Pig in a poke

December 13, 2005

Pardon the shortness and disjointedness of this and possibly upcoming entries. I’m watching the stadium roundtable between the DC City Council, Mayor Anthony Williams, CFO Natwar Gandhi, and the Sports and Entertainment Commission Mark Touhey. I will sum it all up more coherently after it’s over, but wanted to get some stuff out there while it’s ongoing. The most notable argument so far is:

Catania: Remind about 2nd point to be cognisant of watching members and what they said last year versus this year. In WaPo Nov 8th, 2004. This is like negotiating a car price and terms to pay, but when it comes time to sign the document, the price of car escalates and I have to pay that. I would not handle my biz like that and the citizens will not. Infrastructure – are we not bound to pay those costs.

Touhey: I believe you say the infrastructure you refer to is on the site, not off the site.

Catania: Agmt integral part – page 62 18.1 References document they do not have

Touhey: Yes, you do not have that document yet

Catania: How can we argue this without a document that defines infrastructure. We do not have the construction administration agreement. This is not a contract.

Touhey: There is in the BSA. Off-site work is not included according to the BSA.

Catania: We’re buying a pig in a poke. We’re going to be with this for 30 years without knowing what we’re voting on. Where will get money between what we need and resources that are not available.

Williams: Developers we unveiled yesterday will be a potential source. Metro site like New York Avenue.

Catania: Preservation of open competition between federal contractors – makes it illegal for Fed Gov’t to fund project where there is a project labor agreement.

Williams: No, not familiar and does not think it would apply.

Catania: Any efforts to fund will run against the president’s executive order until 2009. If the team fails to pay rent, the team can default. Early termination of the lease – p 17 -18. The term of this agreement shall terminate prior to the expiration upon these events. 16.1 (p55) the team shall fail to pay basic rent (default). Means it’s an early termination. If you go to non-reloc agmt, p7 – this agmt shall terminate upon the occurence of any following events – termination of the lease. If MLB wants out of deal, they just don’t pay rent. If the lease is terminated, then the non-relocation is terminated. We may have access to damages for amount of rent, but not even 10% cost of stadium. Is this the first time you’re hearing this concern Mr. Mayor? (mayor wants Touhey to answer). Catania keeps jabbing at him about it. Do you deny on page 7 that there’s a provision in the non-reloc agmt. Does it not say this shall terminate upon the occurrence of any of the following events including termination of the lease.

Williams: Things say what they say on paper, but are more complicated than that.

Catania: Words don’t lie and have separate meanings. This project start out with an ironclad promise that it would cost 535 all-inclusive. We just snowed you. We didn’t mean those things. (time called). Unfunded costs for the duration of 30 years.

Posted in Stadium, Washington Nationals