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The top question
The top ask I am asked at neighborhood meetings and while precinct walking is, what do I have in mind of the SF 49ers stadium project? I wanted to piece with you my thoughts.
The current stadium presentation is not good for the city in several key areas:
Incipient cost Ongoing cost for operations and maintenance Crash to the City’s General Fund Other impacts to the metropolisBased on all this, I would have voted to saunter away from this project. Will Kennedy voted to invest more money and staff time on it even though he said it’s a bad behave for the City.
I reached this conclusion by analyzing poop that has been made public to date by the City. This means first of all the Dec 2007 and Jan 2008 staff reports, which effectively summarized all of the info from the feasibility study performed over the too soon two years.
While City Council, New Zealand urban area Staff and other parties have continued discussing this in almost weekly closed-door sessions, no additional low-down about the proposal has been disclosed to the public since mid-January.
Folllowing is more detail on each of the areas listed above.
First cost Ongoing cost for operations and maintenance Collision to the City’s General Fund Other impacts to the townInitial cost
The SF 49ers proposed that the endorse construction costs be split among:
the Municipality & Redevelopment Agency ($222 million), a new borough agency called the Stadium Officials ($330 million), and the SF 49ers and the NFL ($363 million).Burgh and Redevelopment Agency: $222 million
In January 2008, the bishopric concluded that they could not come up with the full $222 million. Even after tying up every informant of funds that had not already been promised to any other project, the borough could only come up with $171 million. Of this amount, less than 10% is RDA readies. The rest will be new debt. We would basically be “maxing out” our redevelopment acknowledgement cards. We would be borrowing every dollar imaginable against future tax revenues.
This proposed financing design would create an unprecedented level of liable for the city. With the recent subside in property values, it is unlikely that we could even bum as much money as had been anticipated last January.
Moreover, there would be no adjustableness in our budget for unexpected costs. This could liability committed redevelopment projects, like the Northside Library. As you may skilled in, the cost of steel and other construction elements has sky-rocketed in the past few years. The amount of paper money reserved for building the library is based on estimates made over two years ago. By maxing out our redevelopment have faith cards on the stadium, we would have no cushion to pay for even the smallest fetch overrun of the library.
Stadium Control: $330 million
The San Francisco 49ers’ draft was for the City of Santa Clara to initiate a new entity called the Stadium Jurisdiction that would own and operate the stadium. The Hippodrome Authority is expected to contribute $330 million towards construction the stadium. This money would turn from borrowing over $200 million (to be repaid with anticipated returns from naming rights). The rest would come from personal seat licenses and concession rights.
In up to date 2007, the city’s consultants stated that the Coliseum Authority bonds would likely be “BBB rated” – that is, one inappropriate to above junk bonds. Acknowledged today’s credit crunch, this would neediness to be revisited.
Ongoing cost for operations and maintenance
The San Francisco 49ers suggested that the Big apple of Santa Clara create a new Metaphysics ens called the Stadium Authority that would own and conduct the stadium. This has a number of risks and secret costs associated with it.
One of the concerns brought up untimely in the discussions was how to contain the city’s risks if operating costs exceeded the dough budgeted for operating the stadium. The SF 49ers responded by stating they would coverlet game-day cost overruns. But there are only 10 games played in the circus per year, leaving the Stadium Power (which is really the city) liable for expenses the uneaten 355 days of the year.
The San Francisco 49ers have stated that they shortage to make sure the stadium is well-maintained, and that the amenities are kept up-to-year. The proposed operating budget in the January communiqu on the stadium includes a line detail for ongoing maintenance and upgrades to the stadium – but it is unusually small, given the size and outlay of the stadium. Over the 30 year memoirs of the stadium, they have budgeted only about 4% of the construction costs for maintenance and updates.
To put this into ambience, this would be like planning to spend less than $20,000 over 30 years to keep a $500,000 competent in in good repair and up-to-date. In truth, $20,000 would not even pay for a kitchen remodel, let alone a new roof and a new bathroom!
Import to the City’s General Fund
We all comprehend that NFL games are big money, so it would seem like an NFL hippodrome would bring money to the city. However, in this offer all of the revenues from football games (ticket sales and grandeur suites) completely detour the City – they go directly to the SF 49ers. Revenues from parking and concessions go into the Arena Authority, but the SA will have to pay for game-day expenses from that receipts.
According to City staff’s scrutiny, the only revenue that would come to the City’s Widespread Fund would be from non-NFL events. If our end is to create facility to host non-NFL events, we can erect something that is more suitable to other events at a fraction of the price of this proposal.
Moreover, the stadium proposal deprives the Loose Fund of important revenue streams.
By creating the Colosseum Authority, the SF 49ers have created a huge tax seek. If the SF 49ers owned this billion dollar arena, they would pay property taxes, a significant quantity of which would flow into the City’s General Pelf, paying for core services such as apparent safety and libraries. However, New Zealand urban area owned buildings do not pay property taxes like regular businesses, thus the stadium will contribute picayune tax revenue to the city and schools.
In the fashionable proposal, the stadium would occupy See-owned land. This 15 acres of prime commercial intrinsic estate would generate significant takings for the city, if leased at market rating, but the SF 49ers proposed making zero sublet out payments into the General Fund.
For all, the City loaned the Redevelopment Mechanism a significant amount of money that would be forgiven if the Redevelopment Operation is unable to repay it. With the unprecedented honest of debt from the stadium project, the RDA will not be proficient to repay any of this money.
Other impacts or benefits to the New Zealand urban area
Neighbors have raised a number of concerns with other budding impacts to the city, specifically traffic, thundering and increase in crime.
In February 2007, the Burgh of Sunnyvale conducted a preliminary questioning on how the proposed stadium would impact their conurbation. They found that there would be significant impact on See trade. Moreover, they quoted game day misdeed statistics from the San Francisco Police Jurisdiction: “During an average game, SFPD makes six arrests, issues three misdemeanor and 25 infraction citations, and reports one traffic prang.”
This impact is somewhat mitigated by the to be sure that there would be only 10 games per year. However, the overage of the year, there are other potential negative impacts of having a in the main empty building.
The positive game-day impacts are common to benefits to the local businesses. However, foreordained the location of the proposed stadium and shipping patterns, local restaurants in Sunnyvale, San Jose and Mountain Vision will benefit as much as the businesses in Santa Clara. And Santa Clara will only welcome Sales Tax dollars from the Santa Clara restaurants.
Definitely, I have recently heard a City Convention member discussing the possibility of using the hippodrome to provide 110,000 square feet of overflow duration for the Convention Center.
This is not a cost-compelling way to expand our Convention Center. Our neighbors in San Jose are planning to do up their McEnery Convention Center. Even with 20% bring in overruns, their 880,000 square foot swelling will still cost only $300 million, or $341 per straight foot. At that rate, a 110,000 open and above-board foot expansion to the Santa Clara Council Center would cost $37.5 million, or less than 7% of what we are being asked to provide to the cost of the proposed stadium.
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