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WHO WILL BEAR THE PAIN FOR BILLS LEASE DEAL?

By Tony Farina

The Buffalo Bills made some big free-agency additions in recent weeks, getting top pass rusher Mario Williams for a cool $100 million and then picking up another defensive end with strong credentials, Mark Anderson, who had 10 sacks last season with the New England Patriots.
Last week, the faithful appeared to have a few more reasons to get on the Bills bandwagon, as the team got generally high marks in drafting South Carolina cornerback Stephon Gilmore, seen by many as the second-best corner in the college ranks, and 345- pound Georgia offensive tackle Cordy Glenn.


The off-season action has already paid off for the Bills, as the team announced that 1,400 new season tickets were purchased and over 4,000 season tickets were renewed shortly after the Williams deal was announced in March.

While all this was going on, negotiations on a new stadium lease deal between the Bills and the county and state were moving along quietly in the
background, and at this point very little progress has been made.

There have been three meetings so far, beginning in January, and talks about what level of taxpayer pain might be required have not been on the agenda.
“At this point, we’re just at the entry-level phase,” said County Attorney Michael Siragusa during an interview with the Niagara Falls Reporter.
“The Bills are presenting to us what they want, what renovations they would like done.”

And while the projected costs of those renovations are in the $200 million range, Siragusa, who is County Executive Mark Poloncarz’s point man in the talks, said there has been no discussion yet on where the money will come from.

The current 15-year lease between the county and the Bills expires in July of 2013, and the county executive is hoping to get an agreement on a new lease before the start of Bills training camp this summer, a deadline that may prove difficult to meet, given the heavy lifting that will be required. The county has hired the law firm of Nixon Peabody to help in the negotiations. The county executive himself and Deputy County Executive Rich Tobe, a veteran of the last lease negotiation under Dennis
Gorski, are also taking part in the talks.

Sam Hoyt, senior vice president for regional economic development, and Steve Gawlik, in-house counsel for Empire State Development, are representing the state in the lease discussions. For the Bills, CEO Russ Brandon, Treasurer Jeff Littman, and local counsel Mike Schiavone are carrying the ball, hoping, as Brandon has stated, “to make this franchise as viable as possible” in the least costly way, by renovating the stadium as outlined in a study they commissioned by the Populous group.

Now, the question is, who is going to come up with the dollars to get the renovations done, with an expected price tag north of $200 million? County Executive Poloncarz wants the longest lease possible — at least 10 years — and he’s hoping the state will pay for the majority of the costs associated with the new agreement. But the state has said little so far about what level of pain it will take on — and where the money will come from — to help get the deal done.

One of the key ingredients of the negotiations will be whether there will be an early-termination clause for either or both parties. In other words, should taxpayers put up some, most, or all of the $200 million in renovations the Bills say they want made to the stadium, will the lease allow the Bills to sell or relocate before the lease is up? If so, what happens to the taxpayers who have renovated what will be — compared to the investment made — a largely worthless stadium in Orchard Park?
The last agreement, 15 years ago, called for $63 million in state-funded stadium renovations and annual upgrades by the county that so far have totaled more than $38 million, with the county and the Bills each paying just over $4 million for gameday expenses during the 2010-11 season.

What penalty clause will be included, if there is a provision for early termination? And, of course, what rent will the Bills be expected to pay?

Siragusa said that any agreement made between the county and the Bills would provide for a clause protecting taxpayers against an early departure by the team.
Brandon, the marketing whiz who has expanded the Bills fan base north and east, would seem to be in the best seat when it comes to making a favorable deal, given the value the community places on the Bills and the excitement being generated about the team’s future success on the field in the coming season. That’s a great
backdrop for the Bills negotiating team.

Never mind questions about the ownership succession after the passing of 93-year-old owner Ralph Wilson. They will be dealt with down the stilluncharted road. The important thing in 2012 for the county and the state is to try and get a deal done on the stadium, hopefully with some help from the Bills, as has happened in other small-market cities. What share of the pain, if any, will the Bills be willing to take on to get the renovations they deem crucial to keeping the franchise viable? And what will the politicians pay to keep the fans and the Bills happy?

One possibility, of course, would be to leverage the costs over the long haul in a bond deal, something Poloncarz has indicated he would consider.
Whatever agreement is reached, according to Siragusa, has to be palatable to taxpayers.

“We want to get this deal done as quickly as possible to ensure that the Bills remain part of our community,” he said. “But we are sensitive to the fact that it needs to be done in a fair way from a cost perspective, with numbers that the taxpayers can live with.”

The Bills have enjoyed great success selling their product in Buffalo, even though the team has often been a disappointment on the field. Sure, there was the great run during the Kelly era in the early ‘90s, but since then the Bills have struggled to be competitive, and have often failed. Yet the fans keep coming, from Rochester and points east, and from across the border, where the team sometimes travels for “home” games.

Russ Brandon is one of the NFL’s top executives and he championed the Bills’ successful regional approach, even with a team that is often underwhelming and that last year went 6 and 10. Talk of dramatic improvement and a playoff run are nothing new when it comes to the hometown fans, but this year Ralph opened his wallet, and maybe this time the team will contend and put Buffalo on the map. Time will tell. But for now, the pressure is building off the field, as the lease negotiators wrangle over how to come up with $200 million to make everyone happy.

Another meeting is scheduled this month, and the talks are expected to heat up as they go forward.

All parties involved are expected to remain tightlipped as the negotiations get down to the nitty- gritty of the matter, which is likely to happen in the near future. In the meantime, expect the Bills to be front and center about their additions and the play-off run that is hoped will follow. What better way to negotiate a lease than to whip up the crowd about the team, even before they play a down, putting the pressure on the county and state to get it done.
That’s just good business, and Russ Brandon is a good businessman.

(E-mail Tony Farina at tonyfarina2010@gmail.com.)

Niagara Falls Reporter www.niagarafallsreporter.com May 1 2012