D.C. Mayor Anthony A. Williams, facing heated criticism across the city for his $435.2 million plan to build a baseball stadium in Southeast, yesterday announced the creation of a community benefit fund that would be tied to the ballpark and generate up to $400 million for city schools, libraries and recreation programs.
Although the details of the plan are decidedly sketchy, the fund would be supported by the creation of a tax-increment financing (TIF) district around and immediately north of the proposed ballpark site near South Capitol and O streets. In the TIF district, tax money above what already is being generated would be funneled into the benefit fund. Also undetermined are the recipients and criteria for distributing the money.
But the primary goals of the evolving plan are to soothe political opposition to the ballpark proposal and address repeated cries for improvements to basic city services and infrastructure.
“We believe this can be an ideal way to leverage and exploit this important initiative,” Mr. Williams said. “We have heard the call to link baseball with other amenities in our community.”
Jack Evans, Ward 2 Democrat on the D.C. Council and a key proponent of the stadium plan, said the measure quickly grew out of numerous community meetings that the mayor and other city officials have held since Major League Baseball last month announced its intent to move the Montreal Expos to the District.
“This whole baseball thing has come to symbolize something much greater than just building a stadium,” Mr. Evans said. “We’ve had an absolute outpouring of interest in how to improve the city. So in that sense, this has really been worth it.”
The mayor’s proposal also arrived on the eve of today’s crucial D.C. Council hearing on the stadium bill. The hearing, now slated to include more than 230 witnesses and last at least 10 to 12 hours, already is set to be one of the biggest in the city’s history. Mr. Williams was scheduled to testify, but said yesterday he no longer plans to do so.
However, Mr. Williams said he plans to attend at least part of the marathon session today. And when he does, he will find several strident opponents to the stadium plan on the council. Although many city officials privately think the mayor has enough votes to pass the measure, opposition in some pockets has been severe.
“It’s insulting that the only way to get anyone to talk about meeting basic city needs is to build a baseball stadium,” said council member Adrian M. Fenty, Ward 4 Democrat and the most outspoken baseball opponent on the council. “This TIF idea is just trickle-down economics.”
Council member Jim Graham, Ward 1 Democrat, continues to champion his idea to raise the proposed gross-receipts tax on large D.C. businesses to fund improvements to libraries and recreation centers. The gross-receipts tax — capped at $28,200 a year in the proposed stadium legislation for any business generating more than $16 million in annual revenue — would fund the majority of the ballpark.
“I do not support the TIF plan,” Mr. Graham said. “We could be waiting years for any significant proceeds. I would much rather see a direct link between big business and libraries and so forth. If a Pepco can easily pay $28,200, why can’t they pay $40,000?”
Wanting to accelerate the impact of the new fund, Mr. Williams and city officials said they intend to issue bonds for at least part of the $400 million target figure, with the debt paid off by future tax payments from the TIF district. The TIF bonds would be separate from those issued to fund the ballpark construction. Selling on bonds on the TIF district, however, would require some reliable benchmark on the economic development that would occur near the ballpark, figures that have yet to be determined.
Time also remains exceedingly short to get needed details onto the new plan and get it in front of the council for debate and approval. The council already must approve the ballpark plan by Dec. 31 in order to keep the Expos’ relocation on track. Beyond today’s hearing, a markup on the stadium bill is tentatively slated for Wednesday, and a first reading by the full council to follow on Nov. 9.
In announcing the new measure yesterday, Mr. Williams brought with him several local labor leaders and members of the Washington Interfaith Network. Nearly all those leaders said the community benefit fund was a vital inclusion to the ballpark plan.
“If the city can raise the political will to raise hundreds of millions of dollars for baseball, then the city can raise the political will to raise hundreds of millions for our neighborhoods,” said the Rev. Robert Hardies, senior minister at All Souls Unitarian Church in Northwest.
In other local baseball developments, the D.C. Sports & Entertainment Commission yesterday selected a team of consultants to aid the renovation of RFK Stadium and development of the new ballpark in Southeast. The firms selected, comprising specialties in construction management, legal counsel and financial management, are McKissick & McKissick, Leftwich & Ludaway, Brailsford & Dunlavey, all of which are based in the District, and the international consulting firm BearingPoint.
The consultants will assist in the selection of architects and contractors to do the stadium work.
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