Sports

SANTA CLARA (CBS 5 / AP / BCN) ― Santa Clara city leaders heard more than six hours of detailed financial presentations and public testimony before voting early Wednesday to press ahead on a deal with the San Francisco 49ers for a new stadium to house the team in the city.

Shortly before 1:30 a.m., City Council voted 5-2 to move forward on an extremely detailed financing deal. The approved "term sheet" was the result of two years of negotiations helmed by City Manager Jennifer Sparacino.

The city would contribute about $114 million in public funds toward the stadium's nearly billion dollar cost.

A stadium authority owned by the team and the city would borrow against $330 million in expected revenues from the stadium, and about $500 million would come from the 49ers and the NFL.

Voters would also have to approve the deal on a citywide ballot in the spring of next year, although a CBS 5 poll of Santa Clara residents conducted Tuesday showed 62 percent were opposed to using public financing for a stadium.

City officials contend the stadium would generate jobs and tens of millions of dollars in annual revenue, but critics worry about the cost and traffic problems. 

Tuesday night's council meeting was packed with residents, many sporting the football team's colors of red and gold. Santa Clara police officers were on hand to direct overflow crowds to a live video feed in a downstairs cafeteria.

Team president Jed York told council members, "I had a little less shine on the top of my head when we started this project." He reiterated his hope that the team could call Santa Clara home for decades to come.

"It doesn't matter if you're a football fan or not, doesn't matter if you're a 49ers fan or not," he said. York promised the move would "make Santa Clara a better place to work, to live and to play." 

The agreement holds the 49ers responsible for constructing and operating the $937 million 68,500-seat stadium next to the Great America amusement park.

The city would contribute a maximum of $42 million in redevelopment agency funds and spend $37 million to build a public parking garage and relocate a nearby electricity substation. A new tax on rooms at nearby hotels would contribute another $35 million. 

One of Santa Clara's guiding principles throughout the planning process was to create a deal that did not raise taxes for residents or businesses, Sparacino said. Drawing from the general fund is also off-limits.

The 49ers would pay rent for the land that starts at $180,000 and increases to more than $1 million over time, but would see even more money from 17 annual non-NFL events to be held in the stadium. The term sheet indicated that the city would receive 50 percent of the profits from these events, which could include concerts, international soccer games, car shows and college bowl games. Tickets sold for these events would include a $2 surcharge to cover assorted stadium-related expenses.

A 35-cent fee per ticket would donate $250,000 annually to the city's youth and senior program funds.

The deal also factors in the possibility of a second NFL team sharing the stadium - and paying additional rent - by 2019. The NFL encourages franchises with new stadiums to evaluate the potential of sharing the facility with another professional football team. Deputy City Manager Carol McCarthy said the numbers merely reflect this NFL policy, and no proposals or plans for a second team currently existed.

Pending voter approval in 2010, stadium construction would begin in 2012 and the stadium would open in 2014.

More than 90 residents signed up to speak at the council meeting and filled the room past 1 a.m. The overwhelming majority praised the deal and the relatively small public contribution.

Representatives from city police and firefighters said the stadium deal would not diminish residents' emergency services. Area educators said the project would increase land values, hence property tax funding for schools.

Local union workers talked about the jobs a stadium would bring. Representatives from community sports groups mentioned the 49ers commitment to community programs. Retired 49ers Gordy Soltau and Len Rohde spoke in support, as did several former city officials.

"The terms you have negotiated provide maximum protection to the taxpayer while providing the taxpayer with a maximum return on his investment," said former mayor Larry Marsalli.

Former city council member Lisa Gillmor called the project "our Santa Clara stimulus package."

A smaller number of people spoke against using any public money for the stadium. Several questioned the money the city expected to receive from non-football events.

"The details are numerous but the devil is in them," said resident Bill Bailey, treasurer of Santa Clara Plays Fair, a group opposed to public funds for the stadium.

Longtime resident Mary Emerson also presented a brief slideshow disputing the performance-based rent calculations as "too much risk, not enough benefits."

John Hickey, an attorney for Cedar Fair Entertainment Company, which owns Great America, asked the city to hold off on approving the term sheet until the company had time to review the numbers. The group submitted a letter making that same plea just hours before the meeting.

Shortly before the vote, Councilwoman Jamie McLeod said the deal sheet was "not quite ready for prime time." She and Councilman Will Kennedy voted against it.

"Are we investing public money or are we spending public money?" she asked.

The weary audience greeted the vote with applause. At the June 23 City Council meeting, Sparacino and her staff were slated to return with details on the ballot measure to be voted on in the spring. The 49ers were set to present a design for the proposed stadium at a July 14 meeting.

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