So we talked to Acme, what's going on, got some understanding from them. They asked, Do you want it? We said, Well, we don't know, we're in a process right now of looking at stadium sites. Could you do us a favor and not put it on the market? because we might we might have an interest. And they were, to be candid, and I think I should say this because they were a good corporate citizen, so they carried it. You know, in other words, they paid for the security guard and the insurance and the taxes for a couple of months on our request. But we then got to the point where a decision was made to proceed with the 12th and Vine T-Warehouse scenario. At that point, Albertson, you know, we can't keep this off the market forever. Do you want it? And we said no, 337 11/30/00 - STADIUM HEARINGS a siting decision's been made, go ahead and put it on the market. They put it on the market. My best recollection is there was sort of one round of proposals. They kind of did it at -- they sort of marketed it themselves, they didn't use a broker. And they had, I think, one round of proposals. And part of that was because I know we got one call -- because, again, there's special food center zoning, so we got a call from one user, who was potentially going to be in need of variance, and would we support or fight the variance, and we said we probably would fight that variance, 'cause at that point, we thought we were -- it's a food center, so we said no, we don't want to convert it to some non-food center use. They were unsuccessful in that round of getting any proposals that met their price. They had set a price.
Out of respect for them and how good they've been about it, I don't know if those are really public. I'm happy to find out 338 11/30/00 - STADIUM HEARINGS if they are, and I'll share them with you.
They're higher than what is alleged to be the current purchase price?
Yes, yes, yes. They then -- so basically, they didn't get any proposals that were satisfactory to them, they then sort of thought about it, they then were going to put it back on the market again at a different price, lower. I lose track of time. And maybe that was the August time frame. They advised us that they were going to do that and said, you know, we're just letting you know, you know, you've asked us about it before, so we're letting you know if you want to -- they didn't say, Do you -- they said, You're welcome to submit a proposal. And we said, Well, we won't be submitting a proposal so -- and that's what happened.
Thank you. 339 11/30/00 - STADIUM HEARINGS Councilwoman Tasco.
I don't have a clue off the top of my head. Can you ask the teams tomorrow? Do you mind waiting?
Okay, well, I'll ask that question tomorrow. Maybe you all will know tomorrow. On this operating and maintenance expenses, the other day, you said the City would bear 75 percent of the cost?
The City pays a specific schedule for a 25-year period that's, 340 11/30/00 - STADIUM HEARINGS during that 25-year period, roughly 75 percent. And in the remaining five years, we pay nothing and they pay a hundred percent.
No, I mean, why did you even -- why are we even paying operating expenses?
Well, we did that in lieu of making a capital contribution to the stadium. This is the NFL loan, the use of the NFL loan, and it can only be matched by private money. And so, it was to the benefit of the transaction to maximize the private-sector funding, you know, on the capital side and have our contribution be on the operating side.
Okay. Now, if we're going to give them $10 million from the capital -- from the bond proceeds --
-- for capital maintenance reserve, and they're getting a new 341 11/30/00 - STADIUM HEARINGS stadium, and most likely, that money will go into an interest-bearing account, have you projected how much that may generate in interest for investment return?
Yeah, I have it off the top of my head, but I think -- and, again, you might want to ask the Eagles tomorrow. I think they were already -- I can't remember -- the reason I'm stopping is I can't remember which stadium it is. I think it projected about a million and a half a year in capital expenditures just to kind of keep it going, even almost from the beginning. So -- and if those numbers are roughly right, so it maybe represent -- I mean, we could do a calculation for you and tell you sort of what it would mean, but it probably represents -- if you did something that, maybe it covers a million and a half, maybe it covers nine, ten years of potential capital needs or something like that, you know, if you think about the interest-bearing aspect.
But if we're getting a new stadium, they shouldn't have any capital needs in maybe the first five years. How 342 11/30/00 - STADIUM HEARINGS much do you think might be generated from investing $10 million for five years?
No, I think -- again, you should ask David. But, in fact, there are capital requirements --
Are there any other questions from members of the committee? (No further questions.)
Do we have anyone else to testify on these bills? Pardon me?
Do you wish us to stay or we'll be back tomorrow, obviously, Madam President.
We're going to recess until 9:30 tomorrow morning.
Okay, thank you very 343 11/30/00 - STADIUM HEARINGS much.
You will have -- and I'm sure, Mr. Dubow, you're going to have the five-year plan here with you.
And we'll walk through that and we have other witnesses.
Thank you all very much. (Adjourned at 6:00 p.m.) - - - 344 C E R T I F I C A T E We HEREBY CERTIFY that the foregoing proceedings of the Council of the City of Philadelphia of Thursday, November 30, 2000, were reported fully and accurately by us, and that this is a correct transcript of same. RE: COUNCIL COMMITTEE OF THE WHOLE STADIUM BILLS __________________________________, LISA C. BRADLEY Registered Professional Reporter __________________________________, JOSEPHINE CARDILLO, Registered Professional Reporter