The Santa Clara Stadium Authority voted 7-0 tonight to accept terms of an $850 million construction loan for the new Santa Clara Stadium.
The approval of the loan and a 40-year lease agreement marks two of the final financial steps for the new stadium. Make-ready work at the construction site adjacent to Great America Park will begin next month and the official groundbreaking is expected in the spring of 2012.
The financing commitment was secured through a financial group that includes Goldman Sachs, Bank of America and U.S. Bank.
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 sale of naming rights, Stadium Builders Licenses (SBLs), suites and additional sources will be used to repay the loan.
The Development Agreement calls for a 40-year lease for the property at approximately $30 million in facility rent annually.
The new stadium in Santa Clara is estimated to cost $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, college football, 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.
Posted in Breaking News | 60 Comments »