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Baseball Sweetens Benefits To City

Under the pact signed by Williams and baseball officials, a stadium along the Anacostia waterfront in Southeast would be funded through a gross receipts tax on large businesses, a concessions tax and an annual rent payment by the team. Although mayoral aides have said the stadium project would cost $440 million, the city's chief financial officer, Natwar M. Gandhi, estimated the cost at $535 million, and the D.C. auditor, Deborah K. Nichols, put it at $584 million.

During the first vote, the council adopted three amendments offered by Cropp, including one that would require Gandhi to reexamine the costs. That amendment says that if Gandhi's new estimate is $100 million higher than his first, the mayor will be required to find a less expensive site for the stadium.


Council Chairman Linda Cropp says she has "things in writing."

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Cropp said yesterday that she will offer several more amendments to the legislation today before the council takes a final vote. She said her proposals will include lowering the cap from $100 million to $20 million, meaning that if Gandhi's new estimate exceeded $555 million, the stadium would have to be built elsewhere.

She said baseball officials are aware of all the amendments she intends to offer.

"Whatever I plan to introduce, there's a general sense of agreement between all the parties," Cropp said. "The amendments will be acceptable."

But other council members were skeptical. Adrian M. Fenty (D-Ward 4), who voted against the baseball legislation, said Cropp still seemed to be "on shaky ground" when she briefed them on her dealings with Major League Baseball.

"There was nothing definite. She was still only talking to baseball," Fenty said. Furthermore, he added, "all the amendments she's talking about moving do not substantially do anything to improve this contract."

Fenty is among several council members who said they will introduce other amendments today.

One amendment is being developed by Mendelson, who is concerned about the amount of gross receipts taxes businesses would have to pay to build the stadium.

Mendelson is considering introducing a proposal that would extend a special utilities tax on businesses and federal buildings in Washington that is set to expire at the end of this year. If the city extends the utilities tax and uses the revenue to fund the stadium, it could then reduce the gross receipts tax significantly.

Staff writer Thomas Heath contributed to this report.


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