| June 22, 1999Sullivan to Mariners: ‘Stick to your promise’
King County Councilmember Cynthia Sullivan is urging the public operators of Safeco
Field to stick to their guns regarding a request by the Seattle Mariners to mediate the
issue of cost overruns of the stadium.
The Seattle Mariners announced today they would like to enter into mediation with the
Public Facilities District over the contentious issue of whether additional public funds
may be used to cover cost overruns and/or reimburse the team for payments already made to
cover those costs.
The Mariners contend there is a legal issue as to whether the team should bear all the
costs over the original Project Capital Budget of $417 million. King County issued bonds
to cover $336 million of those costs, while the team paid $45 million. Cost overruns due
largely to requests by the team have inflated the construction costs over $100 million.
Sullivan said that although the team has the ability to seek mediation to settle the
dispute, she is hoping the PFD holds fast to their position that they will not approach
the county for additional public funds.
"The Public Facilities District officials have stated they will not request that
King County obtain additional bond funding to cover cost overruns. I applaud them for this
position and urge the PFD to hold fast to that position," Sullivan said.
"This is a matter of honor for the ownership and a matter of principle for King
County. If the Mariners insist on pursuing this matter, they will continue to lose the
public’s trust and confidence. It is time for the team to move on and get ready for
opening day."
The King County Council passed a measure earlier this month which reaffirms the
county’s intent to follow the state Stadium Act, as well as the council’s
stadium financing ordinance. Both the state act and council legislation were enacted in
1995 and approves a local financing package.
In 1997, the council approved the issuance of $336 million in bonds. State and county
law requires that all excess revenue from the authorized taxes be used to retire the bonds
early. Any excess revenue after retirement of the bonds must be placed in a contingency
fund to pay unanticipated capital costs on the baseball stadium, excluding cost overruns
on initial construction.
Sullivan said the Mariners and PFD officials should remember statements
they have already made to the public, including:
"We have every intention of paying for any of the additional costs above the
public contribution. We never wavered in that commitment."
Rebecca Hale, Seattle Mariners
spokesperson, January 12, 1999, Associated Press
"The Mariners will pay for all of the cost overruns. The
public’s share was capped a long time ago. Not one penny of this additional cost will
be borne by the public."
Tom Gibbs, Board of Directors, Public Facilities District, July 21, 1998,
Associated Press
"The owners of this team are picking up the tab."
John Ellis, team chairman and chief executive officer, July 21, 1998
"Our obligation is to pay cost overruns and we’re going to honor that
obligation. Everything beyond $417 million is ours. We told that to the Public Facilities
District."
Paul Isaki, Seattle Mariners Vice President, April 25, 1998, The Seattle
Times
"It is now clear that cost overruns will occur. The club will provide the
funds necessary to pay such cost overruns when such payments are due."
John Ellis, team chairman and chief executive officer, May 18, 1998, in a
letter to the PFD.
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