Financing for Dynamo stadium nearly a done deal

As reported in the Chronicle

By BERNARDO FALLAS
March 24, 2009, 5:27PM

Dynamo ownership has all but secured all of the financing needed for the construction of an $80-million soccer stadium just east of downtown and plans to break ground on the project as early as this fall.

"We have some I's to dot and t's to cross, but things are looking very favorable," Dynamo president Oliver Luck said Tuesday. "It's not a done deal, but the principal points have been agreed upon."

Dynamo co-owners Anschutz Entertainment Group, Brener International and boxer/promoter Oscar De La Hoya have secured financing totalling about $20 million on behalf of the City of Houston and Harris County through Spanish bank BBVA/Compass.

The development clears the way for city council and commissioner's court to put the stadium item on their respective agendas.

Both government entities have committed tax increment reinvestment zone revenue streams to the project provided the Dynamo could find a bank to provide financing up front, Luck said.
"We spent about three months talking to banks," Luck said. "Given the economic climate, finding a bank was a challenge, so we are appreciative of BBVA/Compass."

Dynamo ownership has pledged $55-60 million in private funding for the proposed 20,000 capacity facility stadium to be located near the intersection of Texas and Dowling, just east of downtown and U.S. 59.

The stadium would be built on land purchased by the city of Houston in 2008 for $15.5 million.
Texas Southern University also has agreed to a $2.5 million investment in exchange for the use of the stadium by its football team.

The Dynamo are hoping to have a new stadium ready for the 2011 season. For that to happen, the team would have to start construction no later than this fall.