Oregon
Ballpark Funding -- HB 3606
This funding proposal establishes the framework for the use of
construction bonds to cover a portion an Oregon major league baseball ballpark
and authorizes the use of incremental baseball income tax revenues from home
and visiting player salaries, and from the salaries of top team management, but
protects the Oregon taxpayer with a series of legal safeguards. No general
revenues are used nor is Oregon's bond rating jeopardized by this type of
financing.
An Overview of the Bill
HB 3606 provides that
the State may enter into grant agreements for 30 years to allow the new,
incremental baseball tax revenues -- that will come to the State if an MLB team
relocates here -- to be used to support bonds to assist with the cost of
constructing a Major League Baseball Park. All of the baseball business risk is
placed on the grantee and team owner. If the State income tax is reduced, the
calculations of incremental baseball tax revenues will continue to be based on
the current income tax.
The legislation will only become active when
these thresholds have been achieved:
1. A Major League
Baseball team is committed to relocate to Oregon;
2. The team is
legally bound to remain in Oregon for the length of the
grant;
3. All of the remaining funding for the Stadium has been
committed;
4. The grant agreement is requested by the city of
Portland, and negotiated and approved by the State; and
5.
SAFEGUARDS are included to insure that the State and her taxpayers are
PROTECTED.
REQUIRED SAFEGUARDS IN THE LEGISLATION AND GRANT
AGREEMENT
1. All State funding is subject to appropriation
by the legislature;
2. The State has no legal obligation to
appropriate funds and the measure does not create any debt for the
State;
3. The State's credit rating is fully
protected;
4. HB 3606 provides that the State intends to
appropriate only new incremental baseball tax revenues.
5. The
grantee, the team owner and the bondholders, NOT THE STATE, take the baseball
risk if the player payroll taxes fall below projected levels to pay any bonds,
and the grantee and the owner, NOT THE STATE, make up any
shortfall;
6. The granted funds may only be used to pay costs
for a major league stadium;
7. The methodology for the estimated
and actual incremental baseball tax revenues must be approved by the
State;
8. The grantee must pay the State the difference if any
appropriation exceeds the actual incremental baseball tax
revenues;
9. HB 3606 requires all major league baseball teams
that play in Oregon to calculate, report and withhold these taxes and pay them
to the State on an annual basis; and
10. Not a single dollar
will be taken away from education, health or any other general fund program,
and no tax dollars from current Oregon taxpayers will be used. |
