The development opportunities under the proposed sale of city-owned Angel Stadium to the team owner Arte Moreno would create tens of thousands of jobs, billions in wages and an extra $20 million in annual tax revenue for the city, according to an economic impact study by the real estate advisory firm RCL Co.
SRB Management Company, a partnership led by Moreno, has offered to buy the stadium and surrounding 150 acres for $325 million – which is more than the assessed value of $300 to $320 million. That valuation is based on the continuation of a stadium on the property and a minimum 12,500 parking spaces.
SRB has indicated it plans to renovate the existing stadium or build a new one – as well as develop commercial, residential and retail-entertainment uses on the property.
The study concludes that the estimated 15-year period to completely develop the stadium would generate:
- 18,000 full-time equivalent construction jobs
- $1.5 billion in wages
- 12,000 indirect jobs in local economy.
- $3.5 billion in construction
After being built out, the study projects a robust and positive impact on Anaheim:
- 15,000 permanent jobs in retail/office/hotel/property management
- $1 billion in annual wages
- 8,000 indirect/induced jobs in the local economy
- $5 billion in assessed value
- $20 million in annual tax revenue for the city
In addition to the sale of the stadium to the Angels, the team is also committing to staying in Anaheim through at least 2050. According to the RCL study, the fully-developed stadium site will generate more than $1.2 billion in local tax revenues through 2050 – making it one of the city’s biggest sources of tax money.
Even after taking the accompanying costs of additional municipal services, the city will receive more than $650,000,000 in net tax revenue over 30 years – nearly all of it from TOT, sales and property taxes.
For some context, the city’s Fiscal Year 2019-2020 general fund budget is $355 million.
Councilman Jose F. Moreno and his political allies have frequently criticized of the 1996 stadium agreement, complaining that uneven and paltry revenues are offset by the costs of owning it.
Now, the Angels and the city negotiating team have hammered out an agreement that wipes out those costs and will direct more than a billion dollars in new tx revenues into city coffers over the next three decades – vastly more than is generated under the current lease.
Under this proposed deal, the team buys the stadium property from the city for $325 million. This will open the door to development that will create 33,000 construction and permanent jobs. $3.5 billion is projected to be spent on construction, and $1.5 billion in construction wages and $1 billion annually in annual wages. A site that currently generate little tax revenue will ultimately contribute $20 million annually to the city treasury. Councilman Moreno is always going on about the need for more affordable housing, and this deal will lead to construction of hundreds of units of affordable housing.
If the Angels want to renovate the existing stadium or build a new one, they will have to pay for it themselves.
The proposed agreement is a vast improvement over the status quo that Moreno and his political allies kvetch about – and yet all they do is criticize, complain and insist the city could get a better deal.
Remember, these are the same people who said that Disney would build a $1 billion 4-Diamond hotel without the TOT rebate. How did that prediction pan out?