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Mayor Anthony A. Williams 
Statement on baseball stadium draft lease agreement
December 9, 2005

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Government of the District of Columbia
Executive Office of the Mayor

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FOR IMMEDIATE RELEASE: 
FRIDAY, DECEMBER 9, 2005 
CONTACT: VINCE MORRIS
202-727-5011
SHARON GANG
202-727-9811

COMPLETED STADIUM LEASE MOVES SOUTH CAPITOL STREET BALLPARK CLOSER

Mayor Praises Sports Commission For "Hard-Line" Negotiations

(Washington, DC) Mayor Anthony A. Williams announced today that the DC Sports and Entertainment Commission completed negotiations with Major League Baseball over a new lease for the Washington Nationals ballpark near South Capitol Street in Southeast.

Central to the lease are three provisions which the mayor demanded: Major League Baseball agrees to severe penalties if the team is ever moved from the District; that baseball contribute $20 million to help cover cost overruns associated project; and that team continue to provide free tickets to low-income District residents.

"This lease moves us one step closer to building a beautiful, state-of-the-art ballpark along the Anacostia River. We've negotiated a good deal for the city and persuaded Major League Baseball to concede on many fronts. MLB is giving the city $20 million and even agreed to turn over fully two-thirds of parking revenue on non-game days to the District. Negotiating this lease was not an easy matter and I commend the Sports Commission for its work and hard-line stance," said Mayor Williams.

"I look forward to a full discussion of the lease during a hearing next week and I urge the Council to approve this lease as quickly as possible the following week so that we may move forward with this project," Williams said.

The 30-year lease between the city and the team allows the District to go forward with issuance of $535 million in bonds. To protect individual taxpayers, the stadium will be paid for using tax on utilities, a tax on the cities largest businesses and a tax on tickets and concessions. No general revenue is used for the stadium.

Among the major provisions of the lease:

  • The Nationals will pay the city about $5.5 million a year in rent. Their rent payments are higher if more fans attend the games.
  • The Nationals are responsible for making all repairs and routine maintenance at the stadium.
  • Notwithstanding the lease, the city has the right to use the 41,000-seat stadium for its own events 18 times a year.
  • The Nationals are required to fund and promote a charitable foundation, make low-cost tickets available each year and set aside a minimum of 8,000 free regular season tickets each year that District charities can distribute to low-income residents.
  • The Nationals are required to remain in the District and face stiff financial penalties if the team is moved from the city.
  • The District retains authority to control development in the area around the stadium.
  • The Nationals are required to turn over to the District 2/3rds of all the non-game day revenue generated at the parking garage that will be built next to the ballpark.
  • This lease and the ballpark that will result will be the catalyst for $2-3 billion in development and $50-$75 million in annual sales and property taxes.

The Council is scheduled to consider the lease on Dec. 20th. Once it is approved, Mayor Williams will sign it.

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