SOCCER SCORE
How the Austin stadium deal stacks up to ones in other cities
While the debate over a potential Major League Soccer stadium in Austin rages, it’s worth remembering that the Texas capital is not alone.
In the 10 months since it came to light that Precourt Sports Ventures was exploring a move of Columbus Crew SC, MLS has awarded three expansion franchises.
Nashville Soccer Club, Fussball Club Cincinnati and the David Beckham-led conglomerate in Miami all involve complex public-private stadium deals — and only one of them (Cincinnati) is fully complete.
Ahead of a special-called Austin City Council meeting Wednesday to discuss the terms sheet for a potential deal, the American-Statesman compared some of the main flash points surrounding the private-public partnership between the city and PSV. The council is scheduled to vote on the terms Aug. 9.
Information below was collected from reporting done by The Tennessean, The Cincinnati Enquirer and the Miami Herald.
Cost and who’s paying
Austin: PSV has agreed to privately finance a city-owned $200 million stadium and any cost overruns, and will pay for site preparation and stadium-related infrastructure — estimated to cost at least $3 million.
Nashville: In November, the Nashville Metro Council gave preliminary approval to issuing $225 million in revenue bonds for a $275 million city-owned stadium at the city’s fairgrounds. That would leave the city with about $13 million in annual debt, according to The Tennessean.
Team owners led by John Ingram would contribute $25 million
upfront, plus $9 million in annual rent. A $1.75 ticket tax is designed to cover the remaining $4 million per year, but the city is responsible for any shortage.
Cincinnati: The Greater Cincinnati Redevelopment Authority, a public entity that will own the stadium, is issuing lease revenue bonds to the FC Cincinnati ownership to help finance a $212.5 million stadium in the city’s West End neighborhood. The city promised $33.9 million for site preparation, utility work and parking, a figure that could rise as high as $45 million with interest.
Miami: In November, Miami voters will decide whether to allow a group led by David Beckham and Jorge Mas to build a $1 billion commercial and team-owned soccer stadium complex at what is now the city’s only municipal golf course. The project would be privately financed.
Rent for land
Austin: Beginning in the sixth year of a 20-year lease, PSV will begin paying $550,000 annually for a total of $8.25 million over the course of the lease for the McKalla tract. Nashville: No rent for land use. The Nashville ownership group would owe $9 million annually in rent to pay off the city’s debt for the stadium, plus $200,000 annually to lease additional land at the fairgrounds for private development. Parking revenue generated from non-soccer events would offset the team’s ground lease payment.
Cincinnati: No rent for land use. FCC will have to repay $200 million in lease revenue bonds for construction to the GCRA. Those bonds will be repaid throughout the course of the lease, and the GCRA will collect an extra $5,000 annually, plus additional administrative fees.
Miami: The Beckham group would pay a minimum of nearly $3.6 million in annual rent for the use of 73 acres.
Property taxes
Austin: The stadium will be exempt from property taxes since it would be a city-held asset upon completion.
Nashville: Team ownership will owe property taxes on the planned private development, but not for the stadium itself.
Cincinnati: In lieu of property taxes, FC Cincinnati will pay an estimated $25 million over 15 years to Cincinnati Public Schools and has pledged $10 million to the district to build a replacement at a different site for a high school football stadium that will be demolished to make room for the MLS stadium.
Miami: Based on projected revenues, Beckham and Mas are pushing tax revenue for the city, county and public schools estimated to be $44 million annually. That includes property taxes.
Community benefits
Austin: PSV touts $95.9 million in “direct community benefits,” much of it tied to a fully-funded MLS academy and other youth soccer programs. Other highlights include $4.8 million toward affordable housing non-profit Foundation Communities, $100,000 per year to Austin charitable organizations and free use of the stadium for the city five times each year.
Nashville: It appears the community benefits in Nashville are still being worked on, and an agreement with coalition Stand Up Nashville could be finalized next week. The proposed deal incorporates affordable housing, jobs and economic equity.
Cincinnati: Approval of a community benefits package by the Cincinnati City Council in May proved to be the final hurdle in securing MLS approval for the franchise. The deal included $100,000 annually toward West End organizations, as well as commitments to affordable housing and minority involvement.
Miami: The Beckham group is pledging $20 million total — in annual installments over 30 years — toward a 58-acre park at the site. Top local investor Mas said the group would pay to clean up contaminated soil, budgeted at $35 million.