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BELIEVE IT OR NOT, QUESTIONS STILL SURROUND DALLAS ARENA
The proposed $230M Dallas arena "cleared a lukewarm" Dallas City Council on Wednesday, as it ratified City Manager John Ware's letter of intent on a new facility, according to Todd Gillman of the DALLAS MORNING NEWS. While council officials "said voters deserve the final word ... some predicted" that voters would reject the deal if the Mavericks and Stars "don't promise enough downtown development to justify" the $125M public subsidy. Gillman adds that "even some council members who voted to keep the deal on track remain critical of key elements in the package, particularly the lack thus far of guaranteed development around the arena; the mandatory demolition of 18-year-old Reunion Arena; and the reliance on tourist taxes rather than user fees on parking and tickets." The council will decide November 12 whether to call a January vote on higher hotel/car rental taxes to finance the city's share. By then, team owners and city negotiators say, a site will be picked and more details will be known about the potential for development around the arena (MORNING NEWS, 10/9). -
EAST VALLEY CITIES TAKE STEP BACK FROM PRO SPORTS COMPLEX
Three East Valley, AZ, cities -- Tempe, Mesa and Scottsdale -- passed on a multipurpose dome, "saying they liked the concept but wanted more details about private investment in the stadium," according to Chris Moeser of the ARIZONA REPUBLIC. The decision "effectively ends chances that a sales tax to pay for the stadium could be before East Valley voters" in '98 and "casts serious doubts" about the proposed National Sports Center that would be home to both the Cardinals and Coyotes. But city mayors and team officials said that the proposal just "needs more work." Cardinals VP/Gen. Counsel Michael Bidwill: "[W]e've got to sit down with private side developers, perhaps the Coyotes, and put together a package." The East Valley Partnership had proposed a quarter-cent sales tax that would raise about $223M for the sports center and the Partnership had lobbied the cities to create a sports district to work out details on the cost of the project with voters having "final say on any tax proposal." But Moeser writes the fact that cites "were unwilling even to start the process of putting a tax before voters is telling" and "speaks volumes about the political climate in the wake of Bank One Ballpark" (ARIZONA REPUBLIC, 10/9). Bidwill: "We're doing the reverse of Bank One Ballpark and the way that was done. We're doing it in the light of day and we're doing it openly." Coyotes COO Shawn Hunter said they too want "more information about the scope of the project, where it will be, what it will look like, and what it will cost" (ARIZONA REPUBLIC, 10/9). -
FACILITY NOTES
An editorial in today's BOSTON GLOBE states that MA Acting Gov. Paul Cellucci has "presented a rational economic case for helping the Patriots renovate" Foxboro Stadium, but that MA House Speaker Thomas Finneran's "demands are beginning to look like an effort to make [Patriots Owner Robert] Kraft an offer he can't accept" (BOSTON GLOBE, 10/9)....In Baltimore, Jon Morgan writes how added revenues streams from new ballparks affect a team's on-the-field success. For example, he notes that at Oriole Park at Camden Yards, concession sales at "now routinely top" $500,000, and could hit $750,000 for tonight's ALCS game (Baltimore SUN, 10/9)....The family of Daniel Weber, who was electrocuted nearly a year ago at Bank One Ballpark, is suing contractors Perini Building Co. and Huber Hunt & Nichols, as well as the Maricopa County (AZ) Stadium District (ARIZONA REPUBLIC, 10/8). -
OFMA PRESIDENT FRUSTRATED OVER IMPLEMENTATION OF PSL PLANS
Oakland Football Marketing Association (OFMA) President Richard Rogers, who has an inventory of 20,000 unsold Raiders PSLs, "says he could bring the moribund Raiders marketing effort back to life" if the PSLs were converted from their original 10-year term to lifetime licenses and were priced at "market demand," according to Rick DelVecchio of the S.F. CHRONICLE. Rogers wants the Raiders and the Oakland-Alameda County Coliseum Authority to join the OFMA in a market research study on the idea, but he said he's received no response from either party. Raiders Exec Assistant Al LoCasale said that the team is against lifetime PSLs if the price is increased. LoCasale added that the Coliseum Authority's lawsuit against the team hurts any joint study: "Makes it extremely difficult to partner with people who have pulled a gun on you while they were standing behind you" (S.F. CHRONICLE, 10/9). -
WACHS APPROVES NEW DEAL WITH KINGS OWNERS ON SPORTS ARENA
"Clearing the way for a planned downtown sports arena," L.A. City Council member Joel Wachs said yesterday that "he will exempt the facility from his proposed ballot measure that would require voter approval of publicly subsidized sports stadiums," according to Beth Shuster of the L.A. TIMES. In return, Wachs said that the arena developers, NHL Kings Owners Philip Anschutz and Edward Roski, "have agreed to several new financial conditions that would dramatically reduce any taxpayer costs for the new arena." Wachs said the developers will give the city an "ironclad" guarantee that they will repay $58M in municipal bonds to be used for the project; ensure that the $58M will not come from sales taxes, property taxes or utility taxes generated by the arena; pay about $1.6M for a two-acre property that the city had tentatively agreed to give the developers, and pay about $3.2M-a-year for use of the arena site for 55 years. The previous deal called for a $1M-a-year lease. Wachs said that the only public money involved in the arena would be $12M given to the developers by the Community Redevelopment Agency. Kings President Tim Leiweke "acknowledged that the deal is financially riskier for the developers, but he said their desire to build the facility in the city outweighed their concerns" (L.A. TIMES, 10/9).




