Business Term Negotiations, Fiscal and Economic Impacts, Fiscal Consultant Services
KMA provided advisory services to the City of Santa Clara Stadium Authority in relation to the recently completed Levi’s Stadium. KMA was a core member of the City of Santa Clara’s team throughout the five-year process leading up to start of construction on the stadium in 2012. KMA took part in weekly negotiation meetings throughout the process, advised the City on business terms, public financing, vetted financial data provided by the 49ers, prepared cash flows for stadium operations and for use in determining the lease payments from 49ers Stadium Company to the Santa Clara Stadium Authority, analyzed ground lease terms relative to value achievable with an alternative use of the stadium site, evaluated fiscal and economic benefits, provided fiscal consultant services for sale of tax allocation bonds, participated in meetings with lenders, and assisted in preparing and presenting information for the City Council and public.
The stadium transaction with the 49ers has been described as one of the most favorable any community has ever achieved with an NFL franchise. Notable business terms include less than 10% of the facility to be financed by public sources, a ground lease payment to the City, and no liability or obligation of the City General Fund. KMA was at the forefront of the City’s efforts to develop the public financing proposal which included a novel use of a “Community Facilities District” as a mechanism for surrounding hotels to contribute a portion of revenues from stadium-generated hotel stays to finance construction. KMA’s services contributed to a successful outcome through our expertise and diligent support to the City throughout the negotiation process.