Portland Approves MLS Stadium Deal, But Funding Remains An Issue

Funding Remains A $15M Problem For PGE Park

The Portland City Council yesterday approved by a 3-2 vote a financing deal to reconfigure PGE Park to accommodate an MLS expansion team, but a "last-minute change left a $15[M] hole in the plan," according to Mark Larabee in a front-page piece for the Portland OREGONIAN. Triple-A PCL Portland Beavers and USL Timbers Owner Merritt Paulson, who is heading the city's bid for an expansion MLS franchise, said that he is "too far extended financially to come up with the cash himself." But Portland Mayor Sam Adams and City Commissioner Randy Leonard, who voted in favor of the deal, said that they are "confident city resources could cover" the $15M gap in the $88.8M plan to renovate PGE Park and build a new Triple-A ballpark in the Rose Quarter. Adams and Leonard indicated that they will "find the money without tapping the city's general fund, which provides basic city services." However, Larabee notes the deal is "still far from set." In addition to securing the necessary funding, proponents of the plan "must begin engineering and design plans and choose a builder so construction on both stadium projects can get rolling." Before that can happen, they "must draft a detailed financial contract and get it all approved once more" by the City Council. The PGE renovation is estimated to cost $33.7M, and the new ballpark is expected to cost $55.1M. As part of the proposal, the city would borrow $31M "against its Spectator Facilities Fund." Paulson confirmed that he and his family have "guaranteed rent payments on the two stadiums until the loans are retired, even if his teams or the league fails." He also agreed that if ticket sales "fall below a minimum amount, he will make up the difference." The Trail Blazers, who are in talks with Portland to develop the Rose Quarter into an entertainment district, reportedly do not support Paulson's plan. Trail Blazers Senior VP/Business Affairs J.E. Isaac said that the project "threatens the future of the Blazers' business" (Portland OREGONIAN, 3/12).

KICK INTO HIGH GEAR: Adams yesterday promised that he will "meet with other government leaders in the region and potential private partners to develop the plan by the time when the deal must be finalized later this year" (PORTLAND TRIBUNE, 3/12). An OREGONIAN editorial states there is "still work ahead, but three city commissioners got it right." The MLS deal still is "tenuous at this stage; it really amounts to a deal to make a deal." But yesterday "felt like a victory that at least the possibility is still alive" (Portland OREGONIAN, 3/12).

Cooper Leads STL's Bid For MLS Team

THIS BUD'S FOR YOU: In St. Louis, Timmermann & McWilliams in a front-page piece report A-B yesterday said that it would give its Anheuser-Busch Center in Fenton, Missouri, to the city's group bidding for an MLS team, led by attorney Jeff Cooper, as a "site for a new stadium." Cooper has reached a deal to build a stadium in Collinsville, Illinois, but the Fenton location gives the bid group "something it didn't have in its original bid -- a stadium site closer to the team's primary fan base." A-B, which has sponsored MLS since its inception, also said that it "will use its corporate clout to press the league for a St. Louis team, though it is not expected to join Cooper's investment group." A-B VP/Media, Sponsorship & Activation Dan McHugh said, "We've had a dialogue and discussion with the league. We're letting them know of our efforts." Cooper, who is in England meeting with potential investors, said that A-B's involvement "helps the bid 'significantly.'" However, Collinsville City Manager Robert Knabel said that he "isn't worried about Fenton luring soccer away from his city." Knabel: "We knew about this. We see it as a part of due diligence. At the end of the day, we're confident our plan will win" (ST. LOUIS POST-DISPATCH, 3/12). In addition, Collinsville Community Development Dir Paul Mann said that he "remains confident that if the league awards St. Louis an expansion franchise, Collinsville will be the team's new home." Mann argued that MLS will "pass on the newly proposed site because the location is prone to flooding and has poor accessibility" (BELLEVILLE NEWS-DEMOCRAT, 3/12).

UNITED WE STAND: DC United President Kevin Payne yesterday issued a statement to dispute that the team has "changed its position with regard to the financing" of the team's proposed stadium in Prince George's County, Maryland. Payne said the Washington Post report was "incorrect in reporting that there has been a change in plan to include the county -- from day one, this project was discussed as a joint venture between the State, County, and DC United." Payne added, "We have spoken with the Post and hope this will be clarified in future articles" (BEHINDTHEBADGE.com, 3/11).