JOESAM2002

Governor: Saints must pay more of Superdome renovation cost
1/10/2005, 1:58 p.m. CT
By MARY FOSTER
The Associated Press

(AP) — The New Orleans Saints must pay for part of the cost of renovating the Superdome and agree to a reduction in the payments the state makes to the team, Gov. Kathleen Blanco said Monday.

Outlining a proposal to renovate the Superdome and negotiate a new lease with the NFL, Blanco said the larger part of the financial burden must be assumed by the team, not the taxpayers.

"The state is spending way too much and spending the taxpayers' money in the wrong way," Blanco said.

The state and the team hope to work out a new, long-term deal that would keep the Saints in New Orleans. The current $186 million agreement with the team negotiated in 2001 by the administration of former Gov. Mike Foster runs through 2010, but the team can opt out after the 2005 season with no penalty.

Under the current agreement, Louisiana is obligated to make annual payments ranging from $15 million to $23.5 million. The state has had a difficult time making the payments because the taxes used for revenue have not generated as much money as projected.

Saints owner Tom Benson, who originally pushed for a new stadium, agreed last fall to a Superdome renovation, but wants continued payments and does not want to foot any of the bill for upgrading the stadium. Team officials did not return calls Monday for comment on Blanco's proposal.

Renovations to the Superdome will provide the Saints with the opportunity to earn more money, Blanco said. The renovation would produce new suites, more seating in the lower levels, which would sell for more, more concessions and other measures.

The estimated cost of the renovation is $168 million. Lawmakers who were briefed on the plan said last week it would require identifying between $10 million and $12 million in new funds. Blanco said, however, it was premature to begin looking for new taxes to pay for the deal. The key is reducing the payments to the Saints and having the team put up some money for the renovations, she said.

"We're trying to put them on an appropriate businesslike basis where they can earn their way," Blanco said.

The governor's proposal, which would run through 2025, also would include specific performance obligations, although she did not spell out what they would be, and eliminate the clauses that allow the Saints to get out of a deal early.

Blanco said she would call NFL commissioner Paul Tagliabue about the proposal. Blanco said she believes the league and other owners would find Louisiana's offer reasonable and she hoped they would urge Benson to accept it.

"If the Saints are not willing to accept the basic principle of our offer, then we expect them to prove to us with a credible and independent financial review, why the proposal doesn't work for them," Blanco said.

Blanco said she would call Benson to discuss the proposal, but would not meet with him to negotiate until representatives had hammered out the main details.

If an agreement can be reached, renovation of the Superdome would begin in January 2006.


It don't sound good to me boys.

[Edited on 10/1/2005 by JOESAM2002]