The MLB Giants and the City of San Francisco reached
preliminary settlement on a lease for the teams new China
Basin ballpark in which the team would pay $1.2M annual
rent, according to Epstein & King of the S.F. CHRONICLE.
Public costs could reach $26M for preparing the location and
making physical improvements around the ballpark. However,
most of that money would come from dedicated property taxes
that the team would pay on the 12.5-acre site where it plans
to construct its 42,000-seat, $255M baseball-only ballpark.
The Giants have agreed to an initial 25-year land lease and
that they will not move out of the ballpark during that
period. The lease will be signed with the China Basin
Ballpark Co., a separate entity developed by partners who
own the Giants. From 2003-06 the annual rent increase will
be based on increases in the national Consumer Price Index,
but will be restricted to 3% a year. From 2006-22, the rent
will be fixed every three years, also based on the price
index, but will not exceed 5% a year. And from 2022-62, the
rent will be modified according to a fair-market formula.
The terms of the lease call for the Giants to pay $1.2M
annual rent to the city; agree to an initial 25-year land
lease; and remove any toxic waste at the stadium site (S.F.
CHRONICLE, 12/17).