Houston Stadium Update

We are on the road today, but we thought it worth making a quick mention of ongoing developments in Houston to construct a stadium for the Dynamo.  The Houston Business Journal is reporting that the team will break ground on the project on January 29.  The Dynamo are expected to contribute $60 million to the project.  The proposed stadium will be shared with Texas Southern Football and other local events. The team  hopes to open in 2012.  Total cost of the projected 21k seat stadium is expected to be about $95 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,  Tax Increment Reinvestment Zone (“TIRZ”) money and from some of the stimulus money floating around.

By way of brief refresher, 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
    or
  • to proactively address the decline of major activity centers

The stadium project is not the only soccer construction going on in Houston.  A while back, the Sports Business Journal, reported that the City of Houston  is nearing completion of a $15 million soccer training complex in Southwest Houston.  The City contributed the entire purchase price for the land and the entire construction price.  The facility is scheduled to be completed in February and the Dynamo will take control at that time.  The team will contribute approximately $1million per year in operating costs and will have the right to manage and charge usage fees at the complex.  The Dynamo will also have the right to sell founding partnerships for the new training facility and will contribute a significant amount to the build out of the locker room.

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  1. […] for our first stadium update of 2011.  We’ll start in Houston, where last week we reported that the team will break ground on the project on January 29.  That date has since been delayed to […]

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