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RSL stadium financing deal outside of box
This is an archived article that was published on sltrib.com in 2005, and information in the article may be outdated.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 executives and politicians nearly drew a foul earlier this month prostrating over one another to praise their vast and collective vision. They smiled, backslapped and celebrated over bringing "Soccer City" to suburbia.

Vacillating over details ever since - or perhaps dodging them - the team and public official have given Utahns little clue about the proposed Sandy stadium. Sure, RSL has unveiled an architectural rendering, but the funding picture remains fuzzy.

With a city election looming and the 2006 Legislature soon to follow, questions are mounting about RSL's 25,000-seat venue. For starters, what does the oft-repeated, but vague private and public partnership entail? Who pays? And what would the effect be on an already-congested commercial strip near 9400 S. State Street.

The following explores those questions and more:

Why have funding details not emerged? What's the holdup?

Politics and business perhaps. Salt Lake County insiders speculate RSL will remain silent until after the Nov. 8 election. In it, Sandy mayor and stadium cheerleader Tom Dolan faces a too-close-for-comfort contest against upstart Gary Forbush, who has courted protest voters focused on a controversial big-box development at an east-side gravel pit. If RSL announced plans to tap tax money, it could further alienate voters and hurt Dolan's shot at a fourth term.

Also plausible: RSL owner Dave Checketts may be too busy. Last month, the former Madison Square Garden president and NBA executive entered into a letter of intent to purchase the St. Louis Blues hockey team. Checketts also recently founded Sports Capital Partners, a consulting and investment service firm for sports teams. Besides its involvement in Major League Soccer, the firm has interests in the College Sports Television Network, with designs on bringing part of that venture to Utah.

Will the team call on the public to help pay for the stadium?

Based on earlier statements, yes. But how much and by what mechanism remain a mystery. (RSL officials did not return multiple calls seeking comment for this story.)

House Speaker Greg Curtis, R-Sandy, says the state won't kick in a pot of money. And the team and Dolan insist taxes won't jump. Even so, the mayor says the team may use the MLS franchise in Frisco, Texas, as a model. There, the school district is forking over $15 million in exchange for stadium access for prep teams.

Thus far, the Jordan School District has not been contacted by RSL, according to Superintendent Barry Newbold. But school officials have heard from Sandy and plan to huddle with city leaders in the next two weeks.

If the Texas model applies - the city of Frisco is also paying $20 million - it is a lousy deal, according to Mike Jerman, vice president of the business-backed Utah Taxpayers Association.

"Everyone agrees Utah schools struggle financially," he says. "Using that kind of money so school teams could play in a nice stadium is an unjustifiable expense."

Could RSL funnel sales tax from the team's proposed commercial development surrounding the stadium as well as from Jordan Commons?

As long as Curtis and the Legislature give them the green light. RSL has not committed either way on a so-called Sports Enterprise Zone, though the model was mulled in a mock-up created by Sandy officials earlier this year.

Jerman calls the sales-tax model a scheme potentially worse for taxpayers than a redevelopment agency. His association refers to the plan as Sales Tax Increment Financing, or a STIF.

"That's what it is," he says. "It's a pretty accurate acronym."

What about the $18 million allotted by the Legislature for Salt Lake County to add parking at the South Towne Expo Center?

The county must own whatever it helps finance, bond counsel Blake Wade says, whether it's a stadium or a parking terrace. But during a news conference to announce the stadium location earlier this month, RSL President Dean Howes said "for us, ownership is not critical."

For the county to use any of the $18 million on joint parking for the Expo Center and the stadium, federal tax rules would require it own the terrace and collect the revenue. The tax rules prevent a public body from giving preferential treatment to a private party such as RSL.

Curtis maintains the money for parking never has been considered to buy land or help fund the stadium, so he has no problem with the tax restrictions.

"The public won't own it, so they shouldn't pay for it."

What would the parking look like? Would there be enough for the convention center and the stadium?

State and county officials originally discussed a terrace adjacent to the crowded Expo Center, considered a necessity to accommodate the high volume of shows. Now, proposals call for either a garage or surface lot kitty-cornered, roughly a 10-minute walk away.

"They've basically flipped this thing on its head," says Tom Grisley, a Salt Lake City-based attorney with Greenband Enterprises, which produces travel, boat and RV shows at the Expo Center. He fears the parking plan may force convention-goers to cross two busy streets and battle the elements during the peak show season between October and March.

"It's dangerous," says Grisley, adding some clients would be less inclined to bring their shows to Sandy. "It's troubling to these guys."

Modern Display Vice President Aaron Bludworth helps provide infrastructure and services for 75 percent of the Expo shows. He points to another conflict: The majority of events fall on Saturdays, game days for RSL.

"It's really got the existing promoters up in arms," he notes. "From talking to my clients, I don't believe many of them think [joint parking] is a solution."

How does TRAX factor in?

A new light-rail station is planned for the area, near 9400 South and State Street. It is expected to see heavy use by soccer fans - though it's a good half-mile from the stadium - convention-industry insiders say it would do little to ease their parking needs.

Even so, County Councilman Randy Horiuchi says he has been approached by legislative leaders "who shall remain nameless" about using part of the county's $18 million for matching funds to secure federal funding for the station. Wade, the county's bond counsel, says he would have to research the legality of the move.

Any permanent funding plan probably would by decided by the Legislature.

Is the price a moving target?

RSL officials initially listed the stadium cost at $60 million to $65 million, not including the land. That price tag has since ballooned to possibly $75 million.

Says County Councilman Joe Hatch: "That, to me, is a bait and switch."

djensen@sltrib.com

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Tribune reporter Jacob Santini contributed to this story.

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