
The Packers say it could have a domino effect, starting with a delay of construction work it had planned for this offseason.
The Packers’ lease for Lambeau Field with Green Bay and the Green Bay/Brown County Professional Stadium District ends in 2033. There are options to extend it 10 additional years, but the Packers recently tried extending it by 30 years, until about 2063.
“We had made three proposals, written proposals, after discussions and did not receive a counter proposal,” said Aaron Popkey, the Packers’ director of public affairs. “Disappointed there, but mostly disappointed just that negotiations were ceased by the city.”
“The challenge the city has with this particular offer, the last offer that’s been made, is that it’s worse than the one we currently have in place,” said Brian Johnson, the vice president of Green Bay’s city council.
The Packers paid the city about $1.1 million last year to use Lambeau Field. The current lease calls for an annual increase of 2.75%.
Popkey says the deal offered to the city reflects increased costs the team would be taking on including a commitment to $1.5 billion in future maintenance and upgrades. That is on top of $600 million the Packers say they’ve invested into the stadium over the past two-plus decades.
“What the Packers are proposing here are continued improvements, projecting $1.5 billion and spending on those without any public tax money,” said Popkey. “That’s the best situation any municipality could hope for.”
Johnson says Husch Blackwell, the Denver law firm versed in stadium deals the city hired for the Lambeau negotiations, has indicated the city’s current deal is not favorable compared to others across the country.
“Obviously for the city to agree to a deal that pays us less, that forces us to really evaluate cut services or an increase to property taxes,” said Johnson. “That’s why it doesn’t really make sense for us to continue negotiating a term that reduces that payment.”
The Packers are also now re-evaluating their expenses due to the stalled talks. $80 million in upgrades to the main concourse level have been put on hold and appear unlikely for next April’s NFL Draft.
FOX 11 asked Popkey why the decision was made to halt the construction.
“I think it’s prudent for any business where it’s making investments in its facility and its operations or anything like that,” said Popkey. “I think you have to have some certainty over what your arrangement is going into the future.”
Popkey says delays could drive up costs and postpone the work to a future offseason — one when the stadium could host a concert. He says the team’s other investments, including charity support, could be impacted.
Another sticking point appears to be Green Bay’s desire for the Packers to commit to economic development in the city. Popkey says the Packers are willing, but it needs to make sense.
“We don’t want to become the economic development director for the city, but definitely want to help out if there are some proposals out there that make sense to be a part of.”
“If we can kind of take a step back from that and say how do we take that $500 million that you have and instead of benefiting a hedge fund in New York City, how do we deploy some of that capital locally in a way that gives you the same return you’re getting,” said Johnson. “I think that’s where we both probably agree there’s some opportunities and we just have to find the details to make that work.”
Both sides say they are willing to continue negotiations. The city says it first wants to see an offer better than its current deal.
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