Does Atlanta need a new stadium? No, but it’s getting one
Frank Poe and Rich McKay, laughing all the way to the construction site. (AJC photo by Jason Getz)
On Monday, the man charged with making the Atlanta Falcons’ pitch for a new stadium actually made a case for the current one. “We don’t need a building to play in next Sunday,” team president Rich McKay said. “The Georgia Dome is a good building. We love playing in it. (Falcons coach) Mike Smith has an incredible record in it.”
So why, if the Dome is dandy, was McKay sitting at a dais with Frank Poe, executive director of the Georgia World Congress Center Authority, briefing the assembled media an hour after the GWCCA board unanimously approved terms that will surely lead to the building of a new stadium?
Because in sports as in life, new and shiny trumps tried and true. The Dome opened in 1992, and it’s a nice place two decades on, but by 2017 it’ll be gone, having been rendered superfluous by its billion dollar baby brother.
Said McKay: “We need a new stadium for the long term, and the natural time to do that is at the end of a lease.”
The Falcons’ lease with the Dome is due to expire around 2017, and that was their pressure point. They didn’t threaten to leave town – “There was not a 1995-type lever,” McKay said, speaking of the days when teams told cities to build a new stadium or else – but they did make it known they had no interest in re-upping this lease. That left the GWCCA, which runs the Dome, with a choice it didn’t know it would have to make: Do we ditch a perfectly sound building to placate our biggest tenant?
To their credit, Poe and associates forged a not-terrible solution. The Falcons stand to foot 70 percent of the $1 billion it will take to erect a new stadium, with public money – roughly $300 million from a hotel-motel tax that affects mostly non-Georgians – making up the difference. There are those who wonder if that $300 million wouldn’t be better used to upgrade infrastructure or further education, but this leads us to the unanswerable question: Why should ballplayers earn millions while schoolteachers make do with thousands?
In pro sports, a new stadium is almost always a shared venture, and far less public money will be earmarked toward the Falcons’ new home than was the case, say, in Indianapolis with the Colts and Lucas Oil Stadium. That’s as it should be: The Falcons are the ones who wanted this, and they should pay the most.
When this new-stadium balloon was first floated, the thought was that the GWCCA might be so cowed by Arthur Blank that it handed the famous owner everything he wanted. Instead the Falcons will settle for one stadium — they first wanted the Dome to remain in place just down the street, a notion laughable on its face – with a retractable roof (as opposed to an open-air facility). And the site itself, which hasn’t officially been determined, figures to be south of the Dome, not north.
The GWCCA didn’t stop the Blank Express, but it slowed the momentum to the point that a compromise could be reached. The Falcons get what they wanted most, which is the right to control nearly everything about their new stadium and bank the money that comes with concession and parking – “We want to touch the customer in every way possible,” McKay said, surely not least in the wallet — but the edifice will remain the property of the state of Georgia.
In these uncertain times, handing $300 million in tax money to fund a stadium that will be run by a team owned by a billionaire isn’t an easy sell, especially when the building that team occupies is presentable enough that it will, come April, stage the big-ticket Final Four. But the Falcons had leverage – they could move to Doraville and leave the Dome vacant on NFL Sundays – and they applied it. The GWCAA fought its corner and will get what amounts to a newer Dome. Maybe everybody won’t win in this, but there shouldn’t be many losers.
And if not … well, nothing is forever. The Falcons will be obliged to stay in their new home for 30 years. Sometime around Year 20, they’ll start angling for something bigger and brighter. That’s the way of our world. Everybody wants the latest iPhone, even if the old one works fine. Every professional team wants a new stadium, even if the existing place still looks pretty darn good.
By Mark Bradley
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357 comments Add your comment
Devil's Advocate
December 10th, 2012
2:52 pm
Somebody Please Tell me,
New Orleans is a party destination that sometimes hosts big conventions and events. Atlanta is a convention/event city that sometimes has a big party.
New Orleans tried to get a new stadium to the point that the Saints were threatening to leave, then Katrina happened and priorities got reshuffled. The Superdome got a facelift but I’m not sure how long that’s going to satisfy the owners. Supposedly the Saints are still working on a new stadium deal.
Back to Atlanta…people love Atlanta. You might hear locals OTP bash on Atlanta but everyone else seems to enjoy coming here. Businesses love setting up shop here. People love moving here. There is money flowing through Atlanta and that means more money can be squeezed out to build a new stadium. Atlanta is subject to the same game as everyone else but because Atlanta can afford it for many reasons, our timeline is accelerated. We’re replacing a 20 year old stadium instead of a 45 year old stadium.
Crazy but I’ll deal with it.
roterhals
December 10th, 2012
2:54 pm
retractable roofs are for wimps
sliderule
December 10th, 2012
2:55 pm
Vote the bums out! Oh wait, they weren’t elected.
Nativebird
December 10th, 2012
2:55 pm
long time season ticket holder. Love the Falcons, love football, hate these greedy corporate billionaire grease-balls who have zero problem with squeezing every penny out of fans pockets, for quite honestly, not all that great of an in-game experience in Atlanta. Have at it. Im done. good bye.
smock
December 10th, 2012
2:55 pm
Yeah, Ted Turner is a real saint bill. He used his influence to have his old company sell the Hawks/Thrashers to his son, son-in-law, and their associates after another buyer on more solid financial footing had already been lined up. Then his son, son-in-law, and their associates ran the Thrashers into the ground and sold them to an out-of-town buyer.
Yep, Ted Turner is a saint.
Ronin
December 10th, 2012
2:56 pm
Financially foolish…. but for some reason, I’m not surprised.
Dickie
December 10th, 2012
2:57 pm
2010 Super Bowl was played in Miami Gardens. Stadium was built in 1987. 2003 SB was played in Qualcom Stadium built in 1967. Why does Roger G. say that a new stadium is needed in Atlanta to host the SB? We hosted in 2000. What has changed?
ideas
December 10th, 2012
2:58 pm
To “all I’m saying is”. In Doraville there is a Marta station right next to it, as close as any parking lot downtown. Where are you from?
JB
December 10th, 2012
2:58 pm
It ought to be open air and it ought to be near the practice Facility they have. Never happen, but that’s what ought to happen. How much of Arthur’s money going towards it? Zero I’m sure.
what a crock
December 10th, 2012
2:59 pm
call their bluff; let ‘em try doraville. they won’t have a place to play until 2025. and new orleans still gets the super bowl because where would you rather be on feb 1 – dodging ice pellets on peachtree street or gettin’ loaded on bourbon street?
StingerSplash
December 10th, 2012
2:59 pm
Hotel-motel taxes ostensibly go to fund projects that bring in more tourists and visitors and not go toward the everyday operations of governments. Sales tax revenues are ticketed to capital projects (buildings, bridges, etc.) and do not go toward everyday maintenance and operations costs. Yet.
SOUTH GA DAWG FAN
December 10th, 2012
3:00 pm
Marta train is the only way to go to a game for us it is so much better than fighting traffic for me being not from atlanta. Wouldnt go to.a game if we couldnt ride the train
Big Gator
December 10th, 2012
3:01 pm
Giants, Patriots, several super bowls combine, do you hear them asking for a new stadium? talking about priorities in Georgia, Falcons one trip to the super bowl ever, sports writers in other states would be laughing the Falcons out of the city, with this non sense.
Erik
December 10th, 2012
3:01 pm
Why even bother making the roof retractable? They’re only going to open it when the temperature is between 65 and 75.
The over/under on the number of events per year that have the roof open is currently set at 2.5 (and that’s assuming we have an MLS team).
Atlanta Falcons update: How the Panthers beat the Falcons... - NFL Team News
December 10th, 2012
3:03 pm
[...] Does Atlanta need a new stadium? No, but it's getting one On Monday, the man charged with making the Falcons (Atlanta)' pitch for a new stadium actually made a case for the current one. “We don't need a building to play in next Sunday,” team president Rich McKay said. “The Georgia Dome is a good building. Read more on Atlanta Journal Constitution (blog) [...]
Buckeye
December 10th, 2012
3:04 pm
Let me guess. All the construction will be union minority jobs. Let the cronyism begin!
tmc
December 10th, 2012
3:04 pm
Why does the GWCC have to be involved?
Why does the new stadium have to be downtown?
The location of the Dome is horrible.
tailgating is terrible. The “Gameday experience” is so poor, it keeps me away from going to Falcons games now.
Locating a new venue south of where it is now will only make it worse.
Why is it no one talks about this? It is the elephant in the room and Falcons are about to ensure a poor “Gameday experience” for the next 30+ years.
I don’t think it’s a coincidence the GWCC board approved this deal in what 30 seconds? It screams politics. It’s screams somebodies gettin paid.
And the ACTUAL Falcons fan get’s screwed.
Reality
December 10th, 2012
3:05 pm
I guess that the republican politicans in Georgia will once again side with the wealthy and corporations (this time the Falcons franchise) and totally ignore the will of the people.
But, for some reason, the people of Georgia continue to vote for these very politicans that are the republicans….. go figure!
Reality
December 10th, 2012
3:06 pm
Who will pay for the improvements to the streets around the new stadium? the sidewalks? the rail? the buses?
That’s right. It won’t be the Falcons. It won’t even be the hotel bed tax. It will be the property owners right here in Fulton County paying their property taxes.
And the republicans say they don’t want to raise taxes. LOL!!!!
indigo
December 10th, 2012
3:08 pm
In recent years, tickets to sporting events has skyrocketed. At a rate for in excess of general inflation. Add in the cost of parking & other expenses and spectating at sports becomes a rich person’s game. A critical factor has been the ability of businesses to write off tickets as entertainment expenses — essentially a huge, and wholly unnecessary, government subsidy. When did taking a client- and perhaps some other not so clients such as family members (there’s no one checking) become a necessary and ordinary expense? There are limits and special rules concerning skyboxes, which are somewhat meaningless with the rapid increase in the price of a regular seat. You can bet your bottom dollar McKay & Blank want more skyboxes. I say it’s time to stop this charade of a business deduction, no matter how limited. This is corporate welfare pure and simple and the reduction in revenue caused by it falls on the backs of guess who.
Strange Murphy
December 10th, 2012
3:08 pm
All that mony for a new building for a team that can’t win a playoff game.
suzangrace
December 10th, 2012
3:08 pm
this is deplrable! the falcons DO NOT need another stadium! the ome is perfectly suitible for nfl football. the greed and watee of money is atlanta is atrocious. this money should be used for roads.educations, and the poor/homless. donate it to grady who help the sick and disabled. this shows that sports are more importaant than the citizens of atlant. unanamious? heinious!
Inez
December 10th, 2012
3:09 pm
Yes we can build a new stadium. This will bring Major League Soccer to the ATL. Soccer, soccer, soccer, baby. Whoo hooo. I think it’s great, and I can’t wait.
hunk a junk
December 10th, 2012
3:09 pm
Can they go ahead and demolish Philips Arena at the same time?
sliderule
December 10th, 2012
3:10 pm
So the details have been worked out. How EXACTLY will the Falcons provide the $700 million? Bet it’s not cash.
yeahsure
December 10th, 2012
3:10 pm
I cant wait.
Hotel/motel taxes will NOT be used for education! Read that again if you need to. If you wanted tax money spent on infrastructure, you shouldve come out and supported TSPLOST. Guess what, no one could agree on how to use the money. So lets stop all the delusional talk of how the money should be spent. Even if it didn’t go to building a new structure, it would not be spent the way you want it to be spent.
Hamad Meander
December 10th, 2012
3:11 pm
Is there any way the people of Atlanta (actual tax paying citizens) get to vote on this? Without a doubt, our money is going to pay for it no matter what excuses they come up with. I hate this idea, I love the Dome. I’ve been to probably 25 football games at the Dome and it is a fine place to watch football. It’s not a craphole like the SuperDome in New Orleans. It’s a nice place.
I cannot believe it will be torn down in a few years. That is such a waste of capital. Why not sell the Dome to Arthur Blank and make moeny on that transaction? He can then rent it out as he pleases and modify it to how he wants to use it. Let’s face it – NFL games in August, September and sometimes October can be hot. Games in December can be cold. I don’t want to sit out in the rain on a cold day to watch the Falcons.
Matt
December 10th, 2012
3:12 pm
This article dovetails nicely into the article on the front of the AJC this morning-about people’s lack of trust of government.
What input did the citizen’s of this City/State have in this decision? Zero.
The powers that be have committed to this and are sticking it to the taxpayers. What a joke. There is NO reason for this team to have a new stadium
Jedcvampet
December 10th, 2012
3:13 pm
Democrats were in charge of education until 1996 and education was in the toilet then. Democrats still are in control of education, most teachers are Democrats and education in Georgia is still in the toilet with something floating in there also. Their educational curriculum.
Erik
December 10th, 2012
3:13 pm
indigo,
You bring up some excellent points.
Hysterical Preservation
December 10th, 2012
3:14 pm
Can we keep the Fox Theatre?
sliderule
December 10th, 2012
3:16 pm
You see the 2 bozos in the picture laughing? They’re laughing at you.
MoFaux
December 10th, 2012
3:16 pm
This should be the rallying cry for Democrats, if they are smart. THIS is being fiscally conservative? What a joke. This is hopefully the final nail in the coffin for Deal’s re-election. And, for a team that, after yesterday, looks more and more like a one and done playoff team. I’m hoping we win the big game (or at least get a chance to play in it), but this new stadium is just insane with the other problems going on in all of Georgia (let alone Atlanta).
Arthur Blank
December 10th, 2012
3:16 pm
Dear [Falcons Fan],
Earlier today, the Georgia World Congress Center Authority (GWCCA) Board approved a term sheet for the proposed new stadium on the GWCC campus. This is an important step toward reaching a final agreement, which we anticipate will occur in 2013.
A new stadium in Atlanta is important to the Falcons for a number of reasons: It will allow us to provide a league-competitive game day experience to our fans, and it will help the team remain competitive on the field over a long period of time. In addition, it puts into place a long-term solution following the expiration of our lease at the Georgia Dome.
But this new stadium is not just about the Falcons. It will be an iconic asset owned by the state that will provide economic benefits to our city, region and state. During the construction phase alone, the new stadium will add more than 4,500 new jobs to the state’s economy and generate more than $400 million in total economic impact, including more than $160 million in personal income.
In addition, a new stadium allows the city and state to remain competitive with other venues across the country in areas such as attracting new convention business, retaining events currently held in the Georgia Dome, hosting new marquee events in the future, and possibly adding Major League Soccer to Atlanta’s professional sports team mix.
All of these opportunities provide significant positive economic impacts for Georgia. For example, four of the Dome’s largest annual events – the SEC Championship Game, Chick-fil-A Bowl, Chick-fil-A Kickoff Game and Bank of America Football Classic – generate a combined annual economic impact of more than $100 million. And hosting marquee events such as a Super Bowl, World Cup and BCS Football Championship Game would have a combined potential to generate more than $450 million in economic impact.
The proposed financial arrangement for the new stadium is also beneficial to the state. Unlike the Georgia Dome, which was financed 100 percent with public money, the Falcons have agreed to fund about two-thirds of the cost of construction, as well as any cost overruns, with private dollars. In addition, the Falcons will take on the operating and capital risks that the state currently bears at the Georgia Dome. We are willing to do these things to ensure a great game day experience for our fans, and to be part of providing new opportunities to the city and state.
The public funding for the remaining one-third of the stadium construction costs will be covered by the existing hotel-motel tax, which is largely paid by visitors, not local residents. So, unless a Georgia resident stays in a hotel in the city of Atlanta or certain other parts of Fulton County, he or she will pay nothing in taxes to build the new stadium.
We are encouraged by today’s vote, and will continue to work in partnership with the GWCCA to reach a final agreement that is beneficial to all stakeholders, including the neighborhoods surrounding the new stadium. You can stay informed regarding our progress by visiting atlantafalcons.com and clicking on the link to the new stadium site.
We will strive to keep you informed of our progress along the way. Thank you for your support this season, and best wishes for a happy holiday season.
Sincerely,
Arthur M. Blank
Owner & Chairman
Atlanta Falcons
GATarheel
December 10th, 2012
3:18 pm
The Falcons can move to Los Angeles this is highway robbery.
Hurst
December 10th, 2012
3:19 pm
Somebody Please tell me, sure, I’ll tell you. People around the world love and continue to come to New Orleans. Outside of people forced to come because of conventions (and fans of visiting sports teams) how many people visit Atlanta per year? 25? Maybe 50?
yeahsure
December 10th, 2012
3:20 pm
Citizen’s input is given by electing officials whom we give the power to make decisions. This issue has been discussed for years now. The people in charge do not read these blogs.
Iluvnutella
December 10th, 2012
3:21 pm
Romans built colosseums(sp) to last 1000 years. Georgians build em to last 20.
Gordon R.
December 10th, 2012
3:22 pm
@Raise those Tourism Taxes, Again: They’re not raising the tourism tax, that tax has been in place for decades to pay for the Georgia Dome. They’re just putting it towards the new stadium. But don’t let facts get in the way!
suzangrace
December 10th, 2012
3:23 pm
what a waste of money. atlana picks sports over more imortant issues. look at wrigley field, fenway park, celtics mba locatons, etc. they are stil there an a great institutuion, also madison sqare garden, amongst other sportsvenues. why does atlanta alay have to be ‘one up’ on everyone in major league sports? spend atlanta tax money on better issues. i think ths is something georgia needs to vote on and not a bunch of sports minded, influenced men. leave the dme where it is and use it what is was intended for!
Big Hat
December 10th, 2012
3:23 pm
An all-corporate-suite stadium; keeps out the riff-raff and the cost of the leases are written off as a “necessary’ business expense. …this is America 2012, and people accept it.
On My Way
December 10th, 2012
3:25 pm
The Falcons should be responsible for 100% of the construction cost. Then the state legislature could cut their property and other taxes by 90%. Win win. The dumb Georgia voter thinks he isn’t footing the bill, and the Republican fat cats get their tax breaks.
Susan Peebles
December 10th, 2012
3:27 pm
I always enjoyed coming to Atlanta and staying downtown for Falcon events, etc. Mr. Blank the hotel/motel tax is already high enough. I anticipate you will increase that tax. You are bleeding dry middle class Georgians who would like to partake of the downtown experience. Sooner or later, there won’t be enough rich people to enjoy your new stadium for you to make a profit. You are trying to make the middle class citizens of Georgia pay for your stadium. Guess we won’t be going to any more games. It also makes it easier to just stay outside of Atlanta in a hotel.
Devil's Advocate
December 10th, 2012
3:27 pm
You people whine and complain about the wrong things. Money is going to be spent until this world ends as we know it. The only 2 things I hate about a new stadium is that the GA Dome is actually a good stadium and its renovation a few years ago is kinda wasted. I also worried about even higher ticket prices in the new stadium.
Beyond that, only one thing can really tick me off and that’s if they don’t use the current GA Dome site to build more parking. I love taking Marta to the Dome/Phillips but unless they have some kind of Marta-exclusive shuttle traffic to the new stadium, I’m going to be ticked off if they don’t build a nice tailgating friendly parking lot and another parking deck.
Heck, they need to build a tailgating park.
suzangrace
December 10th, 2012
3:28 pm
Jedcvampet
you are an idiot. republicans have been in office for years. what the hell did they do about eduation other than cut off funds. wake up fool! you republicans have no clue about what the americanpublic needs, and your comments do not belong here. i only answered this becaus you tick meoff w/your selfish attitude.
NO!!!!!!!!!!!!!!!!! not based......
December 10th, 2012
3:30 pm
No they do not need NOR DO THE DESERVE a new stadium – based on the lousy mediocre way they played against the Panthers – THEY ARE JUST LIKE THE BRAVES – cannot win the important games – BRAVES = FLOPS…..wish some investor would come in and buy the Braves franchise and move the team out of Georgia so they will not continue to be an embarrassment for the state.
True ATL Fan
December 10th, 2012
3:30 pm
The old bait & switch. “The Falcons will pay 70%”. No they won’t…the Falcons will end up paying about 20%, with the other 50% made up in increased ticket prices, concessions, parking, etc. Look at the stadium they built in DC…they sell tickets for $100 minimum in sections where you cant even see the field!!! I actually like the Dome, was excited as a kid when they were building it b/c it was “cutting-edge and innnovative” but now it’s not serviceable?? And that’s coming from a league that used to play their games in BASEBALL STADIUMS!!! All of this to attract a non-guaranteed “Super Bowl” even though New Orleans gets one every 2-3 years in that dump ass stadium. Blank’s whole business is rooted here, no way he moves the Falcons. I say we protest and petition our local cronies to do something about this. But we won’t…just like they won’t.
BOY THAT DAWG IS UGLY
December 10th, 2012
3:30 pm
What a shallow statement and the reason for our current crisis in leadership, government, fiscal responsiblity and indivdual accountability and morals. “Sports as in life, new and shiny trumps tried and true”? Don’t like your wife, have an affair (the mistress is shiny and new). You think that a new, younger and more aggressive leadership team will help you turn greater results for Wall Street? Sure, fire the tried, true and experienced for younger risk takers yet inexperienced leadership. Lane Kiffin and Bobby Patrino come to mind in the world of sports and specifically college football. Want a large 5 bedroom, 3 car garage home but can’t afford the mortgage? Fannie Mae and Freddie Mac helped thousands lose their homes to foreclosure. Think that resulted in more than a few bankruptcies, divorces and family break-ups? That’s O.K. Mr. Public Union Boss we can’t sustain high pensions and early retirement perks for public service employees but you and I won’t be around to see the collapse, our grandchildren will be. Irony is that Blank build his wealth on the idea of home improvement. Hmmmm……
jb
December 10th, 2012
3:31 pm
Why not build it at the old GM factory in Doraville? There are big tax incentives and GM might even pay to have it named GM Stadium. Then you could just lease or sell the Dome or demolish it and make something else.
Whiskey Breath
December 10th, 2012
3:33 pm
I love the Dome, but we have to build a new one. We are losing out on big games, conventions , etc. to
the other big cities. We shouldn’t have to take a back seat to Orlando, Chicago, Dallas or New York.
We are without a new stadium. A new stadium means we get the Superbowls and the great shows.
It means money for everybody. I don’t understand why I am the only one that hasn’t figured it out.
Damn Mark, you should be telling us about this opportunity, not WB.