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.~trY OF SAN BERNARDfNO - REQueST FOR COUNCIL ACTION
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From:
Date:
12-5-86
Su~:
~. Report and Recommendations on
Negotiations conducted between City
Staff, Economic Development Council
and San Bernardino Baseball Club, Inc.
Mayor Wilcox
Mayor's Office
Oept:
Synopsis of Previous Councilection:
Approved, in concept, supporting the relocation of the Ventura Gulls "A" Division
Minor League Baseball Team to the City of San Bernardino (Agenda Item #17 - Nov. 17,
1986)
Recommended motion:
1.
Approve in concept, the negotiated terms for use of Fisca1ini Field
for the 1987, 1988. & 1989 Baseball Season.
2.
Direct the City Engineer to begin work on developing plans for a
Club House facility and additional seating for Fisca1ini Field
for the purpose of developing an R.F.P.
Direct the City Attorney to draft a lease agreement for Council's
review and approval between the City of San Bernardino and San
Bernardino Baseball Club, Inc. for use of Fiscalini Field.
3.
r:€A~ )l~."
SIgnature
Contact penon:
Richard Bennecke
Phone:
383-5204
Supporting date IttIChed:
FUNDING REQUIREMENTS:
yes
Ward:
Amount:
Source:
Finance:
Council Notel:
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Clty~OF SAN BERNARD....O - RI!QUEST FOR COUNCIL ACTIoN
STAFF REPORT
On Novelllber 17th, 1986 the Mayor anc1 Council approvec1, in
concept, the relocation of the Ventura Gull. "A" Divi.ion
Minor Leaque Ba..ball teaa to the City of San Bernarc1ino.
On Nov.lIlber 19, 1986 City official., r.pr...ntative. of the
Economic Development Office, anc1 repre.entative. of the San
a.rnarc1ino Ba.eball Club, Inc. CMark Harmon group) met to
b.qin a ..rie. of neqotiatinq meetinq. to c1evelop a propo.al
for Mayor/Council r.vi.w. Final n.qotiationa vere concluc1.d
on Tu.sc1ay, December 2nc1. On Thursc1ay, Decelllber 4th, the
Economic Developm.nt Council , Ba.eball Comaitt.e met to
revi.w the r.comm.nc1.c1 proposal. The E.D.C. Baseball
Committe. approv.c1 the proposal Csee attachment "A")
provic1.d for Council's review are the attach.d documents:
1. Attachm.nt "8" - Summary report of Financial
arranqements with three cities who have baseball
franchi....
2. Attachm.nt "C" - Ben.fit. to San Bernardino
3. Attachm.nt "0" - Summary of n.qotiations
4. Attachment "E" - Economic Impact of . Baseball
Franchi.e to the City of San Bernardino
5. Attachm.nt "F" - Project.c1 Revenue/Expens.
statement of Baseball Club
6. Attachment "G" - Financial Impact on the City of
San Bernarc1ino
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December 5, 1986
A
",.
The Honorable Mayor EVlyn Wilcox
and Members of the Common Council
City of San Bernardino
300 North D Street
San Bernardino, CA 92418
Re: Professional Baseball Team
Dear Mayor Wilcox
and Members of the Common Council:
Several months ago the City learned there were several
groups interested in locating a professional baseball
team in the City of San Bernardino. At the request of
the Mayor the Economic Development Council formed a
committee of representatives from the privatelpublic
sector for the purpose of reviewing the economic benefit
and feasibility of locating a professional baseball team
in the City of San Bernardino and to make appropriate
recommendations to the Mayor and Common Council. Members
of the Committee consist of Bruce Varner, Chairman, Ron
Skipper, Denny Shorett, Gene Wood, Lou Yeager, Councilwoman
Esther Estrada, Councilman Dan Frazier, Councilman Jack
Reilly, Richard Bennecke and Sam Henley.
Pursuant to the Mayor's request, the Committee held several
meetings and reviewed all relevant economic and non-economic
factors relative to the location and operation of a professional
baseball team within the City. Additionally, the Committee heard
presentations from representatives of the San Bernardino Baseball
Club, Inc. (Mark Harmon group) and the California Baseball League.
In the Committee's discussions with representatives from the
Baseball Club and the League, we related the general support
of the Mayor and common Council and the Community for this
project.
Pollowing the Baseball Club's selection of San Bernardino aa
its home city and approval of the California Baseball League,
the Committee met with representatives of the Club to review
requested improvements to Fiscalini Pield and the economic
impact of the operations to the City of San Bernardino.
.sPan, !1If'~UUl
. ~ ~4tu1le",t rt~mril
330 NORTH "D' STREET. SUITE 420. SAN BERNARDINO. CA 12401, TELEPHONE (7141381-4327. TELEX 675-508
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Mayor Wilcox
and Member. of the Common Council
December 5, 1986
Page Two
A representative group of the Committee then met with Annie
Ramos and John Kramer of the City's Parks and Recreation
Department and officials of the San Bernardino Baseball Club
in order to negotiate a proposal agreement for the use of
Fiscalini Field. After several lengthy negotiating sessions
we reached the following agreements as reported in the
attached "Summary of Negotiations".
It is the Committee's recommendation that the Mayor and
Council approve in concept the negotiated terms and direct
the City Engineer to begin the necessary process to bring
about the capital improvements necessary to meet the require-
ments of the California Baseball League, Inc. The Committee has
also reviewed and recommended certain financing alternatives
in the form of lease purchase options which will minimize
any significant initial capital expenditure by the City.
This will help to facilitate the short time frame in which
to accomplish these improvements prior to the opening of the
baseball season April 10, 1987.
It is the Committee's belief that a Class A baseball team in
San Bernardino will benefit the community, both economically
and in improving the quality of life.
Your consideration of our recommendation is greatly
appreciated.
Very truly yours,
4/~
VARNER
BDV: jt
eCI Councilwoman Esther Estrada
Councilman Dan Frazier
Councilman Jack Reilly
Ron Skipper
Richard Bennecke
Denny Shorett
Gene Wood
Lou Yeager
Sam Henley
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SAN BERNARDINO BASEBAlL CLUB
SlHlARY OF NEGOTIATIONS
Background
Representatives of a newly acquired class A minor league baseball team approached city
officials in early November. in regard to relocating the team to San Bernardino's Fisca-
lini Field at Perris Hill Park. At its November 17 meeting, San Bernardino City Council
passed a resolution endorsing the relocation. Representatives of the city and the team
subsequently met to negotiate ~~~ditions of a lease agreement for use of Fiscalini Field.
In order to adequately accommodate a minor league team, several improvements to the
facility were identified as immediately required. These improvements and their cost
factors are:
1. Club House FaCility: to include home and ViSiting team locker and shower rooms,
manager's office, concession annex, training room, umpires ro~ laundry room and
storage - $140,000.
2. Stadium Seating: provision of 800-850 theatre seats, 700 bench seats with backs,
and relocate 1,280 bleacher seats; also includes enlarging the press box _ $200,000.
3. Dugout Improvements: construct overhead canopies for player protection; provide
toilet facility in visftor's dugout - $30,000.
4. Fence Improvements for Advertising - $7,000.
Other improvements that could be phased in are:
1. All new lighting system to replace antiquated system _ $192,000.
2. Resurface and stripe parking lot - $50,000.
Certain other provisions would be essential to allow for the successful operation of a .
minor league team. These are installation of a profesSional style scoreboard, provisions
for beer and wine sales, sound system improvements and acquisition of a batting cage.
After numerous meetings, conditions of a lease agreement were worked out for presentation
to City Council. It should be noted that in order to accomplish the essential capital
improvements by the start of the season in April 1987, time is of the essence.
Attached is a brief resume of the economic impact of bringing a minor league baseball
club to the City as provided by team owners. The resume proposes a bottom line impact
of over $7 million annually.
PROPOSED TERMS OF LEASE AGREEMENT
In consideration of the following terms and conditions, the City of San Bernardino
agrees to provide a 3 year lease for the use of John A. Fiscalini Ballpark located at
Perris Hill Park. The team of the lease shall be from Januar,y ,1987 through September
IS, 1989. A five year option is also provided with terms and conditions to be negotiated.
Both parties agree to exercise option and open negotiations by October I, 1988 in good
flith.
City ISPrees to:
1. Construct club house facility of approXimately 2,500 square feet with a final plan
approva 1 by team.
2. Provide seating improvements to include 800-850 theatre seats, 700 bench seats and
relocation of 1,280 bleacher seats. Seating improvements will include expansion
of the press box.
SAN IERHARDINO BASEBALL CUll
PROPOSED TERMS OF LEASE AGREEMENT
PAGE Z
3. Provide groundskeeping,field preparation and custodial care of public restrooms.
4. Provide clean-up of the ballpark after games.
5. P~ all utility costs.
6. Provide electrical power to scoreboard and Highland Avenue illuminated sign.
7. Provide exclusive rights to concession stand operation.
8. Approve the sales of beer and wine.
9. Provide 15 days rent free use of the stadium for other than baseball events.
City retains final right of approval for dates and events.
10. Restrict all use of the stadium for baseball exclusively to all games and practices
ar the San Bernardino Baseball Club and the Cal State University Coyotes for home
games and 1 practice per week after February 10 and 3 practices per week prior to
February 10.
11. Provide lighting for 1987 season to association standards (50fc infield, 30fc outfield;
provide new lights for 1988 season.
Club agrees to:
1. Construct dugout improvements.
2. Pay to the City 51 of gross profits from baseball program.
3. Pay to the City $100 per home game in 1987, $125 per home game in 1988 and $150 per
home game in 1989. Payments shall be made monthly between May and September.
4. Provide a profession type scoreboard with a reader board.
5. Conduct a minimum of 2 youth clinics per year.
6. Provide public service announcements on the reader board each home game.
7. Provide at no cost to the city, one 30 second radio spot per game (both home and away),
contingent upon the obtaining of a radio contract.
8. Construct fence improvements for advertising.
9. Provide batting cage.
10. Provide a comprehensive liability policy with the City named additionally insured.
(speCifications to be provided).
11. Provide custodial care for concession stand and club house.
attac'-ent
12/4/86
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THE ECONOMIC IMPACT OF THE SAN BERNARDINO BASiBALL CLUB
ON THE CITY QF SAN BERNARDINO
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The Saa Beraardiao Baaeball Club ia iaportaat to the
City of SaD BernardiDo and the aurrouDdiDa coaaunity. Ve caa
de.oD.trate this iapact to the City by quaDtifyiDa tbe
expenditur.. which are .ad. iD San Bern.rdiDo a. a direct
re.ult of tb. Ball Club beiDa located bere. A. .howD below.
with aODey turaina o'er .e'ea ti.e. annually. the Ball Club
ahould be cr.dit.d with an econo.ic i.pact OD the co..unity
of $7.375.886.
'hUhl ~
Expenditure. iD S.D B.rn.rdino durina .e..on
for ae.l., hot.l. .nd incident.l........................$85.773
Heal. . 23 player. x 3 aeal./d.y time. d.te.
at $5.00/ua1
Lodainl - 13 rooa. x 71 d.te. . 923 room.
x 31 doll.r./roo.
Incidental. - 23 pl.yers x 71 dlte. x $20
$24.500
$28.613
$32.660
$85.773
Hoae !!!.!.
Percent.ae of player .al.rie. .peat IOc.lly.............$138.000
$1200/.0. x 23 pl.Jer. x 5 .0..
Scouts. Ha10r Le.lue Personnel. ~ U.Dires
Expenditure. in Saa Bern.rdino during .eason for .eal.,
hotel. aDd 1nc1dent.l..................................$47.92S
5 .cout. x 71 date. x $75/d.y $26.625
4 umpire. x 71 d.te. x $75/day !Z.1~300
$47.925"
Loc.l EmDlo,aeat
Vage. for office .nd niahtly p.rk .t.ff.................$100.000
Cood. ~ Ser,ic..
Expenditure. by Ball Club on local good. .nd ..r'ic.....$382.000
SDect.tor'. EXDenditure.
Approxi..t. att.nd.nc. of San B.rnardino r..id.nt.,
75.000 x $4.00 p.r capita expenditura out.id.
of St.d1U..............................................!300.000
1l.053.698
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CONTRAC"l'S PROII OTh&ft CITIIS WITH BASIBALL CLOBS
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X. SAlf JOSI
A. lIin. monthly quarant.. $100.00 or , which.v.r i.
gr.at.r.
8. 'a. tOllow.:
4' ot tir.t $25,000
3' ot 25,001 to 50,000
2' ot 50,001 to $100,000
5' ot 100,001 and above
C. Gro.. Rev.nu. includ..: Parkinq tee., agreement
us. charq.., qroup u..r t..., retreshm.nt conces.ion
souv.nir concession, and adv.rti.inq spac. rental. _
Les. Calitornia Sal.s Tax and retund. to custom.r. tor
returned m.rchandis..
D. Lenqth ot aqreement April 1985 to Octob.r 1987.
IX. PALM SPRINGS
A. $100.00 p.r q... min. or " whichev.r i. qreat.r.
8. 3' ot qros. cash receipt. (excludinq sale. tax)
C. Gro.. r.c.ipt. to includ.: ticket sale., all
concession sal.., program .al.., adv.rti.inq, parkinq
lot t....
D. with 4 option. to .xt.nd l.a.. tor additional one-year
p.riod.
IXX. BAKERsPIELD
A. $175.00 per q... or " which.v.r i. gr.at.r.
8. 5\ ot gro.. r.ceipt..
C. Gro.. r.c.ipt. to includ.: ticket .al.., all
concession .al.., program sal.., adverti.inq, parkin; lot t....
D. Lenqtb of l.a..: April throuqh S.ptember, 1984-86.
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BENEFITS TO SAN BERNARDINO
NOTE: There are only 124 professional baseball franchises
throughout the United States.
(1) Daily recognition in major publications (i.e. SpOrting
News, L.A. Times. USA Today, Baseball America).
<.
( 2)
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( 3)
(4)
( 5)
(6)
( 7)
(8)
Increase of revenues for local business (hotels, motels,
restaurants, etc.).
Limited employment opportunities at the ball park.
Affordable family entertainment.
TV, radio exposure.
Exposes youth to positive sports figures on a one-to-one
basis.
Education in how professional sports are conducted.
Watching the progress of future major leaguers.
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SAN BERNARDINO BASEBAll CLUB
SUftlARY OF NEGOTIATIONS
~
Background
Representatives of a newly acquired class A minor league baseball team approached city
officials in early NOvember. in regard to relocating the team to San Bernardino's Fisca-
lini Field at Perris Hill Park. At its NOvember 17 meeting, San Bernardino City Council
passed a resolution endorsing the relocation. Representatives of the city and the team
subsequently met to negotiate co~ditions of a lease agreement for use of Fiscalini Field.
. .
In order to adequately accommodate a minor league team, several improvements to the
facili~ were identified as immediately required. These improvements and their cost
factors are:
1. Club House FaCility: to include home and visiting team locker and shower rooms,
manager's office, concession annex, training room, umpires room. laundry room and
storage - $140,000.
2. Stadium Seating: Provision of 800-850 theatre seats, 700 bench seats with backs,
and relocate 1,280 bleacher seatSi also includes enlarging the press box _ $200,000.
3. Dugout Improvements: construct overhead canopies for player protectioni provide
toilet faCility in visftor's dugout _ $30,000.
4. Fence Improvements for Advertising _ $7,000.
Other f~rovements that could be phased in are:
1. All new lighting system to replace antiquated system _ $192,000.
2. Resurface and stripe parking lot _ $50,000.
Certain other provisions would be essential to allow for the successful operation of a .
minor league team. These are installation of a professional style scoreboard, ProViSions
for beer and wine sales, sound system improvements and acquisition of a batting cage.
After nu.erous meetings, conditions of a lease agreement were worked out for presentation
to City Councfl. It should be noted that in order to accomplish the essential capital
improvements by the start of the season fn April 1987, time fs of the essence.
Attached 1s a brief resume of the economic impact of bringing a minor league baseball
club to tile City as provided by team owners. The resume proPOses a bottom line impact
of Over $7 mfllion annually.
PROPOSED TERMS OF lEASE AGREEMENT
In consfderatfon of the follOWing terms and conditfons, the City of San Bernardfno
agrees to provfde a 3 year lease for the use of John A. Ffscalini Ballpark located at
Perrfs Hill Park. The team of the lease shall be from January . 1987 through September
15. 1989. A ffve year optfon fs also provided with terms and condftfons to be negotiated.
Both part1es agree to exercise optfon and open negotfatfons by October 1. 1988 fn good
fafth.
City agrees to:
1. Construct club house facflfty of approxfmately 2.500 square feet with a final plan
approYal by team. .
2. Provfde seating fmprovements to include 800-850 theatre seats, 700 bench seats and
relocat1on of 1,280 bleacher seats. Seating fmprovements will fnclude expansion
of the press box.
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THE ECONOMIC IMPACT OF TII SAN BERNARDINO BAStBALL CLUB . ~
ON THE CITY QF SAN BERNARDINO
..
The S.. B.r.ardino Ba..ball Clab i. i.portant to the
City of S.n B.rnardino and the .urroundin, eOllllllunity. We ea.
deDonatr.te this i.p.et to the City by qu.ntifyin, the
exp.nditure. which are .ade in San Bernardino a. a diraet
r..ult of tbe B.ll Club bein, locat.d b.r.. A. .hown below.
with .oney turnin, oyer .eyen ti.e. ennu.lly. tb. Bell Clab
.hould be credited witb .n econo.ic i.p.ct on the CO..unity
of $7.375.886.
Vhit1nR he
Expenditur.. in S.n B.rn.rdino durin, .e..on
for .e.l.. hotel. and incid.nt.l........................$85.773
Heal. . 23 pl.y.r. x 3 ...l./d.y ti.e. date.
.t $5.00/..al
Lodging . 13 roo.. x 71 d.t.. . 923 roo..
x 31 doll.r./rooD
Ineident.l. . 23 pl.y.r. x 71 date. x $20
$24.500
$28.613
132.660
$85.773
HOllie Te..
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Percent.g. of pl.yer .al.ries .pent loc.1ly.............$138.000
$1200/Do. x 23 pl.yer. x 5 11I0..
Scouts. Hs10r LeaRue Personn.l. ~ U.pires
Expenditur.. in San Bern.rdino durin, .e.son for lIIe.l..
hotel. aDd 1ftC1deDt.l..................................S47.92S
5 .eout. x 71 d.t.. x $75/d.y . $26.625
4 uDpir.. x 71 d.t.. x $75/d.y J21.300
$47.925
Loe.1 EDP10,..nt
V.ge. for office .nd ni,htly p.rk .t.ff............~....$100.000
Gooda .nd S.ryice.
Expenditure. b, B.ll Club on loc.l ,ood. .nd ..ryic.....$382.000
Spect.tor'. Exp.nditur..
Approxi..t. .ttendance of San B.rn.rdino r..id.nt.,
75.000 x $4.00 per capita .xp.nditure out.ide
of St.d1U..............................................J300.000
$1.053,698
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PROJECTED
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REVENUES (BASED ON 100,000 IN PARK ATTENDANCE/70 BOME GAMES)
Ticket Sales Revenue:
Home Games ($3.00/ticket)
Season Box ($160.00/season ticket)
Buyout Nights ($2,000.00/night)
Advertising Revenue:
Scorecard
Fence Signage
Souvenir Day of Game Revenue:
Souvenirs
Scorecard
Concessions:
Food & Beverage
Giveaway Night Revenue:
Giveaways (Bat Night, Jacket, Etc.)
TOTAL REVENUE
$110,000
120,000
40,000
$ 30,000
75,000
$ 25,000
30,000
$250,000
$ 25,000
$270,000
105,000
55,000
250,000
25,000
$705,000
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EXPENSES
Concession.:
Conce.sions Manager
Food , Beverage Products
Labor
Day of Game:
Wage.
Payroll Taxes
Team Expen.e.:
Travel (Bus)
Team Equipment
General Team Expenses
Miscellaneous
Promotional Expenses:
Souvenirs
Printing
Giveaways (Bat Night, fireworks, etc.)
General , Administrative:
Salaries
League Dues
Commissions (Sales)
Benefits
Office Supplies
Legal , Professional
Postage
Printing
Telephone
Advertising
TOTAL EXPENSES
$20,000
87,500
37,500
$20,000
2,500
20,000
10,000
5,000
5,000
7,500
20,000
25,000
50,000
7,500
20,000
5,000
3,500
5,000
3,000
3,500
8,000
35,000
$145,000
22,500
40,000
52,500
150,500
$410,000
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PRO~D LEASI: ARRAHGDmNT
FINANCIAL IMPACT ON TIll: CITY OF SAN BERNARDINO
b
,.,.
The San Bernardino Baseball Club has aqr.ed in concept, to a
three-year lease arranqement with a five year renewable
option (to be neqotiated), to utilize Fiscalini Baseball
Park. The followinq financial analy.is shows the potential
amount of revenue the City can expect from the flat rate plus
percentaqe aqreement. These figure. are based on an 80'
factor of projected qross income as provided by the San
Bernardino Baseball Club.
Year 1
Flat rate $100.00 per qame x 71 home qames
5' of qross revenue ($564,000)
Total Year 1
Year 2
Flat rate $125.00 per qame x 71 home qames
5' of qross revenue ($564,000)
Total Year 2
Year 3
Flat rate $150.00 per qame x 71 home qames
5' of qross revenue ($564,000)
Total Year 3
CAPITAL IMPROVEMENTS REOUlRED BY
CALIFORNIA BASEBALL LEAGUE. INC.
- $ 7,100.00
- 28.200.00
- 35,200.00
- $ 8,875.00
- 28,200.00
37,075.00
- $10,650.00
28.200.00
38,850.00
no ~
Citv ResD. S.B.B.C. Resp
1. Improved Duq-outs $30,000.00
2. Additional Seatinq,
Press Box $190,000.00
3. Fence Improvements $ 7,000.00
4. Club Bouse $135,000.00
5. Score Board $15.000.00
Total $325,000.00 $52,000.00
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SUGGESTED FINANCING OPTIONS FOR
CITY'S CAPITAL IMPROVEMENT PROJECTS AT
FISCALINI FIELD
All options are based on a lease/purchase arrangement to provide for
Club House and additional seating.
Option 1
Base figure $300,000
$50,000 up front to reduce lease/purchase amount; amount to be paid
as first year's payment instead of down payment.
5 years at 7'1,
7 years at 7'1,
10 years at 7'1,
$74,000 per year
$56,000 per year
$43,000 per year
Option 2
Base figure $280,000
$75.000 up front to reduce lease/purchase amount; amount to be paid
as first year's payment instead of down payment.
5 years at 7'1,
7 years at 7'1,
10 years at 7'1,
Option 3
Base figure $260,000
$100,000 up front to reduce lease/purchase amount; amount to be paid
as first year's payment instead of down payment.
5 years at 71
7 years at 71
10 years at 71
$68,300 per year
$52,000 per year
$40,000 per year
$63,400 per year
$48,000 per year
$37,000 per year