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HomeMy WebLinkAboutR05-Economic Development Agency -.r o o c 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 -----~-~_.__._--------------_...._.._----------------------..------------------ 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 ---------------..----------------------------------------------------------------------------------..--------- 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: ------------------------------------------------------------------------------------------------------------------- Commls.ioolCouncll Notes: ------------------------------------------------------------------------------------------------------------------ TCS:lag:IO-OI-04.cdc COMMISSION MEETING AGENDA MEETING DATE: 10/03/1994 Agenda Item Number: f o o ECONOMIC DEVELOPMENT AGENCY STAFF REPORT o ------------------------------------------------------------------------------------------------------------------ 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. / 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. c ------------------------------------------------------------------------------------------------------------------ TCS:lag: lO-0l-04.cdc COMMISSION MEETING AGENDA MEETING DATE: 10/03/1994 Agenda Item Number: S- o o c - - -~ - DEVELOPMENT DEPAR~ STAFF REPORT Baseball Stadium Lease Agreement September 27, 1994 Page Number -2- o ---~-------------------------------------------------------------------------------------------------------------- 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. 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