When the San Jose Earthquakes became the Houston Dynamo in 2005, part of the understanding was that a soccer specific stadium was just around the corner. After years of playing in Robertson Stadium (home of the Houston Cougars), it appears that the dream of a downtown Houston stadium is closer to a reality. The downtown location of the proposed stadium is right near Minute Maid Park (home of the Astros) and situated in a Tax Increment Reinvestment Zone.
According to the City of Houston website, Tax Increment Reinvestment Zones are:
special districts created by City Council to attract new investment to an area. TIRZs help finance the cost of redeveloping or encouraging infill development in an area that would otherwise not attract sufficient market development in a timely manner. Taxes attributable to new improvements (tax increment) are set-aside in a fund to finance public improvements in the zone. Zones in the City of Houston have been created for one of three reasons:
- to address inner city deterioration
- to develop raw land in suburban fringe areas
- to proactively address the decline of major activity centers
Total cost of the 21k stadium is expected to be about $80 million with the Dynamo ownership (primarily AEG and Golden Boy Promotions) funding about $60 million. The rest of the funds could come from tax credits, the TIZ money and from some of the stiumulus money floating around. The TIZ program will also provide the property for the stadium. According to Houston President Oliver Luck, multiple banks are lining up to provide financing for the contruction project. As we have noted previously, this is a great time for construction, with the cost of materials and labor way down. Also, these are the type of projects that can bring jobs and income into the economy. The economic benefit of stadium projects is also debatable, but during a downturn there is a definite economic upside.
The renderings are out and design firm Populous has been selected for the project (also did Citi Field). An important aspect of the agreement as far as obtaining city approval is the participation of Texas Southern University. Although negotiations are ongoing, it is expected that Texas Southern football will also use the stadium for at least 30 years and a $2.5 million investment.
Importantly, this is not the first time Houston has gotten close to a stadium deal. However, the pieces appear to be slowly clicking into place for a 2011 opening. A downtown stadium in Houston will continue the trend that has been successful in Toronto and Seattle by placing the Team within close proximity to public transportation and population centers. With Philly and New York set to open new stadiums in 2010 and other projects on the way in Portland, San Jose and Kansas City, this is a great time to be an MLS fan.