03 September 2009
FAQ/Talking Points
Potential Ballpark
Frequently Asked Questions
1. How will the City of San Jose and the South Bay benefit economically from having a ballpark?
People throughout San Jose will benefit from the $2.9 billion in economic output from the Ballpark.
Employees will benefit from thousands of new job opportunities created by the construction and operation of the Ballpark.
Residents will benefit from City services supported by the additional $1.5 million a year in General Fund revenues from the Ballpark.
Local business will benefit form the $130 million annual economic output driven by spending from new visitors to downtown, and the spending of the team itself for their business operations and service providers for the operation of the ballpark itself.
The entire local economy will benefit from the stimulus of new spending and investment during a time of global economic downturn.
2. How many new jobs will the project create?
The Ballpark would generate almost 1,000 new jobs a year, once in operation, on top of some 350 new construction jobs in San Jose for each of three years. These jobs include full, part time, and seasonal positions.
3. Who is paying for the new ballpark? How much will the ballpark cost the public?
The Major League Baseball team to be responsible for the cost of constructing and operating the ballpark facility.
4. Is there a plan to deal with the increase traffic and noise?
The Mayor and City Council have directed the initiation of a community engagement process and the formation of a Good Neighbor Committee for the Diridon Station Area (the area around the ballpark site). The purpose of this committee is to provide a forum to work collaboratively in addressing the issues and opportunities that arise from proposed projects in the Diridon Area, including a Major League Baseball ballpark.
5. Why was the Diridon site chosen as a potential ballpark site? Why not another (existing) site?
The site was chosen because it is the only identified site in downtown San Jose that is large enough for a Major League Baseball facility that is readily accessible by freeways and major public transportation facilities including Caltrain, VTA bus and light rail.
Access to the project will be further enhanced with the planned BART and High Speed Rail connections at Diridon Station. With the addition of BART and High Speed Rail to Diridon Station the site represents one of the best development sites in the entire Bay Area.
6. What is the timeline for the project?
There are many milestones to accomplished for a project like the baseball stadium to constructed and opened. The first step is for Major League Baseball to come to a conclusion on territorial rights. Pending a favorable conclusion, a vote by the citizens of San Jose will be necessary. It is anticipated that this will be necessary. It is anticipated that this will occur in 2010. If all goes well, the earliest a ballpark would open is Spring 2014.
SJ Economic Impact Report
1. The firm used for this version, Conventions Sports & Leisure, is the same one used by the City of Santa Clara for their 49ers stadium study. I will be looking carefully for unrealistic projections.
2. Cost of the 32,000-seat ballpark is projected to be $461 million in 2009 dollars, $489 million in 2011 dollars. Ballpark would open in 2014.
3. The City's projected impact is ~$1.5 million in additional general fund revenue, net of increased city service costs ($45k). The A's would pay for all gameday police, emergency and traffic expenses.
4. Projected 2.1 million in attendance plus 3 non-baseball events.
5. 50% of attendees would not be from
San Jose and would be coming in solely for an A's game.
6. Jobs - 350 during construction period, 980 net new jobs including 138 ballpark-specific jobs. I'll get into why I'm skeptical about this later.
7. There are hints about what kind of deal could be struck within the numbers. Think property taxes.
8. An alternative development scenario projects just over 1 million new s.f. In office space. It could produce nearly 3x the number of post-construction jobs but yield $300k less tax revenue annually. The difference here is that completion of the construction would occur some 20 years after a ballpark due to commercial market conditions.
9. Yes, there is a section devoted to indirect impacts, which I will largely ignore.
10. This is the first official analysis from the City which refers to the A's by name (88 instances).
01 September 2009
Oklnd.com
A new site, oklnd.com, is selling baseball-style shirts with traditional Oakland A's colors, but sans the "A's." Part sociopolitical statement, part middle finger to management and baseball. Some will say it's clever, some will say it's pointless. To me it looks like a rip-off of CSN California's ad campaign.
The site is run by SF-based Typebox, LLC. Typebox is fronted by Mike Kohnke, who is "best known for his innovative type designs." (see Wikipedia page and history)
On a tangentially related note, I'm reminded of Oklahoma City sportstalk host Jim Traber, who grilled (MP3) OKC Thunder power forward Nick Collison for saying how nice the weather was in Collison's offseason (and former in-season) home of Seattle.
Howard Terminal Revisited
This short video was shot yesterday afternoon between Jack London Square and Howard Terminal. There's no better illustration of the impact of trains through the area. They are the lifeblood of the port's operations and an important conduit for commuters on Capitol Corridor. Should a ballpark be planned for Howard Terminal, multiple pedestrian bridges will have to be built to span The Embarcadero in order to ensure fan safety. However, that's not the only issue.

The sign above is your typical underground pipeline warning sign. Many pipelines are found alongside railroad tracks since both are meant to go long distances. In this case, the pipeline has a much more local purpose - the Oakland Power Plant.

The tank in the upper left of this picture doesn't hold water. It holds oil for the plant. Nasty, potentially flammable stuff. The plant itself is not operational 24/7, it's meant to provide peak-demand power when needed. Oakland Power Plant spans 3 blocks and is owned by Houston-based Dynegy, along with the plant in Moss Landing.

The CA Public Utilities Commission and the Port of Oakland have occasionally gotten into skirmishes about the plant. There's no denying the importance of a piece of power infrastructure like this, but the Port has resisted attempts by past owners to expand the plant. An audit performed two years ago (warning: PDF) by the CPUC revealed instances of lax training and emergency preparedness, though nothing was deemed dangerous within the scope of the plant's operation.
I've been told that with Matson's long-term deal with the Port, it's nearly impossible to relocate them. The City has been mum on a specific site in the area, but given the circumstances it may be better to focus on other land nearby. Which is too bad, imagine the building below as part of a majestic concrete/masonry ballpark façade. (It's part of the power plant.)

So where to focus? The best place may be the area north of Howard Terminal and the power plant, bounded by the BART tracks/5th Ave on the north, MLK to the east, 2nd St to the south, and Market/Brush Sts to the west.

No, it's not on the waterfront. It does have a nice view of Downtown Oakland. It's also a shorter distance to the 12th St BART station, just over 1/2 mile as opposed to 3/4 mile from the station to Howard Terminal. Admittedly, it would be strange to have BART running right past the place even though there wouldn't necessarily be a co-located station. Fortunately, there is some vacant land that would be perfect for station portals if all parties could get it together. Just as important, it's a shorter stumble to-and-from The Trappist.
Most importantly, land deals would be done with individual private landowners, not the Port. Port land is really City land, but that doesn't make it any easier to do a deal given the politics involved. We're talking about 5-6 blocks, the same amount as Diridon South.
Is this doable? I have no idea. I'm just as in-the-dark about actual proposals emanating from Oakland as many of you.
24 August 2009
BART to Warm Springs construction to begin
It's odd that one of the reasons for building the Warm Springs station at the planned location, NUMMI, will probably not be around for the opening in 2014. It's also likely that nothing will have replaced the auto plant by the time the station opens. Lew Wolff has rejected any idea of revisiting Fremont for the time being.
20 August 2009
Recap of walking tour

We quickly moved outside in front of the station, where Harkness explained the expanded station vision. The "Grand Central" concept was brought up, though any expansion would be done within the context of preserving the existing depot. As shown in previous materials, the expansion will provide connections to future HSR and BART, along with additional space for other uses. BART will run underground, while HSR could run either underground or above ground. One attendee asked if HSR could run under the ballpark. Harkness replied that it might be possible, but dealing with the area water table could prove difficult, especially if the ballpark were sunken - as it is in some conceptual drawings. He cited an example in The 88, a recently opened high-rise residential tower located downtown. Three floors of underground parking were in the plans, but construction crews struck water only 1.5 stories down, forcing a major pumping/rework effort. 20 million riders are expected to go through the expanded Diridon Station per year. Like most, I'm skeptical of the figures.
Next topic was the area plan. The various agencies whose projects will impact the area have been in contact and are contributing towards the plan. There is a window in which the area will be torn to shreds in order to accommodate the BART cut-and-cover operation, new foundation work for midrise (up to 130' tall) buildings, and the Autumn Parkway construction project. Guidelines will be part of the updated Diridon Area Specific Plan, from building heights to setbacks to streetscapes. Parking is the big unknown, since it's going to take some time to properly formulate the right mix of short and long-term parking.
Then we walked past some of the property recently bought by SJRA along W. San Fernando St. The only building not empty was Patty's Inn, which has a lease through 2011 (hint-hint?). A rep from Parks talked about the Los Gatos Creek Trail. It looks like the City is getting ready to buy the land on the western bank to build the trail. The fire training site south of the ballpark will not be used for a parking garage, as was drawn up in the original EIR. Housing has designs on the land, but that use is not politically feasible given the amount of neighborhood uproar it would cause.
In order to make the new Autumn Parkway streetscape the way it's being envisioned, the City may ask the state to relinquish the State Highway designation (CA-82) for Autumn and Montgomery Streets. Since those streets are state highways, they are subject to state design and maintenance rules, which would either have to be eased or modified to accommodate the changes the City wants to enact. The same goes for The Alameda, which area residents have long wanted to transform into a pedestrian-friendly, tree-lined boulevard.
Next up were the old KNTV studios (acquired) and the AT&T site (not acquired). There was talk of preservation of some kind. There could be some reuse of materials or façades if possible. I would at least expect some monuments to commemorate the historic value of the sites.
The PG&E substation situation proved interesting. The City and PG&E acknowledge that the existing layout is not exactly space efficient, so they are looking at ways to reconfigure the site in a more compact manner. It seems more likely that reconfiguration will occur than a substation move, partly due to lower cost, partly because a 32,000-seat ballpark may not require a substation move.
We then hoofed it back to Diridon Station, under the tracks and out to Cahill Park, which is west of the station. Mostly this was to show how good, community-driven TOD can be built. Keep in mind that there's a good chance that zero housing will be built in the planned area. Finally, we congregated on the Alameda, across the street from the site of the always six months away Whole Foods site. Not much to say about that. I asked about the state of the revised ballpark EIR. Harkness said that it's still in process and that no date has been set for its release, though 60 days is a pretty good guess. Those who want to be notified should head over to SJRA's ballpark page to get on the mailing list.
Questions? Fire away, and try to keep it on topic.
19 August 2009
Upcoming San Jose calendar
- Wednesday, August 19, 6 PM: Walking tour of development area at Diridon Station.
- Saturday, September 12, 9 AM-12 PM @ Parkside Hall, Room B (180 Park Ave., next to the Tech Museum). Meeting notice (PDF).
- Thursday, September 24, 6 PM @ TBD. Good Neighbor Committee Meeting. Tentative agenda items include A) Major League Baseball 101, B) Proposed Major League Ballpark Economic Impact Analysis
18 August 2009
Wolff backs off 2012 Quakes opening
"You can't do it out of magic," Wolff said. "There's no sense building a stadium unless you have some flow of revenue."When Lew and I spoke earlier in the spring, we spent a little time discussing the Quakes project. Unfortunately, he said many of the same things at that point, which makes it dismaying to know that things haven't improved. We are in a recession/depression/what-have-you, so it's difficult to see that light at the end of the tunnel.The club, Wolff said, needs about $5 million a year in sponsorship for a 15,000-seat, no-frills stadium. It has secured 20 percent of that so far.
"We're trying to get to the edge of the diving board," he said. "Before jumping into a pool we want to make sure there is water in it."
The problem doesn't appear to be the naming rights sponsor. It's more of a problem with the smaller sponsors whose ads appear on rotating and fixed signage throughout the stadium. MLS and the Quakes aren't blessed with rich TV and radio deals, so every bit of sponsorship revenue, right down to the jerseys, is important. Wolff mentioned an unusual financing angle that involved partnering with local building trade unions so that they could get their skin in the game on something they were building. That idea went nowhere.
What makes it worse is that some of the teams who would normally provide some competition locally for sponsor revenue aren't even around. The SaberCats aren't playing this year and may not play for a while, if at all. The Stealth indoor lacrosse team bolted for Seattle. A new women's soccer team, FC Gold Pride, sort of competes with the Quakes but also co-exists somewhat symbiotically.
While the six major sports teams (A's, Giants, Raiders, 49ers, Warriors, Sharks) are reasonably healthy despite the state of the economy, an on-again, off-again team like the Quakes will naturally have difficulty attracting sponsors even if they're located in the rich Silicon Valley. Unveiling drawings of the new stadium, which to date have been a closely guarded secret, should help sell the concept. Really, it comes down to the venue. Seattle and Toronto are cited as new success stories, and both are buoyed by pent-up demand while playing in sparkling new facilities. The Quakes play at the jury-rigged albeit cozy Buck Shaw Stadium, convenient but not compelling. It may be that Wolff/Fisher will simply have to place faith in the fans and potential sponsors to come out of the woodwork when a new stadium opens. It's not the most ideal position to be in, that's for certain.
15 August 2009
Phew
Hopefully a done deal will make the following table little more than trivial:

Not pretty, is it? It's actually a simplified version of something I was working on in case of a BART strike. As I started looking at train, rail, and ferry schedules provided by various transit agencies, palpable dread came over me. Not only would it be inconvenient and time-consuming to even attempt to use many of the alternatives listed above, some like Capitol Corridor are a good deal more expensive.
When we talk about transit to the Coliseum, bus service is never mentioned. Ever wonder why that is? Maybe it's because buses don't have as varnished an image as rail. Maybe it's because of a bus's lack of perceived permanence. From looking at AC Transit's maps and schedules, it may largely be a routing issue.
AC Transit has a series of backbone lines, 72/1/99. Line 72 runs from Richmond to Downtown Oakland, #1 from Downtown Oakland to Bay Fair, #99 from Bay Fair to Fremont. These lines make fairly long distance trips possible without numerous transfers, while routing in many cases within a few blocks of a BART station. However, one major exception is Line 1, which runs along International Blvd/E. 14th for most of its route. In doing this, it makes its closest stop to the Coliseum Complex nearly 3/4 mile away. Local loop buses have to provide feeder service. Not exactly convenient. While it makes more sense for local residents since the current routing serves more of the local population, it doesn't make things easier for event goers.
Amazingly, it seems to be easier if you're coming from San Francisco. That alternative to BART includes one transfer. The trip would take 75 minutes, but at least it's straightforward. I looked for a clean ferry-based route but it didn't exist. The Oakland and Alameda Ferry Terminals don't link directly to buses that run near the Coliseum, forcing additional transfers or a lengthy walk to Downtown. Alameda's Harbor Bay Ferry looks like a good route since it actually connects to a bus (Line 50) that runs to the Coliseum. Unfortunately the ferry itself only runs during weekday commute hours, making it incompatible with baseball crowds.
It stands to reason that the major value propositions for affected fans either would be to choose to drive or simply not attend because of heavier traffic, estimated to be at least 30 minutes in additional travel time when going to the game. Still, I wanted to put this post up to show how bad the backup system is. Of course, if you chose to drive during a BART strike, you might feel perfectly entitled to park at the Coliseum BART parking lot, since there wouldn't be BART users parked there. Then again, many already park there without needing an excuse...
12 August 2009
California Redwoods. WTF?!?!?!?!

SF Weekly's Joe Eskenazi was brave enough to potentially harm his own lenses and a digital SLR's, all of which apparently came away unscathed. The color combo is indescribably awful, except to say that it looks like Paul Pelosi consulted with Proctor & Gamble's laundry detergent department to hone in on that special mix of hues. You can even now download a uniform guidelines doc (PDF) showing exactly which Pantone colors you'll need to match if you want to make your own custom Femi Ayanbadejo jersey.

BTW the team will be called the California Redwoods. According to NBC Bay Area's late sports report, home games will be played at AT&T Park. Previously, it was expected that games would be split between SF and Sacramento. Why else would they use the California moniker? The Las Vegas team also claims the Los Angeles market, which means that some home games will be played at Home Depot Center. Whatever the reasoning behind all of this, tickets go on sale later today at 10 AM. I won't be scrambling to get tickets, but I am curious enough to attend a game at some point if they actually start playing.
Blue blocker sunglasses are a necessity, though maybe not at the inaugural home game, which is scheduled for the night of October 17 (yes, that October 17), I suppose, to avoid potential conflicts with the Giants' postseason schedule.
09 August 2009
Verizon Coliseum?
Color me surprised that a deal is being done, considering the states of the tenant franchises. It is a short deal which may point to positive talks between the Authority and the Raiders, whose lease ends after the 2010 season.
Ready for yet another corporate name that won't stick? As fans, we complain about abrupt name changes and the concept of naming rights in general. However, the corporate entities don't really care that much about whether or not we use the names. They care about media exposure, and that's what naming rights provide. It'll be interesting to see what Verizon does strategically. It already has a major high profile venue in Verizon Center arena in DC, plus a strong regional presence in the Northeast with Verizon Wireless Arena, a smaller venue in New Hampshire.
It's not a bad idea as Verizon may want to counter AT&T, which was rumored as the naming rights partner for the new Cowboys Stadium before the economy went into the tank. Verizon's only major presence in the Bay Area is as a wireless carrier, as AT&T is the predominant carrier for land-based services. Verizon may also work in an early termination clause (as McAfee did), which they could employ if one or more of the Coliseum tenants leave before the end of the deal.
05 August 2009
Don't tase me bro!
Just as told by Rob Riggle's officer in The Hangover, the big boys need two shots - whether they are Santa or Fat Jesus.
Root beer float day tomorrow!
Update: Original embedded video was replaced with a new one.
30 July 2009
49ers Draft EIR released
A note about discussing the EIR: Please refrain from commenting on the press reports, which are very limited right now. Start by reading the Summary section of the report, which runs 20 pages. From there you can tackle specific topics however you please.
21 July 2009
Trains and baseball in the 'burbs

It wouldn't be a bad idea for the Diridon Station design team and the A's ballpark design team to swap images, as it would help the public visualize the possibilities within the area. In Anaheim, they aren't reusing an existing historic station as would happen in San Jose. Instead, a new, modern structure that looks like a huge blimp hangar would be used. It's all part of a plan to do a great deal of infill development in the "Platinum Triangle" area of Anaheim.
Speaking of planning, San Jose's third Good Neighbor committee session started a couple of hours ago. I haven't attended any of the sessions, though I plan to be at one of the last two, which will be held on the following dates:
Good Neighbor Committee Meeting #4In addition, a Diridon site walking tour is planned for August 19, also at 6 p.m.
Thurs., August 13 at 6 p.m.
City Hall Wing
200 E Santa Clara St
Good Neighbor Committee Meeting #5
Thurs., August 27 at 6 p.m.
City Hall Wing
200 E Santa Clara St
If you haven't checked out the San Jose Redevelopment Agency's ballpark website, it has a few items worth viewing. Of chief interest is the planning study handout, which shows just how extensive the broader development area is.

There's also a depiction of the new Autumn Parkway layout, if you're interested.
16 July 2009
Trouble at the Trop
While Stuart Sternberg has put some new paint, spit and polish on the Trop, it's still not an ideal venue. He's wanted to move anywhere but the orange dome despite the team being locked into a lease until 2026 (2016 with more favorable buyout terms). Last summer, the focus was on Al Lang Field/Progress Energy Park, a downtown waterfront site. The concept was shelved as the financial specifics couldn't be worked out, especially as the economy started to go into the crapper.
This summer numerous options are being explored by ABC, a group consisting of local business and civic leaders. Multiple sites in St. Petersburg are being considered, and the site search has expanded to include Tampa. An online survey indicates that the leading site is in Downtown Tampa, followed by the Carillon business park site in St. Pete. Within the site study is a breakdown of ticket sales by county. While over half of season ticket sales come from Pinellas County (St. Pete), roughly equivalent numbers (29%) of single game ticket sales originate from both Pinellas and Hillsborough (Tampa) counties.
Local media has largely picked up the financing situation, which is problematic. The outstanding debt ($108 million over the next 17 years) at the Trop is an extra burden that must be carried by St. Pete, the Rays, or both even if a new ballpark is constructed. While dry, the financing presentation provides a good comparison between the financing structure at the Trop and other ballparks and major Florida sports venues. I'll give you a hint: almost all public.
Last, and definitely not least, is a study commissioned by ABC and undertaken by Populous (formerly HOK). The beautiful, 47-page treatise goes into great detail as to what it would take to renovate Tropicana Field to modern standards. To do the job right, which would include building a retractable roof, the cost would be a mind boggling $470 million. One of the appendix documents goes line-by-line into the requirements, which vary greatly in scope. The renovation doesn't need to include all of the prescribed changes, but most would be required. Here's a sobering breakdown:
- Circulation/Concourses: $52.7 million. Similar to the small-scale renovations I wrote about in March for the Coliseum, these improvements would come from ripping out several rows of seats to create more open concourses. The estimate here is twice as much as I projected for the Coliseum work, though this is more extensive.
- Seating Size: $9.5 million. Expansion of row treads from 32 to 33 inches in most cases, from 18 (!) to 33 inches in others.
- Club Lounges: $35.4 million. Construction of three new club areas, at field level behind the plate and along the first and third base mezzanine.
- Press Box relocation: $13.8 million. Following an ongoing trend, the chattering class would be moved from the mezzanine to the back of the upper deck, behind the plate.
- Suites: $21.6 million. Larger (500 s.f.) suites, including 2 levels along the baselines and 3 levels behind the plate.
- Natural Light: $99.8 million. No, not kegs of the yellow liquid masquerading as beer at every seat. This would cover improvements to the roof system that would improve light transmission through the roof, along with clerestory windows and other methods to bring in daylight.
- Operable Roof: $121.6 million. Your garden variety retractable roof at a newer ballpark (Minute Maid, Safeco, Marlins ballpark), in addition to the "Natural Light" improvements.
- Site Amenities: $8.4 million. Redone gates and entry plazas.
- Technology: $20.4 million. Sound, networking, closed-circuit video, surveillance. Includes en suite IPTV.
- Interior fit-out/Renovation: $17 million. Carpet, floors, finishes.
- Concessions Equipment: $13.4 million.
- Signage/Scoreboards/Video: $23.3 million.
- Mechanical/Electrical/Plumbing: $33.6 million.

Looks a lot like Nationals Park.
The best part of the report? In the introduction is a little background about the circumstances that led to the building of the stadium. But while Populous is perfectly fine pointing out all of the modern ballparks it has penned, it in no way acknowledges the simple fact that they designed Tropicana Field!!!!! Yes, it was spec'ed and built before the modern ballpark era. Yes, it was meant to be multi-purpose. Still, no acknowledgement at all? Come on, now.
The upshot indicates that $470 million spent would still yield a somewhat inferior facility. The conclusion:
Tropicana Field would undoubtedly be a better facility, both in its ability to entertain fans and generate revenue, with an approximately $350-470 million (depending on whether a retractable roof is included) renovation. However, the multipurpose seating bowl geometry, overly narrow seating treads, compromised seating sections, and poor distribution of lower and upper level seats would still yield a ballpark with substantial flaws.I suspect that a Coliseum renovation appraisal (save for the need for a roof) would be strikingly similar.
15 July 2009
NUMMI implications
Before I answer that, a little history is in order. NUMMI arose from the remains of a plant that built various incarnations of the Pontiac GTO, among other vehicles. The GM-only plant shut down in 1982, then returned in 1984 as a joint venture between GM and Toyota. The mission was to employ Japanese production methods at an American plant. Since the (re)opening of the plant, it has built millions of vehicles, mostly the popular bedrock Tacoma pickup and Corolla sedan. GM offerings included the ill-fated 80's-era Chevy Nova, the Corolla-twin Geo Prism, and the Vibe. The problem with NUMMI really boils down to this:
Nummi, the only large auto-assembly plant on North America’s West Coast, has the capacity to make 420,000 cars and pickups each year. It only made money in 1992, the result of California’s taxes and labor and pollution rules, as well as the plant’s UAW contracts, according to an estimate by Tokyo-based Credit Suisse Group AG analyst Koji Endo.Now before you start blaming the UAW for this, let's keep the labor costs in perspective. NUMMI team members make $29 an hour. Their counterparts at non-union Toyota plant in Kentucky make $25-27 an hour, in Texas it's $21-25 an hour. That difference can be chalked up to cost-of-living as much as anything else. Cost-of-living for Toyota at NUMMI can't be denied. Taxes are high, prohibitively so for many companies who choose to leave California. If Toyota is truly serious about shutting the plant down, over 5,000 jobs will be lost.
Last year, Toyota put the kibosh on reports that it was in talks to build the hybrid Prius model at NUMMI. This came as plans emerged for a new factory in Mississippi - those plans are now stalled, with the Prius production going somewhere else. It would appear that the door is open for the Prius, which is equally revered and detested as the darling of Bay Area freeways. Unfortunately, Toyota's writing may have been on the wall when it came out with lower-than-expected pricing so that the car could better compete with Honda's newly released Insight hybrid.
From an outsider's standpoint, the only thing that could save NUMMI is - that's right - massive federal money. The Department of Energy handed out 1/3 of its $25 billion in advanced technology loans last month, including $460 million for Tesla. Tesla has already committed to building its Model S sedan in SoCal, but it plans to build its battery and drivetrain factory somewhere in the Bay Area. The factory would employ less than 500. Ford got a whopping $5.9 billion to better improve fuel economy of its entire line, while Nissan got $1.6 billion to retrofit a plant in Tennessee in anticipation of one or more electric cars. Toyota received nothing (not to say that they didn't apply). Toyota may be up for one of the next two rounds, and if that's the case, a major infusion of cash to get NUMMI up to Prius production standards may be in order. Knowing what hangs in the balance, I can only imagine that locals and union officials are lobbying Congressman Pete Stark and Senators Barbara Boxer and Diane Feinstein to get the ball rolling. Couple that with state tax breaks authorized by Governor Schwarzenegger and the state legislature (um...), and suddenly the climate becomes much more hospitable for doing business in south Fremont. Like the initial closure of the GM plant and reopening as NUMMI, the process could take some time to hash out. There's zero chance you'll see Priuses rolling off the assembly line this fall.
Got that? Okay, now for the doomsday scenario. Let's assume, God forbid, that the plant does close for good. Suddenly there are now 400 acres to develop in Fremont. The Alameda County Assessor's office pegs the assessed value of the land and plant at $1 billion. The plant has plenty of historical value, which means it's not getting demolished anytime soon. Toyota, which as mentioned before has no experience closing down a plant, would have to deal with messy, ugly divestment of the various assets at NUMMI. As the NUMMI legal arrangement is dissolved, the land will be divvied up and sold. The ripest fruit would be at the northern and southern ends, which are undeveloped. The 107-acre northern section has been considered as part of a large area where a ballpark and/or parking could be built. It's also the parcel that NUMMI considered for a parts warehousing operation, if it wanted to run things the non-Lean, old-GM way. Since any debate of the impact of placing a ballpark there would be rendered moot, it's suddenly a prime site. Just sell the land and bring the piledrivers, right?
Not so fast, my friends. It's unlikely that any parcels will be designated for new development on their own without a larger development plan. Before the City of Fremont even gets to that point, they'll probably exhaust every effort to keep some kind of manufacturing in place at the site. The last thing they'd want to do in the near term is approve incompatible development that could jeopardize that. Let's say that Tesla becomes a major financial success and becomes a standard bearer for electric car manufacturers worldwide. Last summer they'd shown interest in a from-scratch plant in San Jose, before they caught wind of incentives that come with reusing brownfield sites. Perhaps they'd want a piece of the old plant. Who's to say they won't have the same concerns that NUMMI had? Given the generally low wage jobs that come with a ballpark, I'd expect the City to move very slowly on this.
The future of NUMMI, even in death, lies with Toyota. Toyota may very well close the plant, while showing no interest in selling any land. They have every right to reopen the plant at a later date when the economy rebounds. They can also dictate the pace and style of development there. Toyota has some difficult decisions to make here, and closing the plant is only the first. Should the plant close, the aftermath will not be swift, and it will be difficult.
Selig says... nothing
Yes, I did say that the panel's report should have been out by now. What's the hold up? Who knows? It could be that, knowing the state of the economy, there's simply no rush. No one's breaking ground anytime soon. It could be that additional possibilities are being explored by the panel to ensure that every avenue has been exhausted. That's probably not what Lew Wolff wants, but at this point there's no harm in being thorough."Territorial rights are always sacred," Selig said at a Baseball Writers Association of America meeting.
Selig refused to comment on whether baseball would approve an A's move to San Jose, a city that's in the Giants' territory but is luring A's owner Lew Wolff. The A's, whose attendance has fallen five straight years, claim a move from the Coliseum to a new venue would ensure higher revenue and a greater chance to be competitive.
Selig warned, "We're living in an economy where it's tough to talk about new stadiums."
Update: Jesse, a regular participant in the comments section, had a question for Selig during yesterday's online town hall at MLB.com. Here's the Q&A:
Vince Micucci: The next question from Jessie in Oakland: The A's are my lifelong passion, but I am afraid they are going to move. When will the stadium committee that MLB sent to Oakland be ready to deliver a review?
Commissioner Selig: They are close. Mr. Dupuy will meet with them shortly. It's a difficult situation and I understand his concerns. But the Oakland A's need a new ballpark -- there's no question about that -- to be competitive.
The Giants have built themselves a wonderful, wonderful ballpark, and the A's need to do the same thing. So this committee has been very thorough, has examined all of the different possibilities, which they should do, all of the different places that they may be able to go and everything else.
So I'm confident in the end that we will make a very meaningful and rational decision.
Great work, Jesse. Before you readers start parsing the response, I'll advise you - don't. You'll be taking gigantic leaps if you do.
09 July 2009
Neukom reaffirms territorial rights
That's news. Silly me, I thought Santa Clara County was granted so that the Giants could move there.Neukom said "there is a misunderstanding about the facts" relating to baseball's territorial rights, adding that the Giants established their formal claim of rights to the five counties from Marin to Monterey, with Santa Clara County at the center of that territory, as long ago as 1994.
"We asked for those counties because those are the natural counties for our fan base," Neukom said. "And those are the counties that we intend to continue to engage as Giants fans. Nobody else asked for any of those counties. Oakland asked for Alameda and Contra Costa counties, and got them."
What's missing from the story? No threats. No mention of reprisals. It wouldn't sound so strange if it wasn't the same guy who legally reorganized the Giants ownership group as "San Francisco Baseball Associates L.P." Good lord, how much more legalese can it get than that?
Historically, the head Giant owner has deigned to grace the South Bay with his presence once or twice a year, but usually in a place like Los Altos or Palo Alto. Not that I expect Neukom and his bowtie to show up at the intersection of Tully and King, but why not hang out in San Jose for a lunch and talk to interested parties here? Nah, I suspect that as long as this continues Santa Clara County as a whole will be treated like a satellite, worthy of token outreach at best. Don't let the recent investment in the SJ Giants fool you. That's the baseball equivalent of setting up Vichy France. Vive le résistance!
08 July 2009
SB 43: Legislative flea flicker
The original bill was drafted to help the Office of Statewide Health Planning and Development (OSHPD) determine which health care fields could benefit from greater diversity, linguistic and cultural knowledge. It's a bill that could be beneficial for my brother, who is a rare male in a female-dominated sector. SB 43 was moving swimmingly through committee when, on June 30, all language was replaced with rules that govern that the design-build process for the stadium only. It doesn't establish rules for any other joint powers agencies that may undertake other stadium building projects throughout the state. The bill has gone back into committee.
So what we have is effectively a legislative trick play. Masquerading as a simple interior run, the QB (Alquist) gets the pitchback and heaves a bomb to the WR running down the sideline (49ers), all while the OL (stadium proponents) and DL (opponents) are completely unaware. In a real flea flicker the OL is usually aware, but apparently not this time.

There are all sorts of questions about how this all came about. Let's tackle them from the start.
Why the bill language change? The deadline for introducing new legislation passed at the end of February, so the only way to get these rules passed was to rub out an existing active bill.
Why didn't they just introduce the bill early in the year? My guess is that the Niners felt it would've opened the project up to greater scrutiny before they were ready to unveil the revised plan (remember how I questioned the short evaluation period before the City Council vote?). The 2007 handout made no mention of the bidding process.
Did Sen. Alquist receive a campaign contribution from the 49ers? Alquist's office also revealed late that it received a $1000 campaign contribution from the 49ers.
What's so controversial about this "no bid" change? Stadium opponents are already getting their pitchforks and torches ready now that "no bid" has entered the discussion. The city charter requires a public bidding process for projects like this, in order to get the lowest high quality bid for the allocated budget. In industry parlance it's called "design-bid-build." In this case, they're going with "design-build" which changes the process by identifying a specific lead contractor early and working hand-in-hand from the start. Design-build can yield cost reductions if done right because it can prevent expensive project changes, which cost as much in terms of development time as anything else. There are few firms that have the experience necessary to do this work. What probably happened is that the 49ers and HNTB already had feelers out with construction firms and labor groups to lock in rates and costs as well as they can, which is a good idea - the A's/Quakes have been trying to do something similar. The problem is that we're dealing with public money, for which there is already a defined process. Did the Niners jump the gun? We'll soon find out.
From the City's perspective, this is an endaround the city charter, though a charter committee will be convened to rule on the bidding process. If Santa Clara is figuring out a way to deal with this, then why is state legislation involved? This is one of those cases where a bill is unnecessary and potentially wasteful. Not in the "I want my legislators working full time on the budget" sense, more the "let local issues be handled at the local level" sense.
So why are they doing this? It sounds like the decision to go with design-build was not arrived at hastily, and it may have been baked into the project from the onset. Wouldn't it have made more sense to educate the public about the matter during, oh, the last two years? Now stadium proponents have to be careful that this issue doesn't get too hot, despite the process being a peripheral detail.
And what of the original SB 43? I doubt anyone's going to get hurt by it disappearing, and it can easily be reintroduced in the next legislative year. Though I have to wonder - was the original SB 43 just a placeholder for the existing bill?
07 July 2009
Oakland enforces Coliseum parking tax
East Bay Express scribe Robert Gammon points out that per the lease terms, the A's can deduct the tax from the team's lease payment. The payment gets split between the City and County evenly, which means that the County takes the hit. That has caused Alameda County to sue Oakland to prevent the tax collection.
In the grand scheme of things, this is really pushing pennies around. The A's only pay $750k this year and next, and around $1 million the following two years. $2 isn't exactly 18.5% percent, so the A's will be "covering" the remainder. Oakland's budget deficit had been estimated to be around $60 million for this fiscal year until massive cuts were made last week. Let's take a look at the numbers:
- 42 games x 5,000 parking spaces x $2 = $420,000
- $750,000 lease payment - $420,000 tax deduction = $330,000 new lease payment
- Normal terms are $750,000 / 2 = $375,000 to City, $375,000 to County
- $330,000 / 2 = $165,000 to City, $165,000 to County
- City's final take is $420,000 + $165,000 = $585,000 (additional $210,000 revenue)
- County's final take = $165,000 (loss of $210,000 in revenue)
As far as the A's are concerned, it's roughly the same money going out. The tax will probably push some percentage of fans to either the BART lot or to use BART instead. Happy times, people!
