After more than two years of haggling to get some public assistance, Real Salt Lake soon will receive the $35 million of public funds promised by the Legislature - and championed by Gov. Jon Huntsman Jr. - in February.
Tuesday, the Sandy City Council unanimously approved a development agreement, property purchase contract and ground lease with RSL. Waiting for staff to review iStar Financial's $64 million loan to RSL, the council scheduled a special meeting 5:30 p.m. Thursday to authorize the $35 million in bonds.
"This agreement . . . [is] probably one of the most heavily scrutinized, beat-to-death transactions that I've ever been involved with," said Sandy City Councilman Chris McCandless, a real estate developer.
"I want to thank Real for sticking it out," he said. "At the end of the day . . . [the stadium] will be a great benefit" for the community.
In January, Salt Lake County Mayor Peter Corroon rejected a similar funding package for the team, deeming the enterprise a risky public investment. Huntsman and the Legislature disagreed and trumped his decision with a state mandate.
"Community leaders have done what they have to do," RSL Chief Executive Officer Dean Howes said after Tuesday's meeting. "We're thrilled with the outcome tonight. [There's] no need for vindication or anything else."
Next week, Sandy plans to issue the $35 million in bonds, which will be repaid with Salt Lake County hotel taxes over the next 20 years. With interest, it is projected to cost $58 million to pay off the debt, according to Sandy's financial consultant, Lewis Young Robertson & Burningham Inc.
Of the bond proceeds, $20 million will be spent to buy RSL's 23-acre stadium ground, $10.3 million will go to design and construction of public infrastructure and $4.2 million will pay for parking, according to Sandy's economic development director Randy Sant. (Only $34.5 million actually will be available to RSL because of the cost of issuing the bonds.)
RSL has to provide 1,000 parking stalls on site or within a five-minute walk by the stadium's opening day - expected in fall 2008. A total of 2,000 on-site stalls must be built within two years of the stadium's first event or the team will have to pay a $750 fine per missing stall each year.
New York-based All Points Funding LLC has agreed to purchase all the bonds and give Sandy a 4.88 percent interest rate. George K. Baum & Co. is the underwriter for the sale - not the buyer as previously reported.
Thursday at 6 p.m., Sandy's Planning Commission will weigh whether to approve RSL's parking management plan for the stadium.
The plan, which outlines on- and off-site parking for 5,300 cars, has to be in place before Sandy will issue the $10 million of increased stadium property taxes it has pledged to the project.
That funding is expected to be available next summer, if the other taxing entities, including Salt Lake County, agree to participate.
rwinters@sltrib.com
Sandy will:
* Issue $35 million in bonds, backed by Salt Lake County hotel taxes, next Tuesday.
* Use the bond proceeds to buy 23 acres of stadium land for $20 million from RSL, which will spend the remaining funds on parking and public infrastructure expenses.
* Lease the stadium land to RSL for $1 per year for the next 50 years.
* Provide up to $10 million of tax-increment financing next summer.
RSL will:
* Build a $110 million, 20,000-seat stadium with 1,000 parking stalls on-site or within a five-minute walk by the end of 2008. The team must build an additional 1,000 parking slots within two years of the stadium's opening or face fines.
* Play in Utah for at least 25 years, maintaining headquarters in Salt Lake County. If the team decides to move its Salt Lake City offices, preference should be given to Sandy.
* Give Sandy and the state a 12-person, free private suite for all stadium events. The suite will be used to court new economic development to Sandy and Utah.
* Establish a soccer academy in Utah.
* Not sell the stadium's naming rights to a brand that promotes alcohol, tobacco or sexually-oriented products.
