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League of Fans signs open letter to DC Council Chair Linda Cropp urging a "NO" vote on baseball stadium lease
December 15, 2005
Honorable Linda W. Cropp
Dear Chairman Cropp:
It is imperative that you and other councilmembers vote “no” on Tuesday, and send Mayor Williams and Mark Tuohey back for further negotiations with Major League Baseball. Do not be bullied by the latest threats from the Mayor and MLB. A “no” vote on Tuesday does not in any way mean an end to baseball in the District of Columbia, but it will potentially stop the inevitable train wreck we are about to experience:
- The boilerplate 108-page draft lease does not address or mitigate any of the key issues of major financial risk facing our city;
- The draft agreement has no provision for adequate up-front down payment by the sole and exclusive tenant, the new team owner;
- The draft lease does not include a sufficient payment by the new owner to help cover interest and principal;
- And most critically, the draft agreement does not protect our fine city in the event of cost overruns and specification changes to the massive project.
We keep hearing from the Mayor and Mr. Tuohey the fiction that the City will only spend the $535 million that was authorized in last December’s bond legislation -- even though there is no legally binding cap on that $535 million. A year ago in September, the number was $435 million. Mr. Gandhi’s numbers keep rising, now standing at $667 million -- and that seems to be an understatement, given what we heard at Tuesday’s hearing. What will it be next September?
None of the major cost components of the project are locked down with firm contracts. The stadium construction contract is not yet written. The landowners’ court cases make it uncertain what the final (and higher) purchase price of land will be. Metro and the federal government have not agreed to contribute to any of the significant transportation and infrastructure costs. So just how can the Mayor and Mr. Tuohey possibly say the number will not be $735 million -- or more -- by next September? One councilmember thinks we could be on our way to spending $1 billion, and the Mayor even mentioned $800 million in passing on the news the other night, and told us not to worry. What guarantees can the Mayor write or has he received in writing? Verbal promises carry no weight legally. How much should any city subsidize a private party without risk sharing and shared contributions written into a contract? What we do know is that D.C. is assured of paying almost 100%, yet we don’t have any legal protections on what the final cost will be. This is an unprecedented giveaway in the annals of urban public financing for sports and entertainment.
If you and the Council vote “yes” on Tuesday, you will send a message that this one-sided deal can surely get even worse in the coming months, that you will continue to “roll with it” by adding tens of millions of dollars of new costs as each new revelation is presented by the Chief Financial Officer. If you vote “no,” it allows time for MLB to see your displeasure, for talks to continue to discuss the addition of financial risk sharing to protect the people of D.C. at the current target site, or to consider a move to the RFK site. The legal cost of buying more time is trivial, even nonexistent. A “no” vote is in no way a vote to kill baseball -- unless MLB in a heavy-handed way unilaterally chooses to do so.
If the Council votes “yes,” another sorry situation with new overruns and embarrassments will likely face the city again by springtime. Then DC’s voters next September and November will hold accountable those councilmembers seeking reelection -- or higher office -- who continue to go down this fiscally irresponsible path.
As concerned D.C. citizens, we urge you to retain an independent party immediately to analyze this draft lease and come up with recommendations for provisions that will protect the city’s taxpayers and fiscal integrity. Then send this dangerous draft lease back for more discussion and further negotiations.
Respectfully,
Mary C. Williams, ANC Commissioner 6D03 |