SANTA CLARA, Calif. (AP) A California county has surprised both the San Francisco 49ers and city of Santa Clara leaders by pulling $30 million in tax funds from the new 49ers stadium.
Santa Clara County officials told the Mercury News (http://bit.ly/OaqIBz ) Saturday that they would rather spend the money on teachers.
The team and the city said voters had specifically earmarked redevelopment money to help build the $1.2 billion stadium and that the county has no right to keep it.
The 49ers and Santa Clara officials will craft an official response this week. Lawsuits are likely, according to the newspaper.
The revocation occurred Friday by a new board that oversees property tax from redevelopment zones.
''Let's be real: That stadium is going to get built whether or not you get this $30 million,'' county tax collector George Putris, the oversight board member who proposed the motion, told a 49ers attorney at the meeting. He said the need was greater at other public agencies, such as school districts. The motion passed 4-3.
The move was so unexpected that Santa Clara leaders claim it was done in violation of public notice laws.
Santa Clara voters approved a 2010 measure that allocated $40 million in redevelopment funds for the stadium, which is set to open in 2014.
The state later did away with redevelopment agencies, and Santa Clara's redevelopment fund had only paid $10 million toward the stadium. So the 49ers loaned Santa Clara leaders the remaining $30 million and started construction, thinking they'd be paid back from future property tax revenues.
A 49ers spokesman declined to comment when asked whether the decision could affect stadium construction, which began in April. Officials have said the team would simply absorb the cost if it loses the funds, which amount to less than three percent of the stadium's total price tag.
I'm not a big fan of public financing of these things, but if Santa Clara county had a contract, they obviously should meet their obligations. Promising the money and yanking it seems like the dirtbag thing to do.
3. "except the bonds were often agreed to by previously elected officials" In response to Reply # 2
so new legislators step in and are the ones saddled with the responsibility of fending off bankruptcy due to the poor decisions of the previous officials:
5. "that region has the 2nd highest per capita income in the US" In response to Reply # 0
there's absolutely no reason schools should be underfunded, PARTICULARLY if it's just to entice an already rich organization to share in your regional riches.
good for Santa Clara <--- words I thought perhaps would never be spoken by me.
With what they are charging for SBL's (mine are 2k each and that's the cheapest) having to eat 30 mil isn't going to kill them. _________________________________ Reunion Radio Podcasts http://reunionradio.blogspot.com/
