By Matt Artz
Tuesday, November 18th, 2008 at 8:57 am in Uncategorized.
To read the full Mercury News story on economic struggles for stadium plans in Fremont, San Jose and Santa Clara, click here.
The Fremont part is fairly similar to my story from this weekend.
The main difference is that Lew Wolff made it seem like it would just take too long to explain the complex method he had devised to finance stadium construction without building the housing units right away. He told the Merc, it would just be a combination of revenues stadium naming rights, parking and concessions, which, of course, wouldn’t start flowing until after the stadium was built.
From the Merc:
The same real estate challenges are dogging Wolff’s plans for a 32,000-seat A’s stadium off Interstate 880 in southern Fremont. The expected price tag for that facility is $400 million to $500 million, excluding land, and Wolff had hoped to pay for it by selling hundreds of apartments and townhouses in a Santana Row-like “village” nearby.
Instead, Wolff now says he’ll use money from naming rights — Cisco Systems will put its logo on the state-of-the-art facility for $4 million a year — as well as cash from parking fees and concessions to recoup his construction costs.
If he is forced to dip into those funding sources, which sports owners typically use to pay players and run the team, it could take longer for the A’s to afford to improve their roster. But in time, Wolff thinks, the economy will recover enough for him to develop the residential concept.