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SANAT CLARA, CA-Early Wednesday morning the Santa Clara City Council voted in favor of the $937-million financing plan with the San Francisco 49ers for an NFL stadium and parking adjacent to the city’s convention center, the Great America theme park and the football team’s existing headquarters and training facility. The proposed deal includes up to $114 million in public subsidy, 62% of it from the city. The 5-to-2 vote sets the stage for a citywide vote on the plan in March.The proposed financing agreement for the new Santa Clara stadium calls for the city to pay for up to $72 million of the $937-million development, and for eight nearby hotels to put up an additional $35 million by way of a voluntary room tax. The team agreed to pay for any construction cost overruns as well as any operational shortfall. In exchange, the team will keep all revenue from ticket sales from games, ad revenue from NFL events, ticket premium fees for suite and club room use for non-NFL events, and revenue from the team store.

The newly formed Santa Clara Stadium Authority would get revenue from naming rights; net revenue from concession sales and parking lots; and annual rent payments from the team that would total roughly $40 million over the life of the contract, which has an initial lease term of 40 years that may be extended by an additional 20 years.

The city’s $72 million includes up to $42 million in tax-increment financing from the city’s redevelopment agency, $20 million to relocate a power substation and $17 million to help build a $42-million 1,700-space parking garage that would service not only the stadium but also the convention center and the theme park.

If the redevelopment agency doesn’t have the necessary funds to foot the $40 million for the stadium and the hotel tax doesn’t generate the additional $35 million the 49ers would be responsible for making up the difference. If the economy does not improve and the funds do not eventually become available, the 49ers would simply not be repaid, assistant city manager Ron Garratt tells GlobeSt.com.

“Right now we’re estimating today we have about $28 million in tax increment we could bond against, which would put the 49ers on the hook for the remaining $12 million, and that the hotel tax would not generate $35 million,” he says. “But those numbers will keep moving around and if financial conditions worsen and the state decides to make itself whole by taking from redevelopment agencies, we may have nothing left [to bond against] but our hope is that the economy will recover, new projects will be built [in the redevelopment area] and [the 49ers] can get some of their money back.”

The stadium is slated to rise on a 13.5-acre, 2,300-slip auxiliary parking lot for the theme park, which is owned by Cedar Fair Entertainment Co. The proposed structured parking will replace about one-third of those spaces while the remainder of the space will be made up in part by reconfiguring the park’s main parking lot. Cedar Fair’s attorney last night asked the council to delay its vote on the term sheet to give it more time to work through certain issues with the city.

The next step in the process is to complete the environmental impact report, circulate it for public comment and then bring it before the planning commission and then the city council for approval, most likely this fall, assistant city manager Ron Garratt tells GlobeSt.com. After that, the term sheet will be used to create the ballot language for the citywide election.

If voters reject the plan the 49ers attention likely will shift back to San Francisco where the city, in partnership with Lennar, wants a new 49ers stadium at Hunter’s Point to replace Candlestick Park. Either way, the goal is to have the stadium ready for the 2014 NFL season. The team’s initial lease term at Candlestick runs through this season but the team holds three five-year extension options such that it could continue to play in its existing stadium through 2023.

The 49ers had initially asked Santa Clara to contribute more than $220 million toward the cost of the project, including $160 million toward the stadium and an additional $60 million for the substation relocation and parking garage. The deal was reportedly cut to $152 million — $90 million toward the cost of the stadium and $62 million for the substation and parking garage – before an additional $38 million was whittled off prior to last night’s city council meeting, which ended this morning with a 1 a.m. vote. Council members Will Kennedy and Jamie McLeod were the two “no” votes.

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