False start? Too soon for term sheet.

The Term Sheet for the proposed $2.1 billion new football stadium is not ready for Council approval.

The Term Sheet says plainly that it “is not a binding commitment” and “is delivered solely for the purpose of facilitating ongoing discussions...” (page 23) The timing to get to a final agreement on all open terms is listed “as expeditiously as possible.” (page 23)

Representatives from the team and the Mayor’s Office have told me in recent weeks that negotiations are still going on now for the terms that were left unknown or to be determined in the Term Sheet.

Here are the many details that aren’t listed in the Term Sheet; I’ve provided updates for the few we’ve learned more about over the last month:

• Sources of public tax dollars for stadium construction

  • In-stadium sales tax, $_________

  • 130 acre area sales tax, $_________

  • Hotel occupancy tax, $_________

  • Existing $3 ticket tax, $_________

  • Additional new $3 ticket tax for non-NFL events, $_________

  • No details have been added to the Term Sheet, But, in late November, the Mayor’s Office provided a one-page summary financial projection of these various revenues sources. You can find that as “Exhibit B” on the last page at this link. The Mayor’s Office has described the one-page projection as “information…prepared on a preliminary basis” and subject to change.

• Uses of public tax dollars raised by these revenue streams: The Mayor’s Office refuses to provide any details about the amount of expected annual bonds payments or the amounts of any other uses of these public tax dollars. More about that here and here.

• Sources of private dollars for stadium construction

  • Amount for construction costs from personal seat licenses, $_________

  • Amount for construction costs from NFL, $_________

  • Amount for construction costs from team borrowing, $_________

  • Amount for construction costs from team, $_________

• Amounts for future improvements of new stadium

  • Expected Metro tax dollars to be deposited in Capital Repairs Reserve Fund for future stadium improvements, $_________: No information available, except that the Mayor’s Office has told the Council East Bank Stadium Committee that this stockpile of tax dollars will be “hundreds of millions” of dollars.

  • Expected Metro tax dollars to be deposited in surplus fund for future stadium improvements, $_________

• Sources of funds for improvements around the new stadium

  • Metro share for Stadium Village, $_________.

  • Team cost for Stadium Village, $_________: The Mayor’s Office has told the Council East Bank Stadium Committee that Metro will be developing the Stadium Village, not the team. No information is available about who will pay these development costs.

  • Metro cost of 2,000 parking spaces, $_________

  • Metro cost for Campus Infrastructure, $_________

There are still too many unknowns. Seeking Council approval for the non-binding term sheet at this time is an unnecessary false start.

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For more information about the stadium proposal, I have collected links to the East Bank Stadium Committee web page and all of my posts about the stadium here.