Santa Clara: Great America's OK not needed for 49ers stadium
http://www.mercurynews.com/49ersheadlines/ci_9202476?nclick_check=1
Countering one of the biggest potential blocks to an NFL stadium deal, the city of Santa Clara says it doesn't need Great America's approval to build a 49ers stadium on the theme park's parking lot.
Instead, city leaders now suggest, they could ignore any potential veto from the theme park's owner by providing more parking.
Throughout the negotiations over the $916 million stadium proposal, Cedar Fair's objections have loomed as a possible deal-breaker, because the theme park holds a long-term lease on the city-owned land. As part of the lease, Cedar Fair is guaranteed parking spaces near Great America.
But in a letter to Cedar Fair's president, City Manager Jennifer Sparacino made clear in writing for the first time that the city would be well within the bounds of its lease if it moved forward. According to the lease, Sparacino said, the city has the right to develop the theme park's parking lots, provided any lost parking spaces are replaced.
In the case of the proposed stadium, that could mean building a parking structure on Great America's main lot. The hitch is who would pay for it. The city would need the 49ers to come up with some money, Sparacino said, because Santa Clara is committed to spending $42 million on a parking structure that's already part of the proposal.
"It's not our preference," Sparacino said Thursday night. "But we wanted to make it clear that it is an alternative that could be and is being looked at."
Asked whether the city and the 49ers might move forward without the consent of Cedar Fair, Peter Crage, the company's chief financial officer, also said nobody wanted to see that happen, but didn't deny the possibility.
"The concept of them moving forward without our approval or without our involvement, it certainly was not the alternative we preferred or they preferred," Crage said. "We continue to look to find a way to make this work."
A 49ers spokesman declined to comment Thursday on the latest development but said talks are continuing with Cedar Fair.
Any additional costs would add to a $51 million funding gap identified in January between what Santa Clara is willing to invest in the project and what the 49ers say they need to get it built. The city is holding firm on a proposed $136 million investment toward the 68,500-seat facility, plus $42 million for a parking garage and the cost of relocating a utility substation.
The letter, sent last month but obtained Thursday, was a response to one that Cedar Fair had sent to the city in December, laying out a series of requirements necessary for any deal.
Among the demands were a share of parking revenue from NFL events. But Sparacino's letter, while suggesting room for a deal on the parking revenue, raises questions about the theme park owner's ability to block the project.
Since the city agreed in January to begin negotiating a "term sheet" with the team, vaulting the project over one key hurdle, city and team officials have been meeting in hopes of having a deal by July 22. Santa Clara voters will weigh in on a non-binding ballot measure in November.
The funding gap is among the sticking points, as well as a request from the city that the team pay rent on any land it occupies. Currently, the proposal includes no direct lease payments to the city's general fund.
City and team officials have been talking with Cedar Fair officials in hopes of reaching an agreement workable for all sides. Among the options still being discussed, Sparacino said, is whether Cedar Fair, based in Ohio, would sell Great America to the 49ers.
Crage said Thursday that it was Cedar Fair that initially proposed selling Great America and that the company remains open to that.
http://www.mercurynews.com/49ersheadlines/ci_9202476?nclick_check=1
Countering one of the biggest potential blocks to an NFL stadium deal, the city of Santa Clara says it doesn't need Great America's approval to build a 49ers stadium on the theme park's parking lot.
Instead, city leaders now suggest, they could ignore any potential veto from the theme park's owner by providing more parking.
Throughout the negotiations over the $916 million stadium proposal, Cedar Fair's objections have loomed as a possible deal-breaker, because the theme park holds a long-term lease on the city-owned land. As part of the lease, Cedar Fair is guaranteed parking spaces near Great America.
But in a letter to Cedar Fair's president, City Manager Jennifer Sparacino made clear in writing for the first time that the city would be well within the bounds of its lease if it moved forward. According to the lease, Sparacino said, the city has the right to develop the theme park's parking lots, provided any lost parking spaces are replaced.
In the case of the proposed stadium, that could mean building a parking structure on Great America's main lot. The hitch is who would pay for it. The city would need the 49ers to come up with some money, Sparacino said, because Santa Clara is committed to spending $42 million on a parking structure that's already part of the proposal.
"It's not our preference," Sparacino said Thursday night. "But we wanted to make it clear that it is an alternative that could be and is being looked at."
Asked whether the city and the 49ers might move forward without the consent of Cedar Fair, Peter Crage, the company's chief financial officer, also said nobody wanted to see that happen, but didn't deny the possibility.
"The concept of them moving forward without our approval or without our involvement, it certainly was not the alternative we preferred or they preferred," Crage said. "We continue to look to find a way to make this work."
A 49ers spokesman declined to comment Thursday on the latest development but said talks are continuing with Cedar Fair.
Any additional costs would add to a $51 million funding gap identified in January between what Santa Clara is willing to invest in the project and what the 49ers say they need to get it built. The city is holding firm on a proposed $136 million investment toward the 68,500-seat facility, plus $42 million for a parking garage and the cost of relocating a utility substation.
The letter, sent last month but obtained Thursday, was a response to one that Cedar Fair had sent to the city in December, laying out a series of requirements necessary for any deal.
Among the demands were a share of parking revenue from NFL events. But Sparacino's letter, while suggesting room for a deal on the parking revenue, raises questions about the theme park owner's ability to block the project.
Since the city agreed in January to begin negotiating a "term sheet" with the team, vaulting the project over one key hurdle, city and team officials have been meeting in hopes of having a deal by July 22. Santa Clara voters will weigh in on a non-binding ballot measure in November.
The funding gap is among the sticking points, as well as a request from the city that the team pay rent on any land it occupies. Currently, the proposal includes no direct lease payments to the city's general fund.
City and team officials have been talking with Cedar Fair officials in hopes of reaching an agreement workable for all sides. Among the options still being discussed, Sparacino said, is whether Cedar Fair, based in Ohio, would sell Great America to the 49ers.
Crage said Thursday that it was Cedar Fair that initially proposed selling Great America and that the company remains open to that.
