Rider’s comments to Chargers Task Force

Given that the Chargers Task Force meeting clearly was going to be pretty much a Chargers pep rally, I saw little reason to attend and speak. But I DID submit in writing the following short email on crucial points I’m concerned about:

TO THE CHARGERS TASK FORCE: I will not be attending tonight’s meeting, but I’d like to submit a couple thoughts on the stadium issue via this email.

Of course, I have a host of considerations I’d like to present as to why the Chargers stadium should not be subsidized by taxpayers. But doubtless you get a lot on that matter — from both sides.

Moreover, I think your informal mandate is to figure out HOW to build the Chargers a stadium — not WHETHER to build their stadium. So all such points against the subsidy will have to wait for discussion until AFTER the proposed deal is finalized and presented to the public and the politicians. I get that.

BTW, while I oppose the stadium subsidy, I have no problem with making such a subsidy countywide, rather than just the city. I’ll OPPOSE the subsidy on principle, but do NOT oppose including the county in the deal. Share the pain.

Let me stick to two key points:

1. The deal — and there WILL be a proposal for a subsidized stadium — should go before the voters for proper approval. Ideally (and perhaps legally) it should require a 2/3 majority approval, but I’m sure every effort will be made to bypass this taxpayer safeguard — if not avoid a vote altogether.

2. Assuming the deal includes a “revenue bond,” the deal should make it absolutely clear that there’s no contingent taxpayer liability. If it’s stadium rent that will reimburse the bondholders, then that should be the ONLY source of revenue. And the revenue should be stadium-related — to give away unrelated cash flow (lease revenue from neighboring commercial properties, for instance) is really a direct taxpayer subsidy, as that revenue would otherwise flow into city coffers. The only bondholder assurance beyond the revenue commitment should be putting up the stadium itself as collateral.

Good luck with your assignment. It is not an easy one.

Respectfully,

Richard Rider