$22 million in public funds sought for new Tacoma soccer stadium, according to letter of intent
About $22 million in public funds is being sought for a potential new soccer stadium in Tacoma, according to documents obtained by The News Tribune.
A nonbinding letter of intent between Metro Parks Tacoma, the City of Tacoma and The Soccer Club of Tacoma (TSCOT) was proposed to the Metro Parks Board on Monday. TSCOT consists of the Tacoma Rainiers and Seattle Sounders.
The letter outlines a draft funding plan for the first time between the parties for an estimated $60 million stadium, which is proposed to be built between state Route 16 and South 19th Street between Foss High School and Cheney Stadium. A feasibility study released in May determined the project to be feasible.
The preliminary funding plan includes:
▪ $18.5 million from TSCOT ($2 million up front cash, $16 million through annual debt service payments)
▪ $15 million from City of Tacoma ($10 million up front cash, $5 million paid over two years)
▪ $7.5 million from Metro Parks Tacoma (up front cash)
The letter proposes filling the funding gap with $12 million through potential New Markets Tax Credits (NMTC).
Stadiums in Seattle have also been in part funded through sales tax credit, which poses an opportunity for Tacoma.
“There is an equity argument here to made that the state should do something similar for Tacoma,” project consultant Tim Thompson told the Metro Parks Board in a presentation on Monday.
To get to the estimated $60 million cost, another $7 million in public or private funding is still being determined. Thompson suggested turning to Pierce County, anticipating the stadium to have regional benefits.
TSCOT agrees in the letter to pay for any development costs over $60 million. They also pledged to provide 100 days of rent-free use as master tenant of the stadium.
TSCOT is also responsible for maintenance costs of the stadium, estimated to be $300,000 annually. Maintenance would be paid for through money generated by the stadium.
The letter of intent has not yet been signed. If the letter of intent is signed by all parties, the goal is to have a complete funding plan by March 31.
On Monday, the Metro Parks Board posed questions and concerns regarding the letter of intent.
Commissioner Aaron Pointer wanted to ensure that any baseball fields that would be displaced for the stadium would be relocated prior to construction of the stadium.
“Metro Parks does not need or want a soccer stadium, so there are a lot of things to cover and a lot things that need to be done before this can get off the ground, as far as I’m concerned,” Pointer said.
TSCOT assured in the letter that there will be “no net loss of available fields” and promised to “assist with the long term solution for field replacement.”
Pointer also said that he would not support any sale of Metro Parks property but is open to a long-term lease. The letter proposes consolidating property ownership under the city for parts of the project. Selling property requires a unanimous vote from the park board.
“Metro Parks will not sell any parks land … That’s not going to happen,” he said on Monday.
Commissioner Tim Reid said he had no problem with the letter of intent.
“What it does is start the public process,” he said. “There’s nothing binding in the letter of intent ... It just says we’ll move forward.”
The Metro Parks Board asked for the letter to be brought back for potential approval on Feb. 24. The Tacoma City Council also will be bringing the letter of intent forward again after a study session on Tuesday.
Most council members expressed excitement for the project.
“The soccer field is great and I’m excited about it, but I’m more excited about the development it will spur once it’s created,” Mayor Victoria Woodards said.
Council member Robert Thoms brought up concerns about accessibility and parking if the stadium is built.
“I want to make sure it’s easy to access,” he said.
Council member Chris Beale cited concerns of spending up to $15 million of the city’s reserve money, which currently sits at $43 million.
He also said the financial benefit of the mixed-use development attached to the project is speculative.
Constituents could see the project and think, “a nice item to have, but not an essential thing when we’re looking at what we’re dealing with in the community,” Beale said Tuesday.
This story was originally published February 4, 2020 at 11:26 AM.
