Santa Clara Leaders Finalize Extra Loans For 49ers Stadium Project
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).