THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Tuesday, April 23, 1996 TAG: 9604230384
SECTION: LOCAL PAGE: B3 EDITION: FINAL
SOURCE: BY DAVID M. POOLE, STAFF WRITER
DATELINE: RICHMOND LENGTH: Medium: 54 lines
Investors trying to bring big-league baseball to Northern Virginia were reminded Monday that downstate taxpayers might balk if asked to help pay for a $290 million stadium.
Del. Alan A. Diamonstein, D-Newport News, recalled how then-Gov. Doug Wilder went down in flames when he sought state funds for a new home for the Washington Redskins of the National Football League.
``The problem is you have the rest of the state to worry about,'' Diamonstein advised William L. Collins III, who heads a list of Northern Virginia investors.
Accordingly, a General Assembly study committee focused its attention on financing options that would place the burden on Northern Virginia taxpayers.
Collins said his group needs public assistance to build a 42,000-seat stadium to lure an ailing franchise or bring an expansion team to the suburbs of Washington, D.C.
A consultant told the committee that every current major league park - with the exception of Dodger Stadium - was built with mostly public money.
Sam Katz of Stafford Sports Ventures said public financing costs could range from $16 million to $19 million a year.
The lower figure is based on taxpayers picking up two-thirds of the tab.
The higher figure is based on the public paying for three-quarters of the project.
The General Assembly committee was briefed on revenue options such as raising the sales tax in Northern Virginia from 4.5 percent to 4.6 percent and adding a regional surcharge to levies on liquor, tobacco and car rentals.
Collins said his group would like to have a financing plan in place this summer, when the Houston Astros may go on the auction block.
But the timing depends on the willingness of Gov. George F. Allen to call a special legislative session. Allen has said he would consider a special admissions tax or other ``users fees'' to finance a stadium. But the Republican has been cool to broad tax surcharges and has threatened to veto any sales tax increase.
Collins sought to keep statewide tax options open, telling the General Assembly committee that the team would carry the Virginia name and could help boost tourism and civic pride around the state.
Norfolk Mayor Paul D. Fraim, a member of the stadium committee, said he would keep an open mind on statewide financing because Hampton Roads may need help down the road building an arena for a major league hockey or basketball franchise.
``My hope is that it may serve as a model for financing other regional sports facilities,'' Fraim said. by CNB