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September 19, 2005

Bond issue approved for Metrostars' New Jersey stadium

The Jersey Journal reports today that officials from Hudson County and the town of Harrison, NJ, have formally approved $40 million in general obligation bonds which will go towards the acquisition of land and construction of a parking garage as part of the MetroStars stadium project. The entire project, which will be built in the town's 275-acre redevelopment zone, carries a price tag of $170 million, the majority of which will be borne by Anschutz Entertainment Group, owners of the MetroStars, LA Galaxy, Chicago Fire, and the Earthquakes.

The story continues:

"It's now a done deal," Joseph Lauro, spokesman for the Harrison Redevelopment Agency, said of the financing deal. "There are no other hurdles in front of it that involves government."

Under the terms of the deal, Anschutz Entertainment Group, parent company of the MetroStars, will put up $15 million and take out bonds on an additional $60 million through the Hudson County Improvement Authority. The partnership allows AEG to get the lowest possible interest rates without putting the county in financial jeopardy.

This marks the sixth stadium which has either been completed or is under construction for an MLS team. (Stadiums have been completed for teams in Columbus, Los Angeles, and Dallas and are in development in Chicago, Denver, and now New Jersey.) Additionally, significant progress is being made on stadium deals in Salt Lake City and Washington, DC.

As each of these stadiums come online, the league's viability increases and the financial risks to municipalities associated with stadium financing lessen. It's disappointing that AEG doesn't see the potential in San Jose that is obvious to so many of us but it's good to know that their commitment to the sport is still being backed up with their substantial checkbook.

Posted by Jay at September 19, 2005 10:09 AM

Comments

Hopefully Salt Lake and DC will bring their discussions and planning to a relatively quick and successful conclusion, adding two more precedents for public-private cooperation in SSS development.

The more examples available to our local public officials (and team franchise owners) of how it's done elsewhere, the better for the Bay Area. Watch and learn.

Posted by: Sonoma at September 22, 2005 10:12 AM

Agreed Sonoma. This is only positive for MLS and San Jose. The more stadiums that come on line the more assured politicians can be that the league is here for the long haul.

Posted by: Colin at September 23, 2005 08:38 AM

Also, more stadia reduces the overall losses of the league. Those teams that play in stadia that they do not control are losing money. Those that play in stadia they do own, or control, are either making money, or losing a lot less. Therefore, a potential new owner is risking less these days because the league is closer to profitable.

Ah, the beauty of SEM. ;)

GO QUAKES!!

- Mark

Posted by: Mark at September 29, 2005 10:30 PM

As the Mets get closer to their stadium I can FEEL us getting closer to our own....the team is inspiring- winning even on the "off-days"....this kind of perseverence is why we are a better story than the Metrostars...both on and off the field....yeah, Alexi wants bright lights and an MLS superpower, but he's got a lot of chemistry to create and no Dominic to facilitate it. The commitment to the community that Kinnear and Doyle have is very different from what one sees in the rest of the league- its unique and will eventually help us gain commitments for the team's facilities and contracts in the South Bay.

On that note I cannot help but dwell some more on what a fantastic season this has been and how it has probably helped our cause considerably that the Quakes have been UNBEATABLE at home....

I remind myself that Alexi helped build this team by looking for guys who will play for the team and not necessarily for the money (that they pay the players in LA and NY/NJ). I am glad the league is expanding the way it is in major markets, but even more glad that our team of overachievers will be playoff bound in style while Alexi has to ponder how to get something that is missing out of the Metrogags huge collection of talent! Still, Bradley gave us Ricardo Clark!!! Sarachan gave us Gray....its amazing how much YOUNG talent has flowed here. I understand the Rapids parting with Chung if they thought he was just too old...BUT what a motor that guy has!!! Moreno and Califf are missed in LA- Gomez is awesome but a target fwd he is not...With the Supporter's Shield all but ours I want the CUP...BUT even more I want a stadium we can call our own!!! Hey, San Jose State's Spartans just had 17K for their loss to Nevada Saturday....we'll top that vs Real Salt Lake- Hope the local govt and business officials are watching and recognize the great potential to fill a new stadium- one that can do more than just host sporting events BUT when it comes right down to it- hosting the Quakes will be a fantastic opportunity for whoever does make the investment! GO QUAKES!!

One more note: despite a large crowd that Dallas referred to as hostile, I thought we were relatively subdued SO ITS TIME TO CRANK IT UP SATURDAY and once again show MLS that we are the present and the future of the new soccer nation...remember that one? :)

Posted by: Matthew Martin at October 2, 2005 09:50 AM