I am a Charger fan. Like thousands of San Diegans, I would like to see the team stay in San Diego.
It is my opinion that our City government has shown very little interest in helping keep the
Chargers in San Diego. As your councilman, I will work to be an advocate for the Charger’s cause
to stay in San Diego. I don’t endorse spending funds from the City’s general account to help pay
for a stadium, but I do endorse working with the Chargers to come up with a plan to privately
finance a new stadium.
In 2005, the City of San Diego budgeted $19 million to pay for the operation of the Qualcomm
stadium site. There was more than $50 million of deferred maintenance accumulated at
Qualcomm. The City owed almost $60 million on the bonds it sold in 1996 in order to add more
seating capacity. That same year, the Chargers proposed the following to the City: 1) To build, at
their own expense, a Super Bowl-quality stadium, 2) To assume the risk of all cost overruns on
the stadium’s construction, 3) To be responsible for all operation and maintenance costs for the
stadium, 4) To pay off in full the $60 million in bonded indebtedness owed by the City, 5) To make
traffic and infrastructure improvements at the Qualcomm site estimated at a $150 million to $175
million cost to the Chargers, 6) To sign a new 25-year lease with the City, 7) To work with the NFL
to guarantee as many Super Bowls as possible at the new stadium over the life of the lease and 8)
To pay for the construction of a 30-acre public park along the San Diego River*.
Here’s what the Chargers asked from the City: 1) 60 acres of the Qualcomm site.
The City refused the deal.
Why?
The Chargers were proposing to spend around $650 million dollars to turn a piece of City property
that sucked almost $20 million out of our general fund each year into a site containing a new, state-
of-the-art stadium, 30 acres of parkland, improved roads and infrastructure and 60 acres of new
construction to include residential and commercial properties (which would bring tax dollars to the
City every year). When you do the math, the Chargers were offering to spend approximately $10.8
million for each acre of land they wanted to develop. In 2005, that wasn’t good enough for our city
council.
By way of comparison, in 2008, our city council approved the sale of 0.233 acres of commercial
land in Mission Valley to a company utilizing that land to conduct its business**. The council
approved a sale price of $460,000 for the parcel. The land actually sold for $500,000. At that
price, the value of that commercial land in Mission Valley was approximately $2.1 million per acre
(based on the sales price approved by the city council, it was worth less).
How is it the City of San Diego felt $2.1 million for an acre of commercial land in Mission Valley
was adequate in 2008, but $10.8 million for an acre of commercial land in Mission Valley was not
adequate in 2005?
The San Diego Chargers organization has shown patience and respect for the people of San Diego.
The relationship between the Chargers and this city deserves more effort from our city council
members. If the Chargers leave San Diego, the City will ultimately need to pay for the demolition
of the stadium, environmental clean-up of the site, and grading and improvements to the site
depending on what is decided to take its place. In addition, San Diego State football would most
likely come to an end with no suitable stadium option for the school available.
As your councilman, I will work with the Chargers in an effort to find a place and a financing plan
beneficial to both the team and the City. In 2010, the Qualcomm site will cost the City over $18
million to operate and maintain. Also, the city still owes over $50 million on the bonds issued to
increase seating capacity inside the stadium. The stadium site creates a negative cash flow for the
city. In business, many people would “cut their losses” on such a property. As your councilman, I
will advocate that we sit back down with the Chargers to discuss a new solution to this important
issue.
*FACT SHEET: THE CHARGERS’ STADIUM PROPOSAL, October 19, 2005
**COUNCIL UPDATE – STATUS OF APPROVED PROPERTY SALES Revised 1/5/2009:
http://www.signonsandiego.com/news/metro/images/090106propertysales.pdf