By Khalida Sarwari
The Santa Clara City Council on Tuesday night unanimously approved a financing plan for the construction of the $1.02 billion stadium for the San Francisco 49ers.
The council voted on a preliminary financing plan that includes commitment letters from three financial institutions — Goldman Sachs, Bank of America, and U.S. Bank — for the construction of the stadium.
The three banks have agreed to loan the city $850 million, the majority of which the city is planning to pay back with revenues from the stadium, including ticket sales, naming rights, the team’s rent, concessions and luxury suites.
The loan is contingent upon a $150 million contribution from the National Football League. The rest of the funding is expected to come from the city’s redevelopment agency, a hotel tax, and the 49ers.
The council approved a disposition and development agreement, a legal contract between the Santa Clara Stadium Authority and the 49ers Stadium Company, or Stadco, that outlines the responsibility of the parties involved, in addition to finances.
Next spring, the council is expected to consider the final finance plan, development budget, and stadium lease, as well as the ground lease between the Stadium Authority and the city.
Construction of the 68,000-seat stadium is set to begin next year.
