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Message: [QUOTE="Millhouse, post: 908226, member: 78"] putting your's in bold so I'm not responding in the middle of a quote *** [B]From what I can tell this would be done as a public private partnership. As part of that the sponsors set up a project company, which is dedicated specifically to that particular project. The sponsors from what I can tell would be NYS, Onon. Cty, the Developer (at this point COR) and the operating company. SU would not be a sponsor and member of the project company according to the letter to Miner. Their commitment appears to be as the core tenant. Based on what OE and others have said NYS would bring $200M in stimulas money. No bond, no future tax, but straight cash with no payback to the state. The county would bring $100M in financing that they would bond for. That could be county issued bonds or the project company could get project financing. Without digging back through it to see the amounts, ($100M total or $100M each or something inbetween) the Developer and the Operating Company would each be equity investors. If this is the structure the project company itself would not be heavily leveraged at all if that is a primary concern. The parties could also heavily leverage the project, which increases the IRR for the equity investors and spreads the risk to debt issuers.[/B] *** I'm with you up to this point. I'm not saying that the developer would be highly leveraged compared to the cost of the whole thing. But they still need to come up with 100M of their own *** [B]As for cash flows, somebody keeps bringing up Louisville. A major difference, and this is huge, is that the Yum center is a 20K arena, this would be a 44K mixed use, retractable roof stadium. Between SU, the Crunch, and the Soccer team you are going to get a ton of use. I don't see anyone but the Lville Basketball teams and Women's volleyball as locked in users. The rest of the events they have are concerts. What this new plan calls for consolidates facilities which is going to concentrate revenues. If gives the operator the option of adding big field sporting events that an arena can't. The same facilty could host ACC and NCAA Lax tourney events, same with Soccer perhaps (don't know about the field size), and also NCAA basketball tourney first and regional rounds, same for hockey. Add an MLL team and/or professional soccer team. Do it right and the same facility could host big stadium shows and festivals and be configured for arena tours. And again additional benefits are that this facility is added to the tax rolls in some manner, which benefits the gov't sponsors. The Dome and War Memorial don't pay a dime in property taxes. It gets the county out of the War Memorial business, that's a good thing. In terms of functionality and use it would be like having the Staples Center and the LA Coliseum in the same building, the Izod Center and Met Life in the same building, the Linc, Wells Fargo and PPL Park in the same building. It has to be right sized for this community and the events we can draw, but done right this could be a great asset for everyone involved.[/B] *** I'm not in disagreement about the types of events the place could host. I'm just skeptical about the 100M present value. I'd love to be able split out the 100m assumed value between event revenue and building revenue. Let's split down the middle (i think that's unlikely, events will probably make up a bigger share of the total value than that) 50M NPV, 30 years, 10% discount. That means you need 5.3 million a year of cash. Let's assume 20% margins. (this is also generous because the building would need to be rented constantly for so many different purposes which leads to expenses of reconfiguring) That means you have to bring in 26.5M in revenue to get to 5.3 million profit. (72 grand every day) That is a lot of SU soccer games! This doesn't even factor in taxes (another generous assumption) I just don't think the area can support that many events. That just seems like a lot. Lots of assumptions here but I think mine are all pretty generous. This is all just quick and dirty excel pmt formulas so take it with a grain of salt - if someone can pick apart mistakes, have at it [/QUOTE]

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