Over the past week the Voice of San Diego and the San Diego Union-Tribune have both published stories about how a stadium in downtown San Diego might be financed. The Chargers have also discussed the issue at a variety of community forums during the last several months. Here is a summary of the Chargers’ position:
- The Chargers’ previous attempts over the last seven years to privately finance a stadium all involved very large sites that could accommodate both a stadium and a related development project – the profits of which would help pay for the costs of the stadium.
- These large sites included, among others, the existing Qualcomm site (166 acres), the Chula Vista Bayfront site (130 acres), and the Oceanside drive-in and golf course sites (combined 165 acres).
- The downtown San Diego site now being considered is just over 10 acres – making it the smallest stadium site in the NFL. As a result, the site will accommodate, at most, the stadium, without any opportunity for the related development to help pay for the stadium.
- For that reason, the successful development of a stadium at the downtown site will require sources of funding other than what might come from a related development, in addition to a $250 - $300 million investment by the Chargers and the NFL.
- It is too soon to say what other funding sources may be available. That is the subject of a CCDC-sponsored study by stadium finance expert Mitchell Zeits.
- Nonetheless, we believe it is important for everyone to understand that the downtown site might require some sort of taxpayer subsidy.
- Such a subsidy would only be possible if voters agree that an investment downtown will result in significant returns for taxpayers elsewhere. For example:
-
Would a taxpayer investment downtown result in the city of San Diego saving the $300 million or more that taxpayers will pay through 2020 to maintain the Qualcomm site?
-
Would an investment downtown allow the city of San Diego to sell, lease or otherwise generate hundreds of millions of dollars of revenue from the 166-acre Qualcomm site?
-
Would a taxpayer investment downtown allow the city of San Diego to make better use of the 100 or so acres it owns in and around the Sports Arena site?
- These are all open questions, and ultimately voters will decide whether a public investment in this project makes sense.
- The Chargers believe that, at this early stage of the process, it makes sense to continue to explore these ideas to see where they might lead.
