September 22, 2004
D.C. marks a spot
With the MLB executive council set to meet tomorrow to discuss the fate of the Montreal Expos, Washington, D.C. officials have finally agreed on a stadium site, a plot of privately owned land near the Navy Yard in southeast D.C. The stadium plan, according to the Washington Post, would cost $440 million (how they've pinned down a price when negotiations to buy the land haven't begun yet, I haven't a clue); members of the lame-duck city council contacted by the Post were split on the plan, with four in favor, three opposed, four undecided and two not reachable by phone.
The current D.C. stadium plan on the table would be paid off by a tax on large D.C. businesses ($21-24 million a year), rent from the team ($5.5 million) and both new and existing taxes on tickets, concessions and parking ($11-14 million). It's unclear as yet how local businesses will respond to the plan, and also what MLB will think of it: $5.5 million in annual rent, plus several million more in ticket and parking surcharges (which economists generally consider to come out of team owners' pockets), would be a significant annual cost to a new owner, and thus reduce MLB's possible sale price. And since the expense would be in rent and not construction debt, they couldn't even use the Steinbrenner dodge.
As for that MLB executive council meeting tomorrow in Milwaukee - following in the long tradition of commissioners who don't like to travel far from home - don't expect an immediate decision no matter what transpires. "The council will review the options and then it's up to them to make a decision," said MLB COO Bob DuPuy. "But I certainly don't expect an announcement on Thursday."
