Thursday, January 13, 2000
Cost for Reds park rises to $280M
$45 million leap blamed on inflation
BY DAN KLEPAL
The Cincinnati Enquirer
County officials announced Wednesday that taxpayers could pay as much as $280 million for the Cincinnati Reds new home, up from the $235 million figure thrown around for the past two years.
And that doesn't include tens of millions more that will be spent on parking garages, road and sewer improvements and the demolition of Cinergy Field.
The cost of those items is being estimated at an additional $54 million — bringing the overall Reds stadium tab to $334 million. But that $54 million isn't set in concrete, either, and is sure to rise over the next few years.
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REDS LEASE
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• Length: 35 years.
• Seating: 42,500.
• County's stadium contribution: $280 million, which does not include demolition of Cinergy, parking, infrastructure improvements, architects' fees and land. Total cost will exceed $330 million.
• Deadline: Trying for Opening Day 2003. No penalties if project delayed.
• Team contribution: $30 million for construction in three installments, plus $22.5 million in rent and proceeds of 25-cent ticket tax.
• Team gets: All revenues from ticket sales, concessions, advertising and parking generated at the stadium. The county also forgave $6.2 million in back rent owed by Reds and lowered the team's rent for remaining years in Cinergy Field.
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The increased cost could add a year to the duration of a half-cent sales tax Hamilton County voters passed in 1996 to pay for new stadiums for the Reds and Bengals.
While the county is paying more for the Reds stadium, fans are getting a little more, too.
The Reds agreed to add an additional five years to the lease, meaning they will be playing ball in the new park for at least 35 years, beginning in 2003.
County Administrator Dave Krings said the $235 million represented “1998 dollars,” and that the new price figures in the cost of inflation during construction.
The county has said all along that the cost would have to be adjusted as designs are finished.
“It had to be done that way,” Krings said. “This project has evolved and will continue to evolve.”
After subtracting the property tax credit that went with the sales-tax increase, the half-percent sales tax generated about $35 million last year for the stadiums.
Krings said there are many variables that go into how much the tax generates. And he said the scope of downtown development will likely play a role in how long the sales tax stays on the books.
“It depends on the cost of borrowing, what the final project is, what parking will be built and where,” Krings said. “There are quite a few things that are unknown.”
That's what Tim Mara is afraid of. A Cincinnati lawyer who led the fight against the sales-tax increase, Mr. Mara said commissioners sold out taxpayers in 1996.
The original estimate to build both stadiums was $544 million. Mara believes the commissioners were either dishonest or inept when they campaigned for the tax.
“I'd actually give them credit on both counts,” Mara said. “The $544 million was just a wild guess, and now taxpayers are left with no recourse.
“All we can do is hold them accountable come November.”
The Reds will contribute to the $280 million by giving the county three installments of $10 million. The state has already kicked in an additional $37 million.
But the county is hoping the state will finance 15 percent of the $280 million, and that's something Ohio Senate President Richard Finan can't guarantee.
“I just heard the other day that the cost of poker is going up,” Finan said. “I expect they'll ask us for an increased commitment.
“The $37 million we've already given is there, and I feel fairly confident that there will be some money for the county in the capital bill we're working on right now. Beyond that, nothing is a given.”
The Reds lease differs from the deal with the Bengals in many ways. The overall cost of the Bengals stadium, $404 million, is higher; but the stadium is about one-third bigger, with more than 66,000 seats.
The Bengals also are kicking in more money — $50 million — and have signed a 26-year lease with two five-year options.
Reds Chief Operating Officer John Allen said comparisons between the sports aren't really fair. He's happy the lease amendments are out of the way.
“It's a significant step,” Allen said. “It's good to have a definite number agreed upon. It took some give and take by both parties.”
Hamilton County Commission President Bob Bedinghaus, who championed the sales tax increase, admitted it may have to hang around a little longer because of the increased cost of the Reds stadium.
“Lots of things have changed since '95,” Bedinghaus said. “The one thing that hasn't changed is our commitment to get value for the tax dollars we're investing in downtown.”
Many fans aren't surprised by the news.
Bob Pearson of Maderia said he isn't happy about the ever-increasing cost of the stadiums, but he isn't outraged, either.
“I kind of expected it, to tell you the truth,” said Pearson, who voted in favor of the sales tax. “When they estimate costs, they never say this is what it's going to cost us three years from now.
“I'm just glad there's going to be a new ballpark for them to play in.”
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