WASHINGTON - In a move that could advance efforts by northern Virginia to attract a professional baseball team, the Virginia Resources Authority is preparing to develop a financing plan to sell bonds for a new stadium in the event that a team agrees to settle in the state.
Advocates of attracting a Major League Baseball team hope the agency can help them develop a more appealing financing package for a stadium deal. This could enhance their chances of attracting a team -- an effort that remains a long way from success.
The VRA is likely to start financial discussions with the Virginia Baseball Stadium Authority this summer, according to Robert Lauterberg, the VRA's executive director.
The move stems from legislation signed last month by Gov. James Gilmore that authorizes the VRA to finance any professional sports facilities. The legislation was pushed by the baseball stadium authority, which already has authority to issue bonds.
"We thought that using the VRA might be advantageous from the standpoint of helping us and getting a better interest rate, because they have the bond market contacts and they do this all the time," said Gabe Paul Jr., executive director of the stadium authority. "It gives us an another option to pursue when we're looking at the structure of financing for the ballpark."
The discussions could lead to a plan in which the VRA would sell either tax-exempt or taxable bonds, or a mix of the two, Lauterberg said. If the bonds are tax-exempt, the baseball authority would most likely have to tap into Virginia's private-activity bond allocation, he added. Because the stadium authority already has authority to issue bonds, both Lauterberg and Paul said it is possible that the VRA may not be involved in a final plan.
They also said a stadium would be built only after a team commits to move to Virginia.
But that may not happen in the near future. The baseball authority has been in talks over the last couple of years with several teams, including the Houston Astros. But those talks failed when Houston made a commitment to build a new stadium.
Paul said the baseball authority is now targeting teams that play in old stadiums where the lease is about to expire, and where the city doesn't want to build a new one. Possible candidates include the Oakland Athletics, the Minnesota Twins, and the Florida Marlins, he said.
"In this day and age, any city that doesn't get a new ballpark has a possibility of the team moving," he said. "In order to be economically competitive, clubs need the additional revenues that new ballparks generate."
The VRA's involvement is a new step for the agency, which focuses on providing low-cost financing to localities for infrastructure projects.
"It's a broadening of the kinds of projects we've done in the past," Lauterberg said. "Our focus has always been on projects at the local level that are a statewide priority. And the General Assembly has identified bringing Major League Baseball to Virginia as a priority."
