Dynamo Downtown Stadium -- Financing & Politics discussion (news, funding, economics, politics)

Discussion in 'Houston Dynamo' started by taylor b, May 14, 2007.

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  1. anderson

    anderson Member+

    Feb 28, 2002
    Club:
    Houston Dynamo
    Nat'l Team:
    United States
    I would just add that while the main purpose of Letter of Intent is usually to set aside some period of time during which the parties agree to negotiate exclusively, it may contain some additional items that indicate that there's some there there.

    For example, they'll usually contain some confidentiality provisions that allow the parties to exchange data, especially about finances, that they may not otherwise want to do (or could serve as a predicate for a separate confidentiality agreement). Without that data, they can't complete their due diligence or get very far in negotiations.

    They may also include the outlines of the material terms. It's not binding as to those items, but the parties may set out of some of the basic grounds about which they're going to negotiate. That may seem like not such a big deal, but it's often interesting to see how just setting some terms to paper, even in a somewhat general sense, causes issues to surface that you don't see in more informal discussions. Sometimes, the parties may also have the first draft of a term sheet ready and will reference it in the LOI as the starting point for negotiations.

    The LOI doesn't really commit the parties to anything more than going forward with negotiations. But you don't usually sign - and announce the LOI - unless you're pretty confident that you can get a deal. It may not work out, but it's a significant step that formalizes the process and starts transforming "discussions" into more tangible language for the definitive agreements.
     
  2. anderson

    anderson Member+

    Feb 28, 2002
    Club:
    Houston Dynamo
    Nat'l Team:
    United States
    I don't recall reading or hearing anything from him. The non-compete is a particularly inside baseball topic, so I guess he just doesn't get asked about it much in interviews.
     
  3. Vicious Lhasa Apso

    Vicious Lhasa Apso New Member

    Aug 8, 2006
    Re: Downtown stadium announced by oliver

    The Stein reference is about Oakland, although that whole SJ/SF/Oakland area is one big swath of development when you go there.

    I guess we could forestall more Alvarado-izing of future sites by scratching the right backs at the City first, but in that case I think we were asking to build on city property, ie, the golf course. The City could kill the deal and one councilperson probably could make it go away if, say, she wasn't "properly consulted". Fair point.

    But, if this is going on Astros/MM/County/Sports Authority property, then I wouldn't get too worked up until I see them on board with a similar document. They'd not have to pay for it, if it's private $, but they'd have to sell the property, allow us to build, build it themselves and lease it to us, whatever the deal would be.
     
  4. Veruca

    Veruca Member

    Jul 13, 2005
    Aurora, CO
    Club:
    Houston Dynamo
    Nat'l Team:
    United States
    This is the biggest "hang-up" I can see.

    Mayor White, SG & others seem to be on board.

    Uncle Drayton seems to be on board.

    AEG seems to be on board.

    The only problem, potentially, is Les, but he may be to distracted trying to fire a coach that he wanted to quit, that he may not notice that new stadium being built until he returns to Toyota Center in October.

    But I bet AEG can calm him down ral quick, if they promise to keep funneling events there. It seems that the only time you'd want to have events at Dynamo Park would be in the winter when the TC is busy with the Aeroes & Rockets. In the summer, who wants to be outside when you could be inside?
     
  5. anderson

    anderson Member+

    Feb 28, 2002
    Club:
    Houston Dynamo
    Nat'l Team:
    United States
    Re: Downtown stadium announced by oliver

    Well, I'm not sure if anything would need to be sold. I don't think so. The three parking lots described in the Project Agreement are part of the "Tracts" (a defined term in that agreement) that are owned by the Sports Authority. It's possible that Lot C isn't one of those Tracts - dunno, I haven't looked at the three appendixes to that agreement and compared them to a city map (although that could be done without too much difficulty). I'd bet that Lot C is one of the three parking areas described in that agreement.

    If so, then what we're talking about transferring isn't ownership of property - just the rights to use that tract of land (which is really all that "property" really means anyway, but I digress). Drayton controls those rights now, but Adrian Garcia (see the El Dia article a few posts above) sounds pretty confident that they can do that part of the deal (i.e., the transfer of rights over Lot C from Drayton to AEG).
     
  6. newtex

    newtex Member+

    May 25, 2005
    Houston
    Club:
    Houston Dynamo
    Re: Downtown stadium announced by oliver

    Yep, Oakland is what I remembered.
     
  7. Wildcatter Orange

    Wildcatter Orange New Member

    Jan 25, 2006
    It's fascinating to me that no one seems to have even called the Rockets' offices to TRY and ask Les what he thinks.

    Or if they have, they haven't reported it.

    I mean, if you're a reporter, and that's a potential stumbling block to the deal you're writing about, it seems worth a phone call.
     
  8. Offebacher

    Offebacher Member

    May 14, 2006
    Houston
    Nat'l Team:
    United States
    The following is just my opinion, no facts to back it up. I think the Non-Compete only becomes an issue if it is neccessary too a.) benefit one of the current owners via getting something from the City and/or AEG b.) the deal becomes to hot to handle for the politicians and they need an escape clause that does not make them look as bad. For Example, the good Carol Alvarado was all against the location at the Golf Course, once she got some good will toward fixing up that location she is now in favor of building on the lot across from MMP? Of course, both are in her part of town so that will help her with the Golfers and the Non-Golfers. We will see where it goes, next step will be to see the actual LOI.
     
  9. Dynamo Dave

    Dynamo Dave Member

    Aug 25, 2006
    Rural East Texas
    Club:
    Houston Dynamo
    Nat'l Team:
    United States
    You are spot on with your thought process there. Fortunately, I have not heard too much of anything negative coming out. That is a good sign.
    Since we don't actually know many details of the LOI, We have to hope that those weasels in council won't need to use it.:confused:
     
  10. flippin269

    flippin269 Member+

    Aug 3, 2003
    Houston
    Club:
    Houston Dynamo
    Nat'l Team:
    United States
    This could probably fit into every Dynamo Stadium discussion, but here's a new story 2 hours old:

    http://www.chron.com/disp/story.mpl/sports/lopez/4819597.html

    The article discusses how much of a political backlash could occur if the City Of Houston, Rockets, or Astros didn't support the Downtown location.
     
  11. anderson

    anderson Member+

    Feb 28, 2002
    Club:
    Houston Dynamo
    Nat'l Team:
    United States
    Thanks for the link. Interesting column by John Lopez.

    I'm not entirely sure about his political analysis, but, anyway, he mentions about the financing:

    He refers to Tax Increment Reinvestment Zone funding - here's the COH's site on TIRZs for more info on how they work:

    Tax Increment Redevelopment Zones (TIRZs)
     
  12. Offebacher

    Offebacher Member

    May 14, 2006
    Houston
    Nat'l Team:
    United States
    Did anyone catch Channel 26 News last night? There was a piece in Sports about the LOI signing or non signing and that discussions were going on and something about the non compete being the only issue. I could not hear the whole piece as my B&C was talking about something else.
     
  13. anderson

    anderson Member+

    Feb 28, 2002
    Club:
    Houston Dynamo
    Nat'l Team:
    United States
    Very interesting - thanks. At the risk of sounding overly-optimistic, if the only outstanding issue is the non-compete - as opposed to the financing, then I feel pretty good about things. Obviously, it's possible that Les and AEG won't be able to reach some resolution about AEG Live's concert business, but they have incentives to do so. If the financing isn't an outstanding issue, then we're looking good.
     
  14. BobyOne

    BobyOne Member

    Apr 22, 2004
    Houston, TX
    Club:
    Houston Dynamo
    Nat'l Team:
    United States
    I would love to be this optimistic, but I have to think that they gotta solve the non-compete issue before talking financials. And financials have always been the sticking point for every MLS stadium. Can't remember which article I read it in, but the quote was that AEG will contribute over 50% of stadium cost. Which means there might be 10-20 mil. that COH must contribute. Even though that's not a lot for a sports stadium, who knows what kind of opposition will rise up to "taxpayer giveaways for professional sports".
     
  15. anderson

    anderson Member+

    Feb 28, 2002
    Club:
    Houston Dynamo
    Nat'l Team:
    United States
    Oh, I agree that financials are where things would likely run into issues that could derail the whole process. I'm just saying that if the report is correct that the only issue is the non-compete, then that's a good sign. If it's merely the current issue of a series of outstanding issues (which may still include financing), then not so much.
     
  16. Vicious Lhasa Apso

    Vicious Lhasa Apso New Member

    Aug 8, 2006
    They used similar financing for the Frisco stadium, which is owned by the City there. I'd think this would be ideal TIRZ land because it's a ragged urban area that's nonetheless increasingly residential. I'm not a fan of this kind of funding in the burbs, but if it speeds development in the city maybe it's a decent idea.

    Am I reading this right, where it seems as though the City might be able to do this on its own, just have a council vote or something, no City or County election or petitioning? If so, that might be the point to the letter of intent.
     
  17. Veruca

    Veruca Member

    Jul 13, 2005
    Aurora, CO
    Club:
    Houston Dynamo
    Nat'l Team:
    United States
    Yeah, it seems that some money should be available for any company that wants to spend $35-40 million to revitalize a portion of downtown by building buildings, providing jobs, etc.

    With the stadium would also come more condos/lofts/etc, because as a sports fan I totally want to live 3 blocks from the Rockets, Astros, Dynamo, Downtown & MetroRail.

    Not to mention jobs, tax revenue due to increased property value, more police in area = less crime, bars/restaurants that will spring up in the area, etc.

    Seems like there should be some money available, especially since it's a drop in the bucket compared to the money that was given to the other teams.
     
  18. anderson

    anderson Member+

    Feb 28, 2002
    Club:
    Houston Dynamo
    Nat'l Team:
    United States
  19. jamus4545

    jamus4545 Member

    Mar 20, 2007
    Houston
    Club:
    Houston Dynamo
    Re: Dynamo Downtown Stadium -- Design discussion (capacity, roof, stands, stage, etc.)

    Are we still planning on opening the new stadium in 2009? How long does it take to build a stadium of this size? We are less than 22 months from opening day 2009, is this even possible?
     
  20. Bandido

    Bandido Member

    Apr 6, 2006
    Deperrosbravos N.L.
    Club:
    Houston Dynamo
    Re: Dynamo Downtown Stadium -- Design discussion (capacity, roof, stands, stage, etc.)

    If I recall, they'll give us a shout sometime in the middle of this month. we still have one year to play at Robertson. construction goes pretty fast in Houston. so the new Dynamo Stadium should be online about the same time the Toyota Center is completed for the Rockets and Comets :)
     
  21. newtex

    newtex Member+

    May 25, 2005
    Houston
    Club:
    Houston Dynamo
    Re: Dynamo Downtown Stadium -- Design discussion (capacity, roof, stands, stage, etc.)

    Oliver Luck seemed to back off that 2009 date in some of his statements.

    I think the stadium will get done when it gets done. The fact that we have a three year lease with U of H doesn't mean we have to be out of there by 2009. It just means we would have to sign a new lease.

    We have to confirm a deal before we can start talking about time tables.
     
  22. dustcowpoke

    dustcowpoke Member

    Jan 7, 2006
    Houston, TX
    Club:
    Houston Dynamo
    Nat'l Team:
    United States
    Re: Dynamo Downtown Stadium -- Design discussion (capacity, roof, stands, stage, etc.)

    Yeah but AEG won't be happy if we have to sign a new lease. We need to get a stadium deal done so we don't end up like Kansas City and play in a HS fooseball stadium.
     
  23. athletics68

    athletics68 Member+

    Dec 12, 2006
    San Diego & San Jose
    Club:
    San Jose Earthquakes
    Nat'l Team:
    United States
    Re: Dynamo Downtown Stadium -- Design discussion (capacity, roof, stands, stage, etc.)

    Too late for that. Robertson IS a HS football stadium.
     
  24. nobius

    nobius BigSoccer Supporter

    Jan 3, 2006
    Houston, Texas
    Club:
    Houston Dynamo
    Nat'l Team:
    United States
    Re: Dynamo Downtown Stadium -- Design discussion (capacity, roof, stands, stage, etc.)

    While UH looks like a high school football team, I can assure you that they do play college football there.
     
  25. santeroatomico

    santeroatomico New Member

    Feb 16, 2006
    East End Houston
    Re: Dynamo Downtown Stadium -- Design discussion (capacity, roof, stands, stage, etc.)

    Home of the C-USA Champs for what is worth.
     

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