Charger Stadium in Flux
Although it’s too soon to determine what effect the surprise resignation of San Diego’s mayor will have on the Chargers’ bid for a new stadium, a team spokesman said Monday that recent turmoil in city government has complicated efforts to find a development partner.
“In such extremely uncertain circumstances, it’s a real challenge to persuade investors to put their money in San Diego,” said Mark Fabiani, Charger point man for the stadium effort. “But we’re a long way from giving up, we still have meetings scheduled, and we still have parties who are interested. We still have a project that under normal circumstances is very attractive to the public and a development partner.”
San Diego Mayor Dick Murphy resigned Monday, less than five months after starting his second four-year term. He was reelected last fall after narrowly winning a three-way race, edging write-in candidate Donna Frye after several write-in ballots were disqualified.
Although he did not necessarily oppose a new stadium for the Chargers, Murphy did little to promote the idea. Frye, a councilwoman whose district includes Qualcomm Stadium, has consistently opposed a new stadium for the team.
Murphy’s resignation becomes effective July 15. The City Council has the option of appointing a replacement or scheduling a special election for a mayor to serve out the remainder of Murphy’s term, which would end in 2008.
The Chargers are proposing a stadium and mixed-use development on a 166-acre site that includes Qualcomm Stadium. They would pay for a Super Bowl-quality stadium at a cost of about $450 million; a 30-acre park along a river; and about $150 million in transportation improvements such as new roads and freeway interchanges around the stadium.
In exchange, the Chargers are asking for 60 acres of the site on which to develop a dense urban village, including high-rise condominium complexes, as well as all the necessary permits and zoning licenses. The team would collect all revenue generated by the stadium, even though the city would own the venue.
In July, the Chargers and San Diego agreed to a new Qualcomm Stadium lease that requires the team to pay $2.5 million a year in rent and do away with its litigation against the city and the controversial ticket guarantee, which required taxpayers to reimburse the team for unsold seats.
Under the new agreement, beginning Jan. 1, 2007, the Chargers can talk to other cities about relocating. The deal allows the team to leave San Diego at any time after the 2008 season, provided that the team pays off the city’s debt on the stadium.
That cost would be $57 million in 2009, slightly less in 2010, and would drop off dramatically after that.
