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Today's (Sept. 8) New York Times has a front page article featuring Michel Malecot, the owner of Pacific Beach's French Gourmet restaurant, who was indicted in April for hiring 12 undocumented immigrants and continuing to employ them even after he learned they were in the country illegally. He has pleaded not guilty and faces up to 30 years in prison and almost $4 million in fines. The story is about U.S. restaurants' hiring of illegals and the dangers thereof. An restaurant industry trade association executive says that if the government's "strategy is to get the attention of the industry, mission accomplished."

The same issue has a story that should scare San Diegans. Headline: "As Stadiums Vanish, Their Debt Lives On." It talks about subsidized stadiums, no longer in use or demolished, that still carry debt. Example: The old New York Giants football stadium, demolished and now a parking lot, still carries about $110 million in debt, or $13 per New Jersey resident. Seattle residents owe $80 million on the Kingdome, which was razed in 2000.

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Comments

Fred Williams Sept. 8, 2010 @ 7:51 a.m.

How much do we owe today on Petco and Qualcomm...and I mean total, including interest and fees?

Does anyone even know?

Best,

Fred

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Don Bauder Sept. 8, 2010 @ 8:19 a.m.

Response to post #1: Those data are available, Fred. I have even quoted the Qualcomm figure on this blog a couple of times, if memory serves me right (and admittedly, sometimes it doesn't.) If the Chargers leave, they have to pay some of that Q debt, but the City would also be on the hook. What's left on the Petco debt should be a matter of public record. Unfortunately, the City will answer none of my questions, and I don't have time right now to go on the website and poke around for the data. Can someone smarter than I am please supply us with these numbers? Best, Don Bauder

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MURPHYJUNK Sept. 8, 2010 @ 10:17 a.m.

"He has pleaded not guilty and faces up to 30 years in prison and almost $4 million in fines."

is the threat, lets wait and see what really happens.

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Evelyn Sept. 8, 2010 @ 11:53 a.m.

hmm... If Mr. Malecot is convicted and sentenced to 30 yrs, then the restaurant business will change. Eventually, there'll just be less restaurants.

Oh the humanity! Where will people eat? ;)

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Don Bauder Sept. 8, 2010 @ 12:21 p.m.

Response to post #3: Agreed. When the government says someone faces a huge fine or imprisonment for up to 30 years, you can bet that if the person is found guilty, both the fine and imprisonment will be significantly less. Best, Don Bauder

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Don Bauder Sept. 8, 2010 @ 12:23 p.m.

Response to post #4: We can always eat at home. Of course, if the government cracks down on growers that knowingly hire and retain illegals, then eating at home will be more expensive. Best, Don Bauder

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JustWondering Sept. 8, 2010 @ 12:39 p.m.

If the status quo remains the same at Qualcomm the Debt service on the 1996 renovations will cost the taxpayers about $76M and will not be paid off until 2026.

Hat tip to the Voice of San Diego for the link to this memo covering the debt.

http://bloximages.chicago2.vip.townnews.com/voiceofsandiego.org/content/tncms/assets/editorial/6/38/096/638096c6-bb72-11df-91cd-001cc4c002e0-revisions/4c87ce464a81b.pdf.pdf

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Don Bauder Sept. 8, 2010 @ 3:45 p.m.

Response to post #7: But if the Chargers depart within a certain time frame, the team has to pick up part of the debt service tab. I have forgotten the nunbers, but used them not long ago. Best, Don Bauder

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JustWondering Sept. 8, 2010 @ 4:47 p.m.

If the Chargers leave in or around 2013, as anticipated, they owe approximately $25M. This leaves the SDSU Aztecs as the only tenant and six games a year.

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SurfPuppy619 Sept. 8, 2010 @ 5:22 p.m.

If the Chargers leave in or around 2013, as anticipated,

"anticipated"" ????

Anticipated by who?????

The Chargers are not going anywhere in 2013, even if they wanted to. Because of the economic meltdown, the NFL/MLB/NBA stadium shake downs are over-at least for the foreseeable future.

Sorry, but it is going to take 2-5 years for this depression to blow over and capital markets to return to lending, and then it will take another 5+ years to line up and build a new stadium, and that is on a BEST CASE scenario. But reality may be triple that 7-10 years.

The NFL has been claiming the LA market would get a new team since 1995-that is 15 years and counting-that pipe dream is no closer now than it was in 1995.

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Don Bauder Sept. 8, 2010 @ 7:56 p.m.

Response to post #9: If the Chargers leave in 2013 and pay that relative pittance, the stadium will be a white elephant because nobody in real estate would have any economic reason to develop the area. But a lot of things could happen if and when the Chargers depart. Someone will sue the team. Somebody will go to Congress demanding antitrust action against the NFL. The league would probably wind up putting an expansion franchise in San Diego because of political pressure, a la Cleveland Browns. Best, Don Bauder

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Don Bauder Sept. 8, 2010 @ 7:58 p.m.

Response to post #10: Chargers fans pray you are right. That means they are praying for a continued economic slump. They will probably get one and celebrate divine intervention. Best, Don Bauder

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laplayaheritage Sept. 9, 2010 @ 9:27 a.m.

http://www.sandiego.gov/auditor/pdf/qualcommauditreport.pdf

Table 2 on Page 21 from the 2009 Audit of Qualcomm Stadium linked above shows the breakdown to pay off the balance of the 1997 Stadium Renovation Bonds issued in the amount of $68 million dollars.

If the Chargers left in 2010, the Chargers would be 100% responsible for the outstanding bond balance of $54,670,000.

From 2011 to 2020, the Chargers Termination Fees decreases from $25,820,000 [49%] to $3,490,000 [11%] of the total outstanding debt obligation.

Table 1 - Stadium Renovation Bond Obligation Analysis. Date-Principle Balance-Chargers Termination Fee-City Obligation

February 1, 2010 $54,670,000 $54,670,000 [100%] $ 0.00 [ 0%] February 1, 2011 $52,950,000 $25,820,000 [49%] $27,130,000 [51%] February 1, 2012 $51,110,000 $23,980,000 [47%] $27,130,000 [53%] February 1, 2013 $49,145,000 $22,015,000 [45%] $27,130,000 [55%] February 1, 2014 $47,030,000 $19,900,000 [42%] $27,130,000 [58%] February 1, 2015 $44,760,000 $17,630,000 [39%] $27,130,000 [61%] February 1, 2016 $42,325,000 $15,195,000 [36%] $27,130,000 [64%] February 1, 2017 $39,705,000 $12,575,000 [32%] $27,130,000 [68%] February 1, 2018 $36,890,000 $ 9,760,000 [26%] $27,130,000 [74%] February 1, 2019 $33,870,000 $ 6,740,000 [20%] $27,130,000 [80%] February 1, 2020 $30,620,000 $ 3,490,000 [11%] $27,130,000 [89%]

  • The estimate assumes that the entire Chargers Termination Fee payment will be used to pay down the balance of the Stadium Renovation Bond principle. The amount does not consider the disposition of the Stadium Renovation Bond Debt Reserve Account which has a balance of $5.8 million as of January 2009. The City taxpayers’ obligation to fund $27,130,000 in debt service for the 1997 improvements to the existing Qualcomm Stadium should be part of any cost analysis for a new stadium.
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Don Bauder Sept. 9, 2010 @ 10:14 a.m.

Response to post #13: That's valuable information. Best, Don Bauder

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