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Modesto council declines to extend USL letter of intent after consultant finds $43.4M gap
Summary
After a Cosmont feasibility review found an estimated $43.4 million shortfall between projected revenues and a downsized stadium cost, the council voted not to extend a letter of intent with the United Soccer League. Staff said the USL remains open to future conversations if a local owner and private funding emerge.
The Modesto City Council on June 9 directed staff not to extend the letter of intent with the United Soccer League (USL) for a proposed downtown soccer stadium, citing an estimated private‑funding gap and changes in the USL’s ownership model.
City staff engaged Cosmont Companies to reassess stadium feasibility. Cosmont’s preliminary performa reduced the stadium scope from an earlier, larger concept and assumed a smaller footprint; the consultant estimated a stadium build cost of roughly $90 million plus $5 million in land acquisition and projected about $51.6 million in potential revenue from stadium proceeds and adjacent development. That left an approximate funding gap the consultant described as $43.4 million. Staff said that private funding or an identified local owner would be required to close the gap and that absent those commitments the city could be asked to cover shortfalls with general‑fund dollars.
Council members emphasized the change in the USL’s approach — shifting away from being a master developer and toward a traditional franchise model that requires a local owner on the front end — and the fiscal risk of assuming generational debt. With Vice Mayor Williams recused from the item due to a stated conflict of interest, council voted 6‑0 (one recusal) not to extend the LOI.
What the city will do next Staff said the municipal golf course redevelopment work will continue independent of the LOI discussions and that the city remains willing to speak with USL if a private owner and funding plan materialize. The council directed staff to notify the USL of the decision but did not authorize any city general‑fund commitment for a stadium.
Representative quote - "Private funding would be needed in the amount of $43.4 million to fund the full cost of the stadium," Cosmont’s presentation stated.
