Wednesday, March 20, 2013

Judge Rules: Dissolution Law Did Not Invalidate The Stadium Agreements

"Before redevelopment agencies were dissolved, the Forty Niners contracted with the City of Santa Clara's Stadium Authority and redevelopment agency to finance construction of a new stadium to be owned by the City and used by the Forty Niners. Do those contracts survive dissolution of the redevelopment agencies? The court concludes they do."

Read Judge Alan Sumner's ruling at and search for case # 34-2012-80001192. 

Saturday, March 16, 2013

First Look at Santa Clara's Super Bowl Bid

Tuesday night Santa Clarans get their first look at what cities are expected to ante up for a Super Bowl bid. The City Council called a special meeting for Tuesday night to adopt a series of resolutions about government services – especially public safety – and tax and fee exemptions for the NFL during a Super Bowl.

Basically, the City of Santa Clara will the provide government services – including public safety, fire, emergency medical services to support the Super Bowl and related events held in Santa Clara at no cost to the NFL or to the teams playing in the Super Bowl. Instead, the San Francisco Super Bowl committee will reimburse Santa Clara for these costs – paying the city for pre-event services within 60 days of invoicing, and 50 percent of the anticipated Super Bowl event costs 30 days before the game.

Other accommodations concern city taxes and fees. One is that employees of the NFL and their affiliates will be exempt from Santa Clara hotel taxes and parking permit fees -- the estimate is this applies to around 350 people. The other is that Super Bowl tickets will be exempt from the Santa Clara's $0.35 per ticket surcharge. This is capped at $250,000 and the city estimates that most of that will be collected from regular season games.

The Council is working from estimates that a Super Bowl carries with it an economic boost for a region of $300 million. This is likely based on a Williams College study of Super Bowl economic impacts from 1970 to 2001, which posited the $300 million as the best case. The study also cautioned against confusing gross returns with net returns. 

The New Orleans Super Bowl Host Committee reported $434 million in total overall economic activity tied to the 2013 Super Bowl, according to a report in New Orleans Times Picayune. The question is, of course: How much of that activity will be in the City of Santa Clara -- or even in Santa Clara County? San Francisco clearly anticipates that it's going to get a big boost. 

All this being said, a Super Bowl would be a tremendous boost for Santa Clara both in terms of civic prestige and city visibility. These are intangibles whose effects cannot be measured in the short term, yet pay dividends for the city decade after decade in many ways. 

Here's a link to read the agenda report and the text of the resolutions.