Beaverton looking at $40 million or more for Paulson
The preliminary liars' budget is out for the Beaverton version of the Lord Paulson baseball stadium, and it's $45 million to build the building. That's not including buying the land. His Lordship is offering to put up $8 million to $10 million, which may or may not be enough to cover the land acquisition costs. Let's assume the rosiest scenario -- the land costs only $5 million, and Paulson puts up twice that. That leaves the city holding the bag on a $40 million construction project.
If the city is able to borrow that at 4% interest, over 25 years it will cost the city $2.56 million a year, just to pay the mortgage. Paulson says he'll pay $500,000 a year in rent.
Sound good to you?
The Beavers officially "drew" about 365,000 fans this year to PGE Park, which on a big night can hold more folks than the Beaverton facility will. On a few nights, PGE attendance was higher than the Beaverton ballpark will be able to seat.
Attendance in the spring months is dismal at best, owing to the weather more than anything else. The weather in Beaverton is not that much better than it is in Goose Hollow. Yes, the new stadium may be nicer, but any estimate of season attendance over, say, 450,000 seems pushing it. That's a 23 percent increase. New stadium smell isn't going to get you more than that, and it may very well get you less.
If 450,000 tickets are actually sold, and the mortgage payment is $2.56 million, around $5.70 of every admission would have to go toward paying the mortgage. That's not feasible, and so a lot of the money is going to have to come from taxes. Or maybe the mayor out there will buy some Powerball tickets.
Ah, you say, but don't forget all the economic development the stadium is going to generate. It's going to have to be one heck of a "linchpin" to pay that mortgage.
| Posted at 9:51 AM | Permalink |
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Comments (17)
I wonder if Paulson's "contribution" of $8 million will include money received from the naming rights?
I'm thinking of selling the naming rights to the street in front of my house and using the money to pay my taxes. Sure, I don't actually own the street, but Paulson won't own the stadium, either.
Posted by Al in SE PDX | September 16, 2009 10:58 AM
Surely your computer guy could just switch David and The Barefoot Lord's picture every couple of minutes over the "Don't give money to this man" headline, and then modify the subtext for LLP's to read "Especially if he tells you that he needs a separate stadium for his soccer team."
Posted by George Anonymuncule Seldes | September 16, 2009 11:00 AM
Don't forget the increased revenue from all the traffic tickets for those 365,000 zooming in to watch the Beavers in The Round!
Posted by SMEAC | September 16, 2009 11:31 AM
Don't forget the increased revenue from all the traffic tickets for those 365,000 zooming in to watch the Beavers in The Round!
To the extent Portlanders (or others) use SW Canyon Road to get to the games, there will be some serious revenue from the constant speed traps on that street.
But won't all the fans use MAX to get to the games?
Posted by none | September 16, 2009 11:42 AM
Why would ANY city pay more than $5 or MAYBE $10 million to get a minor league team to come to town?
It's like I'm living in an insane asylum.
Posted by Snards | September 16, 2009 11:47 AM
Let's think big: spend hundreds of millions to extend MAX to the field in Keizer, and then move the triple-A team there so that Portlanders can park and ride. That park has all the up-close-and-personal feeling that baseball needs.
Posted by Isaac Laquedem | September 16, 2009 12:03 PM
Let's extend the aerial tram to the new stadium. You don't have to acquire much land for that, just string the cables righ over all the neighborhoods.
Posted by RANZ | September 16, 2009 12:11 PM
Yeah, it could get even nuttier out there: Merritt hasn't even taken Mayor Doyle on the New York honeymoon yet...
Posted by notapottedplant | September 16, 2009 12:13 PM
George's suggestion about alternating the photos of Dave and Paulson is the funniest and best idea I've seen on this blog in a long time.
Posted by Gil Johnson | September 16, 2009 12:46 PM
I'm really torn: on one hand this is completely insane, on the other hand, I'm so relieved that Portland managed to pawn this off on some other gullible city.
Posted by Dave J. | September 16, 2009 1:33 PM
I'm with David J on this one. I don't watch baseball, I never go to Beaverton, and I might go to the occasional soccer game at the newly converted PGE. This sounds like a winner if we can all just keep quiet.
Posted by sherwood | September 16, 2009 2:13 PM
I hear they are looking at other sites as well, but I cant think of any in Beaverton that have MAX access. One site is in Cedar Mill where they shut down the building of a Walmart last year because it would cause traffic problems. My guess is sports and concerts there would do the same.
Posted by Jon | September 16, 2009 3:11 PM
One site is in Cedar Mill where they shut down the building of a Walmart last year because it would cause traffic problems.
Well, actually the real reason they shut down the WalMart last year is because they don't like WalMart. The traffic was just the stated reason. My guess is that if they want to use this site, they'll find plenty of reasons why the traffic brought in by a stadium is different than the traffic from a WalMart.
Posted by Dave J. | September 16, 2009 3:57 PM
I'm really torn: on one hand this is completely insane, on the other hand, I'm so relieved that Portland managed to pawn this off on some other gullible city.
'Bout time the 'burbs started doing their part and taking on some of these albatrosses. I was afraid Portland had a monopoly on hatching money-losing projects at the behest of rich swells.
It would be a great deal for Portland/MultCo taxpayers to not have to pay for the stadium but still get to take in the games with an easy trip on the Red Line. I'm with sherwood: let's keep this quiet.
Is it too late to get the 'Couv to build the soccer stadium?
Posted by Eric | September 16, 2009 4:12 PM
"Is it too late to get the 'Couv to build the soccer stadium?"
Let's not go too far. The wife will try to drag me to some MLS games. The only time I see Vancouver is on the way to Victoria and that's how I want it to stay.
Posted by sherwood | September 16, 2009 4:40 PM
As you predicted:
http://www.oregonlive.com/washingtoncounty/index.ssf/2009/09/beaverton_hires_former_pdc_chi.html
Posted by George Anonymuncule Seldes | September 16, 2009 5:04 PM
Speaking of traffic, just how many of you actually drive in Beaverton rush hour traffic? Because I do. And it can get ugly. The genius planners of this city set it up so there is no grid. It's cul-de-sac upon cul-de-sac pouring into several main arterials. Canyon/TV Hwy and B-H Hwy/Farmington are already pretty much over capacity at rush hour, so game nights ought to be insane and inane.
Hey, maybe Hillsboro ought to get into the act. They already have a bigger stadium than Beaverton. And I think they have a bigger population and tax base. And less of a traffic problem.
Posted by LucsAdvo | September 17, 2009 6:16 PM