Posted Tuesday, October 9, 2007 11:33 PM | Contributed by Jeff
With the owner of the Great America theme park continuing to raise concerns about plans for a San Francisco 49ers stadium next door, team officials Tuesday said they would consider buying the Santa Clara attraction to move the deal ahead. A spokesman for the park's owner, Cedar Fair, said late Tuesday that the company would release a statement today explaining its opposition to the $854 million stadium proposal. Because of the terms of its lease with the city, if Cedar Fair refuses to sign off on a stadium, the proposal ultimately could be scuttled.
Read Cedar Fair's response in their press release.
Second, it's pretty arrogant for the team to just say, "We'll buy it." It has to be sale first.
If the property was most recently assessed at $114 million, then I suspect its actual value is still higher, as assessments seem to never quite be true to actual market value (my house is assessed 25% lower than what I could actually sell it for). If you're Cedar Fair and that figure is being dangled in your face, you have to do the math. All of the following have to be true:
1) The selling price has to be greater than the cost paid for it, plus the expenses related to that purchase and any cap ex since.
2) The short term shot of cash is greater than the profit from the park over some term. If they really can reach their goal of paying down the Paramount financing by 2012-ish (I don't know that they've ever publicly said that, but it has always been my understanding that was the goal), then take that six years of profit and make that your price.
3) They're OK with the fact that they won't have the revenue following the term mentioned in 2) after that term.
Regardless of what happens, is this really an issue for something that will be used eight times a year in the off-season?
Now I am not saying that they should build the stadium there but there is potential for both to coexist happily.
The park is built on what used to be the southern part of the San Francisco bay, which over the last few decades has been filled in from the sides to create more land. IIRC they can't dig down all that deep because the water table is pretty high.
What I think is funny is how someone is quoted in the San Jose Mercury News as saying the 49'ers already are getting public money from taxes, yet have money to buy an amusement park!?
That was always like in high school my sister coming home from the mall with tons of new clothes, and then asking my parents for money for her cell phone bill!
This would also put niner's stadium right next to their practice center and team headquarters. Plus, it would bring another professional team to silicon valley. (We only have the Sharks right now.)
I don't see Cedar Fair as the catalyst that would stop the new stadium. San Francisco is still pushing really hard for the Niners to build the new stadium at Hunter's point.
But Jeff! If you build it they will come! We've seen Jacob's Field, RnR HoF, Science Center, and Cleveland Browns stadium, now looking at Cleveland's population booming--- wait. You mean they now have the same population that of Kansas City? It's still dropping? You mean raising taxes on things that they want people to stop doing (i.e. smoking) was a good idea? So when everyone stops smoking where's this money going to come from?
Building Browns stadium without a dome was an absolutely terrible idea. We'll never ever host a Super Bowl, nor will we host anything else other than the 10 home football games until that changes.
This situation though wreaks of Astroworld!
"When Cedar Fair concluded that an amusement park and the stadium as proposed could not successfully coexist, Cedar Fair offered the City and the 49ers the option of redeveloping the entire parcel. The next step will be for the citizens and the City of Santa Clara to decide: should the Great America site be used for a new 49ers’ stadium or should the park continue to operate? If the City and its citizens believe that the best use of this property is for a new stadium, then Cedar Fair is willing to consider selling the remainder of its lease and all of its interest and assets to the City or 49ers for fair market value."
Meaning Cedar Fair says "Make an offer, make an offer!!!!"
The whole release seems to be written to subtly get that point across.
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