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Governor suggests new wrinkle for financing of stadium
This is an archived article that was published on sltrib.com in 2005, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.

Real Salt Lake is still looking for help from taxpayers to build a Major League Soccer stadium, but perhaps in a new form.

On Thursday, Gov. Jon Huntsman Jr. put his political weight behind subsidizing a 22,000-seat venue and he also suggested taxpayers might be reimbursed for their contribution. The money might come from the state, but more likely from local government coffers.

Borrowing a phrase President Bush used during the invasion of Iraq, Huntsman said he is part of a "coalition of the willing" wanting to find a creative way to help bankroll the venue to ensure RSL stays in the state. The team is also putting up millions.

"I'm here to encourage public-private partnerships," said Huntsman, who was joined by Major League Soccer Commissioner Don Garber; Sen. Curtis Bramble, R-Provo, and RSL owner Dave Checketts, whom Huntsman called a "visionary."

"We want to make sure that they [RSL] feel welcome and that they know that we, as elected officials and public policy-makers, will do whatever we can [to find] a creative solution to make Real truly a success here," added the governor, who said soccer bridges cultural divides.

Huntsman said he didn't care if the team constructs a stadium in Murray or downtown Salt Lake City - the only two cities in the running to land the venue. "I just want it in the state."

RSL, which will play its first two seasons at the University of Utah's Rice-Eccles Stadium starting next month, wants to open a venue in 2007. It would have to break ground next year.

The news conference was more symbolic than substantive. It is seen as Huntsman's way of expressing support for the team while signing a bill into law that eliminates one primary way to subsidize some of the stadium costs. Senate Bill 184 prohibits cities from tapping Redevelopment Agency dollars to build such venues. Huntsman still is evaluating the measure, but said it has merit. Salt Lake City would need RDA money to buy land for the facility. Murray wouldn't.

Still, that bill was perceived as killing RSL's stadium hopes - and thus the team's ability to remain in Utah. Major League Soccer requires its franchises to build soccer-specific stadiums because it says the venues enable teams to be profitable and they provide a better environment for players and fans.

Now, Huntsman and Bramble, who sponsored the RDA bill, want to seek new funding sources.

The search puts the team back to the beginning in terms of financing. The RDA money to buy the land is off the table. And so could be the plan for Salt Lake County residents to bond for half the $60 million stadium tab.

Still, RSL officials support the shift. "I want what's best for everybody," said Checketts, former president of New York's Madison Square Garden and the NBA's Knicks and one-time president of the Utah Jazz. He plans to hire a firm to analyze how other sports stadiums have been financed.

Bramble said Utah already provides one good model. For the 2002 Winter Games, taxpayers agreed to divert $59 million in sales tax toward building Olympic venues. The money was paid back.

"The vision I have is something very akin to the Olympics. There would be a specific requirement to repay a specific amount," said Bramble, noting he was impressed Checketts and Garber are willing to consider such a proposal.

It would be unique to the soccer league. Its 12 teams are quickly building soccer stadiums and the financing ranges from being privately funded to being fully subsidized.

When asked why taxpayers should help finance a stadium for a private company, Huntsman said that is how it's done elsewhere and, "We know this is something good for our state."

He didn't elaborate, but Checketts and Garber did. They say the team has created new jobs and that a stadium will spur development such as retail and restaurants, increase property values and generate new sales tax revenues through tickets and other sales. Garber compared it to a Wal-Mart that stimulates other development. This stadium also will include a broadcast station and host high school sporting events and concerts.

Despite Huntsman's support, the Utah Taxpayers Association remains skeptical, saying the new team won't create new spending but rather siphon money from other sports teams and entertainment venues. "It's a bad idea," Vice President Mike Jerman said. "This is entertainment development, not economic development."

hmay@sltrib.com

Soccer venue: He says taxpayer money could be advanced, but then paid back; Sen. Bramble cites the
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