Nationals Park Revenue Falls Short of the Mark

That is well below the number the D.C. government projected in a report to Wall Street two years ago in preparation to sell construction bonds for the stadium. Economic Research Associates, a consulting firm hired by the city, examined trends from other recently opened ballparks and concluded that the Nationals would sell 3.1 million tickets in 2008.

Ticket sales would make up about two-thirds of stadium revenue, and concessions would make up 25 percent, the consultants said. The team would gross $165 million and pay $16.1 million in taxes to the city, they said in the report.

Instead, the Nationals will pay $13.5 million in taxes this season. Taxes are 10 percent of gross revenue, so the team appears to be set to gross about $135 million, though neither Nationals representatives nor D.C. officials would confirm that figure.

"The fact is that it was a lousy product this year. The team was awful, the worst team in baseball," said D.C. Council member Tommy Wells (D-Ward 6).

Two weeks ago, the Nationals announced that they will lower season ticket prices for 7,500 seats next year, including 3,400 in the lower bowl of the stadium.

"This was not a one-year deal. This is a deal that is going to help that portion of the city for many years to come," Cutts said. "I would not say you can judge the success based on one year's performance. There is no question it has sparked economic development in that area. Thousands have traveled in that area who never used to go there. There are plenty of positives. It's a little premature to say if there were any negatives."

Former mayor Anthony A. Williams had touted a "ballpark entertainment district" that would be a lively corridor for fans, similar to the development in Gallery Place around the Verizon Center. But economic development near the ballpark has slowed because of the sluggish commercial development and residential property markets, developers said.

A block north of the ballpark, Monument Realty is building a $350 million, 775,000-square-foot mixed-use project along Half Street SE. Company vice president Russell Hines said an office building will be completed next year, but plans for a residential tower and hotel next door, along with restaurants and retail on the ground level, have stalled as the company continues to seek financing.

"It's certainly a reasonable assumption that the disruption to the capital markets has set things back," Hines said. "But look down there. There are still people starting projects. The medium- and long-term outlook for Washington is still very bullish."

Akridge Co., which owns an old Metro bus garage next to the Monument property, will break ground in 2010 on a mixed-use project that could be completed by 2012, said spokeswoman Mary Margaret Plumridge.

Michael Stevens, executive director of the Capitol Riverfront business improvement district, which includes the ballpark area, said he remains confident that the corridor will become a vibrant neighborhood in the long term.

"Everybody's been the victim of the bad financial markets, and it's going to be bad for two more years," Stevens said. "Retailers and restaurateurs are really scared to open up stores during an economic downturn. Are the restaurants as far along as I'd like? No, they're not. I'm sure the ballpark folks feel the same way."