July 11, 2006 County Council Meeting

[the Bardguy]

Originally Posted by Jose Luis Luviano

-Certain supporters' groups could moon the visiting team's bus; then moon the visiting team's plane when they take off from the airport next door.

I have no idea what you're talking about. :unsureani

[AreliusIV]

Originally Posted by freedom

There are many reasons why $35-45m can be a deal breaker.

First, Dave may not have the $$ himself to put into the project right now.

In the private equity realm, there are things that lenders will and won't lend on. Infrastructure may not be high on Uncle Dave's lenders' list.

The amount could make the loan-to-value ratios, which are substantial in determining whether a loan is approved or not, above the lenders comfort level.

Chances are, the stadium will be collateralized by the developoment--meaning the other $350m development will be the collateral used to secure the stadium financing. Parts of the development could be sold to pay off the stadium; whereas the infrastructure is there to stay (and usually becomes city/county property/responsibility).

The private equity may be using the reaction/outcome of the stadium as a barometer for the balance of the development, and may not want to commit to a project facing this amount of adveristy.

Just a few reasons, private equity lenders tend to be quite fickle with projects--espcially projects this large.

From today's Des News editorial:

Seemingly, Real owner Checketts has the means to be a player in the professional sports world. In recent months he's purchased the St. Louis Blues of the National Hockey League and has committed $7.5 million toward a 30-field youth soccer complex in the county. Does he really need $30 million in public funds to cover infrastructure costs for his 20,000-seat stadium? The answer would appear to be obvious.

[I_Believe_In_Kreis]

Originally Posted by AreliusIV

From today's Des News editorial:

Seemingly, Real owner Checketts has the means to be a player in the professional sports world. In recent months he's purchased the St. Louis Blues of the National Hockey League and has committed $7.5 million toward a 30-field youth soccer complex in the county. Does he really need $30 million in public funds to cover infrastructure costs for his 20,000-seat stadium? The answer would appear to be obvious.

Idiots (not you, Arelius). They need to understand a couple of things.
1. All these dollar amounts that keep getting floated around (i.e. $150M for the stadium, $500M for the development, etc.) are NOT Dave Checketts' money. Dave Checketts does NOT have $500M. What Dave has to do is beg other businesses to put their money towards his plan in exchange for something (advertising, shop space, etc.)
2. With the above in mind, name a company that wants to fund a sidewalk. They won't do it because it doesn't make business sense. Investors demand something in return - sewer lines don't return anything (well, you hope they don't) so that's why Dave can't find anyone to pay for them. LHM couldn't find anyone to pay for his either, and neither can any other team owner.

People who say "well, Dave has half a billion dollars, why can't he build his own sidewalks" have NO CLUE how development works.