SBD/4/Facilities Venues

DALLAS ARENA GETS MORE FUNDING, BUT ARE COSTS "MUSHROOMING"?

          The city of Dallas has agreed to "kick in an extra"
     $20M for "road and sewer projects" around the proposed new
     arena for the Mavericks and Stars, prompting complaints that
     "subsidies are mushrooming," according to Todd Gillman of
     the DALLAS MORNING NEWS.  A 44-page master agreement, which
     calls for a 20,500-seat facility with 2,500 club seats and
     120 luxury boxes, was presented to the City Council.  It
     includes a provision that $10M of the facility's $230M price
     tag go back to the team owners as "fees for managing and
     financing the deal."  Gillman writes that "critics" say the
     "growing costs, payments to team owners and lack of
     guaranteed development around the arena" make the deal
     "unacceptable."  But Dallas Mayor Ron Kirk said, "Our costs
     on the arena are $125 million, and they're not going to go a
     penny higher" (DALLAS MORNING NEWS, 12/4).  In Ft. Worth,
     Mede Nix reports that Mavs Owner Ross Perot Jr.'s Hillwood
     Development Corp. will be paid $8.4M as "developer" of the
     project, while Stars Owner Tom Hicks' firm Hicks Muse Tate &
     Furst will be paid $1.58M as a "financial fee" (Mede Nix,
     FT. WORTH STAR-TELEGRAM, 12/4).

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