Birmingham Dome Update (10-22-04)


Deuce

Deuce

Well-Known Member
Needed boost for dome

Friday, October 22, 2004

It's been a terrific week for supporters of a domed stadium in Birmingham.
Tuesday, Jefferson County Commission President Larry Langford dropped his proposal to build the dome at the site of the old Sears building and threw his full support behind the more sensible site and plan chosen by the Birmingham-Jefferson Convention Complex board. His change of heart keeps safe the county's commitment of $10 million a year toward the dome's financing.

Wednesday, Birmingham Mayor Bernard Kincaid pledged to try to find an additional $5 million on top the $5 million the city already is committed to providing the BJCC. If the City Council agrees with the mayor - and it should - the only piece missing to complete the dome funding pie is a $5-million-a-year pledge from the state.

BJCC officials said Wednesday they will meet soon with Gov. Bob Riley to discuss the governor setting aside the money from the state's economic development fund.

All of that is great news for Birmingham. It puts the dome/multipurpose facility within range. BJCC officials say they could issue bonds by the end of the year to finance the $498 million project.

This is a project Birmingham, Jefferson County and Alabama need. It will create jobs, produce needed tax revenue and help revitalize downtown.

Consider just the economic impact of building the dome and convention and entertainment district. A 2002 study said construction alone will create 4,200 jobs and generate tax revenues of more than $40 million.

After construction, permanent jobs created will range from 2,000 to 4,000, and tax revenues will range from $8 million to $14 million a year.

In an unexpected way, the controversy over the site and size of the multipurpose facility raised by Langford likely helped push the project along by prompting county and city officials to commit to it. With both Langford and Kincaid now at the front pushing the project, progress will come more quickly.

What happens next will depend in great part on the governor and the Birmingham City Council. This should be an easy call for both.


http://www.al.com/search/index.ssf?/base/opinion/109843653976530.xml?birminghamnews?oedit
 

Oracle said:
This dome idea will be dead unless the full funding is found by Jan. 1.
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Oracle,

They actually already have enough funds for the DOME itself, they just have not completed the funding for the entertainment district and hotel.

If they don't get ALL of the money they want for the ENTIRE project, they will still likely build the dome, and maybe come back later with the rest of the project.
 
Deuce said:
Oracle,

They actually already have enough funds for the DOME itself, they just have not completed the funding for the entertainment district and hotel.

If they don't get ALL of the money they want for the ENTIRE project, they will still likely build the dome, and maybe come back later with the rest of the project.
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Imma miss playing the Classic at Legion Field.... I KNEW that proposal Larry Langford proposed wasnt going to work... he was tryin to move the location to 1st Ave and make it a 50,000 seat dome... that proposal was shot down in about 2 weeks.
 
Deuce said:
Oracle,

They actually already have enough funds for the DOME itself, they just have not completed the funding for the entertainment district and hotel.

If they don't get ALL of the money they want for the ENTIRE project, they will still likely build the dome, and maybe come back later with the rest of the project.
Click to expand...

I thought the whole project had to be done or none of it would be done. I do see that they have enough financial committments to build the dome as a stand-alone building, but I wonder if they would actually do it. It would be difficult to pay off the bonds issued to build the dome with just money made from use of the dome and some other taxes that were raised to support it. Although the city, county and state may guarantee some of the money necessary to pay off the bonds, they will do only if the projections indicate that the dome project will create an amount of sales and tax revenue in excess of the money they guarantee to help pay off the bonds. The dome project needs revenues of 35-36 million annually to pay off the bonds. I don't know if the limited activity at the dome itself, and the other taxes (on rental cars, etc.) could create that amount of revenue. From what I have been led to believe, the hotel and entertainment district were absolute necessities because they would be used to create additional economic activity and generate the extra revenue necessary to cover the money the state, county and city would guarantee to pay off the bonds.

A dome is a nice building to have, but I wonder if the Birmingham area has the economic activity to support one.
 
DAHILL said:
Imma miss playing the Classic at Legion Field....
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Don't get discouraged too soon. There is still a huge question about whether the dome will get built. You may have the chance to see a lot more games at Legion Field.
 
Oracle said:
I thought the whole project had to be done or none of it would be done. I do see that they have enough financial committments to build the dome as a stand-alone building, but I wonder if they would actually do it.
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Oracle,

The financial committments from the state, county and city will be enough to pay off the bonds.

I find it hard to believe that this is an "all or nothing" project. Why get enough money to build the dome, and then NOT BUILD it because you don't have enough to build the hotel and entertainment district.

Those other projects can be built around the dome once it is built. The land has already been purchased.
 
If the dome is built, what events will be held there? Would the SEC Championship game move there? What is there in Birmingham to attract big time sports events.?
 
CurtDog 1971 said:
If the dome is built, what events will be held there? Would the SEC Championship game move there? What is there in Birmingham to attract big time sports events.?
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CurtDog 1971,

I don't know if you're aware of it or not, but the first two SEC Championship Games were held in Birmingham, at Legion Field. Also, over 83,000 people flocked to Birmingham to watch a soccer match during the 1996 Olympics.

There have been numerous football games down through the years, as I'm sure you are arware, that have been hosted by the city. From Notre Dame to USC, and a whole lot in between, Birmingham has had its share of big time sporting events, and with dome, it should only get better.
 
Deuce said:
Oracle,

The financial committments from the state, county and city will be enough to pay off the bonds.

I Why get enough money to build the dome, and then NOT BUILD it because you don't have enough to build the hotel and entertainment district.
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The state, county and city are not giving money to the BJCC as gratuities. They will expect the project to generate enough money in taxes, etc., to repay them for the guarantees to the BJCC. In addition, they expect the project to create a net sales and tax revenue in excess of the money they guarantee (In other words, they want the dome project to create enough revenue to cover the guarantees, and to create some additional tax money for their respective budgets.) The dome, by itself, may not create enough money to justify the investment of tax dollars by the state, city and county. The BJCC board recognized this, and floated the idea of an accompanying hotel (under which a special room tax would be added to help pay off the loan) and entertainment district.


Deuce said:
Those other projects can be built around the dome once it is built. The land has already been purchased.
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Since they are counting on the entertainment district to create revenues that would be used to help pay off the bonds, they cannot delay the building of the district. The district would need to be up, running and generating money when the payments on the bonds begin.

The simple fact of the matter is that the entertainment district, if successful, should generate far more money than the use of the dome. In fact, if you judged this project simply on the ability to generate money, you would build the entertainment district first and build the dome later.
 
CurtDog 1971 said:
If the dome is built, what events will be held there? Would the SEC Championship game move there? What is there in Birmingham to attract big time sports events.?
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I don't know if that game would return to the Magic City. That question was presented to the Commissioner of the SEC and he indicated that the game would stay in Atlanta for a number of reasons.

It would, however, give the SEC more leverage with Atlanta and help it get a better deal on the rental of the Georgia Dome.
 
Oracle said:
The state, county and city are not giving money to the BJCC as gratuities. They will expect the project to generate enough money in taxes, etc., to repay them for the guarantees to the BJCC.

Oracle, The BJCC WILL NOT have to REPAY the state, or the county or the city for their guarnatees. This is an economic development deal, just like Mercedes or Hyundai. This money is not being "given" to the BJCC, it is being "invested" in the state of Alabama. Sure, they expect to collect taxes, and create jobs, but they WILL NOT have to be REPAYED
.
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Deuce said:
CurtDog 1971,

I don't know if you're aware of it or not, but the first two SEC Championship Games were held in Birmingham, at Legion Field. Also, over 83,000 people flocked to Birmingham to watch a soccer match during the 1996 Olympics.

There have been numerous football games down through the years, as I'm sure you are arware, that have been hosted by the city. From Notre Dame to USC, and a whole lot in between, Birmingham has had its share of big time sporting events, and with dome, it should only get better.
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Were is the key word in your response. All of those events were held in Birmingham. There has to be a reason they left. Nothing against B-Ham because I have been to the city numerous times and enjoyed myself. I just don't see B-ham as a city to attract big time sporting events now. Even with a dome. There have to be other things to offer. B-ham's downtown area was not exactly booming the last time I spent some significant amount of time there in 2000. Have things changed?
 
CurtDog,

First of all, the Olympics was a one-time thing. No further explanation needed there.

The SEC Championship game left mostly because of the unpredictability of the weather, a problem that would be solved by the dome. Whether or not the game returns to B'ham remains to be seen.

Furthermore, if Birmingham could attract major sporting events in 80 year old Legion Field, surely the city can attract major events to a state of the art domed stadium/convention center/entertainment district.
 

Deuce said:
CurtDog,


The SEC Championship game left mostly because of the unpredictability of the weather, a problem that would be solved by the dome. Whether or not the game returns to B'ham remains to be seen.
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Another reason the game left was because Florida and other schools complained that it was unfair to play the game there because Legion Field was Alabama's home field for some games. They wanted a more neutral site and put pressure on the conference to move the game to Atlanta.

I doubt that the B'ham dome will solve this problem. Birmingham would probably get at least one low-interest game from Alabama every year. Consequently, other schools will continue to see the SEC champ. game as a game on Alabama's home field.

I don't think the SEC has this problem with the Georgia Dome because Georgia does not play any home games there.
 
Oracle,

With the expansion of Bryant-Denny Stadium, and Bama fans' desire to play games at home, UA is pretty much set to play all of its games in Tuscaloosa. That would eliminate the "Alabama's home field" argument from the other SEC schools.
 
CurtDog

This is a Multi-Use Conference and Convention Center - a Dome for lack of a better word. The St Louis Dome is the prototype for what we are looking for. This project will be able to host and house multiple conferences, conventions and trade shows at the same time - so it makes Birmingham more competitive in attracting those kinds of events. At the same time for a football game it will be able to be configured into a football stadium - thus the Dome. It will seat roughly 80k people in that configuration.

The Dome aspect - as far as the sporting events - is actually the least profitable - the other business interest makes this an attractive proposition. You have those that are against this project saying this is a dome and it should be built with private funds - well it is actually an expansion of the current Birmingham Jefferson County Civic Center - which is jointly owned by the City of Birmingham and Jefferson County - hence the name. So this is a civic goverment expansion project - not a private venture. And it is a venture that is much needed. The feeling is the ground will be broken on this sometime in the spring - and whether the State joins in or not, the finances are in place - with Wachovia more than likely kicking in sponsorship as soon as the merger with SouthTrust Bank is complete within the next month or so.
 
this is the slowest building dome I've ever seen...tough when you don't have a primary tenant...yall better make a Nashville-type offer and lure an unhappy NFL team
 
Band Fan if the primary use for the facility was going to be for an NFL franchise, then yea one would try to lure a franchise this way - but once again - just like the local people here who are against the project - this is not a primary DOME - that is just one of the uses for the facility...sporting events will not be the sole or even the primary engine driving this facility...
 
majiksity said:
Band Fan if the primary use for the facility was going to be for an NFL franchise, then yea one would try to lure a franchise this way - but once again - just like the local people here who are against the project - this is not a primary DOME - that is just one of the uses for the facility...sporting events will not be the sole or even the primary engine driving this facility...
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Good Luck!!!
 
The ACC would love it if the SEC would move its game to Birminhgam - they would put their championship game in Atlanta.
 
CurtDog 1971 said:
So B-ham is building a dome for one Alabama game a year and the SWAC Championship game?
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I am sure the UAB would be using this Dome as a Home field as well. Most Dome done have problems getting filled up. Birmingham is much like Indianapolis in size and scope and would stand a chance of eventually securing a professional team at some point.
 
Olde Hornet said:
The ACC would love it if the SEC would move its game to Birminhgam - they would put their championship game in Atlanta.
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Co-sign.

Let Hurricane Hildegard (or one of Ivan's other siblings) come through Jacksonville (FL) during one of the upcoming ACC Championship games, and they might be willing to move to a dome in Birmingham themselves.
 
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