Show All Answers

1. What was the original $12 million investment in the project used for?

These funds were used to help offset costs associated with the development of the stadium, including public infrastructure improvements, site preparation, stadium construction and land acquisition.

2. Why were there not more safeguards in the original agreement?

There is a contract with the developer that requires completion of the stadium by March 2010. If the project is not completed the city would have the option of suing the developer, but from a subordinated interest behind the lenders and contractors.

3. Did the city receive any legal advice in drafting/reviewing the original agreement?

No, the original agreement was prepared internally by the former City Attorney.

4. Where did the $12 million in city funds in the original agreement come from? Did it include taxpayer funds?

One million came from previously approved Downtown Development General Obligation Bonds, $5.5 million came from the sale of Ernie Shore Field and $5.5 million was borrowed and is being financed over 20 years.

This borrowing is being covered by the new tax increment generated by the stadium. Of this total amount, the $1 million in General Obligation Bonds is the only portion that is being taxpayer funded.

5. What has the city already agreed to fund in the Phase II mixed use commercial development adjacent to the stadium?

The city's additional financial assistance of up to $8,012,252 would be provided over a period of up to 25 years based on the annual taxes paid to the city in excess of the taxes paid on the $22.6 million base price of the stadium.

In addition, with the construction of Phase II, the city would agree to purchase up to 1,000 parking deck spaces at a total cost not to exceed $16,340,858. The purchase of these spaces is contingent upon the costs being self-funded through the Phase II development.

6. Why expand the scope of stadium in a tightening credit market?

The scope of the project changed before most vertical construction had ever begun.

7. Why didn’t the developer come forward sooner to inform the city of the increases in cost?

Because the developer was trying to work out the details with the bank consortium and for reasons of confidentiality, the developer waited until most of the critical issues were resolved before going public.

8. Why can’t the developer put more of his personal funds into the stadium?

The developer is unable to borrow any additional funds to put into the project.

9. Is Flip going to receive any of the city funds?

No.

10. What are the specifics on the $1.3 million loan from the Millennium Fund?

This loan is for 25 years at 0% interest with all payments deferred. When the stadium is transferred to the city's ownership in 25 years, the loan is completely forgiven.

11. Is the city helping small businesses and/or homeowners that are facing foreclosure in this economy?

The city has a small business loan program to assist small businesses. Funds also will be available by the end of July to assist homeowners who are about to be evicted due to foreclosure.

12. Can the city be more transparent and disclose all documents?

All documents that can be made public have been placed on the city’s web site. View the Downtown Baseball Stadium documents.