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Yanked county funds won’t stop 49ers stadium construction

gty_find_money_mw_110609_wg Getty Images

It’ll take a lot more than the loss of $30 million to stop a $1.2 billion stadium from being built.

And so the decision of Santa Clara County to not contribute $30 million in tax money to the 49ers stadium effort won’t matter, in the grand scheme of things.

“This is not going to stop the stadium project.  It’s going to get built,” 49ers CFO Larry MacNeil said Monday, via Mike Rosenberg of the San Jose Mercury News.

Still, it’s unclear how the absence of the $30 million will be handled.  As Rosenberg explains it, the $30 million (plus $10 million already paid) acted as a down payment of sorts, which made it easier to secure the loans that will finance the bulk of the project.  The 49ers, the NFL, and lead lender Goldman Sachs declined on Monday to address how the lost county money could impact the rest of the funding.

Rosenberg reports that the process of trying to get the money will commence with an appeal to the state and negotiations with the county.  Litigation is possible, and arguably inevitable.

Either way, the $30 million represents a small piece of a puzzle that already is being put together, brick, block, and beam by brick, block, and beam.

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22 Responses to “Yanked county funds won’t stop 49ers stadium construction”
  1. sportsreporterusa says: Jun 25, 2012 9:06 PM

    “Either way, the $30 million represents a small piece of a puzzle that already is being put together, brick, block, and beam by brick, block, and beam.”

    As does the $90 shown in this fantastic and correlative picture shown as a part of this story.
    :)

  2. beerbudsnbevo says: Jun 25, 2012 9:10 PM

    Construction workers in San Francisco?

    Do they all look like the construction worker from “The Village People”?

  3. uberniner says: Jun 25, 2012 9:14 PM

    How do you know when a politician is telling a lie? (his/her lips are moving)

    Santa Clara just lost a bunch of respect from this niners fan.

  4. mojosmagic says: Jun 25, 2012 9:20 PM

    Personally I am sick of ultra wealthy owners stealing taxpayer dolors to build their cash cow palaces. It’s really pretty disgusting.

  5. southpaw77 says: Jun 25, 2012 9:20 PM

    Shoulda found a spot in SF.
    Bet Santa Clara won’t mind the revenue coming in when they get a Super Bowl, the Niners should keep that money.

  6. drunkenagitator says: Jun 25, 2012 10:13 PM

    No more tax dollars for billionaire’s sports pleasure palaces. If they can’t foot the bill themselves, sell the franchise to someone who can…or let the NFL kick in their fair share. Sure, it was a bush move to yank the funds after promising them but why were they promised in the first place?

  7. nyyjetsknicks says: Jun 25, 2012 10:23 PM

    mojosmagic says:
    Jun 25, 2012 9:20 PM
    Personally I am sick of ultra wealthy owners stealing taxpayer dolors to build their cash cow palaces. It’s really pretty disgusting.

    _________________

    That’s capitalism. When they pay taxes on said cash cow, that’s solicalism.

  8. benh999 says: Jun 25, 2012 10:57 PM

    GS v. The County of Santa Clara coming soon to a courtroom near you! Seriously, the idiot board members that decided to welch on the commitment are going to get raked over the coals.

  9. benchwarmer69 says: Jun 26, 2012 12:10 AM

    In Tampa, we paid for our stadium.

    Granted, they get the benefit from it, but they also would have to clear it with the city if they wanted to move the team.

    It’s crappy that billionares can get a stadium built for basically free. That, I can agree. However, there are always stipulations that come along with it.

    If the 9ers weren’t a “old-school” team with plenty of fans, they would have to worry about a move in rough times if the city didn’t pitch in.

  10. sonoco says: Jun 26, 2012 12:24 AM

    For you working class hero’s whining about rich millionaires, the 49ers advanced a $40 million loan to the Stadium Authority that was supposed be be repaid by State redevelopment funds earmarked for that specific area of Santa Clara where the stadium is under construction. The 49ers already received $10 million of it back and were due $30 million more. Since the deal was cut the state redevelopment agencies have dissolved and the rules changed allowing Counties to do what they damn well want with the remaining redevelopment funds . . . like pretending to be Robin Hood during an election year.

  11. ningenito78 says: Jun 26, 2012 12:52 AM

    Maybe it’s actually a pretty shrewd move by Santa Clara. Front the cash to secure the loans to build the project then yank the cash after all the loans are secured. Nah. No way that could happen….

  12. msclemons67 says: Jun 26, 2012 1:20 AM

    This just bumps the 49ers stadium from 96% private funding to 97%. Won’t have an impact in the long run.

    The 49ers can just cut Alex Smith and Kyle Williams and recoup the $30 million. Easy peasy.

  13. jayniner says: Jun 26, 2012 1:56 AM

    In 2010, the voters and TAX PAYERS approved this $40 million to get the Niners in Santa Clara, along with all the revenue that brings to the local economy. Stop blaming it on the Niners owners and their constituents and start blaming the new county board of supervisors that broke the law that was voted in in 2010 and didn’t put it out for public notice before rescinding the additional $30 million…..the Niners will win this lawsuit and get penalties and interest from it for breach of contract…whooo hoo!

  14. ceadderman says: Jun 26, 2012 4:27 AM

    Does anyone now see why Owners don’t want to pay for everything to bring money into a city?

    Some Liberal dooshbag will seize the opportunity and raid the funding. And then spin it so that the Owners look like the bad guy.

    In case people don’t know this, the CITY fronted $10 million of the $40 million they promised. But due to the Governor putting the kibosh on the Investment Brokerage handling the funds were not able to invest the other $30 Million. The 9ers wanting this deal done and moving forward LOANED the money to the City to be paid back interest free. That money was then raided by the County shills who blew smoke up the ass of the voters by suggesting it was for School Teachers. Are there really that many teachers in Santa Clara County? The Average wage of ONE teacher is over $60k for one year. So there are 500 teachers in Santa Clara County that were working for no wages? In a system that is run on a BUDGET that is dealt with prior to the summer???

    Stop with the insanity. Santa Clara is just blowing smoke up your backsides and as long as you let them you will be sheep for every conman looking for a new way to pay Teachers.

  15. brianbosworthisstonecold says: Jun 26, 2012 4:42 AM

    ZORN Industries would gladly take control.

  16. mgfred says: Jun 26, 2012 6:11 AM

    This is one of the big problems here in CA. Politicians here believe their own hype, it’s worth it just to live in CA. Businesses are treated like a golden goose with neverending gold eggs. It’s all of them not just any politician in particular. Why would a business abandon a building, build an exact replica 700 miles away in another state and move all of the employees from one state to another? I can’t get into specifics but I have seen that senario. So the County says “they’re going to build it anyway, why keep our word?”

  17. blazertop says: Jun 26, 2012 6:34 AM

    The NFL is a $9 billion/yr industry. Why do taxpayers, the vast majority of whom can never afford to see a game and/or don’t care about them….have to pay for their places of business? Just say NO people.

  18. jgedgar70 says: Jun 26, 2012 7:42 AM

    It’s situations like this – and the never-ending whining of goody-two-shoes liberals about “billionaires raiding taxpayer money for palaces” – that make the PSL concept seem tame and reasonable.

  19. cutlerinception69 says: Jun 26, 2012 8:37 AM

    First. It’s a joke that the San Francisco 49ers will not play in San Francisco.

    Second. The move is just another way to price out the average fan. Now you need to make a thirty-mile commute in your car on congested California freeways to pay to park to pay to buy the right to purchase a ticket and then pay to go to a game itself where you will have to pay $20/person for food, not even counting booze.

  20. dionysus39 says: Jun 26, 2012 11:42 AM

    I sure am getting sick and tired of Santa Clara trying to weasel out of a situation that has been voted on and passed twice by your constituency. Who does the County think they are GW Bush or the Republican Nazi Party of America; all of their Heroes with a track record of doing whatever they want regardless of what the people, whom they supposedly represent tell them to do? Pay up jerks!

  21. dionysus39 says: Jun 26, 2012 12:36 PM

    Money going to teachers eh? The same teachers who
    currently make an estimated $60k per year teaching over privileged kids who want to be rappers how not to do math, read, spell or
    know anything about any kind of history. Which pretty much guarantees
    them jobs at Google and Facebook where they can continue to make this
    World a gigantic pot of wretched stupidity.

  22. dirtyjersey9er says: Jun 26, 2012 2:24 PM

    They are just saying it is going to education to make the franchise look bad if they go after the 30 million. I highly doubt all 30 million goes to schools.

    Really they pledged as much money into the stadium as they did and are having an issue over 30 million that the team fronted them? The money made by that stadium(and thus the jobs created) will more than made up for that 30 million and the money being paid back to the banks.

    As for the person who said “It’s a joke that the San Francisco 49ers won’t be playing in San Francisco” well they had multiple chances. The first time they couldn’t agree on funding(which made that project lose out on a Super Bowl), and the second time the best offer from the city was “build it in your parking lot despite the fact that it would make gameday traffic worse than it already is”.

    As for the whole name thing you mean to tell me you think the Jets/Giants play in NY, the Redskins play in Washington DC, the Cowboys play in Dallas, and the Bills play in Buffalo?

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