In a move that signals a major step toward “putting shovels in the ground” for a new stadium, the San Francisco 49ers will brief the Santa Clara Stadium Authority Tuesday on terms of a $850 million construction loan that could take the new Santa Clara Stadium from concept to reality. The financing commitment was secured through a financial group that includes Goldman Sachs as well as Bank of America and U.S. Bank.
“This is an important milestone regarding the new stadium for the 49ers,” said 49ers President and CEO Jed York. “The Santa Clara Stadium Authority and the 49ers have been working tirelessly to secure this construction loan for the new stadium. We still have to tackle some logistical and contractual challenges ahead, but this is an important step to putting shovels in the ground.”
The $850 million will be loaned to the Stadium Authority and the 49ers Stadium Development Company, and, as required by the recent ballot measure, will have no impact on the City’s General Fund. Revenues from the purchase of naming rights, Stadium Builders Licenses (SBLs), suites and additional sources will be used to repay the loan.
“It’s extraordinary news, especially in this economy,” said York. “The lenders have confidence in the project, and they are especially impressed with the success we have had in early suite sales.”
The financing commitment will be presented to the Stadium Authority Board next week. At the same time, the board will consider approval of the formal Development Agreement for the project. The Development Agreement includes an outline of the 40- year lease for the property. It calls for the 49ers to pay approximately $30 million in facility rent annually.
The new stadium in Santa Clara is estimated to cost approximately $1 billion. Officials expect it to be a landmark for Silicon Valley in addition to its role as the new home to the San Francisco 49ers. The 1.85 million square foot facility will seat 68,500 and feature 165 luxury suites and 9,000 club seats. It will be designed with multi-purpose flexibility to host a wide range of events including, domestic and international soccer, motocross, concerts and various civic events, and is expandable for major events such as the Super Bowl. For more information, go to www.newsantaclarastadium.com.
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