HomeMy WebLinkAboutR05-Economic Development Agency
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ECQOMIC DEVELOPMENT AGEQV
OF 11fE CITY OF SAN BERNARDINO
REOUEST FOR COMMISSION/COUNCIL ACTION
FROM TIMOTHY C. STEINHAUS
Agency Administrator
DATE: September28,I994
SUBJECT:
BASEBALL STADIUM
LEASE AGREEMENT
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Smoo." ofPrevloUl Commls.loolCouncWCommlttee AetIoo(.):
The Commission has discussed during severa1 previous meetings a proposed baseball stadiwn for Sao BernanIino.
These discussions resulted in the approval of the issuance of 10 RFP on February 21, 1994.
On April 4, 1994, the Community Development Conunission authorized staff to retain KPMG Peat Marwick to conduct
a financial feasibility study for a multi-use baseball stadiwn.
On July 18, 1994, the Community Development Conunission authorized staff to prepare a financing plIO aod prepare
alternate stadiwn uses.
On September 6, 1994, the Community Development Commission approved a finaocing plan for a new baseball
stadiwn.
Recommended Motlon(.):
(Mavor and Common Councm
MOTION:
That the Mayor and Common Council approve lease terms and instruct
execution.
to finalize lease for
TIMOTHY C. STEINHAUS
Agency Administrator
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Contact Perwn(s): Timothv C. SteinbauslRav Salvador
Phone: 5081
Project Area(s): Central Citv (CC)
Ward(s): One (J)
Supporting Data Attached: StaffReoort
FUNDING REQUIREMENTS:
Amount: $
Source:
Budget Authority:
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Commls.ioolCouncll Notes:
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TCS:lag:IO-OI-04.cdc
COMMISSION MEETING AGENDA
MEETING DATE: 10/03/1994
Agenda Item Number: f
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ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
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Baseball Stadium Lease Ae:reement
The Community Development Commission approved a funding plan for a 5,000 seat multi-use
baseball stadium at the regular meeting of September 6, 1994. Integral to the development plan
for the new stadium is a long-term lease with the San Bernardino Spirit, or other California
League team. The Spirit owner has expressed a strong interest in remaining in San Bernardino.
Staffmet with the Spirit co-owner and general manager on September 14,1994, to review
existing leases for the following facilities: Lake Elsinore Storm, Rancho Cucamonga Quakes, and
High Desert Mavericks. Parks and Recreation staff analyzed this information to determine
projected revenues which could be used to offset operating expenses. A subsequent meeting was
held on September 20, 1994, with Spirit representatives and tentative lease terms agreed upon
include:
. $50,000 base annual rent. . Spirit responsible for insurance.
0 6% of gross $1-1.2 million. 0 City/Spirit provide security.
0 8% of gross $1.2 - 1.5 million. .. 0 City/Spirit to split groundskeeper labor
0 10% of gross above $1.5 million. costs.
0 20% of concession gross to City , 0 City/Spirit responsible for clean up.
0 (non-baseball) 0 City/Spirit provide concession buildout.
. Half of super boxes to City (6) . City -- Structure, Spirit -- Equipment.
0 6 additional event dates to Spirit. 0 City provides all utilities.
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0 SpiFit provides all office furnishings. . 0 City responsible for building maintenance.
. Spirit provides scoreboard. . City provides finished office space.
0 . Spirit operates parking lot. . City provides trash removal.
0 Spirit provides parking attendants. , 0 City provides sound system.
. 50% net parking proceeds to City.
Under this scenario, revenues to the City/Agency are estimated at $272,000 per year based on
$2,000,000 gross revenue and attendance of 170,000. These projections are conservative when
compared to the performance of the new stadiums in the area which had well over 200,000
attendance in their first years. Yearly operating expenses are estimated at $338,000. Subtracting
the team contribution toward groundskeeping costs ($338,000 - $42,000 = $296,000 - $272,000
lease payments = $24,000) and lease revenue, leaves an operational shortfall of$24,000. none of
the other cities with new stadiums in the area are able to recoup all operating costs from the
baseball lease revenues.
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TCS:lag: lO-0l-04.cdc
COMMISSION MEETING AGENDA
MEETING DATE: 10/03/1994
Agenda Item Number: S-
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DEVELOPMENT DEPAR~ STAFF REPORT
Baseball Stadium Lease Agreement
September 27, 1994
Page Number -2-
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Based on these deal points, the Spirit is ready to sign a ten (10) year lease for the new stadium
with two (2) S-year extension options.
ends adoption of the form motion.
TIM C. STEINHAUS, Agency Administrator
Eeonomlc Development Agency
TCS:lag:IO-01-04.cdc
COMMISSION MEETING AGENDA
MEETING DATE: 10/03/1994
Agenda Item Number: S-
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