CB Richard Ellis Airs $2B Proposal for the Q
A proposal to create a combined Chargers stadium with a new sports arena and convention center was submitted Sept. 17 as an answer to San Diego's stadium dilemma.
Presented by CB Richard Ellis Capital Markets, the comprehensive plan for the current Qualcomm Stadium site would be anchored by a football and soccer stadium with 65,600 seats and 120 luxury suites, and a 20,000-seat sports arena and convention center built from the shell of the existing, 40-year-old stadium.
To support the anticipated $2 billion-plus cost for the ambitious project, the city and county of San Diego would invest $172 million, including issuing $100 million in bonds for the stadium alone.
The three-phase plan encompasses some 20 individual projects during a 15- to 20-year span. At build-out, the project would contain 1,500 apartments, 1,000 hotel rooms, 200 student housing units, 2 million square feet of office space and 800,000 square feet of retail space.
Among the proposed features for the 66-acre Qualcomm Stadium site are three types of hotels; an entertainment retail center with a cinema, sports bar and bowling alley; a mixed-use office and retail center; a neighborhood shopping center with apartments; student housing with retail; office buildings; apartments; three parking garages that would have 15,500 spaces; and a tailgate parking area next to the stadium.
The plan estimates the cost for the stadium at $600 million; $190 million for the arena/events center; $305 million for parking structures; $75 million for a convention center; and $1.2 billion for commercial and residential development.
The Chargers and the A.G. Spanos Co. would contribute a combined $92.5 million to the mix as part of total private equity investment of $225 million.
Commercial and residential private developers would chip in $95 million.
Charger fans are also being counted on to help finance the stadium, providing 30 percent of the cost or $180 million that would be paid through the sale of permanent seat licenses.
The proposal aims to create a sports and entertainment destination zone similar to what has been created in cities such as Los Angeles; Arlington, Texas; and Cincinnati, says Jeff Rice, senior financial analyst with CB Richard Ellis.
"This plan will create twice as much value for the city than by allowing the Chargers to relocate, and developing the vacated site in the future, and creates five times as much value as continuing the existing situation," Rice said.
The plans were submitted to the city and county of San Diego; the Chargers; and the Hahn Arena Group, the operators of the San Diego Sports Arena in the Midway district.
Since last year, the Chargers have been pursuing possible new stadiums in Chula Vista and Oceanside. Last week, the team obtained the results of a site analysis study for four sites in Chula Vista that narrowed the best sites to two.
The team expects to obtain the results of a similar study of Oceanside's single site soon.
The Chargers have said they have been unable to negotiate with the city of San Diego on the Qualcomm Stadium site because of the city's financial troubles, an inability to find a private development partner, and what they say is outright opposition from City Attorney Michael Aguirre.
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