DeMaio Releases "No Tax, No Subsidy" Private Stadium Plan
Carl DeMaio joined a group of private real estate developers and contractors to release an innovative proposal to build a multi-use sports, hospitality and entertainment complex that requires no tax increase and no taxpayer subsidy. The plan utilizes a creative design that mixes 365-days of hotel, retail, and event uses.
We set out to see if the most creative design and financing ideas available could be combined to build a facility to keep the Chargers in San Diego and the net result is a completely privately-financed facility that requires no tax hikes and no public subsidies. The Mayor, City Council and Chargers cannot ignore these creative alternatives and taxpayers deserve to see a public vetting process on them to see if we can improve upon the proposals put forward to date.
Experts in construction and private financing have praised the innovative approach of the plan. “Using conservative assumptions, we have identified a range of $1.6 billion to $2 billion in private funding that could finance a truly multi-use stadium project,” said real estate developer and financing expert Richard McCay of Tieback Realty. “What I like about this proposal is it reduces the cost of constructing a stadium by opening the construction and management of the stadium to private contractors,” noted Eric Christen of the Coalition for Fair Employment in Construction. “This proposal borrows from the best ideas in privatization to produce an innovative solution for San Diego’s stadium needs,” noted privatization financing expert Adrian Moore of the Reason Foundation.
Highlights of the proposal include:
• Private Ownership: Private developers, the Chargers, and individual fans would all receive ownership shares in the facility based on their initial investment levels. Instead of Personal Seat Licenses, fans can invest in Fan-Lord Ownership Shares in the facility.
• Private Management: The facility would be managed by a private operator with all profits from uses and special events funding annual maintenance – with owners receiving profit-share.
• Integrated Design of Stadium, Hotel and Retail: Using innovative space designs and architecture, the facility would integrate a football field with flexible seating for up to 65,000, a full-service hotel that would utilize Luxury Box space as hotel rooms, a 200,000 square foot retail complex, and specialty event space.
• Menu of Financing Ideas: Ten separate private funding sources can be used – as outlined below.