This afternoon at 2 pm,
Portland commissioners will discuss the city's deal with Merritt Paulson to renovate PGE Park for Major League Soccer in 2011.
They'll vote on the deal next week. Meantime, here is a summary of the deal
from the budget gurus at the Office of Management and Finance, with the bureau's acknowledgment of the plan's risk (as has been pointed out elsewhere) to the general fund:
The construction project budget is $31 million. Funding includes $8 million in cash from Peregrine, $11.1 million of user fees paid in advance (years 8-25) by Peregrine to the City, and $11.9 million in Spectator Fund (the Fund) cash and bond proceeds. Cost overruns are the responsibility of Peregrine. Up to $1 million (present value) of cost overruns can be recovered through deferred user fees in years 26-28. Peregrine has guaranteed user fees through year 7. These revenues start at $1.49 million in 2011 to $1.73 million in 2017. During all years of the agreement, the Fund receives 7% of the upside on ticket revenues over the guaranteed and prepaid amounts. Operations and maintenance are the responsibility of Peregrine. Responsibility for repairs and replacement is split between the City and Peregrine, with the split dependant on the item repaired or replaced. The ongoing cost to the City is estimated at $300,000 per year, escalated with inflation. Should the Fund not be able to support the bond expenses associated with this agreement, the General Fund would be responsible. Given projections for the Spectator Fund, the General Fund is not considered to be at significant risk. Please note that the information provided above does not address economic impacts, nor does it take into account the current user agreement as a base case. Under the current agreement, the City receives about $1.2 million annually and has a greater share of responsibility for the ongoing costs.
In advance of today's City Council session, Paulson made the rounds at City Hall Tuesday
afternoon, meeting with Commissioner Dan Saltzman's chief of staff, Brendan Finn, and Commissioner Randy Leonard. He met with Commissioner Nick Fish on Monday. He skipped Commissioner Amanda Fritz's office