D.C. and MLB Come to Terms on Stadium Deal

Mark Segraves, WTOP Radio
Colleen Kelleher, wtopnews.com

WASHINGTON - The District and Major League Baseball have agreed to a new stadium deal for the Washington Nationals, WTOP has learned.

The lease will not include any provisions for private financing when it goes to the D.C. City Council.

But the deal calls for the following:

• The city to use traditional and not private financing for the stadium;
• The city to split with the team the proceeds of land sold for development;
• Major League Baseball to lease RFK in 2008 if the new stadium is not completed;
• MLB to develop a youth baseball facility;
• MLB to increase the number of free tickets given to disadvantaged children.

"The new agreement is a much better deal for the city with as much as $12 million in concessions from Major League Baseball," Bill Hall, baseball chairman for the D.C. Sports Commission, tells WTOP.

The new stadium would be financed using "traditional, tax-exempt and taxable revenue bonds." That means Deutsche Bank will not be used to finance the stadium's construction.

The agreement, which addresses concerns raised by D.C. Council Chair Linda Cropp, is outlined in a cover letter signed by D.C. Mayor Tony Williams, baseball mediator Dennis Archer and Major League Baseball President and Chief Operating Officer Bob DuPuy. The City Council has until June 20, 2006 to approve the deal.

The letter obtained by WTOP says the financing provisions for the stadium will not be included in the lease submitted to the Council.

It does say parcels at the south end of the stadium site can be sold to developers. The proceeds would be split between the team and the District with the city receiving 57.5 percent of proceeds and the Nationals receiving 42.5 percent.

Hall values the land deal at the south end to be worth $4.2 million to the city and savings achieved through traditional financing to be another $3 million.

Under the deal, the team will have an option to lease and develop the retail space designated on the east side of the stadium on 1st Street.

If the stadium is not finished by the start of the 2008 baseball season, the team will pay to rent RFK Stadium. The rental rate will be $2.65 million a year, which is less than the team is currently paying.

Additionally, the team will help develop a new youth baseball facility, providing $1 million in matching funds to build a facility and $250,000 a year for 10 years to fund its operation. D.C. will need to provide the land.

Hall says funding and building of the baseball center adds up to $3.5 million for the District.

The Nationals also will increase by 2,000 the number of free tickets given to disadvantaged children in the city. The team will give out 10,000 tickets. Hall says that's a $600,000 value.

The city does stand to lose one of its sky suites at the stadium if it asks any more money from baseball.

"The parties also agree that if the executive branch of the D.C. government, including the commission and the Anacostia Waterfront Corp. or the chair of the Council or the District Council, requests even $1 more or anything of the equivalent value of $1 more from the team or MLB, the commission will relinquish one of the two suites at the ballpark," the cover letter says.

When the lease arrived at City Hall to be presented to the chair of the Council, the secretary of the Council at first rejected the document because it was "legally insufficient," but then later accepted the papers.

(Copyright 2006 by WTOP. All Rights Reserved.)