Develop a public financing plan for a new baseball stadium in Oakland, California, to host the Oakland As. The stadium will have a total cost of $750 million, and the public will finance 35% of the construction cost. The City of Oakland will be the sole source of public financing. Devise a public financing plan that uses funds from at least three different sources.

Case Questions

1. Determine the total amount that must be financed.
2. Determine which sources will be used and what changes to those sources must be made (e.g., raising hotel taxes 0.5%).
3. Determine the amount of financing that will be generated from each source. These amounts should sum to the total amount that must be financed.
4. Determine the timing: when money will be collected from each source and when it will be paid back. For instance, if a general obligation bond is used and it is paid for with an increase in hotel taxes, what is the annual payment necessary to pay it off?