49ers Stadium: Why are we Subsidizing the Training Center?

Dear Santa Clarans:


The real truth about Santa Clara's "sweetheart deal" and longstanding subsidy of the 49ers Training Center on Centennial Way has been out there for all to see. But it was sharply underscored in Council comments before the Term Sheet vote in Chambers on June 2nd.

Here's the deal: If you had a chance to secure a 99-year lease on 11 acres of prime Silicon Valley real estate and still pay only $25,000 a year for those 11 acres even after some twenty years, you'd be foolish not to take advantage of any city government foolish enough to offer it. That's what the San Francisco 49ers took from our city over twenty years ago.

The Hyatt Hotel, just up the street, pays $1,465,982 a year for only 1.8 acres: 

http://santaclaraca.gov/ftp/csc/pdf/49ers-20090602-List-of-Maj-Ground-Leases.pdf 

The fact that the Hyatt pays 350 times what the 49ers are paying per acre per year is disgraceful, especially in view of the profits earned by the 49ers.

What would be almost comical if it weren't so costly to the city: Stadium proponents are actually selling the stadium as some kind of boost to hotel and tourism in Santa Clara - even though the consultants' presentations of June 23 themselves showed those returns to be mere peanuts:

http://www.santaclaraca.gov/ftp/csc/pdf/49ers-CSL-Synergy.pdf

But there was a more insulting aspect to this total giveaway of the lands under the 49ers Training Center - and I'll simply let the speaker say it in his own words:

"If for some reason we are not able to move forward with our plan in Santa Clara, then there is no guarantee that the training facility will remain at this location."

That's Jed York himself quoted in yesterday's Mercury News - and we heard similar threats over a year ago when the 49ers didn't find our City Council to be deferential enough to the team's completely unreasonable demands.

Frankly, this resident, ratepayer and taxpayer would be pleased if the city would again take rightful control over those 11 acres of land. We could then negotiate a new lease with a new tenant paying Santa Clara far more than what the 49ers are paying us today.

The embarrassing terms of the current Training Center lease are only a subtext to the issue of the stadium subsidy itself - and it reveals what the short-sightedness on these issues will ultimately cost every Santa Claran.

Both subsidies should be halted at once. Please let the Mayor and the City Council know how you feel on this issue:

MayorAndCouncil@santaclaraca.gov 



Thank you for your support,

Bill Bailey, Treasurer

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