Philadelphia Mayor John Street announced an agreement
with the Phillies and Eagles last night to build two new
facilities, according to Benson, Gorenstein & Burton in a
front page report in the PHILADELPHIA INQUIRER. The
stadiums will be funded, in part, with at least $304M raised
by the city, $482M from the two teams, and $170M the state
of PA has "already agreed" to contribute to the $1.01B
project. The Phillies and Eagles would lease the stadiums
for 30 years and provide $60M over 30 years to benefit
children in Philadelphia. Also, if either club is sold, the
city is to receive 25% of any increase in team value
resulting from the stadiums. Negotiators for both sides met
"around the clock" for the last few days, but still have a
$54M "funding hole." City officials said that they "hoped"
to figure out where to get the funds by the time the City
Council considers the stadium bills. Attorney David Cohen,
who is representing the Phillies, said that if the city
cannot find the money, the deal could be "canceled," but he
"insisted" that the money "would be found." Team reps were
pleased to be "finally moving forward" on development. The
Phillies ballpark would have 45,000 seats and 75 suites,
while the Eagles' stadium would have 66,000-70,000 seats,
including 120 suites and 8,000 club seats, with parking for
22,000 cars. Under the deal, the teams keep all revenues
generated by the stadiums, including concessions, naming
rights, parking and luxury suites. The Eagles also have the
right to sell 29,000 PSLs. The Eagles are to "contribute"
$310M toward the construction of their $395M stadium. The
Phillies would pay $172M of their $346M ballpark. The
Eagles and Phillies also agreed to contribute $1M each year
for 30 years to a "fund for children" that would pay for
recreational and after-school programs, as well as $22.5M
over 30 years for a "special-services" district that would
control trash and traffic in the stadium area (PHILADELPHIA
INQUIRER, 11/17). In Philadelphia, Davies & Einhorn report
that approval for the stadium plan by the City Council is
required before construction can begin. Taxpayers will pay
$304M "upfront" for the project, plus 30-year maintenance
payments of $90M. Much of the city's contribution is for
five South Philadelphia "properties that will dramatically
expand the stadium complex." The Phillies and Eagles each
will build their respective stadiums, with the teams
assuming all cost overruns (PHILADELPHIA DAILY NEWS, 11/17).
