I now have a copy of the term sheet for the proposed Washington Commanders stadium, so we can answer some of the remaining questions from yesterday’s preliminary estimate of the costs and benefits of Mayor Muriel Bowser’s plan. As you’ll recall, the total public cost stood then at around $1.5 billion, with no idea of what if anything D.C. taxpayers would get in return.
Now we have more details, and hoo boy:
- First off, the $500 million in city money for “horizontal construction, meaning roads, sidewalks, etc. around the stadium” turns out to actually mean a whole lot of other things as well: “pedestrian circulation, open space, plazas, stairs, ramps, landscaping, sidewalks, curbs, gutter, roadways, and other site improvements,” plus “foundations, slabs on grade, piles, pile caps, concrete, stairs, excavation, below grade mechanical, electrical and plumbing materials and equipment, below-grade elevators, and horizontal surfaces and finishes that are below the average site ground level” and other stuff. This is being described by the plan’s proponents as tax money going to pay for “infrastructure,” but items like “foundations” and “stairs” sound like straight-up “structure.”
- The stadium would be owned by the city, meaning Commanders owner Josh Harris would indeed get that $429 million property tax break that Geoff Propheter estimated yesterday.
- In exchange for getting development rights to the bulk of 180 acres of public land, Harris would pay all of $1 a year in rent for the next 30 years for the stadium, and for the next 28 years for the surrounding development. If we use the average price per acre in D.C. of $6.6 million, then this free land is worth close to $1 billion, even before accounting for the full property tax exemption it would receive.
- While D.C. would pay for a large chunk of the costs, it would get 0% of stadium revenues: The team would receive all “stadium operating revenues, including from naming rights, sponsorship, advertising (both interior and exterior), premium seating, ticket proceeds, merchandise, food and beverage, and parking for both NFL and non-NFL events.”
- That’s not to say that nobody in the public sphere gets anything: The mayor and D.C. council would receive the use of two free luxury suites, something that sure doesn’t smell like a quid pro quo or anything.
- Some good news: Harris would be responsible for keeping both the stadium and the garages in state-of-the-art shape, so at least D.C. wouldn’t be on the hook for those upgrades.
- Coupled with some more bad news: Parking and personal seat license sales would both be exempt from sales tax, and sales taxes on anything else sold at the stadium would get poured into an “RFK Campus Reinvestment Fund” to be used to pay off construction costs and for future “maintenance and repairs and capital expenses,” so D.C. could be on the hook for some upgrades after all.
- “The District recognizes the public value in providing spaces for women’s sports and is discussing with TeamCo whether such an opportunity can be provided for professional women’s soccer at the Project.” Cool! Who would pay for that, and would it get the same tax and rent breaks as the rest of the deal? The term sheet doesn’t say.
That all adds up to … I dunno, $2.5 billion in public subsidies? $3 billion? It would surely set a new record for the most taxpayer money poured into a single stadium in the history of the U.S. if not the known universe, in any case.
Whatever the final tally, the main takeaway is: Josh Harris gets to pay only $1 a year in rent for a huge tax-free swath of public land, while keeping all revenues from the stadium and other development he builds there, even as the district pays to build everything from parking garages to the stadium’s foundation. And the council — where Ward 3 representative Matthew Frumin has now declared himself “could be for it, could be against it,” leaving the overall body leaning slightly no but with several potential swing votes — only has until July 15 to vote it up or down in one indigestible lump, as the term sheet includes a clause declaring that if the council “materially changes” the terms, then the whole agreement is null and void. Mayor Bowser clearly wants to railroad this thing through before anyone takes a closer look — which makes sense, because on closer look this thing is a dumpster fire.