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Thursday, July 9, 2009

News / Politics Paulson Finds Big Soccer Its Missing $15million

Posted by Matt Davis on Thu, Jul 9, 2009 at 8:11 PM

RACHAEL MARCUS CONTRIBUTED REPORTING TO THIS POST...

The deal to bring Major League Soccer to Portland is back off life support for the time being, after the city took controversial urban renewal money off the table this afternoon as a means of plugging the $15million hole in the cost of renovations to PGE Park for Major League Soccer.

Timbers owner Merritt Paulson will plug the gap, with an $8million cash contribution, and a prepayment of $11.1million in rent and ticket taxes. Meanwhile the city will borrow $11.2million from its special "spectator fund," which is funded by a tax on ticket sales. If the cost of the construction overruns, the city will absorb up to $1million in costs, but Paulson will pay for all overruns beyond the initial $1million. The city will also pay a $700,000 "soft cost" by waiving certain development fees for the arena.
0aa9/1247195313-1236132861-paulson.jpg

PAULSON: USING HIS MONEY, SHRINKING REDEVELOPMENT PLANS SLIGHTLY TO PLUG THE GAP...

Removing urban renewal money—which is supposed to be used to regenerate "blighted areas"—means a major barrier to public support of the $31million renovation cost is removed. Who knows: This reporter may even be inclined to be supportive, from now on.

Almost all the money for the deal comes from a private investor and spectator revenue. There appears to be very little risk to the city. Everyone on council seemed very agreeable to the new deal this afternoon, and of course, a bunch of Timbers fans showed up with their scarves.

City Commissioner Amanda Fritz said, "Clearly this is a much better deal for taxpayers." Both she and Commissioner Nick Fish say they need two weeks to look at the details of the plan before expressing support.

The city waived its usual competitive bidding process to go forward with the deal, but Commissioner Randy Leonard said that was okay because "we have a private sector partner with a lot of skin in the game."

Nick Fish asked Paulson about potentially bringing in a Major League women's team (Fish's daughter is a keen soccer player). "It's on my radar," Paulson said.

 

Comments (27) RSS

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1
Nick Fish is on the right track: pair MSL with the new Women's Soccer league. the support for women's soccer in Pdx would be strong, i believe; i'm pretty sure i'd go, given how great the UP teams have been. season tix packages for both teams would be a great idea, and a good sell.

i can't help but think Nike would love to support a women's team in Pdx.
Posted by tabarnhart on July 9, 2009 at 10:38 PM · Report
2
Yes! Yes soccer! Go Timbers! Fuck Seattle Sounders!
Posted by Around on July 9, 2009 at 10:44 PM · Report
3
Girls know about shrinkage, right?
Posted by bruce123456 on July 10, 2009 at 2:21 AM · Report
4
Hooray, this sounds more sensible!
Posted by tk. on July 10, 2009 at 7:31 AM · Report
5
MUCH more sensible and what he should've done from the start.
Posted by Abusive on July 10, 2009 at 8:11 AM · Report
6
Rent prepayment? That just sounds like he's giving money he already owes. And, what happens in the years that he doesn't have to pay?
Posted by Jimmy P on July 10, 2009 at 8:36 AM · Report
7
JimmyP - Yeah, it's giving money he already owes, but it allows the city to not have to put up bonds for those funds. If the city bowrrowed that money using bonds then Paulson would repay it with rent down the line. It's a net zero situation but doesn't incur indebtedness on the city's books.
Posted by Obi on July 10, 2009 at 8:59 AM · Report
8
Jimmy P -

If the team/league goes belly up, then CoP has already got the money in the form of pre-paid rents and the stadium improvements are paid for.

For those years when the team is playing and the rent is already pre-paid (years 2018 through 2025)then the city will still collect on the 7% ticket tax from events held at the stadium. In other words, the risk is removed and the city still gets to share in the upside.
Posted by david1978pdx on July 10, 2009 at 9:01 AM · Report
9
Jimmy P -

If the team/league goes belly up, then CoP has already got the money in the form of pre-paid rents and the stadium improvements are paid for.

For those years when the team is playing and the rent is already pre-paid (years 2018 through 2025)then the city will still collect on the 7% ticket tax from events held at the stadium. In other words, the risk is removed and the city still gets to share in the upside.

tabarnhart - Yes, the added benefit of a WPS team, plus the Timbers U23 PDL team could play there too.
Posted by david1978pdx on July 10, 2009 at 9:02 AM · Report
10
As I said early in the game, I support MLS as long as City financing and risk is minimal and no URA funding is used.

It is interesting that Paulson was able to come up with 8 million and prepayment in rent so easily. If he had just fessed up and ponied up from the start a whole bunch of wasted time and negative connotations on the part of the public for this project could have been avoided.

And I'll say it again, thank the F god for Fritz and Fish on Commission. Leonard and Adams (as well as their staff) are a bunch of doofuses that can't come up a solid plan or negotiate didly with the private sector, so they should both stop trying and leave it to the adults with talent. The fact that Adams was, until last week, still seriously advocating to use URA funds that should be earmarked for blighted neighborhoods illustrates that Adams still sucks as mayor in my book.

Still, go MLS!
Posted by ExCityEmployee on July 10, 2009 at 9:14 AM · Report
11
Fuck Brentford!
Posted by Sock Person on July 10, 2009 at 9:46 AM · Report
12
Good.

Now let's see people give a fuck about soccer...at $38 a head.
Posted by Chunty McHutchence on July 10, 2009 at 10:07 AM · Report
13
i'll be there Cunty! season tickets for me and my wife and kid.

fu**ing great news.

Posted by eric cantona on July 10, 2009 at 10:10 AM · Report
14
You and the 35 other people in the "Army". Have fun!


While it lasts...
Posted by Chunty McHutchence on July 10, 2009 at 11:18 AM · Report
15
"While it lasts..."

Never have I been so terrified by an ellipsis. Please don't leave us hanging Chunty McHutchence, please let us know to what those ominous dots refer! I'M SCARED OF NOT KNOWING!
Posted by Sock Person on July 10, 2009 at 11:25 AM · Report
16
"You and the 35 other people in the "Army"."

I wonder what the other 16,347 people at PGE Park on July 1st were doing there. Curious.
Posted by David on July 10, 2009 at 11:57 AM · Report
17
Oooh, they're playing "hooligan" on the internet. Adorable.
Posted by Chunty McHutchence on July 10, 2009 at 12:15 PM · Report
18
Keep running your mouth, "Chunty."

While you can...
Posted by Sock Person on July 10, 2009 at 12:21 PM · Report
19
Could you please rephrase that in the form of a tasteless banner?

http://theoriginalwinger.com/2009-07-08-se…
Posted by Chunty McHutchence on July 10, 2009 at 12:26 PM · Report
20
Your mock outrage is cute.
Posted by David on July 10, 2009 at 12:43 PM · Report
21
Oh that's right: suicide-- it's hilaaaarious.
Posted by Chunty McHutchence on July 10, 2009 at 1:02 PM · Report
22
this is starting to make some sense now. dude has the money, he should be paying for this shit, not us.
Posted by Bones on July 10, 2009 at 1:29 PM · Report
23
They should have called that rich family's bluff a long time ago, but this new deal sounds on target to keep the city's money safe. Still, I give thanks for the situation because it showed how Sam Adams is an unfit mayor for putting the city's money at risk when he shouldn't have.

Soccer is cool... but I'm saving my money for the Trailblazers dog! Lexus level, here I come!!!
Posted by LokNaar on July 10, 2009 at 3:10 PM · Report
24
This sucks. There isn't one single person in this entire city that gives one shit about either soccer or baseball. Not one person. If the city just refuses Paulson's money and leaves things as is, both the Timbers and Beavers will move or disband when their lease expires in a year. Best result for everyone! We have the great opportunity here to easily kill both teams if we just do nothing and don't take his money. Argh. There's no reasonable reason the city should allow Paulson to give it millions and millions of dollars to allow sports to grow in Portland. So frustrating.
Posted by Jack Acid on July 10, 2009 at 5:06 PM · Report
25
Yeah, it would be cool if every sport had a foothold in Portland; I even thought that the WNBA would have been a winner, but when investors don't jump at the chance to get involved it really spells big trouble before it starts. Profiteers follow profits, so if the profits were there, wouldn't they all jump at the chance to make a buck?

Some of Portland loves soccer, and hopefully it will flourish, but I wouldn't bet on it with my $$$.
Posted by LokNaar on July 10, 2009 at 5:23 PM · Report
26
I'm still wondering why anyone should give a shit if "this reporter may even support this deal"

Hey Matt,

1 You aren't a reporter

2.You proved that by enjecting the status of your opinion into the story

3 Why should we give a rats as what you think?

You are really pathetic.
Posted by Finnegan on July 11, 2009 at 12:23 AM · Report
27
Does Nick Fish not know there is already a professional womens team?
Posted by BlackedOut on July 11, 2009 at 11:51 AM · Report

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