Assembly Speaker Robin Vos (R-Rochester) said he thinks Milwaukee Bucks co-owner Marc Lasry made a mistake by greeting President Barack Obama at the airport in the lead-up to last week’s election. His comments are indicative of the difficult politics Bucks investors face in seeking public money for a new arena. Credit: Associated Press

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The Milwaukee Bucks investors who are seeking public money for a new arena will have to negotiate a difficult political path in Madison, where Republicans have widened their control of the Legislature.

The latest sign of trouble for those wanting public money for the arena came from Assembly Speaker Robin Vos (R-Rochester), who said he thinks Bucks co-owner Marc Lasry made a mistake by greeting President Barack Obama at the airport in the lead-up to last week's election.

Obama was in town Oct. 28 for a rally at North Division High School on behalf of Democrat Mary Burke. A week later, Republican Gov. Scott Walker beat Burke to win a second term.

Vos said Lasry's appearance "did not make my job easier" in terms of persuading Republican legislators to back a possible financial plan to build a new, multipurpose arena in Milwaukee.

"It's a tough sell when you're asking for millions of dollars," Vos said.

The Bucks want to replace the aging BMO Harris Bradley Center with a new downtown arena at a cost of $400 million to $500 million. Lasry, co-owner Wes Edens and the Metropolitan Milwaukee Association of Commerce have said some public funding would be needed for the project.

Lasry and Edens have committed $100 million toward a new arena. Former U.S. Sen. Herb Kohl has also said he would put $100 million toward an arena, and additional private investment could bring the total commitment to $300 million. Kohl sold the Bucks to the two hedge-fund investors this year for $550 million.

Finding state money for the project will be difficult. Some lawmakers are ideologically opposed to using public money for a private facility. Others are open to the idea, but the proposal must compete with other issues they hope to tackle.

Republicans control both houses of the Legislature, and they are eager to cut taxes and expand the program that allows some students to attend private schools at taxpayer expense. They also hope to find new revenue for road projects.

They will seek ways to meet those goals while also contending with a projected shortfall of $1.8 billion over two years.

"This is not going to be easy because the timeline is fairly quick, the ask is probably going to be fairly big and the economic impact is unknown," Vos said.

The Bucks will need to offer a detailed plan for an arena and show lawmakers that it will boost the area's economy, Vos said. Others in the Legislature will be less open to providing help to the Bucks than he is, he said.

A detailed proposal has yet to be put forward on getting public money for a new arena, though one idea under consideration is capturing the income taxes paid by professional athletes and other employees at the BMO Harris Bradley Center. An estimate from the Legislative Fiscal Bureau concluded that the athletes and other employees paid state income taxes of approximately $10.7 million in the 2012 tax year. If accurate, that could potentially support state bonding totaling $125 million or more.

Walker has called that idea interesting and said he wants to keep the Bucks, but he has not publicly embraced a particular plan.

"Governor Walker has said that we first need to hear details of a plan from elected officials, Bucks officials and civic leaders in Milwaukee," Walker spokeswoman Laurel Patrick said by email. "Then we will review and evaluate any role that might involve the state government."

Sen. Rob Cowles (R-Allouez) said he had not been briefed on ways to fund the arena, but expressed skepticism on using income tax receipts that are already earmarked to fund schools and an array of state programs.

"I'd be very cautious" on using funds the state generates from income and sales taxes, Cowles said.

One idea — extending the 0.1% Miller Park sale tax in five counties — appears to be dead.

"That will not happen on my watch," Vos said.

Walker has also rejected that idea, saying there is no support for it.

Approving the sales tax was a difficult political battle that resulted in the 1996 recall of then-Sen. George Petak (R-Racine), who voted for the stadium tax after saying he wouldn't.

The stadium fight has "salted the earth" on using a sales tax to fund a sports facility, said Rep. Cory Mason (D-Racine).

"It is a tougher path than it was before. And if you don't believe me, ask George Petak," Mason said.

Another way to fund the project would be to create a modified tax incremental financing district.

Tax incremental financing districts borrow money to pay for public improvements and other expenses. Property taxes from the new developments are used to pay off the debt.

For the arena, the TIF district would also capture state income taxes and state sales taxes generated within the district to repay that debt.

For the moment, Vos' comments about Lasry's visit with Obama have grabbed the headlines on the issue. In addition to his statements to the Milwaukee Journal Sentinel, he made similar ones to the Milwaukee Business Journal and WISN-TV's "UpFront with Mike Gousha."

"If you're looking to people for support, you certainly don't want to poke people in the eye," Vos told the Business Journal.

The Bucks, meanwhile, are hoping to stay out of the political fray and are reaching out to both parties.

"We don't view revitalizing downtown Milwaukee as a political issue. Our objective is to have a transparent, open discussion with all the stakeholders to come up with a plan that unifies the city and state to do something transformative," said Bucks' spokesman Jake Suski.

Lasry has given nearly $300,000 to Democratic candidates and causes over 10 years, including more than $60,000 to the Democratic National Committee and more than $35,000 to the Obama Victory Fund, according to the National Institute on Money in State Politics. In June 2012, he hosted a $40,000-a-head reception in his Manhattan home for Obama and is known to be close to Bill and Hillary Clinton.

Lasry has not given to Burke, Walker or any other state candidate in Wisconsin.

Lasry and his son, Alexander, a Bucks' vice president, joined a large group outside at the 128th Air Refueling Wing at Mitchell International Airport last month to greet the president as he got off Air Force One. The meeting with the president was not open to the public.

Alexander Lasry is a former White House aide in Obama's administration. Burke was not at the airport to greet the president.

The senior Lasry did not attend an Obama fundraiser held the same night in downtown Milwaukee, nor did he contribute to it, according to a source involved with the fundraiser.

On Wednesday, the liberal group One Wisconsin Now asked Milwaukee County District Attorney John Chisholm and Racine County District Attorney W. Richard Chiapete to launch an investigation into Vos' comments to Gousha.

The group contends Vos may have violated a state law that bars public officials from promising to take official acts — or promising to refrain from taking officials acts — because of political contributions.

Chisholm's chief deputy, Kent Lovern, said the matter was in Chiapete's jurisdiction. Chiapete did not respond to questions on the matter.

Vos said One Wisconsin Now was creating "political mischief." He said he was simply being honest about the challenges the proposal faces and said he was more open to it than some of his colleagues.

Patrick Marley reported from Madison and Don Walker reported from Milwaukee.