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City Of San Jose Could Again Lower Land Price
To Keep Earthquakes Stadium Project Afloat |
In a bid to keep MLS Earthquakes Owner Lew Wolff and his partners from "backing out of an $89 million land deal, San Jose officials are recommending the city give them a potential multimillion-dollar break and more time so they can still move forward with a project to build a new soccer stadium near the airport," according to John Woolfolk of the SAN JOSE MERCURY NEWS. The new terms, which would save Wolff and developers Deke Hunter and Ed Storm up to $4M in "purchase costs, would mark the second time the city has lowered its price to keep the already-negotiated project afloat." It also "allows them to delay purchasing the land until 2015, two years later than the current deadline." Wolff said that he is "still committed to building a privately financed" $60M stadium for the Earthquakes, "but the current deal and economy are making that difficult." Under the new proposal, Wolff and his partners still would "pay $89 million for 65 acres of the land." If they "buy the soccer site by June 2012, the first $2 million in new option payments would apply toward the purchase price." Woolfolk noted that would save the developers anywhere from $2-4M, "depending on when they bought the land." San Jose Economic Development Division Manager Nanci Klein said that the deal is "still far better for the city than seeking a new buyer because continued erosion of land values suggest the city would receive less than the $89 million under the current deal" (SAN JOSE MERCURY NEWS, 12/12).
