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Star The Economics Section - Page A4 Star

August 24, 1997

CITY OWNED BASEBALL STADIUMS
DON'T MAKE GOOD PUBLIC ECONOMICS

by Howard Hobbs, Economics & Legal Editor, Daily Republican

Related Baseball Stadium Stories:

PALO ALTO - The Fresno City Council has decided that being in partnership with the Diamond Group on a 'Triple A Baseball' stadium to be largely financed by public debt is not a good idea after all. This sudden turn around for council members Ronquillo, Bredefield, and Parea has cost them the support of an important developer, but perhaps saved elected offices.

But, when the city attorney, Hilda Cantu Montoy, advised council member Steitz that Section 1208 of the Fresno City Charter requires such contracts to be subject to public bidding and general obligation bond requirements of a public election, the earth moved for three councilmen who believed public bidding and bond elections on the project were not required in their stewardship of the public trust.

That is exactly what the developers told the City Council. Only three were gullible enough to swallow it. That's what a lot of other cities already know.

For example, professional baseball in Seattle just isn't ever going to be the same, either. Seattle won't either. The Baseball Club of Seattle has concluded that there is insufficient political leadership in King County to complete the ballpark project in 1999 that was started 3 years ago.

Consequently, the Seattle Mariners baseball team is withdrawing from the process to design and construct a new ballpark. We will have no further discussions with King County officials regarding this matter.

The Mariners will immediately proceed to seek a buyer for the Mariners. Contact with league officials has been made.

Everyone expected the 1997 Mariners to play the 1997 season here. However, because the baseball team was unable to get favorable lease extension terms with King County, team managers say they are virtually homeless. Their current stadium lease expires in March, before the start of the 1997 season.They call on officials of King County to conclude discussions about an extension of the lease so the 1997 season can be played here in Seattle.

The Mariners Press Release of December 14th stunned Seattle taxpayers. "This outcome is especially regretful because fans throughout the Northwest have responded with unbounded enthusiasm to Mariners baseball."

Over the past two baseball seasons the Mariners wrote "We have simply been overwhelmed for the past two seasons with the response by fans to Mariners teams. More than 2.7 million fans attended games in 1996, one of the highest totals of any major league baseball team. We also know this decision will adversely affect all those whose lives and recreational enjoyment are connected to the game and the players. It will be a disappointment to all who have spent countless hours since 1993 to bring a new ballpark to Seattle."

The Mariners announced Saturday they were selling the team because of a letter that four County Council members had signed urging a delay in the ballpark project. The Mariners say they lose an estimated $20 million a year playing in the Kingdome and can't afford the additional losses they would incur if a new ballpark doesn't open in 1999 as scheduled.

So, the owners of the Seattle Mariners are telling fans they're out of a project to build a new ballpark and are selling the team, but the agency in charge of the new stadium is still trying to patch the deal back together.

The Public Facilities District already has spent $18 million on the project and is continuing work at a cost of $500,000 a week, with no guarantee of success or that there will be a baseball team in Seattle this Spring.

The money is being spent on more than 70 architects, designers, engineers, experts and construction managers moving forward on the $384 million project, said district executive director Ken Johnsen.

The district and King County also are talking about spending another $15 million to $20 million to buy property at the site of the proposed stadium in an effort to lure the Mariners back into negotiations.

We've seen this ballpark come from just an idea to this gorgeous model of brick and steel that looks like it belongs here in Seattle," said district spokeswoman Kathy Johnson. "The thought that it might not be built is something that I think none of us can comprehend."

The district's board meet again Monday to see whether the Mariners will accept a 20-year lease on the stadium. The lease was delivered to team attorneys Tuesday. A meeting scheduled for Wednesday was delayed until Monday to allow more time to talk with the team, the Seattle Post-Intelligencer reported recently.

The Mariners formal termination of their relationship with the district was set to happen on Monday. King County Council members say they are doing everything possible to get the Mariners to re-open negotiations.

The Mariners cannot negotiate with any prospective buyers until January 14th, according to acting baseball commissioner Bud Selig and American League president Gene Budig.

That will be when the Major League Baseball Owners Council meets in Phoenix to discuss the team. It may take several months for a franchise to change ownership.

In Seattle the Mariners million dollar attorneys have started negotiations on a 1997 Kingdome lease. "We want to move quickly to settle the question of where they will be in 1997" said Kevin Raymond, County Executive Gary Locke's chief of staff. "We hope they'll want to extend it."

Neil Campbell, executive director of .C. Place Stadium in Vancouver, has contacted the Mariners about playing there next season. Locke aides and the council's new budget committee chairman, Chris Vance, also spent Tuesday trying to find $15 million to $20 million in interim financing to keep the stadium district going.

It was not known where the county would find the money the district needs to continue to buying land and doing design work on the $363.5 million ballpark and a $20.5 million parking garage.

The stadium district was created by the state last year to design and build a 45,000-seat ballpark with a retractable roof by 1999. Construction is supposed to begin in March and take two years.

Money to operate the district and pay architects and other consultants has come from the taxes the Legislature set aside to pay for the project. So far, $15 million of that $22.6 million has been spent.

Until this month, the district had another $20 million line of credit provided by the Mariners owners to buy land. The Mariners have now denied the district access to that credit line, but have agreed to make good on about $3 million of property acquisitions already committed to.

At the last moment on Tuesday, Christmas Eve, local government was in a giving mood and agreed to pick up an additional $50 million dollars of tax burden to keep the Mariners in Seattle.

The team won a sweet profit margin and a brand new retractable dome-cover. Seattle fans will enjoy the Mariners for a few more baseball seasons. For now, Seattle will have several new taxes to support the team owners' sweeter profit margin on sky-boxes, ticket, and advertising sales. The Seattle economy will suffer. Ticket sales will fall-off. Thr team will leave for greener pastures.

What does the future hold? In 20 years municipal governments won't be spending tax dollars to support private profit making ventures anymore. And the stadium with the retractable dome can be economically utilzed to accommodate 100,000 homeless families.

Fresno has too many homeless people living in downtown alleyways to seriously consider a pleasure dome for its sports challenged citizenry.

Real jobs come from real profit making firms. Real City leaders need a fiscal City government that gives the taxpayers an even break.

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