« Jeffries vs. Barron: Head-to-Head On the Issues | Main | DAMN THE MAN, SAVE THE EMPIRE, ER, ATLANTIC AVE/PACIFIC STOP NAME! »
June 26, 2012
Funding questions resurface for San Francisco 49ers stadium after board yanks $30 million
San Jose Mercury News
by Mike Rosenberg
Schools before stadiums? Why, that's downright un-American.
Following a sudden $30 million loss of tax funds, the San Francisco 49ers and Santa Clara leaders said Monday they would not slow stadium construction even as they scrambled to figure out how the cut could affect the rest of the money needed to build the project.
An oversight board consisting of officials from around Santa Clara County on Friday used a new state law to claim the redevelopment funds, which voters had earmarked for the stadium, should be used on things like education and not a pro sports stadium.
While the money is a tiny fraction of what's needed for the $1.2 billion stadium, it served as the initial building block to fund the rest of the project, similar to a down payment on a home mortgage. The tax funds were used to secure up to $950 million in bank loans, which capped the team's decade-long saga to finance a new home field.
If the loans disappear or shrink, it could delay the project -- or worse -- just months after a festive groundbreaking in April. But officials first are preparing their legal strategy, starting with an appeal to the state and negotiations with the county.
Posted by eric at June 26, 2012 9:48 AM