Angels tell Anaheim they're opting out of their lease on Angel Stadium

Jiggsawpuzzle35

Well-Known Member
Original Poster
OK, I am home, but the meeting is still going on.

I am screaming at my TV at Dr. Moreno. I am so glad I am here, because I would be close to losing it in the Chamber.

Maybe 1 hour to go.
Glad it’s over with. So glad the Halos are staying. It’s a victory for the city of Anaheim, Orange County, and us Angels fans.
 

Darkbeer1

Well-Known Member
The final vote was 4 Ayes, 2 nays by Moreno and Barnes. Councilmember Brandman was absent due to a medical emergency.

I have been in touch with Jordan in the last hour. He hated missing the meeting and is following Medical advice after visiting the ER this afternoon.

So the land sale moves forward, but it really means nothing except that the two parties will continue to negotiate for quite awhile.
 

Darkbeer1

Well-Known Member

>>By a 4-2 vote, Friday night, Dec. 20, the Anaheim City Council agreed to sell Angel Stadium and the land around it to a development group led by team owner Arte Moreno for $325 million.


Even after a deal is in place, either side still can walk away if any of the subsequent steps cannot be agreed on.


“It comes down to a simple question: Do we want to see baseball continue in Anaheim or not?” Mayor Harry Sidhu said. “It’s a fair proposal that will put baseball in the city for years to come.”


The proposed deal has drawn cheers from many Angels fans and residents, while others have suggested Anaheim could do better and questioned whether the deal protects the city from a potential Angels change of heart.

Councilwoman Denise Barnes and Councilman Jose Moreno voted against the deal; Councilman Jordan Brandman was absent due to an emergency.


Under the deal, the city would sell the stadium to SRB Management Co. LLC, of which Arte Moreno is the controlling partner, for as much as $325 million, but the final price would likely be determined in 2020 after related agreements on community benefits are worked out.


The new owners would be in charge of renovating or replacing the stadium and would develop the property around the ballpark.


“We appreciate the council’s support of the purchase and sale agreement,” the Angels said in a statement following the vote. “We believe this is the right path to keep the Angels in Anaheim along with unlocking the economic potential of the Platinum Triangle.”


Angels officials told the council they believe the deal will strengthen the team’s relationship with Anaheim and Orange County. The team already has invested millions contributing to the area’s nonprofits and supporting youth, Angels chairman Dennis Kuhl said.

“Angels baseball is here to help Orange County and Anaheim,” he said. “We’re looking to create a destination that would attract baseball fans, visitors and residents for decades to come.”


Angels president John Carpino said the discussion to buy the land “has not been rushed,” that the team’s management has been talking with the city’s administration about the future over the last nine years. He said the team floated the idea in November of privatizing the aging stadium, which needs “a significant upgrade.”


“This agreement allows us to stay in Anaheim and keep the tradition for generations to come,” he said. “This plan provides certainty for the fans, for the community and achieves the city’s goal of getting the fair market value.”


Several other agreements are expected to come forward by spring: a commitment that the team would play in Anaheim through 2050, with another 25 years of extensions; and a separate agreement that commits SRB Management to renovate the stadium or build a new one without any public financing, describes what would be developed around the stadium, and lays out details and costs of affordable housing, park space and a labor agreement.

Those community benefit costs would be subtracted from the $325 million land price, so the final cost is not yet known. Closing the sale could take until 2025, so until then the current lease remains in place.


Barnes wanted the council to set a guaranteed floor for how much the city would get from the sale of the land.


“Every dollar that’s negotiated away, that’s a dollar away from your children,” Moreno said.


Barnes and Moreno had called for the vote to be delayed, saying it was rushed. “We never had an opportunity in 10 months to discuss this transaction,” Barnes said. “You can understand my frustration to pick this up and run with it.”


But other council members said they believe the deal will revitalize the Platinum Triangle neighborhood around the stadium.

“We would have the choice to bring much-needed affordable housing, park space to the Platinum Triangle and good-paying union jobs to Anaheim residents,” Sidhu said.


Councilman Trevor O’Neil said $325 million is a fair price for the land.


The council voted against several amendments offered by Jose Moreno, such as asking the city to continue to negotiate the return of “Anaheim” to the team name.


“There’s no room in the negotiation” for the team to do so, Carpino told the council.


A few people in the council chamber wore Angels gear to show their support for the deal. And many representatives from nonprofits and local unions came to support the team staying in Anaheim.


But there was an ample number of critics among the nearly 80 people who spoke as part of the public comment. They critiqued parts of the deal, from its price to the fact that the team name will not include the city’s name.

Paul Kott, an Anaheim resident and prominent real estate businessman, said he thinks the deal has been rushed. “I can’t believe after waiting a year to do this, you decide to have a meeting Friday before Christmas time.”


Kott was among several speakers who questioned the purchase price and if it is the promised fair market value of the land.


“It wasn’t an open sale. It wasn’t a competitive market. It was appraised for one buyer, one purpose,” he said. “This in no way is fair market value.”


Anaheim Union High School District board member Al Jabbar said the greater value some experts said the city could get for the property could provide funding to benefit Anaheim youth.


“This is not your money to leave at the table,” he said. “This is the money of the city of Anaheim, of the youth of Anaheim.


“You are selling the people of Anaheim short,” he said.

Union representatives voiced their support, especially in light of the deal likely including a community workforce agreement to hire more residents of the city and Orange County.


David Klawe, an executive committee member of the West Anaheim Neighborhood Development Council, called the agreement the “first step” in “achieving a great desired goal” of keeping the team in Anaheim while providing benefits to the city.


“The deal provides revenue to invest in public services,” he said, but urged the council to make sure the money gets distributed fairly to different parts of the city.


Meanwhile, a large number of supporters for the Anaheim Performing Arts Center asked the council: What about us? The group has been proposing for some time building a “world-class” complex on the 12 acres where City National Grove of Anaheim is now. The stadium deal includes the property in the 153 acres that would be sold. The group said it has offered to buy the property for $26 million, “at market value.”


“Why is it that we cannot have a commitment to the arts in our community?” Anaheim resident and Anaheim Performing Arts Center Foundation supporter Linda Barnett said. “We supported you and now once again, you have disappointed us and the people of Anaheim looking forward to this unbelievable performing arts center.”

The stadium is the fourth-oldest in Major League Baseball and needs at least $150 million in repairs and upgrades. Most observers say it’s smart of Anaheim to unload the stadium, on which it has spent millions over the years for only a modest return, and it has long been assumed any deal would include development of the acres of parking lots around the ball field.


As development takes off around the arena and stadium, officials expect to see a lively sports/entertainment district with restaurants and shops, hotels and apartments.


But Jose Moreno, other officials and some residents have suggested the city should move more slowly and have raised questions about how the deal was worked out, whether the city drove a hard enough bargain and why the council must take such a major step the week before Christmas, especially with many questions left unanswered.<<
 

Darkbeer1

Well-Known Member
A preview of an upcoming article...

How the Anaheim City Council, and its residents will learn basic Economics.



Good day, I am David Michael Klawe. I spoke at last Friday’s City Council meeting. The Orange County Register quoted me in their article, “Anaheim votes to sell Angel Stadium and the land around it for $325 Million”:



“David Klawe, an executive committee member of the West Anaheim Neighborhood Development Council, called the agreement the “first step” in “achieving a great desired goal” of keeping the team in Anaheim while providing benefits to the city.

“The deal provides revenue to invest in public services,” he said, but urged the council to make sure the money gets distributed fairly to different parts of the city.”




In my public comments, I talked about wanting to invest in the Stadium area, such as a new public park, and other city benefits, but wanted the council to watch what they demand, to leave a lot of sale proceeds (a.k.a. cash) for the rest of the city, “North to South, East to West”.

And that is key, yes, I want to see a good amount of that spent in West Anaheim. We are working on implementing the Beach Boulevard Specific Plan and the start of the 39 Commons Development. But there are a lot of things that need to be done west of Euclid Avenue, where Districts 1 and 2 are located.

And both Councilmembers Barnes and Brandman know I will keep reminding them of that. I do want to take the time to say I have been in touch with Jordan Brandman, and he is hopefully following doctor’s orders this holiday season to take care of his throat. He did attend a morning meeting at City Hall on Friday, and many folks noticed he wasn’t in the best of shape. He went to get some medical attention before the full council meeting, and as we all know, it took quite a bit of time, and was strongly advised to go straight home. He truly wanted to be a part of the council discussion and vote, but was in no shape to do so. I hope both Jordan, and Esther Wallace, the Chairman of W.A.N.D get healthier in the upcoming weeks.

Here is the key to the deal with Arte Moreno.

His group, SRB Management has agreed to pay $325 million for the current Angel Stadium, and the 153 acres of land that the Stadium sits on, plus the surrounding parking lot land.

Arte Moreno, and his group has also agreed to the following, that the MLB Angels team will play at the site until at least 2050, and that they maintain 12,500 parking spaces for stadium use.

So in reality, what does that mean. Since Arte Moreno wants to develop the area, he will have to build a large parking structure to open up much of the parking lot for other uses.

He also needs to have a ballpark that will allow the Angels a place to play until at least 2050 and includes standards for stadium operation, maintenance and investment standards. That leaves two basic choices, he can either refurbish the current Angel Stadium, or build a new one to replace the current one. And to allow the team to keep playing in Anaheim, his options are limited. So that means building the parking structure first, then the new stadium, followed by demolishing the old one, to open up the land for development.

All these things will be fully paid for by Arte Moreno and his partners.

In 2020, the City of Anaheim, and SRB Management, will work on a Development Agreement that both parties can agree to, and that means City Council approval.

As with any development with the city, there are certain requirements, based on the specific type of uses proposed. Things include items like parking spaces, traffic mitigation, and public parkland. All these requirements will be provided to the city by SRB Management, under the current city codes/laws.

Now, anything above those requirements, what are described as “concessions” will come from the $325 million sale price.

So in the first part of the deal, Arte Moreno and his group has said, that while the appraisal said the current stadium, the land, and the requirements of the parking spaces and operating a Ballpark was between $300 to $320 Million, they are willing to pay $325 for the package. And that is our best offer.

They also agreed to follow the current city codes, such as Public Park Space.

Before I go any farther, I need to say I will be using some easy to follow numbers for strictly example use. They are not based on any real numbers. I am trying to explain the concept. Also, to easily tell the two apart, I am calling the owner of the Angels as Arte Moreno, and will refer to Councilmember Jose Moreno as Dr. Moreno.

Now, city code bases the amount of park land required based on the amount of housing you will develop. We don’t know that amount. Also, city code gives the developer two options, either give that amount of land to the city, or a Cash in Lieu payment.

So using numbers that I am making up, since we don’t know the numbers, Arte Moreno wants to build 3,000 housing units, and that city code says that requires 5 acres of park land. And both parties agree that the deal will be for 5 acres located in the current Angel Stadium site, instead of the Cash in Lieu payment.

Now, the City Council says they prefer a larger park, say 10 acres. So that is 5 acres more than required by law. And let’s use the appraisal price of $2.1 million per acre, though that the actual amount is to be negotiated. We have $10.5 million of land that city wants. Sometimes that is worked out as a “concession”. But in this case, Arte Moreno said we have agreed to a price of $325 Million, including any extra concessions the city wants.

So now, for the 5 extra acres, the City will now get $314.5 million in cash plus the 5 extra acres. The city now has a 10 acre park next to the stadium.

And this will also apply to affordable housing. If the city wants affordable housing, they will have to come to an agreement as to how many units they want, and how big of a reduction in price as compared to the market rate for similar housing units. Now the city can do one of three things, take money from its current affordable housing funds, take funds from the $325 million sale price, or a combination of the two. Let’s say the city will take all the funds from the sale price, and that the subsidy is projected to be $7 million for 250 units. So now we further reduce the sale price to $307.5 million, and that includes 10 acres of park space, plus 250 affordable housing units.

Using one more example, let us talk about Project Labor Agreements (PLA), or something similar.

For the building of the actual stadium, the use of the Building Trades Union is normally expected, but in an analysis of how much the market rate would be compared to the city requiring it is $500,000. We are now down to $307 Million in Cash, and all the extras the city wanted in this example.

But let’s say Dr. Moreno wants all the housing units to be built using a PLA. A cost analysis shows that the difference between using market rate construction company rates (either non-Union, or a mix of Union and non-Union workers) and the additional costs due to the PLA is $7 Million. Now the City Council has to make a decision, do we reduce the sale price down to $300 Million, or do we decide to let SRB Management Company to make the decision of using Market Rate pricing, and keep the Sale price at $307 Million.

And these are the discussion and debates to expect in 2020. I want to see as much of that Sale Price as possible to be made available in Cash, so those monies can benefit the entire city, North to South, East to West.

Just as much as we, the residents, need to be smart about our budgets and how we spend our money in our daily lives, we also need to demand our City Council to do the same.
 

Darkbeer1

Well-Known Member
When I wrote this, in the back of my head, I wanted to say, What don't you understand about this, Dr. Moreno... You stupid jerk.

He played a bunch of word games about not understanding the concept, and trying to get city staff to screw up.

But the key is, he is now in a very tough place. He loves to demand concessions from others, now he has to deal with the costs of those concessions and will have to explain to the rest of the council and the staff and residents why we need to take so much money to fund his requests.

He can't force others to pay for it, and he can't complain about others not giving it to him.

And I get to say, what about West Anaheim... every dollar that goes to the stadium area, can't go to the rest of the city.

Now, I want a vibrant new Stadium area, with a nice large public park, along with shops, restaurants, a grocery store hotels and housing. I want that new tax revenue, that can be spent city wide for years to come.

So lets say $25 Million stays for the Stadium area, that should provide more land for the park and a few other things. But leave $300 Million for the entire city.

And my voice will be heard in 2020, more times than the council will want to hear.

But my voice will be for reason and common sense, and to use moderation in the concessions the council will ask for in the development agreement.

And who knows what else will be in front of the council in 2020...

And an election in November.

I have been told UNITE HERE is currently scrambling to figure out how to deal with the situation, and how to figure out how to campaign. We Know That Denise Barnes will be their Candidate in District 1, unless she makes a big mistake. And while not officially announced, in District 5, Ryan Ruelas will run against the incumbent, Steve Faessel (Someone I can call a Friend and will have S.O.A.R.'s full support).


District 4 (The DLR is in this district) will be an open seat. It looks like Mr. Kring will run to replace his termed out wife, Lucille Kring. Two folks have announced, Jeanine Robbins and Annemarie Randle-Trejo. It is not known how Dr. Moreno and UNITE HERE will support, most expect Annemarie, but some think Jeanine has earned her spot.... Glad I am not choosing.



Now, the proposed deal takes into consideration that the council might change with protections, but it is key that the Development Agreement gets signed by November, and all timelines have that built in.


Then in 2021 and 2022, it is all follow-through on the signed agreement, and fairly safe from changes.

And that in 2023 we see the actual deal completed, and the Angles officially take over the stadium and surrounding land, and can start construction on the new parking structure, and then the stadium itself....
 

truecoat

Well-Known Member
When I wrote this, in the back of my head, I wanted to say, What don't you understand about this, Dr. Moreno... You stupid jerk.

He played a bunch of word games about not understanding the concept, and trying to get city staff to screw up.

But the key is, he is now in a very tough place. He loves to demand concessions from others, now he has to deal with the costs of those concessions and will have to explain to the rest of the council and the staff and residents why we need to take so much money to fund his requests.

He can't force others to pay for it, and he can't complain about others not giving it to him.

And I get to say, what about West Anaheim... every dollar that goes to the stadium area, can't go to the rest of the city.

Now, I want a vibrant new Stadium area, with a nice large public park, along with shops, restaurants, a grocery store hotels and housing. I want that new tax revenue, that can be spent city wide for years to come.

So lets say $25 Million stays for the Stadium area, that should provide more land for the park and a few other things. But leave $300 Million for the entire city.

And my voice will be heard in 2020, more times than the council will want to hear.

But my voice will be for reason and common sense, and to use moderation in the concessions the council will ask for in the development agreement.

And who knows what else will be in front of the council in 2020...

And an election in November.

I have been told UNITE HERE is currently scrambling to figure out how to deal with the situation, and how to figure out how to campaign. We Know That Denise Barnes will be their Candidate in District 1, unless she makes a big mistake. And while not officially announced, in District 5, Ryan Ruelas will run against the incumbent, Steve Faessel (Someone I can call a Friend and will have S.O.A.R.'s full support).


District 4 (The DLR is in this district) will be an open seat. It looks like Mr. Kring will run to replace his termed out wife, Lucille Kring. Two folks have announced, Jeanine Robbins and Annemarie Randle-Trejo. It is not known how Dr. Moreno and UNITE HERE will support, most expect Annemarie, but some think Jeanine has earned her spot.... Glad I am not choosing.



Now, the proposed deal takes into consideration that the council might change with protections, but it is key that the Development Agreement gets signed by November, and all timelines have that built in.


Then in 2021 and 2022, it is all follow-through on the signed agreement, and fairly safe from changes.

And that in 2023 we see the actual deal completed, and the Angles officially take over the stadium and surrounding land, and can start construction on the new parking structure, and then the stadium itself....
In reading about the deal here, I was wondering about the financial impacts of the offsets. If it's in the $30 million dollar range like you have explained, that isn't bad. My immediate thought was much larger and sounded like a bad deal. It sounds like this is a great deal to keep the Angels without spending any or too much public money and the revitalization of that area will be amazing.

In my area, after years and years of what seemed like endless debate, our leaders arrived at a 50/50 stadium financing plan for the Minnesota Vikings. A lot of people thought it was a bad deal but the state insisted on a roof which the team didn't want and insisted it go downtown on the old Metrodome site even though the team had another site in mind. What seemed like a bad deal to finance the public portion through electronic pull tabs has paid off big time and will now have plenty of money to pay for the public part.

There were some that thought the team wouldn't move but the Rams moved to LA the same year the US Banks stadium opened and I believe now as I did then, the Vikings would be in LA now not the Rams if that stadium hadn't been built. On top of that, I'm not sure if I'd watch the NFL anymore as that would be a dagger in my sports heart.
 

Darkbeer1

Well-Known Member
In reading about the deal here, I was wondering about the financial impacts of the offsets. If it's in the $30 million dollar range like you have explained, that isn't bad. My immediate thought was much larger and sounded like a bad deal. It sounds like this is a great deal to keep the Angels without spending any or too much public money and the revitalization of that area will be amazing.

In my area, after years and years of what seemed like endless debate, our leaders arrived at a 50/50 stadium financing plan for the Minnesota Vikings. A lot of people thought it was a bad deal but the state insisted on a roof which the team didn't want and insisted it go downtown on the old Metrodome site even though the team had another site in mind. What seemed like a bad deal to finance the public portion through electronic pull tabs has paid off big time and will now have plenty of money to pay for the public part.

There were some that thought the team wouldn't move but the Rams moved to LA the same year the US Banks stadium opened and I believe now as I did then, the Vikings would be in LA now not the Rams if that stadium hadn't been built. On top of that, I'm not sure if I'd watch the NFL anymore as that would be a dagger in my sports heart.

I really wish I could share all I know, and the BIG picture (And boy, are those artist renderings pretty), alas, for many reasons the process has to be done step by step, and of course, modified as needed.

Today is the first day I have had all week to deal with things outside the political ones.

Each night has been a meeting of some sort, finding myself quoted in a news article, etc.

I truly have to watch what I say and do, and will continue to have to do that for quite awhile.

The Stadium deal is just part of a bigger picture. One that I have been a small piece of.

Hopefully, at the end we will have the full vision, If you want to just focus on the Sports aspect, by 2028, A new Angel Stadium, an enhanced Honda Center (and the current version isn't bad), new parking structures at both venues, new facilities surrounding them, a pedestrian bridge over Katella, a vibrant corridor between the venues offering food and entertainment. Better transit connections between the Sports area, which has our train station, to the Resort area, including the Convention Center and Disneyland.

But then, with the new funds we get, improve all the neighborhoods in our city, from fixing streets and parks, adding more personnel in law enforcement and social services to deal with many issues including the Homeless, Mentally Challenged and those with Drug/Alcohol problems, creating a better quality of life for all of Anaheim's residents.

So we will see the process play out. This spring will have the big battles play out, with hopefully a Development Agreement made by May. Then come the small stuff, planning commission meetings, etc.

And hopefully in 2023, all the details have been worked out and agreed to, and the contract signed. That will hand over the Stadium and property to Arte Moreno and SRB Management. And the city will get the full check, which it then can use in a multitude of ways, including city improvements.
 

Jiggsawpuzzle35

Well-Known Member
Original Poster

Darkbeer1

Well-Known Member
Looking forward to what the Ducks presentation will look like tomorrow. No idea why the Angels won’t just build a new ballpark. The Big A is a dump.

Mr. Arte Moreno/SRB wants to keep its options open during council negations regarding the project. Using the promise to build new might get them some type of relief in the terms.

Most folks expect a new stadium, but then, why show your hand at the table early?
 

Jiggsawpuzzle35

Well-Known Member
Original Poster
Mr. Arte Moreno/SRB wants to keep its options open during council negations regarding the project. Using the promise to build new might get them some type of relief in the terms.

Most folks expect a new stadium, but then, why show your hand at the table early?
I guess I just want to see something new and flashy. Just jealous of teams like Texas and Atlanta getting new ballparks after already getting new ones built in the 90s. The Braves got the Olympic stadium from 1996 and still got a new one built recently.
 

Club Cooloholic

Well-Known Member
Nobody ever learns from these ballpark deals and how little they ever actually help the local economy. Its corporate welfare as usual for billionaires, all this deal did was raise the value of the team for Moreno And when was the last time you saw 153 acres of prime real estate go up for sale at such a low price?
 

Jiggsawpuzzle35

Well-Known Member
Original Poster
B7B37497-ABA2-4A4F-9F2F-A4187DADC983.jpeg
 

TP2000

Well-Known Member
Wow the Ducks have outdone themselves. OC Vibe will take a fraction of the time to build compared to the Angels project. OC Vibe

It is a much better use of that land than just the existing surface parking lots.

But there is a lot of big "ifs" involved here. This is currently just a pretty picture an intern created and a pie-in-the-sky proposal. And the proposal has not added any additional parking capacity to the site, it's just moved it into parking structures along the perimeter.

And not just moved the parking without expanding the parking capacity, but also removed the huge surface parking lot across the street in front of the ARTIC station and turned it into a "yoga park" (their words, not mine)...

Are all these people doing yoga? Or are they homeless heroin users? Maybe it's a Peaceful Protest not Social Distancing?
download.jpg


That's going to require getting Anaheim, plus Amtrak and Metrolink, on board (pardon the pun) with making their existing parking right in front of the station less convenient by placing it in a new structure built across the street.

I do like that this is all being done with private money from the Samueli family. It's not asking for handouts from local government to do this, but using American free enterprise and capital to create this. Bravo, Mr. Samueli!

But this concept only seems to duplicate similar or identical concepts and offerings that already exist (and are struggling to exist) within walking distance of this site, or within a few miles of this site in Anaheim; House of Blues, Stadium Promenade Center, Anaheim Packing House, GardenWalk, Downtown Disney, Grove of Anaheim, Anaheim Arena, etc., etc.

I'm not saying OC Vibe won't happen, and I wish them luck. But to get it to happen you're going to have to make a business case that all the similar or identical facilities like this that already exist nearby in Anaheim need to be duplicated and/or moved to this site instead. That's a monumental task, that probably won't happen in its announced entirety.

download (1).jpg
 
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