we can all feel better for New Orleans now that they got the Saints threw 2025....what a relief it must be to some of you people.
NEW ORLEANS -- A long-term deal that would keep the New Orleans Saints in a refurbished Superdome through the year 2025 has been reached, the team announced Thursday.
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The deal, which is still subject to legislative approval, includes having Saints owner Tom Benson purchase the dormant New Orleans Centre and Dominion Towers and then leasing office space back to the State of Louisiana.
That arrangement will guarantee additional income to Benson but also will allow the State to lower its annual payments to the Saints to approximately $6 million per year, $17. 5 million less than this year’s payment.
"The Saints are going to take a lot more risks than we had before in the old agreement, but that’s OK, too," Saints Owner Tom Benson said. "We felt like with the improvements that are going to made at the Superdome, the attitude of the community, this was going to be an outstanding deal for the Saints and the state of Louisiana."
The announced deal should make it easier for the city to bid for the 2013 Super Bowl, something that was high on the Jindal administration’s priority list.
“It has always been our interest in making New Orleans part of that rotation again," Gov. Bobby Jindal said. "The league has made it clear to me at least two points: they're pleased in past experiences in New Orleans. I think they’d like to come back again. … But they made it very clear they would not consider New Orleans unless there was a long-term agreement in place."
Subject to legislative approval, the new lease is effective Aug. 1, 2009. Inducements will be reduced in the fiscal year 2010 and 2011 based on the state’s participation in the Sports Development District – a far-reaching, innovative project that will include rejuvenating the downtown district around the Louisiana Superdome. Fixed inducement payments will be eliminated after 2011. The Saints will be eligible to receive up to $6 million a year, based upon financial performance.
As part of the agreement, the Benson family will purchase the Dominion Tower and enter into a 20-year commercial office lease agreement with the state. The Saints and the Louisiana Stadium and Exposition District (LSED) will join into a co-development agreement to redevelop the New Orleans Centre Mall, which has been empty and in poor condition since 2005. The two entities will create a Sports Development District, which will feature an interactive entertainment venue, commercial office space, entertainment and parking.
Additionally, as part of the deal, a 70,000 square foot Festival Plaza outside the mall will be available to 2.3 million annual visitors at the Superdome on game day, which will help generate further sales for local businesses and revenues for state and local government. The economic impact of the LSED is projected to reach over $1.5 billion, with $71.6 million generated in state revenue.
The Superdome will be modernized and state agencies will be consolidated at the Dominion Tower into a Class A building – 320,000 square feet for official use – at a lesser cost than new construction.
Additionally, Jindal said he will work with the legislature to use $85 million in 2007-2008 fiscal year surplus dollars to dramatically upgrade the Louisiana Superdome during the 2010 and 2011 off-seasons. The upgrades will not cause any interruptions to the football schedule.
New Orleans Mayor Ray Nagin said the deal is another shot in the foot in rebuilding the community after Katrina, which struck four years ago in August.
"If you connect the dots, look at what the Bensons are investing, look at the Hyatt, look at Saenger, look at the 70-acre medical district being cleared out and worked on, look at Mahalia Jackson Theater, the riverfront development – our entire downtown is being upgraded and revitalized right in front of our eyes," Nagin said.
Enhancements to the Superdome will include a legion of amenities all aimed at improving the fan experience, including wider plaza level concourses, additional concession stands, additional restrooms, improved ADA seating, new premium club lounges and 3,100 new plaza level seats. On the 300-level, 16 new luxury boxes will also be built.
"I’ve got a lot of confidence in our city and our state," Benson said. "The old saying is I put my money where my mouth is. We’re not just talking. We’re investing. And I urge everybody in the community to do that, too."