From Deseret News archives:
RSL's books forecast a profit, but county raising questions
Salt Lake County officials, however, are questioning whether those assumptions are realistic and plan to take several weeks to pore over the nearly 50-page document.
Real opened its books Monday for the county and for local journalists. The 10-year financial report, labeled "Project Beehive," included the operating model for the team, the stadium and a future radio station.
At the heart of the stadium deal is whether county officials determine it deserves millions of taxpayer dollars. A county-commissioned report by Economic Research Associates (ERA), a private consulting firm that will analyze that data, will be released mid-January.
Salt Lake County Mayor Peter Corroon, who saw the finances briefly Monday, said numerous items caught his eye that he said will need further explanation by team officials.
"No matter what, there's very little down side for Salt Lake County. We're only buying land, and the land generally appreciates in value. Even if the team doesn't succeed, we're still in pretty good shape," he said. "But we want Real to succeed if we go into business with them."
Sandy city has already pledged $15 million in redevelopment agency dollars for the $110 stadium. But Salt Lake County's share of the public money for the stadium hinges on a positive recommendation from ERA and an evaluation from the county's Debt Review Committee.
The dollar amount from the county is $40 million. However, the county and Real dispute that number and say it totals $30 million in net present value or today's dollars.
On top of that, Real expects $15 million from a facility surcharge bond, which refers to an extra ticket fee. Since that fee will not be immediately available, Sandy is taking out a loan for it and will incur the debt, in addition to the RDA money the city has agreed to contribute, said Dean Howes, Real's chief executive officer.
"Certainly, I think we feel very good about this. I think we've wrung a lot of the risk out of it and questions out of it," Howes said.
In a letter Monday to Mayor Corroon, he wrote: "We firmly believe that this is one of the best public-private partnerships ever created for a stadium project, anywhere in America."
According to the financial data provided by Real, the team expects a significant investment from partners. Real owner Dave Checketts's company Sports Capital Partners and Whitehall, a real estate fund of global financier Goldman Sachs, will each own a 50 percent share of the team. Real expects the investors to pitch in a total of $46.6 million next year and continue giving that amount until 2013.
