Pretty exciting at last!!!
Looks like the niners are coming to Santa Clara for real!!
I for one am jazzed to have a local football team to call Silicon Valleys!
Forty Niners will be doing a Silicon Valley Relocation soon.
At long last, the 49ers' drive for a new home in Silicon Valley is reaching the end zone.
The NFL team and Santa Clara announced Friday that they are on the verge of capturing all the money needed to build a proposed $1 billion football stadium next to the Great America theme park.
"It's like first and goal from the 9 yard line," said Ron Garratt, a consultant helping lead the project for the city. "We think we're going to score from here."
The two sides have lined up a consortium of lenders -- Goldman Sachs, U.S. Bank and Bank of America -- that have agreed to loan them a combined $850 million. The funds will be paid back through stadium-related revenues, such as ticket sales, naming rights, and the rent the team will pay the city. The NFL is expected to chip in $150 million, the city's redevelopment agency will contribute $40 million and another $35 million will come from a local hotel tax.
Essentially, the two sides are betting that the stadium will create so much profit that they will be able to pay off the loans over about 25 years. If that money doesn't materialize, the 49ers are on the hook to pay the difference in higher rent payments to the city.
The 49ers will contribute another $150 million form the team's own cash, largely through the luxury suite sales they have already sold. The final $20 million is expected to come from various seat sales expected before construction starts.
The two sides are now so
confident that the stadium might be able to open a year early, in 2014, though it sounds like a long-shot. The target date for starting construction in January 2013 and opening for the 2015 season seem like locks now, the city said.
The construction cost has also increased from $987 million to $1.02 million, largely because of tweaks to stadium design, more refined construction estimates and inflation.
The development agreement caps 2½ years of closed-door negotiations between city and team leaders and finally completes a planning process that began when the team announced interest in abandoning San Francisco five years ago.
The 49ers have already approved the 75-page deal and the City Council is expected to follow suit on Dec. 13, cementing the final green-light and a "formal commitment" from both sides to build the 68,500-seat, coliseum-style home field next to Great America.