DC Planning To Ask MLB For New Funds In Ballpark Deal
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DC Officials To Ask MLB For
$44M In Extra Funding
For Ballpark |
DC “is prepared to ask” MLB for a $24M letter of credit and a $20M payment for
parking costs when negotiations over the terms of a new Nationals ballpark lease
resume today, according to sources cited by Nakamura & Heath of the WASHINGTON
POST. The $24M is being sought to “guarantee interest payments on stadium construction
bonds in case the [Nationals] fail to meet their rent obligations because of a
catastrophe, player strike or other event.” DC CFO Natwar Gandhi said that the
figure is equal to four years’ rent, the “standard guarantee bond raters need
to feel comfortable enough to give investment-grade ratings.” DC officials added
that the extra $20M for parking “is necessary because [MLB] officials have made
special parking requests.” DC Council member Jack Evans: “The city’s position
is the stadium will cost $535[M], and anything beyond that is contributed by the
owner and/or baseball, or it just doesn’t get done.” Nakamura & Heath note this
is the first time DC “has sought more money from the league since the two sides
struck the stadium deal” in September ’04. DC officials have repeatedly said that
asking MLB for more money “is a non-starter because league officials would consider
it a violation of the agreement” (WASHINGTON
POST, 11/15).
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