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March 11, 2009
D.C. United: Actually, how about some county money, too?
Just four weeks after announcing a plan for Maryland state taxes to pay for three-quarters of the $180 million cost of a new soccer stadium in Prince George's County, D.C. United officials switched gears yesterday, saying that the county itself should kick in $47 million towards the project. Needless to say, state officials like this idea: Maryland Stadium Authority executive Gary McGuigan told the county council yesterday that as "this was a county initiative," the county should help pay for it.
County officials, just as needless to say, weren't thrilled, asking who'd cover the gap if ticket sales and property values were to fall short of what's needed to pay off the stadium tab. The Maryland state house of delegates, which has been similarly skeptical of the plan, meets next Tuesday to discuss the details.
Why is it costing them $180 million to build a soccer stadium in suburban Maryland with public money, when Lew Wolff is doing it privately in San Jose for $60 million?
Posted by Dan on March 11, 2009 11:30 AM
In Maryland, the land needs to be bought. And the stadium will be almost twice as big as the one in San Jose, considering that DC draws bigger crowds.
Posted by C Dykstra on March 11, 2009 05:35 PM
Land had to be bought in San Jose too (where land costs more coincidentally) and the stadium will still cost under $100 million including land. So unless DC United is building a 32,000 seat stadium for their average attendance of 19,800 there is no reason they need to spend $180 million on it.
Posted by Dan on March 11, 2009 05:57 PM
I haven't looked into all the details. Maybe part of the money is for adjacent deals. DC United is owned by developers who expect adjacent developments as part of a package.
I'll belive SJ's $60 million stadium when I see it. Has there been any progress on that in months?
Posted by C Dykstra on March 11, 2009 06:26 PM
Actually there has been. Word was a few weeks back they've moved into the design phase and have picked the construction company building the thing (Devcon is the name of them if I'm remembering correctly). The EIR is also reportedly close to being complete if it hasn't been completed already. The Earthquakes have already started making payments on the Airport West site which secures the land. Other than that there has not been much to report until the shovels are actually in the dirt.
Posted by Dan on March 11, 2009 06:39 PM
Isn't it now problematic to rely on land rezoning to fund the stadium? Has Wolff committed to paying for on his own? Until I see proof of that, I'm not convinced it's such a done deal. It seems that Wolff is busy trying to figure out what do with the A's. This is the latest news article I can find
http://www.msnbc.msn.com/id/29416430/
"He is also looking for a South Bay stadium for his soccer team. Wolff has identified several sites for a potential stadium for his soccer team"
When exactly did Wolff tell MLS his stadium would be ready? I hope he can build a stadium for $60 million and not need any controversial public votes. But until he decides what to do about the A's, I'm not convinced he's ready to start building the Quakes a home just yet.
Posted by C Dykstra on March 11, 2009 07:53 PM
He's stated they'll have it ready for construction some time in the next year and that they've identified several sources of revenue to fund what is now going to be a $60 million dollar, 15,000 (with berm for 3,000 grass seating) stadium. He's also reiterated that they're no longer using the rezoning to fund the stadium.
That article you posted is about the A's so it's not really up to speed or accurate in what it says about the Quakes (it says they've identified sites for the soccer stadium when in reality they've already chosen the site and started paying for it). I'd direct you to the following site for some recent words straight from the source:
http://www.centerlinesoccer.com/http:/www.centerlinesoccer.com/wolff-reiterates-plans-for-intimate-stadium/#more-831
Posted by Dan on March 11, 2009 09:09 PM
Also forgot to put this one in from the local paper.
http://www.mercurynews.com/sportsheadlines/ci_11599614
Posted by Dan on March 11, 2009 09:13 PM
So he's identified "several sources of revenue" but doesn't want to share any firm or specific details. Forgive me for not assuming it's a done deal.
From your link ...
Timeframe - "As soon as I can put it together. The answer is �I don�t know.� But we want to get to the edge of the diving board whether there�s water in the pool or not."
Funding decided? - "No. We�re looking at our own equity, we�re looking at getting some debt, and we haven�t talked to anybody yet but maybe the unions will help us out with financing to create jobs. We�re not asking the city for anything, except to help us through the process."
Yeah, a loan from the unions is quite the plan. I know Wolff/Fisher can build it. They probably want to build it. But until they've told me how they'll pay for it (or start digging up dirt), I'll remain a bit skeptical that they've absolutely decided they're doing this on their own.
Posted by C Dykstra on March 11, 2009 09:19 PM
Wolff does seem to specialize in not explaining how he's going to pay for things, doesn't he? This is a tried-and-true strategy — try to make it seem like a done deal, then make everyone worry about financing — but he takes it to extremes. Anyone know if this is how he does his non-sports development deals, too?
Posted by Neil on March 11, 2009 11:51 PM
Don't know. But to be fair if he's privately financing a private building project is he obligated to make his funding sources public in any case? I mean I honestly can't easily find any records of his funding mechanisms for other projects he's run.
Posted by Dan on March 12, 2009 01:38 AM