The Anaheim City Council early this morning approved several agreements that collectively will keep the Angels in Anaheim until at least 2025 and potentially until 2075, while selling the stadium site to partnership led by team owner Arte Moreno, which will transform the site with a mixed use development that will create 75,000 construction and permanent jobs, and ultimately generate more than a billion for the city’s general fund.
The vote was 5-2. Mayor Harry Sidhu, Mayor Pro Tem Lucille Kring and Councilmembers Trevor O’Neil, Steve Faessel and Jordan Brandman voted to keep the Angels in Anaheim and sell the stadium site at fair market value of $320 million.
Councilmembers Jose F. Moreno and Denise Barnes voted “no.”
“We have made history,” Mayor Harry Sidhu said. “What have been far too many years of uncertainty and inaction in Anaheim are now over. We have secured baseball while freeing our city from the costs of stadium ownership. Our residents will benefit for years to come as valuable, underutilized land gives way to a stadium area we can all be proud of.”
The essence of the deal:
- The Angels agree to play in Anaheim through at least 2050, with five 5-year extensions.
- SRB Management (comprised of team owner will purchase 150 acres of the Angel Stadium site for the appraised fair market value of $320 million.- paid in $150 million in cash and $710 million in city-required community benefits (466 low-income housing units and a 7-acre flagship public park).
- Developing the stadium site into residential units, offices, retail stores, entertainment venues, parks and open space and two hotels.
- It is estimated the 54-year old Angel Stadium needs repairs and renovations costing in at least the tens of millions – and perhaps hundred of millions – of dollars. When the deal closes and SRB takes over ownership of the stadium site, it also takes on sole financial responsibility for fixing the existing stadium or building a new one – with no taxpayer subsidy.
Agreement Consolidates and Accelerates Millions In Payments to City
The Purchase and Sale Agreement approved was slightly different from th PSA approved in December 2019. Since then, the city decided to retain approximately 3 acres for a water well and a fire station; the final sale prices was accordingly reduced from $325 to $320 million.
More importantly, the cash payment schedule was simplified – consolidating several staggered deposits into a single $45 million deposit due on closing in 2021. An initial $5 million deposit to the city by SRB was made early this year.
How The $320 Million Is Paid
The stadium site is being sold to SRB for the appraised fair market value of $320 – getting the city out of the stadium business. SRB will pay the a combination of cash and deliverable community benefits requested by the city during negotiations: $150 million in cash and $170 million in community benefits.
$50 million (the aforementioned deposits) will have been paid by sometime next year. Of the remaining $100 million, $20 million will be paid upon approval of vesting tract maps and the remaining $80 million in four, equal annual payments after closing.
The remaining $170 million will be paid via $123.7 million worth of affordable housing (466 low- and very low-income units) and $46.2 million for a 7-acre flagship public park. All told, the development will result in twice the required parks acreage – and also generate between $20 and $30 million in park fees for the city.
Potential features of the flagship park include:
- Playgrounds
- Active and/or passive recreation
- Small-scale sport courts
- Outdoor dining/gathering spaces
- Dog parks
- Shade structures and shade tree
- Strolling gardens
It’s worth noting the Angels have waived an credit against the sale price for the $25 million in pre-paid rent they’ll lose the use of when they take possession of the stadium site.
Proposed Development Of The Stadium Site
The Disposition and Development Agreement envisions an exciting development that will transform the current blacktop.
- It permits up to 5,175 apartments and condominiums. 777 of those will be affordable apartments, interspersed throughout the totality of the development.
- 2.7 million square feet of office space
- 1.75 million square feet of retail, restaurants, entertainment venues and two hotels with a combined 943 rooms.
Huge Economic Impact
The new development will have an enormous economic impact on Anaheim and the region. During the construction phase, it will create an estimated 30,264 good-paying jobs and generate $5 billion in economic activity. According to the economic impact report, it is estimated the average annual pay for these construction jobs will be $75,000.
After build-out and during the course of 30 years, the Angels development will create 45,300 new jobs (exclusive of stadium jobs), and generate $1.2 billion in General Fund revenues – including $443 million in hotel and bed taxes. The average compensation of these permanent jobs will be $70,000, according to the economic impact report (based on 2019 wage levels).
Re-Imagining Angel Stadium
The master plan envisions removing the rock waterfall feature in the outfield, opening it out to a “fan experience area” where Angels fans can enjoy breweries, restaurants, live music and other festivities.
The City National Grove may or may not be replaced by new development.
This is a great deal for Anaheim!