No Taxes, $1 Rent, Free Suites: Inside DC’s Wild Stadium Offer to the Commanders
Happy Sunday! The term sheet for the Washington Commanders’ new stadium has been released, so I spent some time this weekend analyzing the most interesting parts.
Paid subscribers received a detailed breakdown of the stadium last week, but the newly released 30-page term sheet provides some unique details, including $1 annual lease payments, no property taxes, and complimentary luxury suites for the Mayor.
You can read the entire term sheet here. But since I assume many of you have better things to do with your weekend, below is a summary of everything you need to know.
The Commanders will contribute at least $2.5 billion towards the project. They will also be responsible for any design and construction costs for the stadium, team administrative offices, and parking facilities that exceed DC’s contribution.
DC will own the stadium and the land on which it sits. The Commanders will sign a 30-year lease with DC to use the stadium, team administrative offices, and parking facilities. This lease will begin once the stadium is complete and includes four consecutive 5-year renewal options, turning it into a 50-year lease agreement.
The term sheet explicitly states that the stadium will have a dome.
The Commanders will pay $1 annually to rent the stadium, its team administrative offices, and its nearby parking facilities.
The Commanders will sign a 60-year lease for the commercial development (think entertainment district). This lease will have three consecutive 10-year renewal options, effectively making it a 90-year lease for the team.
The Commanders will pay $1 annually for the initial 28 years of the Commercial Development Lease. After that term, an appraiser will determine the fair market value of the rent. Starting in the 28th year, rent payable will be set below fair market value, increasing annually until it meets fair market value in the 32nd year.
The Commanders must play all home games at the stadium for the full term of the lease. There is a carve-out for the NFL’s international schedule and potential neutral-site games, but the Commanders have also signed a “Non-Relocation Agreement,” meaning they can’t relocate the team at any point during the lease.
The DC government will receive two complimentary 18-person suites at the 30-yard line for exclusive use by the Mayor and Council. These suites must have the same finishes, services, and benefits as comparable suites.