Beltway Confidential

DC to spend 9 figures on soccer stadium, charge team $1 in rent

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Beltway Confidential,Sports,DC,Timothy P. Carney,Analysis

The District of Columbia has published its agreement with DC United, the local Major League Soccer team.

Highlights [emphasis added]:

Subject to the terms and conditions set forth in this Term Sheet, the District will assemble the Stadium Site, assume the cost of environmental remediation of existing conditions on the Stadium Site and perform demolition and infrastructure work in connection with the Stadium and the ancillary development on the Stadium Site (collectively, the “Stadium Project”). At present, the District estimates that this contribution will have a total value of approximately $140 million (approximately $100 million associated with the assemblage of the real property in Squares 605, 607 and 661 and the northern portion of Square 665 for the Stadium Site and approximately S40 million for the work specified in this Section l.A in connection with the Stadium Project.

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The District will groundlease the Stadium Site to D.C. United for an annual base rent of $1.00. The term of the groundlease will be negotiated but will be approximately equal to the estimated useful life of the Stadium.

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