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Major League Baseball Briefing
September 2004
Government of the District of Columbia
Anthony A. Williams, Mayor
The Ballpark Site
RFK
- Team will play at RFK for approximately 3 years
- Team owner will pay Sports Commission for expenses and operating
costs.
Target Program for MLB Baseball
- 41,000 Seats
- 74 Suites
- 2,000 Club Seats
- 1,100 On-Site Parking Spaces
- State-of-the-Art Facilities, Services, and Amenities
Site Criteria
- The District wanted a site that strengthens the economy and
revitalize neighborhoods
- Major criteria for site analysis included
- Availability of Land at Sites
- Access to Transportation
- Economically viable for MLB
- Ability for the Ballpark to have a Broader Neighborhood Impact
- Fit with District Planning and Economic Development Goals
Examples from Other Cities
Ballparks Can Revitalize Downtown Neighborhoods
- Coors Field: When the City of Denver selected the site it was
perceived as a few blocks too far away; today it is the bookend of
mixed-use Lower Downtown (LoDo) and full of residential and retail
growth.
- Jacobs Field: The new home of the Cleveland Indians, helped bring
new life to the Flatlands in Cleveland in 1994.
Ballparks Can Revitalize Waterfront Neighborhoods
- Pac Bell Park: In 1989, it was an underdeveloped area of the South
of Market area of San Francisco (SoMa). Today, Pac Bell is a famous SF
area landmark in a vital urban district.
- PNC Park: The new home of the Pittsburgh Pirates, re-invigorated a
Pittsburgh neighborhood when it opened in 2001.
M Street, SE Waterfront
Availability of Land: Land is privately-owned
Metro Access: Navy Yard Green Line Metro; 1 stop to Yellow Line; 2
stops to Red Line
Broader Impact: Completes neighborhood development between South
Capitol Street and SEFC/Navy Yard.
Planning Fit: Area is part of the Anacostia Waterfront Initiative-Near
Southeast Neighborhood.
Status of Land
- 63 Total Parcels: 0 Publicly Owned; 63 Privately Owned
- 27 Owners
- 40% vacant land & parking lots (majority of occupied land is
small warehouses)
Back to top of page
Public & Economic Benefits
Public Benefits
- MLB will agree to a strong and substantial community benefits
package that will contribute to the needs of DC residents and youth
such as:
- Support for youth recreation, literacy and education
- Allow access to ballpark through ticket programs
- $1 for each paid attendee over 2.5 million/year will go to the
Sports Commission for youth recreation, the Commission's grant program
and other public benefits
Fiscal and Economic Impacts
- Development of the ballpark and surrounding area will lead the
redevelopment of the Anacostia waterfront
- The District will capture "net new" revenue that would
otherwise have been spent in another jurisdiction
Total Impacts
- The ongoing benefits of a ballpark will total over $1 billion over a
30-year period
- Major League Baseball in DC will generate between $24-$30 million in
annual tax collections
- Ballpark construction will support 3,500 jobs and generate $5
million in District tax revenues
- Team and ballpark operations will create 360 jobs earning an annual
total of $94 million
- Visitor and fan spending outside the ballpark will account for over
$48 million annually in economic activity to the District
- New incremental room nights generated by 81 baseball games will
produce a total of $20M of this spending in hotels
- Over $17 million annually will be spent in DC restaurants on
feed and beverages
- Visiting teams are projected to spend $1.9M per year in DC
- The overall economic benefit to the hospitality economic in the
District is $388,246 per game. On an annualized basis, the benefit
to the hospitality economic is $31,447,926.
- Outside ballpark spending supports 675 District jobs in excess
of $14M in earnings; 241 hotel jobs; 175 retail jobs; 174
restaurant jobs; 114 transportation jobs and 71 parking jobs
Back to top of page
Public/Private Partnership
- DC Residents will not be taxed.
- General Fund revenues will not be required or at risk.
- Team will be responsible for all operating expenses and maintenance
costs at the new ballpark (in addition to making annual lease
payment).
Financing Plan Overview
- District maintains its commitment to fund ballpark through revenues
the city will garner from the return of baseball.
- District will not divert existing revenue streams.
Sources of Financing
- Bonds to be repaid through the following revenue streams:
- Owner Lease Payment: $5.5M (plus yearly escalation)
- On-Site Taxes: $11-$20M
- Ballpark (Gross Receipts) Fee: $21-$24M
- Ballpark Fee applies to approximately 11% of total businesses
2,000 companies
- Small and "main street" businesses exempt
- Ballpark Fee modeled on previous "Arena Fee" used to
finance MCI Center
- Similar to MCI experience, Ballpark Fee will sunset (go away) at
time bonds are paid off
- The proposed Ballpark Fee will also be assessed on a sliding scale
based on gross receipts of incorporated and unincorporated businesses:
Gross Receipts |
Fee |
$3$4 million |
$2,500$3,000 |
$4$8 million |
$6,000$7,200 |
$8$12 million |
$10,000$12,000 |
$12$16 million |
$16,000$19,100 |
over $16 million |
$23,500$28,200 |
Project budget
Ballpark Hard Cost |
$244,100,000 |
Hard Cost Contingency |
$19,500,000 |
Total Ballpark Hard Cost |
$263,600,000 |
|
|
Ballpark Soft Costs |
$35,300,000 |
Soft Cost Contingency |
$1,800,000 |
Total Ballpark Soft Cost |
$37,100,000 |
|
|
Total Ballpark Costs |
$300,700,000 |
|
|
Ancillary Project Costs |
|
Land |
$65,000,000 |
RFK Renovations |
$13,000,000 |
Parking On-Site |
$16,500,000 |
Financing |
$40,000,000 |
Total Ancillary Costs |
$134,500,000 |
|
|
Total Project Cost |
$435,200,000 |
Other Provisions
- The team will enter into a 30 year lease of the new ballpark that
will provide for five two-year renewal options.
- The team will pay rent at the new pallpark starting at $3.5 million
in the first year and escalating to $5.5 million by year six with a 2%
annual escalation thereafter.
- If the team is sold within 5 years from the commencement of the RFK
lease, the team will pay a portion of the appreciation to the
Commission.
Back to top of page
Legislation
- Legislation will be sent to Council Friday
- Expected to go to the Finance and Revenue Committee
- Timeline will allow public hearing and two readings
- Final vote of Council will take place in December, 2004
- Increases the tax on tickets and merchandise sold at the ballpark to
10%
- Establishes the Ballpark Fee
- Authorizes the District to issue bonds for payment of the costs of
the project (development, construction or renovation)
- Authorizes the District to acquire real property by condemnation for
the purpose of building a new ballpark
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