Gov unveils $$ plan for Sox ballpark

By Cosmo Macero Jr. and David R. Guarino

July 21, 2000 Web posted at: 4:24 PM EDT (2024 GMT)

BOSTON, Massachusetts (The Boston Herald) -- Gov. Paul Cellucci yesterday inched closer toward a compromise with City Hall on a public financing plan for a new Red Sox ballpark, proposing a targeted game-day parking fee and unused hotel taxes to help cover a whopping $312.5 million in government subsidies.

But Red Sox officials indicated the near-record offer is still not enough, since the franchise would be shut out of lucrative revenues from a $72.5 million parking garage that the city would build.

``Everybody's got to give a little here. We're getting close,'' Cellucci said. ``Maybe the Red Sox have to move a little.''

Under Cellucci's plan - a counter-offer to Mayor Thomas M. Menino's call for a citywide commuter parking tax - the city would finance the garage and provide $140 million to buy land and prepare the ballpark site.

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In return, city coffers would retain as much as $7 million in annual garage profits; receive up to $2 million a year from the half percent hotel tax; and get another $2.5 million to $3 million from a $3 game-day parking fee on at least 10,000 spaces around the Fenway.

Cellucci said Menino's willingness to build the garage is critical.

``That really . . . put us on third base,'' Cellucci said. ``We're getting close to putting it together.''

The governor acknowledged that without garage profits, the Sox now have a $3 million to $4 million gap in annual revenue that will have to be made up elsewhere. The team says it needs that money to finance its commitment to spend $352 million to build the new ballpark.

Cellucci suggested the team look elsewhere to raise the cash from private sources. But both the Sox and sources at City Hall said the shortfall may be unacceptable.

``We've made it clear from day one that we can only finance $352 million to build the ballpark itself and any ballpark cost overruns,'' said Red Sox spokeswoman Kathryn St. John. ``Our hope is that city and state leaders will meet soon to address the remaining issues.''

But Marc Ganis, a Chicago-based sports business consultant, said the project's massive public tab already puts it among the two or three most expensive ballpark ventures in history.

``I'd be shocked if $4 million a year was a deal breaker,'' Ganis said. ``There are all sorts of ways to close a gap of that size.''

Menino welcomed Cellucci's compromise offer, but continued to stand by his plan for the citywide parking tax, while casting a skeptical eye over the governor's proposal.

``If the governor has a financially and politically feasible proposal that does not jeopardize the Red Sox' ability to fund the stadium construction costs, we will be happy to listen,'' Menino said in a statement from Chicago, where he's attending a conference.

One City Hall source said the governor's plan would put the team in a deeper financing hole than the mayor would have when he first offered $30 million less than the team requested.

``Cellucci's really trying to put the pressure on the Sox,'' another source said. ``But either they are stupid, arrogant, incredibly savvy negotiators or they really can't afford it.''

House Speaker Thomas M. Finneran maintained a two-day public silence. But sources said in a morning meeting with Menino, Finneran expressed strong reservations about the timing of negotiations with so few days before the Legislature adjourns July 31.

Finneran's position is critical with regard to the state's offer of $100 million for infrastructure work, since Cellucci proposed using $28 million of that total to remove soil and hazardous material from the site.

``It's very clearly not the Speaker's first choice (to fund site cleanup),'' said Cellucci's press secretary, John Birtwell. But he said he understands Finneran ``doesn't regard it as a deal breaker.''

Still, at least one administration source cautioned that Cellucci may be shooting in the dark - noting that Finneran and his top aides have remained tight lipped during talks over how infrastructure will be defined.

But the governor said there is precedent for flexibility on public infrastructure, pointing to the state's role in cleaning up the site for Worcester Medical Center.

Menino returns from Chicago tonight, and sources say a weekend summit between the four leaders is possible if aides and Sox brass can home in on a final agreement.

Beyond the Red Sox' financial hurdles, city officials said another problem exists in use of the half percent hotel tax for the ballpark.

Officials say that tax was expressly reserved to cover potential overruns in the construction of the $700 million South Boston Convention Center.

``If we do use that for (the ballpark), we are taking away from ourselves, not the state,'' said Ed Collins, Menino's chief financial officer.

Another source said the city will demand that the state cover those overruns if it wants to divert the hotel tax proceeds, particularly since the land takings could end up in protracted court battles.

Samuel Tyler, head of the independent Boston Municipal Research Bureau Inc., echoed Collins' concerns - noting that the city won't actually pay off its $157 million convention center debt until 2002 or 2003.

Fenway activists, meanwhile, continued their efforts yesterday to convince state lawmakers to oppose public funding of the ballpark.

``We feel if this plan is subjected to adequate public scrutiny there is no way it can pass public muster,'' said Liane Newton of Citizens Against Stadium Subsidies, who briefed lawmakers yesterday at about the same time Cellucci was unveiling his plan.

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