Friday, April 18, 2008

A new stadium to keep watch of?

San Diego isn't the only place in Southern California trying to get a stadium built.

Stephen Roski, a billionaire developer, announced yesterday his plans to build an $800 million stadium in Eastern Los Angeles.

Here is the official report from ESPN and the San Diego Union-Tribune.

I've seen ambition for stadiums in Los Angeles and San Diego over the years, but this is the only time I've seen these ambitions come to fruition. Usually, a random developer expresses plans for a major outfit that will change a city's economy, but they either aren't serious enough or realistic enough.

This is different. Roski means business. He's got the location, he owns it, he wants it.

I spoke to Chargers special counsel Mark Fabiani this morning, and while he expressed that the team stays out of what other cities are doing (a wise choice, considering the smallest leak could do unfixable harm to the Chula Vista project), he did comment of the links that have been made between Roski and the Spanos family.

"The Roski and Spanos families have been friends for many years," Fabiani said, "and Ed Roski and Dean Spanos speak often about potential non-sports real estate deals. During the course of those conversations Ed has explained his stadium concept to Dean. So we know something about Roski’s stadium plans, but we are continuing to focus our efforts on our remaining two options in Chula Vista and working as hard as we can to make something happen there."

So can we turn this into a conspiracy theory? Certainly, but I'd press the brake button on it. This stadium will be Roski's privately funded project, which means he'll want a major return on the investment if he can bring the NFL back to Los Angeles. To me, this would mean a major stake in whatever team came. The Chargers have been owned by Alex Spanos since 1984, and I'm not sure if they are willing to just hand a large piece of a team valued at $826 million in September 2007, especially when that team is so close to stability in the region for the next 50 to 75 years. Would Spanos make more money by selling a piece, paying outrageous rent for Roski's stadium, or staying put?

Spanos has already spent $10 million to fund this project, and will have to spend much more along the way. Would he eschew money spent for this opportunity?

What's interesting about the Forbes value chart is that 12 percent of the team's value comes from outdated Qualcomm Stadium, totaling $100 million. The Chargers have sold out their last 30 home games, which is over 3 years worth of time, but still fall back in revenue. Here are the stadium values of top five teams in overall value:

Dallas: $237 million, 16 percent
Washington: $362 million, 25 percent
New England: $231 million, 19 percent
Houston: $178 million, 17 percent
Philadelphia: $180 million, 17 percent

Make whatever sense of that you want, but four of those fives teams had stadiums either built or completely remodeled since 2000, and the other (Dallas) moves into a new facility in Arlington next year that is expected to generate even more money than the Irving site.

Thursday, April 17, 2008

Loss of Chargers leaves hole in Mission Valley’s heart

With the Chargers on the way out, valley residents face an uncertain future
By Brandon Stone
San Diego Stadium Watch

Nestled in the center of the city, Mission Valley operates like the heart of San Diego.
Interstates 5, 8 and 15 act as blood vessels, carrying cells of cars through the city. State Route 163 acts like a right ventricle to Fashion Valley Mall’s atrium, and Westfield Mission Valley the left side of the heart. The cycle continues each day, giving life to the region.

And in this heartland, Qualcomm Stadium represents the pulse.

With the Chargers ready to jettison the center of the city for a new stadium in Chula Vista, questions remain about the stability of Mission Valley with no professional teams left to play there. The area lost the Padres to Petco Park downtown in 2003, and stands to lose the Chargers within the next five years.

Economically, does the reality of losing regular business in the fall cause businesses to straddle back their plans? And what does it do for the 18,000 people that call Mission Valley home? How does the loss change the spirit of Mission Valley?

Living in the shadow

Blending sports and economics is what Chris Dean, the 46-year-old manager of Oggi’s Pizza, deals with each day.

“Football Sundays are huge, regardless of whether the Chargers are here or not,” Dean, who has been managing for three years, said. “They're really huge if the Chargers are here.”

Fans from all corners come to the sports bar at Fenton Marketplace, located directly west of Qualcomm Stadium. Game days transform what is normally a quiet area into another section of the Qualcomm parking lot.

“It's just a lot of fun,” Dean said. “The atmosphere is great and everything. It's just a really fun day. When they moved on to the championship last year ... people just knocking chairs, jumping up and down.”

“There are a lot of people walking around, but everyone's real cool usually,” Mindy Hernandez, a 22-year-old manager at next-door Taco Del Mar said. “There's no rowdiness most of the time.”

It isn’t all a game for Fenton Marketplace. Traffic problems consume the mall on business days as people leave their cars there to walk over for games.

“The parking is a nightmare,” Dean said, “but that's anywhere when you're around a stadium. We have security out in the parking lot to make sure people aren't parking here and walking over to the game.”

“On game days, the parking lot is insane,” 23-year-old Alena Rivas of Ultra Beauty Supply & Salon said. “It's absolutely full … Afterwards, traffic is a problem, but the business it beings into this whole area is worth it.”

Rivas, who has been managing for two years, said her business profits from women who come out on Sundays both for games and for hairdos.

“A lot of women do come here on Sundays and get their hair done and make comments that their husbands or boyfriends are at home watching the game,” Rivas said.

Businesses hope that the one-time passerby feels an attraction to come back. That’s the strategy that fuels McGregor’s Grill, a sports bar to the east of the stadium along San Diego Mission Road.

“That's how we made our name,” manager Paul Bernhardt said. “People would come around because they got to know us and enjoy us. Even when its not sports season, they come back. … They come, they leave their money, and they go.”

“I think the spirit's the big thing,” Dean said. “…As far as financially, obviously other than game days I don't think it'll be a huge burden on us, but [then there’s] the spirit. We're going to miss not having them around.”

Rocking the house

It’s one thing to shop or work next to a stadium. Try living next to it.

One housing complex, Mission Terrace on San Diego Mission Road, knows the experience. They offer affordable housing for families. The complex has been there since 1994.

“It's not bad,” 43-year-old community manager Yvette Santiago said. “You get used to it after so many years here. I don't have any issues with it, to tell you the truth.”

Housing has become one of Mission Valley’s largest concerns in the last couple of decades. Population has swelled, with the area seeing a 43 percent upswing from 2000 to 2007. Due to this, housing units have gone up 40 percent. Mission Valley has also become the ideal place for young families. More than 5000 residents are between 30 and 40 years old, and there are more children under five than any other demographic of 18-and-under in the area. Young professionals who come to Mission Valley to work want to live there as well.

A new complex, Quarry Falls, is currently under construction. It plans to expand as the area allows it to, and will be home to two things Mission Valley does not have – a public school as well as a park that isn’t made of concrete. Qualcomm Stadium is Mission Valley’s only official park land.

With the housing crunch already in effect, developers are looking for any edge to get people to buy in. A stadium could be the difference – but if there’s no future for that stadium, it provides no hook. The city will not commit to any long-term plans for the site if the Chargers are gone, leaving the housing industry with no answers.

“Other people may start losing because they ... can [use it] to advertise their building easier,” Santiago said.

Several complexes, including Padre Gardens, Portofino and Monte Vista either declined to comment or did not immediately return requests.

There is already a Charger culture in Mission Valley for new buyers to embrace. If they just step out of their homes, they’re already in it.

“It's really convenient for them to get to the games,” Santiago said. “All they have to do is walk over there.”

Santiago, who has lived in Mission Terrace for 11 years, said that there has not been any vandalism on the property as far as she knew. She also said that the building hasn’t sold off extra parking spaces, a practice that is common for apartment buildings and commercial complexes in San Diego and other cities. Traffic is also not a major concern.

“There [are] traffic issues, but not really bad,” Santiago said. “If you know how to go in and out of here, it's easy.”

What isn’t easy, however, is adjusting to Mission Valley without a team.

“Business around here is going to go down so much,” Santiago said, “because they attract a lot of business here. You have all these business around the street, and they're crowded whenever there's a game, so it's going to be hard.”

A spot in the circle

Not every fan that enters the turnstiles at Qualcomm Stadium is a Chargers fan. Outside fans have always earmarked San Diego as a place to see their teams on the road while squeezing in a family vacation. Charger fans take great offense to being called ‘fair-weathered’ based on the high levels of visitors in the seats each game, citing the vacation factor as the reason why.

Visitors have to have somewhere to stay. That’s when they look out west to Hotel Circle.

Charles Holladay, 46, has been managing the Ramada Inn for six years. The Ramada has 182 rooms in their four floor facility. Rooms cost between $99 and $199, with the highest spike at $299.

“During the regular season, we tend to get quite a bit of business from the visiting team's supporters,” Holladay said. “At least 50 or 75 rooms on most weekends, especially more as it gets into the October, November and December time frame and it get colder back east.”

Hotel Circle’s roots come from the major development of Mission Valley in the 60s and 70s. Mission Valley Center was built in 1961 and is known as the spark for the valley’s present-day look. The Ramada was built in 1965. Qualcomm Stadium was built in 1967.

Holladay said that visiting fans aren’t very rowdy. That doesn’t mean there isn’t trash talking.
“When I come in on a Sunday morning, I'm wearing all my colors,” Holladay said. “They're excited to see their team. If you lived in Pittsburgh and it was December, you'd be pretty happy to be in San Diego too.”

Holladay was quite frank about the situation.

“The Chargers will probably leave the Qualcomm site, and I won't get the same amount of business that I currently enjoy every year,” Holladay said. “It's a slower time of year and its nice to have that business. In December, when it’s slow as far as tourism is concerned, a Charger home game means I'm going to sell out for a couple of nights.”

The final heartbeat

The pulse of the valley is pumping its last drops of blood. Mission Valley waits for its future to be officially decided.

“I feel a lot of people who live around this are really appreciate that the Chargers do play across the street from them and they like it,” Hernandez said. “A lot of Charger fans do come here even if the Chargers aren't playing, but they know it's near the stadium and they can come here and watch the away games.”

“In a rational political environment,” Chargers special counsel Mark Fabiani said, “it would seem likely that the City would decide to tear down the stadium, relieve itself of its annual and deferred maintenance obligations, and try to do something socially useful or economically useful with the site. But these have hardly been rational times at City Hall, and San Diego has a history of debating troublesome issues for many years.”

Some expect to see new housing projects like Quarry Falls. Others expect another mall. Whether the market can hold either is questionable.

“Economy wise, I'm sure that they're going to replace that, Dean said. “I've heard they're going to build retail, all that kind of stuff.”

“I don't think anyone would be too surprised if after the Chargers depart Qualcomm that the stadium in Mission Valley will sit empty as the discussion about what to do with it drones on,” Fabiani said.

Mission Valley will find a new pulse. Fashion Valley is almost done building their extension. Westfield Mission Valley continues to be popular. Quarry Falls will give residents local identity. The Chargers’ impact will always be felt on the valley, however. The end of the stadium’s life with 40 years of games doesn’t end 40 years of memories.

“We're sorry financially to see them leave us because they're a big bonus for us,” Dean said. “But Mission Valley is the place. Chula Vista will be fine; I guess … it's just too bad they couldn't have worked a deal out over here. That's the way it goes.”

Slideshow of Mission Valley locations

Monday, April 14, 2008

What's your price?

A new poll on ESPN.com's Page 2 asks how much money you'd take in return for your team leaving town, how much you'd pay to keep them in town, and many other piercing questions about how people operate with sports in mind.

The question key for this blog is #5:
5) Your local government agrees to build a new sports complex to keep your favorite team in town. But spending on roads and education will be cut. Are you OK with this?

With 17,000 votes cast so far, 52% said they'd be OK with it. Makes me wonder what a group of Chula Vistans would answer...

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