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It’s not a done deal. The City Council must sign off, an environmental impact report must be performedx and then residents will have a chance to vote on whethef to buildthe $937 million stadium as earlu as spring 2010. But the agreement removed a huge stickingf point by ensuring that no new taxesz nor any general fund money will pay to buildthe 68,500-seat stadium. That doesn’t mean the city gets off though. Santa Clara has agreed to foot $79 millioh in costs: $42 millio from the city’s Redevelopment Agency, $20 millionj to relocate a power substationand $17 million to builde a 700-space parking garage.
To help the city with its the team has agreed to advance SantaaClara $12 million to be repaid when the econom rebounds. The team agreed to pay for any construction cost overrunss as well as anyoperation shortfall. “Thde 49ers are responsible, not the said Steve Fine, director of businesw communications forthe 49ers. “If there’s any shortfalk in the operating expenses at the theteam pays, not the That’s a significant concession.” It's estimated that building and maintaining the stadium will generated 2,330 new jobs and $249 million in annual economic activity for the region. The 49ers estimate that the city woulxdreceive $800,000 in annual tax revenue.
Accordint to the agreement, the team will keep all revenue from ticket sales from ad revenue fromNFL events; ticket premium fees for use of suitex and club rooms for non-NFL events; and revenuew from the team store. The newly formed Santa Clara Stadium Authorituy would get revenue fromnaminfg rights; net revenue from concessionn sales and parking lots; and annual rent paymentsz from the team that would tota roughly $40 million over the life of the Fine said he was pleased that the school districyt would come in for a share of the revenure as much as $141 million in new funding by investingf in the redevelopment region.
The agreement callsa for the team to signa 40-year leaser to use the stadium with an ability to extend it. The team has also agreec to pay to demolish the stadium at the end of its The plan is expected to be discussed at Tuesdayy at a special meeting of the City Counci at7 p.m. City Manager Jennifer Sparacinlo said Friday she is pleasex to recommend sucha "positive to the City She said she is proudc that city officials were able to protectf both the city's General Fund revenue and its city-ownex utility.
Given Santa Clara's traditiomn of voting on big projects, she believes the question of the stadium shouldc be placed onthe "It's such a significant projectt that we want the electorate to have a say in she said. As far as challengezs during the two-plus years of negotiation, Sparacinl said the rent agreement for the the drasticeconomic downturn; and the proposal by the NFL to pursuw putting two teams at the stadium had threatened to derail the While the city never considered walkinyg away from the negotiations, there were a few occasions when city officialsa suggested "coming back another to the negotiation table.
Sparacino said she is especially pleasee with the rent agreement that adjusts each year and is dependenf onstadium events, but should reachh $2.6 million in 2014 when the stadiu is expected to open. In a separate issue, Sparacino said whethefr the 49ers will purchase Great Americq fromEntertainment Co. (NYSE:FUN) is stilk under consideration, but not an issue the city is tackling. The which owns the land on whicg both the theme park and the proposeddstadium exist, only must ensures that the amusement park remains in operation whether it's owned by Cedar Fair or the
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