The Santa Clara City Council voted 5 to 1 Tuesday to approve a contract that would start construction on a $1 billion-plus stadium for the San Francisco 49ers football team in July, according to local press reports.
Stadium construction, expected to be completed by summer 2014, relies on an $850 million loan facility to fund the majority of the work.
The project would incur up to $850 million of debt to fund construction in the form of a loan or a senior-secured facility from Goldman, Sachs & Co., U.S. Bank and Bank of America Merrill Lynch, Pierce, Fenner & Smith. The National Football League has agreed to give the team $200 million in loans and payments to spur construction of a facility to replace dilapidated Candlestick Park in San Francisco.
City officials have said the short-term loan would likely be spun into long-term financing backed by stadium revenues.
A joint venture between Turner Construction and Devcon Construction will design and build the stadium, according to the San Francisco Chronicle.