City's contribution limited to $125MM for land, environmental cleanup and RFK improvements
Ultimate ownership of Stadium by The District
Financial burden/risk shared with private owners
Minimzed the amount required from gross receipts taxes

BWRA’s Benefits to Team

More up-front cash than provided by traditional debt financing
Construction of Stadium without encumbering Team's other assets or requiring Team's capital infusion
Operating leaseback providing attractive, long-term, fixed-rate rent with renewal options
Full control of Stadium during the lease term

Transaction Structure: Construction of a New Baseball Stadium in The District of Columbia

Primate Stadium Owner raises debt and equity on credit of Stadium-generated taxes and other credit support
LCOR constructs new Stadium to team specifications
Insured construction contract with on time/on price delivery

Stadium leased to Team at attractive fixed-rate rent with operating lease treatment for Stadium Lease

Ground Lease ends at 25, 50 or 65 years or whenever Private Stadium Owner fails to pay ground rent
Ground and Stadium then belong to D.C. Government

Private Stadium Owner forfeits remaining term of Ground Lease and Stadium to D.C. Government
D.C. Government may lease Stadium to Team for an additional term(s)
D.C. Government owns Stadium free and clear of other interests and can realize future appreciation

Private Stadium owner pays D.C. Government the accrued ground rent and interest in cash
Private Stadium Owner pays new FMV ground rent currently to D.C. Government
Private Stadium owner will offer to re-lease Stadium at FMV to Team
D.C. Government receives Stadium at end of Ground Lease (50-65 years)

Team extends Stadium Lease with Private Stadium Owner or D.C. Government
At D.C. Governement's option, Team may share in future appreciation (under Strategy A) or FMV ground rent payment (under Strategy B)

Structure Transaction to maximize results for all parties (D.C. Government, Team)
Coordinate with Major League Baseball
Coordinate transaction financing by working with D.C. Government and all Finance Team members
Oversee legal and documentation process
Manage transaction closing

Richard A. Gross, Manager, rgross@bwra.com
Sandra Spalletta, General Counsel, sspalletta@bwra.com
Ross A. Pascal, Capital Markets, rpascal@bwra.com
D.R. Dugan, Finance, ddugan@bwra.com
915 15th Street, NW
Washington, DC 20005
(202) 347-4900

Michael Sununu, Manager, mcs@jhsassociates.com
24 Samoset Drive
Salem, NH 03079
(603) 890-1630

Ticket Tax - Assumption based on 41,000 seat stadium, 66% capacity, league average ticket price of $19,82 and 10% DC ticket tax. (Source: 2004 Fan Cost Index)
Player Payroll Tax - Assumption based on $55 million player payroll (on par with Minnesota Twins and Oakland Athletics 2004 player salary - ranks 19 out of 30 teams) and 9% DC payroll tax. (Source: MLB)
Parking Revenue/Tax - Based on 5000 pace parking facility, $20 per game parking, 100% capacity for games. Game day parking revenue assumes first 1,100 spaces of parking goes to team as per current "Baseball Stadium Agreement". Non-game parking assumes 30% capacity for 270 days/year and $9.75 per day. Tax assumes 12% DC parking tax.
Concession Tax - Assumes $15.57 of concessions per person per game and 10% DC concession tax. (Source: 2004 Fan Cost Index)
Rent - Assumes fixed rent payment with no escalation over the life of the lease.