Monday, July 21, 1997
Auditor says $28M, but could be lot more
BY LUCY MAY
The Hamilton County auditor's office values the land at nearly $28 million. But local real estate experts agree that the county ultimately will pay more than fair market value for the nearly 32 acres of privately owned land that lawyers are negotiating to buy.
Experts don't agree, however, on how much more. The premium paid to landowners could be anywhere from 10 percent to 20 percent, experts say, meaning the land could cost anywhere from $31 million to $34 million.
Regardless, the land costs will bring the total price tag for Paul Brown Stadium to well over $300 million.
Still, Hamilton County Commission President Bob Bedinghaus remains confident the half-cent sales tax increase passed last year to pay for stadium construction will cover the cost of new homes for the Bengals and the Cincinnati Reds.
"We are confident that our financial projections remain accurate and the tax that's in place is more than adequate, not only to complete the Bengals stadium, but also to complete a Reds project," he said.
In the county's lease with the Bengals, the two parties agreed the stadium itself would cost about $270 million. But that did not include land costs, all design fees or $10 million for three practice fields west of the stadium. And that $270 million could increase once the county's construction manager negotiates a "guaranteed maximum price," which will include everything down to the plumbing.
The land purchases are the next step in the complicated process of building the futuristic football palace in time for the August 2000 season opener.
County officials will not reveal how much they expect the land to cost.
The negotiations are with individual property owners, and lawyers for the county hope to agree on a price with every property owner before going to court to finalize the deals, said Michael Florez, a Cincinnati attorney overseeing the land purchases for the county prosecutor's office.
Lawyers are working to reach "quick take" agreements with landowners so that work can begin before a price is settled, Mr. Florez said.
In "quick take" agreements, the county would deposit what it thinks is a fair-market price for the land into an account the landownercould access immediately. If a jury decides later the land is worth more, the county would make up the difference, Mr. Florez said.
Those agreements must be made by next year to keep the project on schedule, he said. Gary VanHart, the county's public works director, said work will begin as soon as possible.
The $28 million cost is based on values assigned by the county auditor's office, which represent the office's best estimate of fair-market value for the land. The actual market value isn't known until land sells.
That total doesn't include a value for land owned by Cincinnati Southern Railway. The county won't have to buy that land since the city owns it, Mr. Florez said. But the county will have to pay some railroad interests who have subleases on the land that earn money for them, he said.
Norm Miller, director of the real estate program at University of Cincinnati, said governments can usually justify paying 10 percent more than fair-market value because they figure legal fees to fight with landowners will cost at least that much.
Jack Goodwin, a partner in the Sharonville-based Miller-Valentine Group developers, said he has always heard a 20 percent premium - plus or minus 5 percent - is standard when taxpayers are buying land for a major project.
"When the city or county comes in to acquire ground, (the property owners) see a pot of gold at the end of the rainbow," he said. "It's not that they're doing anything wrong, it's just a fact of life."
Hamilton County commissioners are buying much more land than just the acreage needed for the stadium. The stadium will encompass about 22 acres and sit roughly between Central Avenue and Elm Street, with a curved Pete Rose Way to the north and Mehring Way to the south.
The county is working to acquire land from the Clay Wade Bailey Bridge to the John A. Roebling Suspension Bridge, including some land just north of Pete Rose Way and some south of Mehring Way.
The Cincinnati Enquirer
As Hamilton County negotiates to buy riverfront land for the Cincinnati Bengals' new stadium, the multimillion-dollar question is how much the land purchase will add to the project's cost.
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to see a chart that shows who owns the land, and its value.Previous stories
Stadium meeting tone upbeat July 11, 1997
City threatens to withhold land July 10, 1997
Disputed county deal mirrors old city pact July 9, 1997
Mayor rips county's deal with Bengals July 4, 1997
COA complaints take a back seat June 5, 1997
Next hurdle: Stadium land May 31, 1997
Bengals won't sell naming rights May 31, 1997
WELCOME TO PAUL BROWN STADIUM May 30, 1997
NEXT GENERATION OF BROWNS MAKE THE DEAL May 30, 1997
It's goal to go for stadium May 29, 1997
Details remain before construction begins May 29, 1997
Stadium victory at hand May 26, 1997
Terms of the deal May 26, 1997
Regional effort fills seats May 25, 1997
Bengals reach sales goal May 24, 1997
Hold on: Shirey wants to boost admissions tax May 24, 1997
Brown, county race deadline May 21, 1997
NFL committee OK's lease May 20, 1997
Ticket tax increase gains steam May 20, 1997
Stadium team tries to trim $48M May 6, 1997
Bengals ask lease by May 20 April 30, 1997
Stadium redesign well received April 25, 1997
Bengals leery of Wedge April 9, 1997
Stadium price tag growing April 3,1997Stadium gaining ground? April 2,1997
Bengals won't sign till tax dies March 25,1997
Mike Brown's 'Letter to the Editor' March 25, 1997
Bengals balk at tax plan March 24,1997
Bengals want county blitz on seat licenses March 21,1997
City balks at size of stadium March 15,1997
Seat sales on target for team to stay Feb. 19,1997
'The Jungle' moving to Central Ave. Feb. 14, 1997
Stadium site to be announced this week Published Feb. 9, 1997
Seat license sales pass $20M goal Published Feb. 7, 1997
Consultants favor Riverfront West Published Dec. 20, 1996
Seat licenses $300 to $1,500 Published Dec. 18, 1996
Rules, procedure for buying seat licenses Published Dec. 18, 1996
Designs draw oohs and ahhs Published Dec. 17, 1996
Architect's drawings revealed Published Dec. 8, 1996
Site selection is a decision of a lifetime Published Dec. 2, 1996