Potomac Nationals New Stadium - Fredericksburg!

[Natsinpwc]

More details on the deal:
https://www.fredericksburg.com/news/local/fredericksburg/fredericksburg-will-get-another-swing-at-baseball/article_ef02f2fd-28ea-5469-91da-cae854f1bf44.html

Silber is funding the stadium himself.  Fredricksburg will pay around $1 million a year in rent to use the stadium on non-game days.  They estimate recouping most of that via property taxes and other stadium-related revenues.  This sounds like a better deal than what PWC had negotiated given that PWC had to build a parking garage, float bonds, and guarantee loans.  Still, the $1 million a year fee will likely be a tough sell.   Also, the article notes that the team will have Fredricksburg in its name, so likely the Fredricksburg Nationals.

If you think about it by charging them $1 million per year for something that will have little benefit, Silber is having Fredericksburg pay for it.

[HalfSmokes]

Part of me is hoping it falls through and PW tells him to take a hike leaving him with no stadium just to see what would happen

[Glockypoo]

If you think about it by charging them $1 million per year for something that will have little benefit, Silber is having Fredericksburg pay for it.

$1 mill/year is nothing to sneeze at but the city will have full use of the stadium when games aren't being played. There's a rather large concert series in the Fredericksburg area that would move into the new stadium.

Also, $1 million/year in 2018 is far from $1 million/year in 2040. If the payments stay static (and from what I'm reading they will) that's a good deal for taxpayers and the city.

[imref]

Does Silber magically have the money now? If he had the cash, Stonebridge was the more valuable location, he just couldn’t afford it

with a guarantee of $1 million a year for 30 years, he should be able to borrow what he needs. 

[Natsinpwc]

$1 mill/year is nothing to sneeze at but the city will have full use of the stadium when games aren't being played. There's a rather large concert series in the Fredericksburg area that would move into the new stadium.

Also, $1 million/year in 2018 is far from $1 million/year in 2040. If the payments stay static (and from what I'm reading they will) that's a good deal for taxpayers and the city.

Question remains where can Silber get the money from up front when he wasn't able to before. It's been like twenty years of these stadium deals that never materialize with this guy

[HalfSmokes]

Question remains where can Silber get the money from up front when he wasn't able to before. It's been like twenty years of these stadium deals that never materialize with this guy

And the last time he tried interest rates were lower - I think a single a stadium makes as much sense to investors now as it did last year (i.e. near zero), so how does he come up with the money for a stadium?

[Glockypoo]

Question remains where can Silber get the money from up front when he wasn't able to before. It's been like twenty years of these stadium deals that never materialize with this guy

No doubt. Deal sounds too good to be true.

[mitlen]

https://wtop.com/virginia/2018/07/fredericksburg-approves-letter-of-intent-for-potomac-nationals-stadium/

[HalfSmokes]

https://wtop.com/virginia/2018/07/fredericksburg-approves-letter-of-intent-for-potomac-nationals-stadium/

So much for the pnats footing the bill:

The stadium will be publicly financed, but Fredericksburg would be expected to pay the Potomac Nationals $1.05 million annually for 30 years, the minimum amount of time the Minor League Baseball franchise of the Washington Nationals is expected to stay in Fredericksburg.

Also

Economic studies determined Fredericksburg to be a good marker for Minor League Baseball, estimating an annual tax revenue of $700,000.

If that’s the best an economic study commissioned to produce a favorable report can say, it seems like a terrible return for an investment of at least $30 million

[Glockypoo]

So much for the pnats footing the bill:

Also
If that’s the best an economic study commissioned to produce a favorable report can say, it seems like a terrible return for an investment of at least $30 million

The yearly payment is nothing new. It’s been in the proposal since it was first announced. And the $700K/year is just tax revenue. The city also gets unlimited use of the stadium on non game days. As things stand this is a pretty damn good deal for Fredericksburg.

[HalfSmokes]

The yearly payment is nothing new. It’s been in the proposal since it was first announced. And the $700K/year is just tax revenue. The city also gets unlimited use of the stadium on non game days. As things stand this is a pretty damn good deal for Fredericksburg.

Unless there was a typo in the article, they stadium will be publicly financed, and $35 million from for a single a ball park is a terrible investment. If the team is paying, they have the same problem they had with stone bridge, the team doesn’t have the money to build it

[Glockypoo]

Unless there was a typo in the article, they stadium will be publicly financed, and $35 million from for a single a ball park is a terrible investment. If the team is paying, they have the same problem they had with stone bridge, the team doesn’t have the money to build it

You’re right, there’s a huge typo in the WTOP article. That would be a TERRIBLE deal for Fredericksburg.

The stadium will be privately financed. Here’s a better article: https://www.insidenova.com/news/business/fredericksburg-council-approves-preliminary-deal-to-move-potomac-nationals/article_f1070ede-84b5-11e8-8297-7f2a84e6a5e7.html

[HalfSmokes]

Seems like a good deal for the city, but it seems similar to the last deal that Silber had. It remains to be seen how the team will pay its share

[Natsinpwc]

Unless there was a typo in the article, they stadium will be publicly financed, and $35 million from for a single a ball park is a terrible investment. If the team is paying, they have the same problem they had with stone bridge, the team doesn’t have the money to build it

Agree. There are only a limited number of events the stadium could be used for. In PWC they were trying to sell the idea of using the parking garage as another commuter lot which is needed there. But that's not really much of a return for the county.

[Natsinpwc]

You’re right, there’s a huge typo in the WTOP article. That would be a TERRIBLE deal for Fredericksburg.

The stadium will be privately financed. Here’s a better article: https://www.insidenova.com/news/business/fredericksburg-council-approves-preliminary-deal-to-move-potomac-nationals/article_f1070ede-84b5-11e8-8297-7f2a84e6a5e7.html

That's more like it. But wonder if Silber can attain the financing.

[tomterp]

That's more like it. But wonder if Silber can attain the financing.

Well he's guaranteed $1.05m per year from what I read above, for starters, right?

And that's before first pitch.  Tickets, concessions, etc. 

Fredericksburg is getting $700k from taxes, then

An affiliate of Silver Companies, the developer at Celebrate Virginia South, has agreed to contribute $100,000 per year.

  If I read that right, the $100k goes to the city, not the club.

So Fredericksburg is only $205k short but have 183 days where they have the rights to use the stadium for events, so that offers them an avenue to raise the difference if they can produce popular events like concerts, beerfests, etc.

[imref]

Hearings starting:

https://www.fredericksburg.com/news/local/fredericksburg/city-council-to-hold-public-hearing-on-road-realignment-other/article_cdc4d065-44d9-5d8e-ab50-7f7cb5a7f4cd.html

[Glockypoo]

This thing is getting real, real fast: https://www.fredericksburg.com/news/local/fredericksburg/fredericksburg-finalizes-million-stadium-deal-with-potomac-nationals-owners/article_93afd48e-b927-5eb1-8a81-fc01a8108c1c.html

Breaking ground on the stadium NEXT month.

[HalfSmokes]

This thing is getting real, real fast: https://www.fredericksburg.com/news/local/fredericksburg/fredericksburg-finalizes-million-stadium-deal-with-potomac-nationals-owners/article_93afd48e-b927-5eb1-8a81-fc01a8108c1c.html

Breaking ground on the stadium NEXT month.

So by their own study, this costs the city

Fredericksburg will be considered an “anchor tenant” in exchange for an annual payment to the club of $1.05 million for 30 years. The city plans to cover its commitment through proceeds generated by the stadium. This will include an estimated $700,000 in tax revenue based on the two studies done when the city was mulling a stadium deal with the Hagerstown Suns in 2013.

Also

Mayor Mary Katherine Greenlaw, who’d donned a Fredericksburg Baseball cap for the vote, asked Lani Silber Weiss, who is Art Silber’s daughter and president and the Potomac Nationals’ president and chief operating officer, if she wanted to say a few words.

Weiss got choked up as she thanked everyone for working tirelessly on the deal. “You are all making a dream come true for our family,” she said. “You truly are.”

Is probably a sign you didn’t exactly drive a hard bargain in negotiations

[Natsinpwc]

This thing is getting real, real fast: https://www.fredericksburg.com/news/local/fredericksburg/fredericksburg-finalizes-million-stadium-deal-with-potomac-nationals-owners/article_93afd48e-b927-5eb1-8a81-fc01a8108c1c.html

Breaking ground on the stadium NEXT month.

I don’t know much about construction. Is December a good time to start?

[Glockypoo]

So by their own study, this costs the city

AlsoIs probably a sign you didn’t exactly drive a hard bargain in negotiations

This is a much better deal than the one they had in place with Hagerstown.

[GburgNatsFan]

This is a much better deal than the one they had in place with Hagerstown.

Hagerstown? The low A team?

[Glockypoo]

Hagerstown? The low A team?

Yep. They were fairly close to moving to the Fredericksburg area last summer.

[GburgNatsFan]

Yep. They were fairly close to moving to the Fredericksburg area last summer.

Yeah, I remember something about that now that you mention it. Glad it didn't happen personally.

[imref]

it's finally happening!

http://www.masnsports.com/byron-kerr/2019/02/fredericksburg-baseball-stadium-groundbreaking-attracts-over-1000-fans.html