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May 19, 2009
Santa Clara 49ers stadium plan expected today
The San Francisco Chronicle reports this morning that the San Francisco 49ers and city of Santa Clara are expected to announce today plans for a $916 million stadium deal to be presented to voters next March. The deal is said to involve $70 million less in public subsidies than the last plan, and the team has agreed to pay rent to the city, though how much they wouldn't say. The owners of the Great America amusement park who had threatened to block the Niners settling next door, meanwhile, are now said to be more willing to sell their park to the team — though again, for what price is unknown.
More on this after the official announcement today.
What great timing! The California voter is expected to vote down confusing propositions that will have the effect of enlarging the budget deficit of the next couple of years. The Governor and Legislature are now talking about borrowing from local governments and sending some inmates from state prisons to county jails. So, in all of this, where does Santa Clara find the money to help the 49ers?
Posted by Art Vandelay on May 19, 2009 12:43 PM
Apparently from redevelopment funds and hotel taxes according to the article. I will say that while the new plan does still utilize public money at least Santa Clara has reworked the proposal to protect the city's general fund which I think was the biggest sticking point for voters. No one wanted the city owned power company's funds to be drained away on a football stadium.
Posted by Dan on May 19, 2009 01:23 PM
Who pays if the redevelopment/hotel funds fall short, though? Public money is pretty fungible - it doesn't usually matter much which pocket it comes from.
Posted by Neil on May 19, 2009 01:36 PM
Neil from what I've read all cost overruns would be the team's responsibility. The city's contribution is hard capped at $90 million on the stadium. Not sure on the moving of the power substation or the parking garage, but keep in mind the city is building the garage regardless of the final disposition of the stadium plan since it's primary use is actually for the Santa Clara Convention Center across the street.
Posted by Dan on May 19, 2009 08:52 PM
I didn't mean cost overruns, I meant revenue shortfalls. "No general fund revenue" only works if there's enough hotel and redevelopment money to pay off the city's share. (Or if the team pays if those revenues fall short, which I doubt.)
Posted by Neil on May 19, 2009 09:22 PM