SUMMARY:
Albuquerque has much more urgent and pressing needs currently with the city’s out of control crime rate and homelessness problems. It would be a better use of our time and financial resources to invest first in safety and caring for those who need help, before we invest in soccer.
If we simply must have a new stadium for our soccer team, we should negotiate a better deal for taxpayers! In other jurisdictions, the stadium is often owned by the team, which provides better protection for taxpayers. In addition, other teams make a much more substantial investment as compared to the weak arrangement in Albuquerque.
As currently proposed, the stadium would have the largest public subsidy for a United Soccer League stadium in the country.
COST: $450,000 feasibility study.
TAXPAYER FUNDING: $50 million gross receipts tax revenue bond to jump start construction of a stadium for Albuquerque’s third-year professional soccer team, which competes in the USL Championship league.
GOVERNMENT FUNDING: (Which is still taxpayer money). The state legislature has committed $9 million and the governor’s office $4 million.
TEAM COMMITMENT: $10 million for construction and $800,000 annually in “base rent” over 25 years and a minimum of $100,000 per year from certain other revenue generated by the team.
NOTE: 1) When we’re told the GRT bond will jumpstart construction, you’ve got to know they’re expecting costs to go way up.
2) Undetermined land acquisition costs will be in addition to construction.
ISSUE: The team is required in its franchise agreement that it be in or at least on the road toward a soccer-specific stadium within three years of joining the league.
FACTS:
While there is a $10 million upfront commitment from United as well as an agreement to pay $22.5 million in rent over 25 years after the stadium is built, most of the financing would come from taxpayers to include: 1) the bond; 2) nearly $9 million from the state budget and $4 million directly from the governor’s office.
As currently proposed, the stadium United would call home would have the largest public subsidy for a United Soccer League stadium in the country.
The preliminary agreement, executed before the public votes, is for United to be the primary tenant in a proposed $70 million soccer-specific stadium, which may be used for a limited number of other purposes.
Other cities:
Louisville Metro Council first secured from the team’s ownership group a commitment of $130 million toward a larger revitalization effort, of which at least $45 million would go toward the team’s soccer stadium.
The stadium got $21.7 million in public funding and $30 million for the land acquisition costs and infrastructure work.
Colorado Springs the team owns the 8,000-seat Weidner Field soccer stadium. About $13.5 million in public money went to the project.
Queensboro FC is building a 7,500-seat stadium on the campus of York College in Jamaica, Queens, NY.
While the price tag is unknown, construction is covered entirely by the team’s ownership while the land is provided by the City University of New York (CUNY) system. The team has a five-year lease with CUNY with extension possible. York College and other CUNY programs will get use of the facility.
Louisville: Triple-A Louisville Bats, with 5 years of solid attendance figures, the team ownership negotiated what would end up being about $35 million in public financing for the construction of the $75 million Lynn Family Stadium, which is also home to a women’s professional soccer team.
Lynn Family Stadium is part of a reported $200 million revitalization effort in the stadium district. In 2017, before approving spending $30 million to acquire land and set up infrastructure in the area for the stadium, the Louisville Metro Council first secured from the team’s ownership group a commitment of $130 million toward the larger revitalization effort, of which at least $45 million would go toward the stadium.
The stadium got $21.7 million in public funding and $30 million for the land acquisition costs and infrastructure work.
Unlike in Albuquerque, the stadium is owned by the team and, after reimbursing $14.5 million over a 20-year lease term, the land will also be owned by the team.
Neil DeMouse, co-author of the book “Field of Schemes,” and manager of the Field of Schemes website, takes a critical look at publicly financed stadiums and arenas around the country. Here’s what he had to say about the plan for a soccer stadium in Albuquerque:
“United’s plan is unlike anything else we’ve seen in that league.”
“It’s basically rolling the dice on a stadium that’s much bigger and more expensive than the USL really can justify.”
“At this point, there are innumerable economic studies that show that the economic impact of a sports stadium is nearly, if not entirely, zero. You know, there are some studies that show it doesn’t exist. There are some studies that show it’s too small to be measured.”
Questions and answers for your consideration:
1) What is the number one priority on people’s minds right now? Crime and homelessness.
2) Will a huge investment in a stadium help either of those issues? No.
3) When is the last time government offered to build you a facility that you anticipate using only a few times a year? Never.