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The City of San Diego and the Chargers have been considering a 10-acre site east of Petco Park for about a year, saying a stadium could cost $800 million, including a $500 million in public funds. Team officials said in December that a new stadium would almost certainly involve taxpayer money, after almost seven years of saying it wouldn’t.
The new stadium would put people back to work downtown and create jobs. “People need jobs now and when you have the opportunity to do the right thing for the city of San Diego, it should be done” said Adam Zavarian, a local San Diegan. The stadium, which was not mentioned explicitly in the legislation, has not been designed and it could take several years before construction could start. No financial plan has been proposed yet for the 62,000-seat stadium but completion is unlikely before 2015.
With a new state-of the art football stadium in San Diego, there are several positive economic factors. Just as the Dallas Cowboys Stadium did for Jerry Jones, the new stadium in downtown can for San Diego. There is the potential to host a 6th BCS bowl game. The potential of the World Cup returning to the United States and the West Coast, and possibly even a Pro Bowl. These things are all speculation at this point, but they are all major economic factors with potential in the next 10 – 15 years. Not to mention each Superbowl generating somewhere around $300 million in local spending from the event.
What the stadium means for downtown real estate prices:
- The real estate value of parking lots will increase: Anyone with extra parking will be able to charge a premium for spaces during the season.
- New development condominiums can be integrated into the stadium a la The Legends and Petco Park. Hence, condo owners can have “season tickets.” Definitely desirable real estate and the first of its kind.
- The more development in downtown, the more flow of traffic and tourism. Turning San Diego’s Downtown into a New York, Chicago style downtown can only help real estate values. As seen from residential and commercial values in these cities.
- Imagine the economic and monetary benefits of local businesses and hotels for events such as the Super Bowl and World Cup in San Diego. The Average Daily Rates of hotels will increase as commercial property values will soon follow.
- More Vacation Rentals and 2nd Homes will be purchased. Increasing occupancy rates and providing a solid revenue stream for current owners. Thus increasing the price of the overall unit.
Ultimately, the new Chargers Stadium is years away. Yet, one can’t help but think the positive economic benefits of constructing a stadium would bring to the city of San Diego and its residents. Although the new stadium may bring more traffic congestion and air and noise pollution to downtown, the overall positives outweigh the negatives. I’m sure Real Estate Property Values will agree with me.
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write by davis