Paulson Gets Tentative Agreement For MLS Stadium, New Ballpark

Paulson Has Agreed To Spend $12.5M Of His Own Money On Construction Costs

Triple-A PCL Portland Beavers and USL Portland Timbers Owner Merritt Paulson "reached a tentative agreement Monday with Portland leaders that would give him access to more than $60[M] in city-backed loans to build a new Triple A baseball stadium in the Rose Quarter and renovate PGE Park" for a new MLS franchise, according to a front-page piece by Mark Larabee of the Portland OREGONIAN. The construction projects "would give the soccer team a 20,000-seat home at PGE Park and the Portland Beavers baseball team a new stadium next to the Rose Garden." In order to receive the money, Paulson and his family have "agreed to hold the city virtually harmless for paying most of it back." Paulson has "guaranteed rent payments on the two stadiums until the loans are retired even if his teams or the league fails." Paulson has also "agreed to a 7[%] surcharge on tickets that would help retire the debt and would pay a minimum amount even if ticket sales didn't materialize, ensuring the city's revenue." Portland Mayor Sam Adams said that the deal "makes Paulson responsible for 80[%] of the costs." Once the loans are paid back, the city "will own the stadiums outright." Even as the two sides "worked out the last-minute details, it was unclear whether there are enough votes on the five-member Portland City Council to move the deal forward." The council is scheduled to vote tomorrow, and Adams said, "We go into this without an identified third vote."

DEAL Details: Paulson has "agreed to spend $12.5[M] of his own money on construction and to raise another $11.8[M] for the projects." He is also seeking $5M through a bill in the state legislature that "would tap the income taxes of soccer players' salaries." Portland also "would contribute about $15[M] through a new urban renewal area that would include much of the west side of downtown Portland." Another $18.5M "would come from the Oregon Convention Center urban renewal area, which has a $26[M] surplus." As part of the agreement, Paulson is also "required to give $100,000 a year to nonprofit youth sports groups, 30[%] of which must be used for field improvements." He also "agreed to hold an annual open tryout for soccer players who aspire to be on the Timbers" (Portland OREGONIAN, 3/10).