Portland funding gap more like $26 million (not an April Fools thread)

[yellowbismark]

Oregon Live article (http://www.oregonlive.com/portland/index.ssf/2009/03/financial_gap_could_block_socc.html)

This is 1/3 of the total cost, and there was already uncertainty about how to raise the funds when the gap was supposedly $15 million. Doesn't look too good for Portland right now.

[UPinSLC]

this is NOT correct.

the funding gap is 15 million, the other 11 million they are talking about is the 11.8 or so that paulson agreed to finance by private measures (ie his own pocket or outside sources). this article is just trying to stir the pot, there is no new information from this. everything they say has already been known since the 3-2 vote last month. portland is fine, the money will be found somehow.

[yellowbismark]

this is NOT correct.

the funding gap is 15 million, the other 11 million they are talking about is the 11.8 or so that paulson agreed to finance by private measures (ie his own pocket or outside sources). this article is just trying to stir the pot, there is no new information from this. everything they say has already been known since the 3-2 vote last month. portland is fine, the money will be found somehow.


very well, I'll defer to the locals who have been following this. I've got to stop reading fieldofschemes.com :o

This post es presentado por Pepsi Mundo

[UPinSLC]

stupid pepsi mundo, what a lame april fools joke :)

[sitruc]

i've got to stop reading fieldofschemes.com :oqfe

http://blog.oregonlive.com/portland_impact/2009/03/soccergraphic.jpg

[bright]

The city council has a deadline on April 15th. Only 13 days away.

[AndyMead]

Not only that, the $31 million in bonds are also at risk. In this market, it's not a given that they could be sold.

The whole Portland thing is pretty shaky right now. Hopefully this isn't another Cleveland.

[sitruc]

Not only that, the $31 million in bonds are also at risk. In this market, it's not a given that they could be sold.

The whole Portland thing is pretty shaky right now. Hopefully this isn't another Cleveland.
How far along did Cleveland actually get? Wasn't that supposed to be a dome or something?

[bright]

Here is an article that talks about the timeline:

http://www.portlandtribune.com/news/story.php?story_id=123801683114688900


The council must by April 15 approve the pre-development agreement to renovate PGE Park for the incoming MLS team and build a new Triple-A baseball stadium in the Rose Quarter, Paulson said.

After that, Paulson said, the council must approve the designs for the facilities and sign leases and operating agreements for them with his company by Aug. 1.

At that time, the council must also agree on all public sources of funding for the projects, including $15 million for the PGE Park renovations and $18.5 million for the new ballpark.

[Fenerbace]

Not only that, the $31 million in bonds are also at risk. In this market, it's not a given that they could be sold.

The whole Portland thing is pretty shaky right now. Hopefully this isn't another Cleveland.

Couple things to keep in mind:

- The article is not referencing any new information - situation is as it was after vote.
- The article was incorrect about the size of the gap - it is $10-15m
- Everybody knew the bonds needed to be sold, nothing new here
- The same paper published the "Portland Bid on Hold" 1 day before the announcement

Just to summarize, there is work to be done, everybody knows that, but the Portland bid is no further away from reality today than it was on March 20th, the day Garber announced the expansion decision in Portland.

[Fenerbace]

Here is an article that talks about the timeline:

http://www.portlandtribune.com/news/story.php?story_id=123801683114688900

Here's a quote from City council member in this very same article regarding the timeline.

"“We’re going to do it,” said Leonard."

[AndyMead]

Couple things to keep in mind:

- The article is not referencing any new information - situation is as it was after vote.

Keep in mind:
The article isn't the only source of information

[AndyMead]

How far along did Cleveland actually get? Wasn't that supposed to be a dome or something?

I have photos from the press conference (during MLS Cup 2003 week) announcing that MLS would be expanding to Cleveland in 2005.

You'd have to ask Paul Garofolo, who was still a league VIP as late as the BMO Field opener in 2007, how far he and Wolstein got.

[bright]

I have photos from the press conference (during MLS Cup 2003 week) announcing that MLS would be expanding to Cleveland in 2005.

You'd have to ask Paul Garofolo, who was still a league VIP as late as the BMO Field opener in 2007, how far he and Wolstein got.

Did Cleveland get an icon at the top of mlsnet.com? Yeah, that's what I thought! :)

[bright]

Here's a quote from City council member in this very same article regarding the timeline.

"“We’re going to do it,” said Leonard."

Here's a recent article about Randy Leonard and the MLS bid: http://wweek.com/editorial/3521/12377/

[Fenerbace]

Here's a recent article about Randy Leonard and the MLS bid: http://wweek.com/editorial/3521/12377/

Yeah that's a nice article and gives a lot of background on Randy, which is why I believe that when he says someting is going to happen, it will actually happen.

[Fenerbace]

Keep in mind:
The article isn't the only source of information

There were a couple of articles referencing eachother and the same speculation. I consider those pretty much the same source. I hope two articles referencing eachother wasn't the other source you would think would add new validity to this?

But yes, there are other sources like the article that quotes Sam Adams saying these questions are typical for a project at this stage and Randy Leonard saying it will get done.

Then there's the off-the record conversations that MLStoPDX folks have with Paulson and Council members as well.

You're right though, those additional sources are important because they help Portland MLS fans sleep well at night knowing that the issue isn't any near as dire as some BigSoccer posters would like to portray it as.

[bright]

http://blog.oregonlive.com/oldtown/2009/03/pesky_thing_money.html


The Portland-Vancouver-Beaverton, OR-WA Metropolitan Statistical Area showed a January 2009 unemployment rate of 9.8%. This is a rank of 276 out of 372 Metro areas.

GM might have to file bankruptcy. IRS is giving tax breaks on new car purchases. Home prices in Portland fell 14% in January 2009. Multnomah county will probably face $17.5 mil loss in state funding. And on and on.

Yet - the city wants MLS at all costs, that is, at your costs.

The MLS deal is not a good deal even in the best of times - but now?


I think Larry Norton's knee is jerking. Is he a conservative blogger, Portlanders? I can't tell for sure, but he sounds like one.

Another article:

http://blogs.wweek.com/news/2009/03/30/mls-update-is-the-city-obligated-to-fill-the-15-million-funding-hole/


Merritt Paulson, the Timbers’ owner and son of Hank Paulson, says it’s the city’s obligation to fill the $15 million hole — not his.

But when Saltzman spoke with WW this morning, he said the opposite — that there was no obligation from the city to find public money to fill the funding gap. Saltzman created the gap when he introduced an amendment that pulled a new urban renewal district around PGE Park from the plan.


And an interesting comment:


"Plus Paulson has guarantees the repayment of the bonds."

This is absolutely, 100% untrue. You soccer supporters have to go back, read the actual agreements and stop spreading this lie. This is a lie.

Paulson has not gauranteed to pay back the bonds. You are gravely mistaken about the details, and it is a diservic eto the city to have soccer supporters spreading this fiction.

Paulson has NOT guaranteed repayment of the bonds. He’s promised to keep paying the rent even if the teams go away. The rent that he’s guaranteed comes nowhere close to covering the cost of these PUBLIC bonds.


Is this true? Anyone closer to the ground care to clarify? I was under the impression that Paulson guaranteed to pay back the bonds, and that was a big reason why the deal was such a good one for the city.

[gstommylee]

Yea Paulson did guaranteed to pay back the bonds from what i heard and i was following what was going on in portland.

[The Marquis]

Not Paulson did not guarantee to pay back the bonds, BUT HE DID guarantee to pay back the bonds if the funding measures put in place to pay back the bonds didn't work out. He said the bond payments are guaranteed whether 1 person or 20,000 shows up to the matches. Those are his exact words.