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April 15, 2008
Stadium deal takes a big step
Today, we've got good news and bad news.
We'll give you the bad news first: a major earthquake is a near certainty in the next 30 years. The good news? A major Earthquakes stadium is a near certainty in the next two years.
Yes, despite the fact that someday the ground may shake beneath it, the big news today is that the "San Jose soccer stadium (is) closer to reality," as the Mercury News puts it.
San Jose and a team of developers have agreed to a $132 million deal that sets the stage for a major league soccer stadium near the airport as early as 2010.Terms of the deal must still be formally approved by the city council next month. But Monday's financial agreement between city officials and Earthquakes owner Lew Wolff and his partners is a giant step toward building the stadium and an accompanying retail, office and hotel project on the 75-acre site on Coleman Avenue.
"If and when we pull it off, it is going to make me feel - well, at my age, that would be a great accomplishment," the 72-year-old Wolff said from his Los Angeles office. "It would cap off a long time of development in San Jose." Wolff developed downtown San Jose's Fairmont and Hilton hotels and also owns the Oakland A's, for whom he is working to build a new stadium in Fremont.
San Jose leaders also cheered the tentative agreement Monday because it would funnel at least $17 million into the city's general fund - which is perennially racked by deficits.
According to terms of the deal, Wolff and his partners would pay $132 million for 66 acres of the former FMC manufacturing plant. Of that, about 18 acres will be set aside for the 18,000-seat soccer stadium and parking.
The city bought the land in 2005 for $81 million.
We're going to pause for a moment to emphasize those numbers. The City of San Jose is currently paying $6 or $7 million a year from its general fund to pay for the purchase of that land. Under the terms of this agreement, not only will the city be able to get out from under those payments, but it will realize a profit of over $50 million on the sale of the property which it first purchased in 2005. That's a 59 percent profit in just three years. We don't know the details, but that sounds like an amazing deal for the city.
It's too early to celebrate, but we're a whole lot closer to that party than we ever have been.
Posted by Jay at April 15, 2008 08:46 AM
Comments
Hey guys, this is really fabulous news for you. Here in Houston, Dynamo is looking to open play in Dynamo Park (pending the agreement that I expect will come before Memorial Day) also in 2010. How amazing would that be, to have both stadia open the same year, especially considering the history?
Really, really great news. You guys who never lost faith out there should really be commended. (Now if you'll just go out and beat LA you will earn the endearment of the nation as well! Hopefully, we can do that for you this weekend.)
Posted by: Martek at April 15, 2008 03:01 PM
Can someone here please tell me where I'll be able to watch the upcoming Chelsea Manchester United match in the Silicon Valley??? I'm traveling for business and am looking for a place to catch the match, which may be difficult since it will be on quite early.
Posted by: Nathan at April 15, 2008 04:27 PM
Nathan --
I'd recommend contacting either of the following:
http://www.britanniaarmsdowntown.com/
http://www.britanniaarmsalmaden.com/
They're both in San Jose.
Posted by: Jay Hipps, SSV at April 15, 2008 04:37 PM
Thanks to SSV for being the "Face of the Fans".
My only concern is why the 10th largest US city would plan to have the smallest SSS in MLS.
In the '70's (yeah, here I go again..) when SJ was 400,000, Quakes 1.0 were selling Standing Room tickets at 18,000 capacity Spartan.
With SJ at 1,000,000, and with the new ownership reaching out to a whole new demographic, previously ignored by AEG, isn't 18,000 short-sighted?
Note that, at 32,000, Cisco Field is to be the smallest MLB stadium. Hmmm, seems like a pattern.
Supply & Demand means fewer tix, higher prices. Sounds like Marketing MBA calculus, but they might consider the trade-off in concessions & parking, where more & cheaper mean more revenue.
Gotta find the sweet spot.
Posted by: Len Kruwel at April 16, 2008 05:30 PM