The new home of the Milwaukee Bucks has already made its mark Downtown. The arcing roof of the 714,000-square-foot arena is now part of the city’s skyline, and the rest is quickly taking shape. Construction passed the halfway mark over the summer and is on track to wrap up before the start of the 2018-’19 season.
The stadium is part of a 30-acre Bucks-owned development that will include a parking structure, multipurpose entertainment “live block” and the newly opened Froedtert & Medical College of Wisconsin Sports Science Center. As the centerpiece of this project, the arena is costing more than $500 million to build. Half of that is covered by current and former Bucks owners, the other half by taxpayers. Not everyone supports this funding model. When lawmakers were debating the plan in 2015, many held that public money shouldn’t be going toward a privately owned sports complex. But others saw an opportunity—not only to revitalize Downtown Milwaukee, but to drive growth in ways that could reverberate throughout the city. When the public-private arrangement was finalized, the pressure was on the Bucks leaders to make sure this development would truly benefit the state and the people who live in it.
Bucks Senior Vice President Alex Lasry says the added scrutiny is a good thing, noting that “there should be more of a watchdog feeling when you’re using taxpayer dollars.” Still, he says their priorities would be the same regardless of how the project was financed. “Whether we were doing a public-private partnership or not, our intention has always been to be good corporate citizens,” he says. The Bucks have demonstrated as much by working hand-in-hand with local labor organizations and community groups throughout the arena’s construction. These partnerships have enabled them to hire qualified local workers, pay a fair wage and create opportunities where they’re needed most.
The arena district is part of a major construction boom in Milwaukee’s Downtown area, and the next few years will bring many more developments across the city and state. Notably, the legislature just passed a $3 billion incentives package for Foxconn to build a factory in Wisconsin, with supporters claiming the project will bring thousands of family-supporting jobs. This promise echoes the Bucks’ own commitment to family-supporting jobs, and the arena is a blueprint for how it can be done.
|
|
Project Labor Agreements
The development of the arena district was a complex, high-profile endeavor with an ambitious timeline. To meet that challenge, Bucks leaders reached out to the Milwaukee Building & Construction Trades Council (MBCTC), which supports the union construction industry. “The Bucks knew that the only workforce around to get that done for them was going to be the union building trades,” says MBCTC President Dan Bukiewicz. “Long before they decided on a site, they came to the building trades and said, ‘We need to accomplish these goals, and we need your help.’”
Those early steps led to a Project Labor Agreement (PLA) between lead construction company Mortenson Construction and local unions. Announced in July 2016, it set terms for worker wages and protections, as well as guidelines for safety, quality and dispute resolution. It communicates expectations so that all contractors commit to an established set of criteria. “You have to meet the provisions of what’s asked, and make sure you’re paying the correct wage,” says Bukiewicz. “Basically, we’re leveling the playing field to bring up worker standards all the way around.” He says the agreement also includes provisions that “go above and beyond” the baseline standards—such as enhanced safety provisions and hiring goals for women and minorities.
PLAs are a common tool for aligning the interests of contractors, workers and developers at the beginning of a project. AFL-CIO secretary-treasurer Stephanie Bloomingdale says they have been used for many Wisconsin projects from Lambeau Field to Miller Park, as well as national landmarks like Disney World. She calls them a “tried-and-true method” for ensuring fair wages and worker protections, while keeping projects on time and on budget with high-quality results.
“It really is a win-win for all parties,” Bloomingdale says, “and the end users are also benefiting because they’re getting a good product at a quality price that they can be proud of.”
Still, these agreements are controversial. Opponents say they discourage competition and give unfair advantage to union contractors. In April, Gov. Scott Walker signed into law a bill banning municipal governments from requiring contractors to enter into PLAs for publicly funded projects (more than 20 states have similar bans in place). Proponents of the ban say it would save taxpayers money by allowing more contractors to bid on these developments. To the contrary, Bloomingdale argues that PLAs prevent the sort of cost cutting that can diminish quality and lead to more expenses down the line. Additionally, she says, they require all parties to complete negotiations in advance, avoiding costly disputes and delays.
Such has been true for the Bucks. Lasry says using a PLA helped develop good working relationships and avoided the “strain” that can sometimes exist between labor and management. “We were able to build trust very quickly, which makes for a smoother project,” he says.
Workforce Development
Milwaukee projects that receive taxpayer money are required to hire a certain percentage of individuals certified by the Residents Preference Program (RPP), which promotes hiring of local unemployed and underemployed workers. As part of their agreement, the Bucks and Mortenson committed to a 40% RPP requirement and to a 25% threshold for working with Small Business Enterprise (SBE) firms. Since beginning construction, the arena development has surpassed its goals on both fronts. “I think the fact that we’re above our numbers on RPP and SBE shows our dedication,” Lasry says. “But it’s important to remember that there’s a human side to the numbers. These are people. These are lives and careers.”
To that end, the Bucks have invested in workforce development, putting $375,000 (which the city matched) toward finding and training qualified staff. They partnered with the tech company SkillSmart, whose software connects jobseekers with employment. They also worked with several aldermen to host hiring town hall meetings in neighborhoods throughout the city. “We wanted to go into the communities instead of asking them to come to us,” Lasry says. At the town halls, prospective employees could sign up for SkillSmart, pursue RPP certification and network with representatives from Mortenson Construction and other companies. Lasry estimates they found from 5 to 10% of their RPP workforce through these efforts.
Funding also went toward training programs for Milwaukee Public Schools and MATC students to jumpstart careers in construction. The Bucks partnered with the city to offer a stipend for some trainees, making it possible for more young people to take advantage of the program.
Bukiewicz says that creating entry-level opportunities was a top priority for all the new Bucks facilities. “The project opened up loads of opportunities for people to begin their careers in the trades,” he says, “and the PLA helped ensure that, because there are built-in apprenticeship ratios already in the contracts that have to be abided by.”
Community Building
Overall, the Bucks arena construction is expected to create more than 3,000 jobs; thousands more will likely be needed once it’s finished. Working with the Alliance for Good Jobs, The Bucks reached a separate community benefits agreement for end-use positions (such as food service, landscaping and cleaning) at the arena and related facilities and established a minimum wage of $12 (which will go up to $15 by 2023). The agreement includes provisions to hire locally from high unemployment areas and protects workers’ ability to unionize. Supporters hope that this influx of good paying jobs will have a ripple effect—both strengthening neighborhoods and spurring economic growth.
“When workers are paid a good wage with good benefits, they put those hard-earned dollars back in the community,” Bloomingdale says. “That, in turn, creates stable, vibrant communities that last.”
The language of community building is often applied to the new facilities themselves. Bucks President Peter Feigin has spoken of how the arena will draw people from throughout the Milwaukee area and beyond. Lasry envisions the future live block as a “living room of the city,” with Saturday night socializing, Sunday morning farmers’ markets and weekday business lunches. He describes the arena hosting not just basketball games but other sports, music and comedy shows—the kind of attractions that will “really bring Milwaukee together.”
Building a space like that is a lofty goal. Reconciling private objectives with public needs in a trusting, transparent partnership might be even loftier. But for some supporters, the Bucks arena is already proof that it’s possible. “The Bucks’ development is a shining example of what can be done when communities, developers, contractors, the state, taxpayers and workers come together,” Bloomingdale says. “It’s something we can all be proud of for years to come.”
