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Current stadium cost estimates, from the DDA:
$1.02 Billion Total cost estimate
- $850 Million in Stadium Authority Construction Loans
- $114 Million from Santa Clara's RDA, hotel taxes, parking garage, and moving an electric substation (unchanged from the Term Sheet)
- $150 Million is the 49ers share
FROM THE TERM SHEET. Here's what we were told:
The total construction cost of the stadium is $937 Million, divided as follows:
- $444 Million from Santa Clara and its agencies (47%)
- $493 Million from the 49ers (53%)
- $0 from the NFL
The $444 million from Santa Clara and its agencies, divided by 44,000 households in Santa Clara, equals $10,000 per household.
The 49ers are pretending to give $823 million for the stadium, by lumping $330 million of Santa Clara's share into the 49ers share. Here's Council Member Will Kennedy on video at a debate at Peterson Middle School explaining how the 49ers are pretending to provide most of the stadium funding.
Here's an SCPF board member at the May 16th MCA debate stating the true costs of the stadium, after Mayor Mahan and Council Member Jamie Matthews gave false information about who is paying the stadium construction costs: video.
Santa Clara's portion of the construction costs is $444 million, divided into 2 parts:
- $114 Million in a direct public subsidy
- $330 Million from Santa Clara's agency, the Stadium Authority
- (The $444 million does not include interest on bonds and loans at 8.5% from the 49ers)
- (The $444 million does not include the land, which the city is giving for free)
The $114 million direct subsidy comes from 4 sources:
- $42 million in Redevelopment District Agency (RDA) bonds (our property taxes)
- $20 million from Santa Clara's electric utility money to move a substation to create 380 parking spaces at $52,000 each (our electric fees)
- $17 million for a parking garage (previously sold bonds-property taxes)
- $35 million from increased hotel taxes (Mello-Roos hotel tax district, CFD) (bonds & a loan at 8.5% from the 49ers)
On June 3, 2009, Jed York appeared on Comcast Chronicle Live and displayed a correct pie chart of the costs, showing $114 million from the City of Santa Clara, $330 million from Santa Clara's agency, the Stadium Authority, and $493 million from the 49ers.
But since June 3, 2009, the 49ers campaign has been hiding the $330 million from the Stadium Authority by lumping it in with the 49ers share to presend that the 49ers are giving $823 million.
The $330 Million from the Stadium Authority comes primarily from the selling of Personal Seat Licenses and Naming Rights which are high risk sources (see Stadium Authority $330 Million on the main page).
Here is Slide 35 from the Term Sheet Presentation, which is a table of the stadium construction costs the city is responsible for (the numbers come from Term Sheet Exhibit 14):
Here is a correct pie chart of the stadium construction costs. Santa Clara and its agencies are responsible for raising 47% of the costs.
The 49ers have offered no proof that they have their $493 Million in funding, and according to the city manager's office, there will be no proof before we vote on June 8, 2010.
There will be many tens to hundreds of millions in interest on:
- $42 million in RDA bonds
- Parking garage RDA bonds
- $15 million in hotel bonds (A portion of the $35 million from the hotels will be bonds)
- $20 million in a loan from the 49ers at 8.5% (A portion of the $35 million from the hotels will be a loan)
- >$200 million in Stadium Authority interest-bearing bonds backed by naming rights and ticket surcharges
The 49ers campaign has sent a misleading pie chart of construction costs into our homes, that shows the Stadium Authority contribution lumped in with the 49ers contribution, to make it falsely look like the 49ers are contributing 88% of the construction costs. Their share is really 53%.
Here's an example of what their pie chart looks like, lumping the Stadium Authority in with the 49ers share:
In a December 2008 article in the SF Chronicle, reporter Nancy Gay wrote that the NFL has no plans to fund a stadium in Santa Clara for the 49ers, or anywhere else:
"The once-flush NFL no longer has its stadium financing fund, the G3 Program, which franchises could tap for low-cost construction loans. It's a reality Goodell has been preaching for more than a year. Those loans typically were repaid with visiting teams' share of club-seat revenue once the projects were finished."
"Goodell reiterated there are no plans - especially in light of the current economic downturn and worldwide credit crisis - to replenish or replace the G3 fund. Which means the league no longer is in the money-lending business.
That's a blow for the 49ers' current stadium project, which must receive NFL funding assistance whether it's located in Santa Clara, San Francisco or Fresno."
"First, the G3 fund expired just over a year ago, so that funding is not available right now," Goodell said during a halftime meeting with the media. "Clearly, in this economic environment, it makes building anything more challenging. And we obviously, as you know, have issues on the labor side in which we're trying to look at our labor costs, and the increased risks in building stadiums like this."
The new Cowboys stadium was estimated at $650 million and ended up being $1.3 Billion.
The new Giants/Jets stadium was estimated at $800 million and ended up being $1.4 Billion.
The 49ers say they will pay for cost overruns, but if they haven't proven to Santa Clarans that they can get the funding for their share ($493 million), then how can we be sure they will be able to get additional funding to cover the cost overruns?
Sources:
The Term Sheet Exhibit 14
The Term Sheet Presentation (see slides 34 and 35)
http://santaclaraca.gov/ftp/csc/pdf/49ers-Term-Sheet-Presentation.pdf
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