Sandy Stadium DEAD

[Section 37]

NEWS RELEASE

May 3, 2006

Contact: Peter Corroon, Mayor—468-3333/468-3380

Stadium Proposal Turned Down

Mayor Peter Corroon today announced his decision to deny ReAL Salt Lake's request for $35 million in public financing for land purchase and infrastructure improvements for the soccer stadium site near 9400 South State Street in Sandy. "The numbers just don't work for Salt Lake County," says Mayor Corroon. "To get $35 million, we'd have to bond for $48.5 million and end up paying back $87.5 million over the life of the loan."

County funding for the land purchase would have been generated through the legislatively approved extension of the 1.25% of the Transient Room Tax (TRT), which was to expire in 2015.

TRT, charged to consumers for overnight accommodations in hotels and motels, is used by the county for the Salt Palace Convention Center, South Towne Exposition Center and major funding for the Salt Lake Convention and Visitors Bureau's tourism and convention promotion programs.

"ReAL Salt Lake is a great addition to our community and I hope an alternative funding source is possible," says Mayor Corroon. He adds that one possibility, if ReAL wants to put the issue before the voters, is a general obligation bond that would go on the ballot in November.

"The problem comes from attempting to give $35 million to ReAL now, when the major repayment source doesn't start for almost 10 years," says Darrin Casper, County Chief Financial Officer. "It is just too costly."

Ten-year interest only payments do not meet Salt Lake County's internal debt policies and do not match Mayor Corroon's conservative fiscal practices. "Spending an additional $18 million up front for interest payments is not a good use of taxpayer money," says Mayor Corroon.

[SoccerPrime]

http://www.sltrib.com/ci_3780305
🙁

[Aero]

Now we know why the financial information was leaked. It gives them an excuse for their decision.

Maybe RSL can sue them for the $35 million now. 🙄

[Stucki]

This isn't necessarily the death knell for Real City, just this particular public-private partnership.

I think Mayor Dolan will step up with some of the difference and Uncle Dave will probably have to come up with the rest.

Or, I am an eternal optimist and hiding from the second move of a franchise in MLS history.

[RSLChango]

You're right. I am no conspiracy theorist but I think it is pretty clear that this was a well organized blitz (between leaks and misleading stats)- - and the FO was caught with its collective pants down. I don't know how you can argue that they played their cards right on this one.

[StarsOnSunday]

In my best Reverend Lovejoy voice:
Let us please, in this time of great morning and sorrow, take this opportunity to focus on the blessings that this tragedy brings with it. For it is because of this loss that we may again focus on our hopes on our people finding a home in the downtown area. May we now turn the other cheek (toward downtown).

[xlyte]

i think the FO need to take some time to regrp, and learn from their mistakes in this pr battle before announcing another plan.

[rabble-rabble]

I find myself somewhat powerless over what is going on right now with the potential stadium and uncertain future of the team. I guess all I can do is show up and cheer on the team against the Crew and look forward to watching the World Cup which begins in 37 days.

[Deuce]

Yeah what Rabble said... I suppose!

So now that i have had my swear-words... "the sky is falling" and my Trolley Square water-tower moment or two...

What happens now? Does anyone care to speculate?

[edaw33]

anyone called the number yet to tell them their thoughts 🙂