City Council will vote on proposed $226 million public-private partnership on December 1.
SACRAMENTO, CA (November 25, 2015) – Today, the City of Sacramento released the Preliminary Term Sheet guiding the construction of a proposed Major League Soccer (MLS) stadium at The Railyards, downtown. The stadium, pending Sacramento being awarded an expansion team, would be built by Sac Soccer & Entertainment Holdings, LLC (SSEH). The term sheet will be reviewed and voted on by the Sacramento City Council on Tuesday, Dec. 1.
“There is tremendous enthusiasm for having a Major League Soccer team in Sacramento. The preliminary term sheet illustrates the City’s commitment to bringing an MLS team to the city and to bringing new life to the long shuttered Railyards site,” said Sacramento City Manager John Shirey.
“This is another huge win and we greatly appreciate the City’s support,” said Kevin Nagle, Managing Partner of SSEH. “This term sheet reflects just how committed, united and ready Sacramento is when it comes to bringing MLS to Sacramento and delivering a world-class MLS stadium to our community.”
The preliminary term sheet sets forth a detailed framework on key items of the stadium plan, including: location, financing, ownership, design, development, construction, operation, use and occupancy, and maintenance and repairs.
Highlights of the term sheet include:
- SSEH will own and operate the approximately 450,000 square foot stadium at the northeast corner of The Railyards site
- The stadium will have a capacity of 25,000 seats, including 3,100 premium seats, and a dedicated “supporter section” exclusively for the Tower Bridge Battalion
- Programming will include home MLS matches, friendlies, concerts, festivals and other sporting, family and civic events
- SSEH will arrange for a minimum of 6,500 parking spaces
- The stadium will have close proximity to light rail and the Sacramento Valley Station
- SSEH will fully finance the estimated $180 million in stadium project costs
- The City and other public agencies are committing the estimated $46 million in backbone infrastructure already completed (e.g. roads, sidewalks utilities, etc) on the site, which has been long envisioned as a perfect site for a catalyst project such as a soccer stadium
- There is no new public funding being committed
- SSEH will assume full responsibility for site assembly, pre-development costs, cost overruns, municipal services and capital repairs
- SSEH will request to host an MLS All-Star Game within three years of the stadium opening
According to the City analysis, the project will generate as much as $341 million in economic output during construction and as many as 2,628 jobs. The analysis forecasts additional economic impact spurred in the surrounding area.
To drive the stadium development process, SSEH hired Legends as project manager and HNTB as lead architect. At the current pace of development, the new MLS stadium could open as early as March 2018.
While the term sheet is preliminary and non-binding, it would serve as a good faith agreement and guideline for the preparation of definitive agreements between the City and SSEH for the development of the stadium, subject to all environmental considerations. The Preliminary Term Sheet would only be effective if MLS awards an expansion team and SSEH consummates the acquisition of the team.
ABOUT SSEH AND SACRAMENTO REPUBLIC FC
Sac Soccer & Entertainment Holdings, LLC (SSEH) was founded in 2014 by Kevin Nagle. SSEH and Sacramento Republic FC are collaborating in efforts to acquire a Major League Soccer (MLS) expansion team and build a world-class, soccer-specific stadium in Sacramento. Republic FC currently operates in the United Soccer League (USL). The club won the 2014 USL Championship in its inaugural season and is committed to making the Sacramento region into the most inspiring, energetic and rewarding place to live, work and play.
About Operation Turnkey
Operation Turnkey is an initiative launched in spring 2015 to enhance Sacramento’s bid to secure MLS rights and put Sacramento in position to begin construction of a soccer specific stadium immediately once an MLS team is secured. The five components of ‘Operation Turnkey’ are:
- Feasibility Studies. Produce one or more studies that further demonstrate Sacramento’s viability and competitive advantages as an MLS market. This will include a market overview, economic impact analysis, and stadium site study.
- Pre-Development Team. Identify a world-class team of sports and design professionals with deep expertise in project management, design, planning, engineering, pre-construction and related activities.
- Site Control. Complete definitive documents required for full control of the soccer specific stadium site.
- Concept Design and Cost Estimation. Complete conceptual renderings and cost estimates for the new stadium informed by input from ownership, staff, fans, partners, elected officials and the general public.
- Preliminary Term Sheet. Establish a detailed framework that sets forth the basic terms of agreement with respect to location, financing, ownership, design, development, construction, and operation of a new, state of the art MLS stadium.
Mayor Kevin Johnson, SSEH and Republic FC will work with the City of Sacramento and the community to satisfy all five components by the end of 2015.