December 6, 2019

Private Stadium

The Angels agreed to buy their stadium from the city of Anaheim. Bill Shaikin details the little known about the deal and it’s $325 million price tag. This is the kicker:

The city would be out of the stadium business, so the skirmishes of whether the team or the city should pay for maintenance, repairs and upgrades would end. The Angels would pay all those bills, and would no longer share ticket or parking revenue with the city. The city also would generate revenue from property and sales taxes. The city estimated it could take in $7 million per year in tax revenue from development, but not soon: the city also estimated development could take place from 2025 through 2050. In any case, a development agreement — with binding commitments — is not expected until next year.

Still, the Angel Stadium deal follows the local model of Dodger Stadium, Staples Center, StubHub Center, Banc of California Stadium, the new Sofi Stadium and the planned Clippers arena: the team, not the taxpayers, pays for the construction of a new sports venue. In Anaheim, where for decades the city has failed to develop and profit from the stadium parking lot, a private developer now gets that chance.

LATimes.com

Cities should not be in the stadium business. Even though Anaheim is selling the site at a bit below market value, in the long run they will do better letting others generate the tax revenue. It’s nice to see cities moving in this direction.

Of course, cities are never quite out of the stadium business. I’m sure some will try to interfere with whatever development goes on.

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