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Friday, January 27, 2006

DC and MLB reach agreement on Stadium… Now, about the DC Council…

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Maury Brown Posted: January 27, 2006 at 11:16 PM | 9 comment(s) Login to Bookmark
  Tags: business, nationals

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   1. Jefferson Posted: January 28, 2006 at 12:03 AM (#1841057)
Maybe if they sold tickets to witness this Keystone Kops show, they'd cover all the cost overruns in advance.
   2. Sam M. Posted: January 28, 2006 at 12:39 AM (#1841104)
As reported in the Washington Post (Officials Submit Revised Stadium Lease Agreement), Under that agreement, the companies would guarantee that the ballpark would be built for a set price, around $300 million, according to sources. In return, the builders would gain greater control of the construction process from the city.

If that pans out, it may well be an excellent way to resolve the whole overrun issue. MLB didn't want that risk, for itself or the Nats. The District Council didn't want it, either. If the contractors are willing to take it on, great. That brings the added bonus that it gives the parties with the most control of whether there will be overruns the maximum incentive to prevent/avoid them.
   3. Chris Needham Posted: January 28, 2006 at 01:09 AM (#1841136)
The DC Gov't, for what it's worth, lays out their numbers on their website.

Under the deal, funds to pay for the stadium will come from four separate outside sources. 1. MLB will make rent payments to the District for the next 30 years, worth $92 million. 2. Fees on tickets, hotdogs and t-shirts sold at the ballpark will generate $369 million over 30 years – a fee system that makes sure that only people who attend games will pay for the ballpark. 3. The ballpark fee, which affects fewer than 2,000 businesses in the District, will raise $215 million over the 30-year period. 4. And finally, utility taxes assessed primarily on the federal government will raise another $215 million. This combined sum, $891 million, guarantees a revenue stream that will allow the District to build a beautiful ballpark, sparking a revitalization of an underdeveloped area of the District and giving people a new entertainment destination without ever having to tap into general fund revenue.

Whether you agree with building the stadium or not, that's about as coherent response as the city has put out about the whole financing package.

And for those of you not from the area, the WaPo had a good graphic presentation on the area surrounding the stadium.
   4. The Non-Catching Molina (sjs1959) Posted: January 28, 2006 at 01:51 AM (#1841180)
I can hardly wait for Neil DeMause to tear into this; he's great at finding hidden costs!
   5. Grunthos Posted: January 28, 2006 at 02:49 AM (#1841223)
DeMause won't be the only one. This proposal is rather like a sleight-of-hand trick from a cheap magician - even if the numbers aren't fishy, everyone and their mother will be more motivated to find the "trick" than to enjoy the act. The city's politicians and journalists will all tear into this, and there will be bickering, backbiting, and name-calling; and maybe there will be a vote, which will likely resolve nothing.

That said, Sam's point is important... foisting risk off onto the contractors, while relaxing the schedule and guaranteeing the club will play in RFK for an extra year if (meaning when) the stadium isn't done on time, is an excellent idea, quite out of character for a government that has never delegated authority well. As long as the process isn't corrupted, that is... whoops, did I mention corruption? How could that happen?

*rolls eyes* *whistles* *walks away with hands in pockets*
   6. Walt Davis Posted: January 28, 2006 at 03:41 AM (#1841259)
the builders would gain greater control of the construction process from the city.

What exactly does this entail? Non-union workers? No restrictions on minority sub-contractors? Construction standards similar to Big Tony's wheelchair access ramp for Springfield Elementary?

Sorry for being too lazy to look up old numbers but weren't they talking about potential cost over-runs in the $150 M range? Why would the contractors take on that level of risk?
   7. Maury Brown Posted: January 28, 2006 at 04:06 AM (#1841283)
The Pablum on the DC Govt. site isn't worth reading. Even the Council said there was no supporting data for the new proposal.

Hey, guess what? Fees on tickets, hotdogs and t-shirts sold at the ballpark will generate enough money to feed the homeless, cure Cancer, and pay for the ballpark. No, really.
   8. Chris Needham Posted: January 28, 2006 at 04:31 AM (#1841297)
Well, seeing as how what I posted doesn't pertain specifically to the lease, then yes, it's fair to say that it doesn't support the new proposal. Next question?

$10MM a year from Tickets/parking/concessions? That seems like a pretty reasonable estimate. You're connected. Have any data from other parks?
   9. fables of the deconstruction Posted: January 29, 2006 at 10:45 PM (#1842876)
For those that have been in a coma for the last 2-years solid, the Washington Nationals are looking to get a new stadium built.

And by this time, I betcha Tony Williams simply wishes he was off just 'pimping' for his sisters.

And to co-opt a line from a previous post...

whoops, did I mention "pimping"? How could that happen?

*rolls eyes* *whistles* *walks away with hands in pockets*


The Pablum on the DC Govt. site isn't worth reading. Even the Council said there was no supporting data for the new proposal.


FWIW, it's spelled pabulum. Believe me, I know. I spelled it the way you did once and got called out on it by a French chick on a Mac site years and years ago. That and I had to explain to her who Ronny Raygun was. :} ...


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