49ers Take Another Image Hit With Brooks Charge Dolphins Unveil Sun Life Stadium Renovations Louisville Announces Stadium Expansion Plan Lexus Gets Dallas Arena's Platinum Level Name DraftKings Inks Deals With Cowboys, Chiefs, Pats University Plans Threaten Downtown Cincy Project Raiders Move Into New Training Facility Iowa State Completes South End Zone Renovations Florida Close On O'Connell Center Financing Facility Notes
SBD/March 16, 2012/Facilities
Santa Clara Leaders Finalize Extra Loans For 49ers Stadium Project
Published March 16, 2012
Santa Clara leaders on Thursday approved six "last-minute deals needed before" the 49ers stadium project can get under way in coming weeks -- including up to $100M in extra loans, according to Mike Rosenberg of the SAN JOSE MERCURY NEWS. Santa Clara Mayor Jamie Matthews said, "This is really a historic night for us because there's nothing now that prevents us from moving forward on the project. It is simply real." The Stadium Authority "approved the final documents for a bank loan" of up to $950M -- more than the prior estimate of $850M "because of increases to the stadium's price tag revealed last week." However, officials think that "upcoming revenues such as seat sales will lower the long-term debt to below" $700M. When the stadium agency "takes out the loan as soon as next week, it must pay" a $14.625M bank fee plus, $80,000 annually for the next few years. Officials also "approved a parking agreement with the 49ers that gives the team the right to reserve" 10,000 parking spots on city-owned land during game days, "in exchange for part of the parking revenue." The Stadium Authority also "inked a legal 'nonrelocation agreement'" with the 49ers. The city council "extended the Niners' lease for its existing training facility and headquarters" from '42 to '74. Stadium leaders also "backed a deal to hand the year-round management of the stadium to the 49ers, which will be responsible for handling financial books, hiring employees and booking non-NFL events such as concerts." The authority will pay the team $200,000 in the first year, increasing 3% annually, "plus booking fees and reimbursement for half its costs" (SAN JOSE MERCURY NEWS, 3/16).