Earlier this month, the City of Santa Clara, CA and the San Francisco 49ers football franchise announced that they have secured funding for the bulk of the cost of the new stadium venture that has been in the works since 2006. The City of Santa Clara has been actively pursuing a partnership with the team in the hopes that a new stadium would help sway owners and facilitate a move to the South Bay Area from San Francisco.
The ongoing saga of the 49ers new stadium has been a leading news item for several years as the public has watched the ongoing process with fascination. Desperately in need of a newer and more modern facility in which to host home games, the San Francisco 49ers have tried for several years to come to an agreement with the City of San Francisco in a partnership for a new stadium. When it became apparent that San Francisco would not be able to meet the needs of the team, the process seemed to accelerate and gain public support in Santa Clara. With public support from residents of Santa Clara after a 2010 ballot measure regarding the stadium and funding sources, discussions surrounding logistics and funding have been rapidly advancing in the past several months.
The Deal for the New Santa Clara Stadium
The bulk of the $937 million -1.2 billion stadium project in Santa Clara will be financed through the loans approved earlier this month by U.S. Bank, Goldman Sachs, and Bank of America-Merrill Lynch. Totaling $850 million, these loans make up the lion’s share of the project costs and will be offset through a hotel tax, city redevelopment funding, and monies provided by the National Football League, which has been in support of a Santa Clara stadium for some time.
The proposed location for the new stadium is adjacent to the theme park California’s Great America in Santa Clara, and would replace an overflow parking area for the park that exists now. 49ers ownership is currently in talks to partner with a development firm in order to purchase the theme park, whose management has opposed the new stadium plan for some time.
Already approved for construction in areas adjacent to the proposed stadium location is a luxury hotel and shopping complex to be built by a development group spearheaded by legendary 49ers quarterback Joe Montana.
Is Santa Clara the New Home of the 49ers?
While it would seem that talk of a new stadium for the San Francisco 49ers in Santa Clara has been increasingly positive, there is still a margin for the project to collapse before construction is approved. While unlikely, the project still needs final approval and there may be lawsuits and/or referendum requirements to be met by the City of Santa Clara before the deal is finalized. Implicit in the acceptance of terms and a final deal is agreement and funding from the National Football League who would contribute as much as $150 million to the project.