SEATTLE - At its meeting today, the Washington State Public Stadium Authority Board approved key documents governing the public-private partnership that will build and operate the voter-approved football/soccer Stadium and Exhibition Center. These agreements will allow initial construction activities for the Exhibition Center and parking garage to begin Monday.
?This marks the successful conclusion of a complex negotiation between the PSA and our private partner, First & Goal Incorporated, that achieved important objectives on behalf of the public,? said PSA Board Chair Lorraine Hine. ?Our mission is to ensure that the $300 million public share of this $430 million facility is capped and appropriately used, and that this world-class facility benefits citizens across the state.?
First & Goal is the entity created by Seattle Seahawks? owner Paul G. Allen to represent the team?s interest in the project. ?Together we have crafted and implemented an innovative public-private partnership - one that will build a world-class facility, while ensuring benefits to our entire state,? said Jody Patton, Vice Chair of First & Goal, Inc.
The development agreement provides that all of the legislative mandates included in the Stadium Act (approved by the state?s voters in 1997 as Referendum 48) are met. Those include:
A minimum contribution of $100 million from First & Goal to the construction and agreement that First & Goal will cover all cost overruns.
A contribution from First & Goal of $10 million to the Washington State Youth Athletic Facility Grant Account.
Contribution of $1.75 million from First & Goal to fund a project art program.
The requirement that First & Goal spend a minimum of $10 million on mitigation actions in the project?s neighborhoods.
Agreement that First & Goal, as the developer, will pay prevailing wages to construct the project, will use reasonable efforts to secure participation of minority and women-owned business enterprises, and to the extent feasible, hire local residents during project construction.
The requirement that First & Goal will promote state lottery games, as described in the Stadium Act, with in-kind advertising, sponsorships, or prize promotions valued annually at $1 million, beginning in 1998 and increasing by 4% each year thereafter.
Establishment of First & Goal as the PSA?s agent for the sale of permanent seat licenses.
The assignment of the net proceeds from the sale of filming rights associated with demolition of the Kingdome to the State Film and Video Promotion Account.
The master lease includes provisions to minimize the public?s risks as owner of the facilities, such as:
Assurances that the public?s assets are properly maintained, renewed and operated;
Provision that 20 percent of the net profits of the Exhibition Center and related parking will be contributed to the State common school fund;
Assurance that 10 percent of the spectator seats in the stadium are available at an affordable price;
Guarantee that proceeds from the sale of naming rights are used exclusively for major maintenance and modernization of the facility; and
Provisions for First & Goal?s opportunity to realize economic benefits from the facility that can allow professional football to remain financially viable in the Pacific Northwest.
A comparative analysis of the lease agreement, conducted by the hospitality, sports and leisure consulting practice of Deloitte Touche, LLP, found that the lease is better-than-market-rate, compared with 11 other NFL franchises.
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