Posted on 02/02/2012 2:24:44 PM PST by NormsRevenge
NFL owners on Thursday allocated $200 million in funding for the future 49ers stadium in Santa Clara, a crucial and long-awaited piece in paying for the $1 billion project, according to team owner Jed York.
NFL owners voted on stadium funding today during a meeting in Indianapolis, which is hosting the Super Bowl. York tweeted the news after the meeting, saying it was "A big step forward today."
"With the NFL's muscle now behind the new stadium, we are moving forward," York said. "I expect an official groundbreaking ceremony very soon."
...
York is expected to hold a conference call with the media later today.
Nearly two months ago, the 49ers and the City of Santa Clara announced that $850 million in loans would be coming from Goldman Sachs, Bank of America-Merrill Lynch and U.S. Bank.
(Excerpt) Read more at mercurynews.com ...
I woudln’t get your hopes up. An NFL stadium rarely ever provides much of an economic impact for a region, mainly because it isn’t used frequently enough to make much of a difference. That’s why the NFl often promises to hold a Super Bowl in a new stadium within the first five years after its construction . . . because the influx of media and visitors for a Super Bowl really inflates the numbers when economic impacts are measured.
I hope there is a ripple effect in property value and doesn't turn into a drain for the local folks.
Typically, a football stadium has zero economic impact on the surrounding community. Eight days a year with a couple more when the team makes the playoffs, tens of thousands of people go to a game. They then get in their cars and go home.
Existing hotels and restaurants do a land-office business after the game, but no one will invest millions for eight or ten days of good sales. It will without doubt become an economic drain on taxpayers.
The immediate area is going to also include a new hotel/shopping/dining complex that has Joe Montana as a front guy and investor in.
The adjacent Great America amusement park , lodging and convention offerings should help to continue to generate a fair amount of business by themselves.. This will be an interesting thing to watch blossom.. or maybe not.
9er fans will be able to BART down to the Southbay for games and then ride light rail.. should draw a fair amount of traffic.. but I hear ya.
Stadiums cannot spur economic growth -- after all, they don't create wealth but only cause money to change hands. Government has the power to spread tax breaks all around, though, giving the appearance of development. This type of development, though, only takes away from existing businesses. It creates nothing new.
People spend their money here on food and drink instead of there on food and drink.
Brian Sussman on KSFO’s AM show has been following this. The 49ers are going to institue a ticket buyers licensing scheme for their season ticket holders with each ticket going for around 35-40K. THe 49ers also get 400 mil from GS to loan to Santa Clara at around 8.5% interest. Santa Clara is lined up to be driven onto bankruptcy. BOHICA
Oh, no, the Santa Clara 86ers! (Named after the 8086 chip architecture born in the neighbourhood.)
Then again there are stadia like Gillette Stadium in Foxboro, MA, which has not only the Patriots but many concerts and other events. Owner Robert Kraft has expanded into retail/
restaurant establishments (Patriot Place). Now it is a possible site for a casino but the townspeople are very
divided and may not go for it. I’d like to think that
the stadium helps the economy of the town and area.
The New England Revolution soccer team plays there too (but may get their own stadium).
http://en.wikipedia.org/wiki/Patriot_Place
>>Patriot Place is an open-air shopping center located in Foxborough, Massachusetts built around Gillette Stadium, home of the New England Patriots and New England Revolution. Phase 1 opened in fall 2007, which included the construction of a small strip mall containing Bass Pro Shops, Staples, Christmas Tree Shops, Bed Bath & Beyond, and Circuit City (now closed). Phase 2, built on the site of Schaefer Stadium, includes a 4-star hotel, and the opening of the stores in the mall portion, such as Red Robin and a Hollister Co.. It is also home to one of the first locations for Showcase Cinemas’ Cinema de Lux brand.
The mall, and Gillette Stadium, are owned by The Kraft Group.
That's good. It is privately owned, though. I have no beef whatsoever with privately-funded stadiums. I still have my doubts about their ultimate economic impact on the regional economy, because entertainment businesses don't create wealth, they transfer it from one person to another.
That's not a criticism at all, we need and want entertainment and are willing to pay for it. Retail does create some wealth though in an area of stable population, it will just take business from somewhere else.
My real complaint is with publicly-financed sports venues that are sold to taxpayers as economic generators. I just don't see how they can be.
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