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Superdome To Undergo Combination Of
Upgrades As Part Of Development Project |
The Saints' new financial agreements with the state of Louisiana have "cleared the lingering clouds of uncertainty about whether the team will remain a New Orleans franchise," according to Robert Travis Scott of the New Orleans TIMES-PICAYUNE. With a combination of Superdome upgrades, a "state subsidy and a major downtown development project, the package soon will reshape the upper Poydras Street district that is still struggling to recover" from Hurricane Katrina. The project is "on schedule but must meet several challenges, and the long-term plan that is central to the vision of a revived sports and retail complex remains a concept only on paper until financing can be found." In a few weeks, the "empty mall structure formerly known as New Orleans Centre will be demolished and converted into a large plaza," while the interior of the state-owned Superdome will "undergo the first phase of a significant renovation." The plaza with a "built-in performance stage should be ready for the fall football season." Likewise, contractors working on the Dome will add 3,100 "plaza level seats, 16 new luxury boxes, premium club lounges and 43 additional food and drink stands accommodated by larger concourses." Another phase of the redevelopment envisions "restaurants, nightclubs and entertainment venues centered by a grand plaza with colonnades," similar to L.A. Live and Patriot Place. Scott noted the new agreements pose "fresh risks" for Saints Owner Tom Benson and the state, but "offers potential for greater rewards." Benson is "taking the risk of owning a major property downtown," the renamed Benson Tower, and will be responsible for "real estate debt, tower renovations and maintenance, but overall the new business model provides him the opportunity to tap more financial resources." Benson family attorney Paul Cordes noted that the deal "represents a big change for the Benson family compared with the previous state contract." Cordes: "Their component goes from a risk-free environment for the Saints and Bensons to a scenario where the Bensons have committed to a tremendous amount of investment in these facilities in the hope and expectation -- but there's certainly no guarantee to anybody -- that this will be financially successful" (
New Orleans TIMES-PICAYUNE, 2/21).
MARCHING TO THE BEAT OF A DIFFERENT DRUM: The TIMES-PICAYUNE's Scott noted the new agreements involve a new firm controlled by the Benson family, Zelia LLC, "as well as the football franchise." Instead of direct payments, Louisiana has "guaranteed office rentals and other property leases paid to Zelia for the next 15 years." If the Bensons move the Saints from New Orleans, the team's Superdome contract "would be in default and the state would be released from its obligations to Zelia." Scott noted by creating Zelia, Benson was able to "enter a state-backed real estate venture without direct risk to the team and with the potential for substantial profits." Zelia's financial interests "also serve to tie the Benson family to a long-term business relationship with the city, and in particular with the revitalization of the Superdome district" (New Orleans TIMES-PICAYUNE, 2/21). The new agreement carries an $85M penalty if the Saints leave New Orleans before July 1, 2015. The penalty drops to $70M after that date and then again to $40M in 2020 (New Orleans TIMES-PICAYUNE, 2/21).
