• Agenda Report Regarding Continuance of "Committee of the Whole" Meeting to Review Proposed 49ers Stadium (200KB PDF)
• Citizen Handout (1.18MB PDF)
  

At this time, preliminary and non-binding negotiations are underway with the 49ers, to clarify and document understandings and guarantees of all parties involved in the proposed stadium project. See details about the process outlined below. The goal is to bring the results of the negotiations forward to the City Council in June, 2008. When a specific date is determined, it will be listed here.

Please note that the Tuesday City Council meetings are open to the public, televised live at 7 p.m. on Cable Channel 15, and rebroadcast the following Wednesday at 7 p.m. and Thursday at 1 p.m. DVDs of the meetings are also available at the Library for check out.

Council authorizes next step in negotiations with 49ers

In November 2006, the 49ers announced their interest in building a football stadium in the City of Santa Clara.  It would be located on part of the parking lot of Great America Theme Park, 5000 Great America Parkway, just south of Tasman Blvd.  This land, like the land under the Theme Park, is owned by the City, and is contractually committed to Great America for parking requirements.

After one year of extensive research, discussions, and public comment, and an eight-month feasibility study, the City Council determined at its January 15, 2008 meeting that the 49ers proposed stadium presents a potential entertainment/economic opportunity for the City’s North Bayshore Area.  Council directed the City Manager to move forward in the next step of negotiations with the 49ers.  These preliminary negotiations are non-binding -- they do not commit the City to the stadium project -- and will be contained in a Term Sheet which will be created over the next 4 to 6 months.  The purpose of preliminary negotiations is to further examine issues and clarify and document understandings and guarantees of all parties involved in the proposed project.  The Term Sheet would return to the Council for review and further public discussion. 

Concurrent with the work on the Term Sheet, the 49ers will begin the California Environmental Quality Act (CEQA) process, including an Environmental Impact Report. On March 12, 2008, the 49ers made their project application to the City for their proposed stadium. This allows the EIR preparation to begin.  The costs of preparing the report are paid by the 49ers, with the City of Santa Clara serving as the lead agency in its preparation.  It is necessary to begin this process immediately if the target date for the stadium opening of 2012 is to potentially be met.  Starting the CEQA process does not guarantee that the project proposal will be approved by the City. 

Meetings between the City and the 49ers, and discussions with Cedar Fair, are ongoing. In a letter to the City dated December 14, 2007, which was placed on the City Council Agenda of December 18, 2007, Cedar Fair laid out specific conditions they believe would be needed for the stadium to co-exist on the theme park parking lot. The parking lot is owned by the City but is used by the City to provide required parking to the theme park, under the theme park's lease with the City. Following several meetings and discussions with Cedar Fair representatives, the City responded to Cedar Fair's December letter with a letter on April 17, 2008, summarizing discussions and potential options for resolutions.

On January 15, 2008, the actions taken by the Council/Redevelopment Agency on a 6-1 vote were as follows:

• Determined that the Feasibility Study is complete and that it indicates the 49ers stadium project is feasible, but that there remain many outstanding issues requiring resolution in the negotiations phase
• Determined that the project is feasible only if the City contribution does not exceed $136 million, including Redevelopment Agency funding resources, and Utility Funds (for relocation of the electric substation)
• Referred to the City Manager to negotiate an Exclusive Negotiating Rights Agreement (ENRA) with the 49ers, to enter into preliminary negotiations for a 4-6 month time, resulting in a Term Sheet that would memorialize key understandings, obligations, responsibilities and financial commitments between the City and the 49ers.  The non-binding Term Sheet would allow the Council to determine if they wish to proceed further to negotiating a lease that would address stadium construction and operations issues.  The ENRA would return to Council for approval
• Referred to the City Manager to continue discussions with Cedar Fair and the 49ers to resolve issues pertaining to the proposed stadium location and other Cedar Fair concerns
• Referred to the City Manager to return to the January 22, 2008 Council meeting with a recommendation on the type and timing of a ballot measure for a stadium
• Referred to the City Manager to develop a proposed consultant budget for continuing staff support, for the next phase of the stadium project, and return to the Council/Redevelopment Agenda with this information.

At its January 22, 2008 meeting, the City Council discussed the type and timing of a ballot measure for the proposed stadium. At their March 4, 2008 meeting, the Council determined that a November 2008 City ballot measure will be held on the proposed stadium project with information for the ballot measure being taken from the Term Sheet currently under negotiations between the City and the 49ers, and the ballot language would clearly state that the measure was subject to the stadium project completing California Environmental Quality Act (CEQA) review.

Feasibility studies of this complex proposal have covered a wide range of questions and community concerns including legal, financial, infrastructure and stadium location issues.  The Term Sheet will further clarify the following issues, among others:

• The potential for a direct land lease payment to the City.
• Resolving concerns expressed by Cedar Fair
• Determining who would be responsible for construction cost overruns beyond 2013.  The 49ers have already agreed to pay for any overruns through 2013.
• Analyzing the potential expansion and current costs of a proposed 1,800-space, publicly funded parking garage in order to meet the parking needs of both the stadium and the Theme Park. The City has committed up to $42 million for the construction of a garage to serve the Santa Clara Convention Center. If the stadium went forward, the parking garage purpose would be for the stadium and Theme Park, rather than the original designation for the Convention Center. The final cost, location and who would pay for an expanded garage will also be a discussion item.

Links to Past Reports and Background Material

All reports considered by the City Council regarding the proposal of the 49ers to build a stadium in Santa Clara can be accessed online.  Please note that the PDF files are very large and may take several minutes to load if you are on a dial-up connection. If you have difficulty opening the PDF, you may need to refresh the page (F5) or download a newer version of Adobe Acrobat Reader.

Key Reports

• 49ers Stadium Proposal, presented to the City of Santa Clara on April 24, 2007 (3373KB PDF)
• Guiding Principles for Use in the Evaluation of the Feasibility of a Proposed Stadium, adopted by the City Council on January 9, 2007 (264KB PDF)
• City Analysis of Economic Impact Report originally prepared by the 49ers’ consultants (963KB PDF)
• Tax Increment Study for the City and its Redevelopment Agency North of Bayshore and University (Downtown) Project Areas (496KB PDF)
• 49ers Project Application for Proposed Stadium (3.46MB PDF)

Past Agenda Reports in Chronological Order