This is an archived article that was published on sltrib.com in 2007, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.
Posted: 3:09 PM- Mayor Peter Corroon
January 29, 2007
When REAL announced plans to come to Salt Lake, I don't think anyone predicted that today, 2 1/2 years later, the critical decision on a permanent team home would still be undecided.
While the process got off to a rough start, I think the last few months have been civil and productive in attempting to negotiate the agreement between REAL and Salt Lake County, and analyzing REAL's team projections and stadium financing proposal. I thank REAL for the time and effort they have spent.
I have spent several days since the Debt Review Committee's recommendation on Friday looking at facts and figures, analyzing the risk associated with the stadium project, and ultimately, trying to decide whether it is in the best interest of the citizens of Salt Lake County for our government to purchase the land associated with the proposed REAL soccer stadium.
While I am a soccer fan and believe REAL has shown that it is a great addition to the community, I believe and have decided that Salt Lake County should NOT use hotel tax dollars to purchase the land and provide the infrastructure for the soccer stadium.
My reasons are as follows:
1. The project as presented does not demonstrate that it is clearly financially viable. While I respect the experience of Dave Checketts in sports management and event promotion, even fairly optimistic but realistic projections show that the team would lose money.
2. The amount of debt required for this project would put RSL in default with only minor shortfalls in ticket sales.
While I will discontinue negotiations with REAL to purchase the stadium ground, it is my intent that Salt Lake County continue to support REAL and the growth of Youth Soccer in our community.
Salt Lake County still intends to complete a parking garage with up to 1,000 spaces in Sandy at the South Towne Exposition Center across the street from the proposed REAL site. In the event REAL is able to finance a stadium through other means, I would look forward to negotiating a favorable agreement for parking available for stadium events. This would reduce the amount of land REAL would have to purchase for parking.
In addition, Salt Lake County has a legacy of supporting youth soccer and I would recommend that Salt Lake County provide $7.5 million towards the purchase and construction of youth soccer fields.
While these projects would provide minimal risk to the public, they could reduce REAL's costs by up to $27.5 million.
Again, I thank REAL for their contribution to our community to date and encourage them to pursue alternative financing.