New Mexico United owner Peter Trevisani (left) discusses the team’s proposed investment during a news conference Thursday with City of Albuquerque Chief Operating Officer Lawrence Rael (right). (Adolphe Pierre-Louis / magazine)
The professional soccer team, which will occupy a planned stadium in Albuquerque, has now made public what they want to invest in their new home.
New Mexico United would contribute $ 10 million to build the city’s proposed multi-purpose football stadium and pay $ 800,000 annually in base rent to be the main tenant of the venue, under the terms set out in a new three-page “Letter of Intent” on the lease “Are set.
The team would also have to pay the city an additional $ 100,000 per year, but otherwise keep all of the stadium’s revenue outside of certain events organized by the city.
The letter is not a formal lease that has yet to be negotiated.
The document, released on Thursday, includes new details on the November 2nd elections that are expected to determine the fate of the stadium.
The vote will ask voters if the city should issue up to $ 50 million in bonds to fund a venue valued at $ 65 million to $ 70 million. The bonds – which are backed by the city’s gross revenue – technically don’t require voter approval, but Mayor Tim Keller’s office has announced that it will not pursue the stadium if the bond fails.
Should voters give the public investment the go-ahead, officials say United’s new $ 10 million upfront pledge – combined with about $ 8 million in previous government funding – means the city has plenty of cash should in order to actually build them.
The team’s planned annual rental and revenue payments, meanwhile, would cover about 30% of the city’s stadium loans.
The city would owe an estimated $ 3 million annually for an estimated 25-year term. The city would use the recently released funds to pay off old debts so the stadium loan wouldn’t raise taxes.
“Our goal here is to make this good business for voters, good business for the city of Albuquerque,” said Lawrence Rael, the city’s chief operating officer, during a press conference Thursday morning at Isotopes Park, a facility which United currently shares with the baseball team of the same name.
United owner Peter Trevisani touted the letter as a “promise” bigger than numbers.
“This is a long-term commitment that we have here. And, and most importantly, I think it’s a commitment that we believe in in New Mexico. We firmly believe in our state, we firmly believe in our city, we are ready to use not only our capital, but all of our resources, ”said Trevisani.
The letter signed by Rael and Trevisani is not a formal lease, but contains “key points of the agreement” that go into this process and is legally binding should the bond go through, Rael said. The document provides a statement to both parties stating that either party may terminate the letter of intent if the parties fail to reach terms on the stadium design, financing, or the final lease and development agreement.
According to the letter, United will negotiate a minimum 25-year lease with the city for the venue, enter into a “community performance agreement” with the neighborhood in which the stadium is being built, “make an effort” to use local providers for stadium concessions, and try to to found a women’s professional soccer team in the next three years.
The letter stipulates that the city, which would own the venue, will use it exclusively 15 days a year and will not be responsible for the ongoing operating costs.
With the exception of city-run events, all stadium revenue – including potential naming rights sponsorships, other advertising, and parking – would go to United, but the terms require the team to pay at least $ 100,000 in addition to the base rent.
Rael said the eventual lease will set out what happens if there is a breach, but he is confident that the city will be partially protected because the property is on-site.
“I know where these guys live. You all know. They’re new Mexicans and I think that’s really super important, ”he said. “We have New Mexicans investing in New Mexico.”
He also noted the letter’s requirement that United purchase business interruption insurance “to support the team’s annual commitment to pay the basic rent to the city.”
He said the conditions described in the letter provide additional details for voters as they prepare for a decision.
“This information that we are presenting today is really starting to bring some structure and commitment to the project in my opinion,” said Rael.
Notable questions related to the project include the location, which officials said they will determine if the bond is up.
A city advisor tasked with evaluating the feasibility of a stadium looked at four locations and identified two as “preferred” locations – Second Street / Iron and Coal / Broadway. The company recommended 10,000 to 12,000 spots and estimated the project would cost around $ 65 to 70 million based on preferred locations. Both locations currently include at least some privately owned land, and the consultant’s estimates did not include land acquisition costs. The forecast price also did not include any parking spaces that exceeded the space required for the staff.
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