Upping Ante, Williams Seeks $338 Million For Baseball

N.Va., Oregon Bidders Offering Millions Less in Public Backing

Mayor Anthony A. Williams is asking the D.C. Council to approve $338 million in city government funding for a new ballpark and renovations to RFK Stadium, a package larger than he had previously disclosed and millions of dollars more than other areas bidding for a team have offered.

Administration officials presented the number in a closed-door meeting with council members yesterday afternoon, ending months of secrecy about a financing package they presented to Major League Baseball officials in Phoenix in March. A bill seeking the funding is slated to be filed at the council in the next few days.

The bid significantly raises the ante in a high-stakes effort to bring the Montreal Expos to Washington next year. The two other bidders, Northern Virginia and Portland, Ore., offered less than $300 million in public funding for a stadium. Williams had previously said that he would not go higher than that amount.

A Williams administration official, speaking on the condition of anonymity, said the $338 million includes $275 million toward the cost of building a stadium and $15 million toward renovating Robert F. Kennedy Memorial Stadium for an initial two or three seasons while a stadium is under construction. The remaining money would be for the cost of issuing the loan and interest charges that would accrue in the early years, before the stadium is completed.

The team ownership group would be responsible for $125 million to $150 million, the official said.

The total cost of bringing baseball to Washington is estimated at $463 million.

The financing for a stadium would come from a mix of sources totaling about $24 million a year.

The money would come from taxes on sales at the stadium, on the salaries of players and on the revenue of larger business citywide, said people familiar with the presentation.

Williams could not be reached for comment last night. His spokesman, Tony Bullock, said: "The mayor's commitment is strong. . . . This is an investment in the future economic development of our city."

Bullock added that the direct contribution to the stadium itself remains within the parameters Williams set in comments earlier but that related costs have grown.

Some council members who heard the presentation yesterday expressed optimism about the deal, saying they thought it would be workable, perhaps with some revisions. Opponents, both on and off the council, have questioned whether a stadium would generate as much in taxes and economic development as the mayor claims.

"If it generates the revenue and brings jobs and continues the economic development of the city, it'd be a worthwhile project," said council member Vincent B. Orange Sr. (D-Ward 5), who said he was leaning toward supporting the project but was uncertain about the financing package.

The leading stadium site, at New York Avenue and North Capitol Street, borders his ward. Most of it, however, is in Ward 6, where council member Sharon Ambrose (D) has deep qualms about public funding for a stadium.

If the deal is approved by the council, the city would borrow its share of the cost of the stadium and repay the loan from revenue generated from several sources, said those familiar with the package.

A 10 percent sales tax on food, beverages, merchandise and parking at the stadium would generate $10.1 million. A tax on the salaries of players would generate $4.5 million. Businesses generating more than $3 million in gross revenue would also pay a graduated tax, much as they did for construction of the MCI Center; 11 percent of the city's businesses have enough revenue to qualify for the tax, which would generate $9 million.

The plan faces resistance on the D.C. Council, which just passed a $5.6 billion budget for the coming year that squeezed several agencies and had only minimal increases for others, including public schools.

"Having just done the budget yesterday, I'm not prepared to spend public money," said council member Kathy Patterson (D-Ward 3), who did not attend the briefing.

One who did, council member David A. Catania (R-At Large), expressed enthusiasm. "I'm very excited about the idea of bringing baseball to Washington, and we just need to work out the financing details," he said, adding that he plans to propose alternative funding ideas.

The Northern Virginia officials bidding for a team offered $285 million in public financing toward a stadium that they estimate would cost $400 million, though they too have said they would absorb some borrowing costs.

The Portland group offered $280 million toward a $350 million project.