NEWS

Chargers, Raiders, Carson complete NFL stadium land deal

Wednesday, May 20, 2015

The Chargers, Raiders and Carson city officials completed a land deal Tuesday morning that will enable a $1.65-billion stadium to be built next to the I-405 freeway that eliminates another hurdle for the NFL's return to the Los Angeles-Orange County market.

The deed for 157 acres was transferred to the Carson Reclamation Joint Powers Authority Tuesday. Following a model used to develop and finance Levi's Stadium, the 49ers' new home in Santa Clara, the CRJPA will lease the land to a stadium authority, likely made up of Carson City Council members who in turn will rent the facility to the NFL teams.

The State Department of Toxic Substances has consented to the land transfer.

The transfer comes just hours before the NFL meetings at the Ritz Carlton Hotel in which the Los Angeles situation will be a primary topic. NFL senior Vice President Eric Grubman will brief the league and its owners ON both developments in Carson and Rams owner Stan Kroenke's plans to build a $1.86-million stadium at Hollywood Park as well as new stadium efforts in St. Louis, San Diego and Oakland.

These are the first NFL meetings since the Chargers and Raiders hired former 49ers executive Carmen Policy to direct their Los Angeles efforts.

Tuesday's land transfer now enables the city to turn over the development and eventual operation of the Carson stadium to a stadium authority. Carson officials earlier this month secured $1.7-billion in financing from Goldman Sachs, which also financed Levi's Stadium. The NFL would provide $400 million from a special new stadium fund.

“The Santa Clara model is a proven financing structure that the team and the city can use to make this project a reality,” said Christopher Higgins of Goldman Sachs.

The stadium authority would pay off the loans primarily through naming rights and selling personal seat licenses. The Raiders and Chargers, however, would guarantee the stadium loans. The Santa Clara stadium authority signed a $220 million, 20-year naming rights deal with Levi Strauss. MetLife Insurance is paying $400 million over 25 years for the naming rights to Giants’ and Jets’ New Jersey stadium. Regular ticket sales and revenue from luxury suites would be split by the Chargers and Raiders. The Raiders and Chargers would pay $1.2 million each in annual rent.

A financial analysis by AECOM Technical Services Inc. projects rent and taxes for the stadium with one occupant would generate $168 million over 40 years. With two occupants the city would receive $223 million over 40 years. After 30 years the city would also receive 50 percent of all non-NFL revenue from the stadium, according to David Stone of AECOM, a financial consulting firm hired by the city.

 

ocregister.com