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May Not be Easy for Authority to Join Dynamo Stadium Talks

No-Compete Clause Exists for Authority and City

Updated: Saturday, 27 Feb 2010, 10:39 AM CST
Published : Friday, 26 Feb 2010, 9:55 PM CST

HOUSTON - The Harris County-Houston Sports Authority may yet play a significant role in the talks to build the Houston Dynamo their soccer stadium east of downtown.

However, as part of its contract with Toyota Center, the Sports Authority has a no-compete clause with the facility.

The city of Houston is in a similar situation.

Neither can get involved in negotiations to build an arena or stadium within ten miles of Toyota Center until 2013.

The downtown site for the proposed stadium falls within that ten mile radius.

"It's one of those things we need to talk about as a board," said Kenny Friedman, chairman of the Sports Authority, in an interview Friday with FOX 26 Sports.

"We haven't seriously looked at that provision. I know that the Mayor's (former Mayor Bill White) position on that was that this stadium will not compete with Toyota Center.

"We haven't taken a position on that because we've not been involved. Were we to get involved, were we to consider getting involved, as we will do Monday, that's clearly one of the issues that we'll have to discuss."

Friedman, whose board will have a special meeting on Monday that will include discussion of getting involved in the stadium negotiations, said the Dynamo's stance is they can help work around the no-compete clause.

"The Dynamo's position has been that any possible competition comes from concerts, and that they've agreed not to do any concerts until after the 10-year period has passed.

"Whether that's sufficient to remove the problem or not, I just don't know. I haven't spent any time looking at it."

One of the Dynamo's co-owners, Anschutz Entertainment Group, is the second-leading promoter of concerts in the world.

The lead negotiator for the city of Houston on this stadium project also believes the city will not violate its no-compete clause with Toyota Center.

"The city fully intends to comply with all previous contractual agreements," said Andy Icken, Chief Development Officer for the city of Houston, in an interview with FOX 26 Sports.

As MyFoxHouston.com reported first Thursday, Harris County and the city of Houston asked the Sports Authority to consider becoming involved in the Dynamo stadium negotiations as an administrator of the project.

The Sports Authority played major roles in building Reliant Stadium, Minute Maid Park and Toyota Center.

However, Harris County Judge Ed Emmett does not consider this a good idea.

"The Sports Authority right now has its own financial difficulties," Emmett said. "On the same agenda that's posted, as a matter of fact, they talk about the down-grading of their insurer and their bond status.

"I'm just skeptical that the Sports Authority really can bring anything to the table that's useful."

Friedman said Judge Emmett is entitled to his opinion.

"I think the Sports Authority has a long and successful tenure of constructing stadiums and bringing them in on budget and on time and then maintaining them once they've been built," Friedman said.

The bulk of the financing for the $80 million Dynamo stadium project will be provided by team ownership which has pledged $60 million.

An additional $20 million will come from taxes generated by the stadium complex that would not exist otherwise.

No taxes earmarked for anything else will be used.

Texas Southern University, which would play its home football games at the stadium, will make a one-time payment of about $1.5 million.

Contrary to a local television report, both Icken and Emmett confirm no deal to build the stadium of any kind exists at this time.

Any agreements reached involving the proposed soccer stadium must be approved by Harris County Commissioners Court and Houston City Council.

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