The developers of the downtown Reno baseball stadium and the Reno City Council are "playing ball".
The council agreed Wednesday evening to loan the developers money to build an entertainment district.
The council voted 4-1 to loan the developers between $1million and $2.5 million a year - for 20 years. The money comes from redevelopment district property taxes.
The developers - SK Baseball and Nevada Land, plan to use the money to finance an entertainment district alongside the baseball stadium. The area would contain restaurants, nightclubs, and an outdoor events plaza in front of the stadium on east 2nd Street.
Responding to how he could assure that the taxpayers dollars, would be well spent, Reno Aces Managing Partner Stuart Katzoff says, "Well...we can debate whether its taxpayers dollars...we have over $60 million of our own money in this project, so I would say that we are putting our money where our mouth is."
Jessica Sferraza, the only council member who voted against the plan, says, now is not the time to take such risks.
Mayor Bob Cashell, on the other hand, calls the entertainment district plan "Reno's stimulus package."
Thursday, March 12, 2009
Saturday, March 7, 2009
Sarpy ballpark is closer to reality
Sarpy County's ballpark negotiator, Kermit Brashear, has hammered out a tentative deal with the Omaha Royals on a lease and use agreement for a proposed suburban stadium.
Brashear emerged from a 70-minute closed meeting with Sarpy County Board members Tuesday and said an agreement is all but secured.
"We're at 9.95 on a scale of 10," he said.
The parties have been in exclusive negotiations since Dec. 3 on a 25-year agreement to bring the team and a new stadium to Sarpy County after the 2010 season, and the deadline for the negotiations is fast approaching.
Royals President Alan Stein on Tuesday night said he was optimistic about reaching a deal, but he spoke in more cautious tones.
"We're still negotiating," Stein said. "There's been nothing signed."
Stein said he could offer no specifics on the agreement. The public, however, could learn about it next week. Brashear said the lease and use agreement would most likely be on the agenda for next week's board meeting.
Joni Jones, chairwoman of the Sarpy board, said the agreement is "phase one" of the county's effort to attract the Royals.
"There are a lot of other phases to come," Jones said. Negotiations behind closed doors have been taking place with the Royals for months. "There may be a jot or a twittle here and there, but we're very, very close," said Brashear. Board members expect to approve the tentative deal with the ball club by next week November 2005, the Greater Omaha Chamber of Commerce hired Brailsford and
Dunlavey, a consultant specializing in baseball stadiums and the economic impact of stadiums, to
study the potential of a new North Downtown baseball stadium. The purpose of this study was to
objectively evaluate the economic impact
and viability of a new community
baseball stadium to be located in the
North Downtown Study Area, an 80
block area located in the
Cuming/Abbott Drive corridor between
the Riverfront and Creighton
University. Additionally, the study was
to evaluate the expected catalytic effect of the stadium being built in North Downtown and
quantify the economic impact of such development.
All analyses done in this study started with the assumption that necessary resources for
current and future needs at Rosenblatt would be met. Omaha mayoral candidate Hal Daub has his own ideas for a stimulus package to help Omaha, and one key component is the city's longtime AAA baseball team.
Daub said Monday that if he's elected this spring, he hopes to persuade the Omaha Royals to play at the city's new downtown baseball stadium.
The Royals have long contended that Omaha's new 24,000-seat stadium would be a poor fit for the team, which wants a smaller stadium with more family-friendly amenities.
Mayoral candidate Jim Vokal's campaign called Daub's remarks "dishonest,'' since chances are slim that the Royals will end up downtown. Daub's campaign fired back, saying Daub had made no promises and that the criticism was a "vague, negative'' attack.
Monday's exchange stemmed from a morning press conference at which Daub outlined a 10-year plan for boosting the city's economy. Retaining the Royals would be good for Omaha because it would keep visitors and revenues in the city, he said.
Daub's other major opponent, City Councilman Jim Suttle, said he also favors keeping the team in Omaha if that's possible.
Brashear emerged from a 70-minute closed meeting with Sarpy County Board members Tuesday and said an agreement is all but secured.
"We're at 9.95 on a scale of 10," he said.
The parties have been in exclusive negotiations since Dec. 3 on a 25-year agreement to bring the team and a new stadium to Sarpy County after the 2010 season, and the deadline for the negotiations is fast approaching.
Royals President Alan Stein on Tuesday night said he was optimistic about reaching a deal, but he spoke in more cautious tones.
"We're still negotiating," Stein said. "There's been nothing signed."
Stein said he could offer no specifics on the agreement. The public, however, could learn about it next week. Brashear said the lease and use agreement would most likely be on the agenda for next week's board meeting.
Joni Jones, chairwoman of the Sarpy board, said the agreement is "phase one" of the county's effort to attract the Royals.
"There are a lot of other phases to come," Jones said. Negotiations behind closed doors have been taking place with the Royals for months. "There may be a jot or a twittle here and there, but we're very, very close," said Brashear. Board members expect to approve the tentative deal with the ball club by next week November 2005, the Greater Omaha Chamber of Commerce hired Brailsford and
Dunlavey, a consultant specializing in baseball stadiums and the economic impact of stadiums, to
study the potential of a new North Downtown baseball stadium. The purpose of this study was to
objectively evaluate the economic impact
and viability of a new community
baseball stadium to be located in the
North Downtown Study Area, an 80
block area located in the
Cuming/Abbott Drive corridor between
the Riverfront and Creighton
University. Additionally, the study was
to evaluate the expected catalytic effect of the stadium being built in North Downtown and
quantify the economic impact of such development.
All analyses done in this study started with the assumption that necessary resources for
current and future needs at Rosenblatt would be met. Omaha mayoral candidate Hal Daub has his own ideas for a stimulus package to help Omaha, and one key component is the city's longtime AAA baseball team.
Daub said Monday that if he's elected this spring, he hopes to persuade the Omaha Royals to play at the city's new downtown baseball stadium.
The Royals have long contended that Omaha's new 24,000-seat stadium would be a poor fit for the team, which wants a smaller stadium with more family-friendly amenities.
Mayoral candidate Jim Vokal's campaign called Daub's remarks "dishonest,'' since chances are slim that the Royals will end up downtown. Daub's campaign fired back, saying Daub had made no promises and that the criticism was a "vague, negative'' attack.
Monday's exchange stemmed from a morning press conference at which Daub outlined a 10-year plan for boosting the city's economy. Retaining the Royals would be good for Omaha because it would keep visitors and revenues in the city, he said.
Daub's other major opponent, City Councilman Jim Suttle, said he also favors keeping the team in Omaha if that's possible.
Thursday, March 5, 2009
Stan Kasten vs Gwinnett County and USOC chief offers surprising resignation
in 1988 Stan Kasten, president of the Atlanta Braves, said Friday that he is "in serious discussions" to move the baseball team from downtown to an open-air stadium in Gwinnett County, perhaps as early as the 1991 season. The Braves have a lease to play in the Atlanta-Fulton County Stadium until the end of 1990, and Mr. Kasten said Friday that it is unlikely that the baseball organization will renew its lease with the stadium.
Instead, Mr. Kasten said he is seeking to move in 1989 that if the Georgia Dome is built, there is little chance the baseball team will stay in downtown Atlanta. "If the dome is reality, then the Braves are outta here," Mr. Kasten said. Jim Scherr resigned as the chief executive officer of the U.S. Olympic Committee today, an awkwardly timed move that comes with the federation attempting to shore up its finances while bidding to bring the 2016 Olympics to Chicago.
Scherr will be replaced on an interim basis by Stephanie Streeter, a member of the USOC board of directors. Streeter described the move as a way to bring a different "set of skills" to the top of the USOC's salaried staff.
During a 25-minute teleconference with reporters, neither she nor USOC chairman Larry Probst did anything to debunk the notion that Scherr was eased out after more than six years on the job, the first two on an interim basis.
"It was mutually decided upon by both parties," Probst said, as he and Streeter declined three times to say whose idea it was.
Scherr was not on the conference call and did not return messages left by The Associated Press seeking comment.
The power shift started to emerge at the USOC board meeting Tuesday, the same day Scherr announced the USOC must trim up to 15 percent of its staff as a way of paring $7.1 million from its 2009 budget.
Streeter, who has been on the board for 4½ years, said she had the tools to deal with some of the new challenges facing the USOC -- the economy, a changing media climate and a more difficult sponsorship atmosphere.
Scherr will leave more than six years after taking over at the USOC, where he helped the federation streamline a bulky governing structure and regain a reputation that was sullied in the wake of the Salt Lake City Olympics bid scandal.
He oversaw a period of growth and success at the USOC that included significant decreases in administrative costs and a doubling in direct contributions to athletes. Meanwhile, the U.S. team succeeded in the Olympics, most recently winning a games-high 110 medals in Beijing in a year in which most people thought the hosts would beat the United States. It has been, by almost every measure, the most successful six-year period in the federation's history.
"Jim brought a lot of stability to the movement over the past few years," said Steve Penny, president of USA Gymnastics. "He had what I'd call an even-keeled perspective in addressing issues and he kept the interest of the athletes at the forefront of his decision making."
The timing of the move did raise questions.
The USOC is moving into the final stages of helping with the bid to bring the 2016 Olympics to Chicago. The SportAccord, an international gathering of sports dignitaries, including those from the International Olympic Committee, is set for later this month in Denver with all four finalists scheduled to present their pitches for the games. In early April, the IOC makes its bid visit to Chicago -- the most important meeting before the games are awarded in October.
One of the USOC's biggest challenges over the past few years has been to establish a sense of continuity in its organization, so international types will feel more comfortable with leaders of the richest and largest Olympic federation in the world.
Scherr was, of course, a key part of that leadership team, but he'll soon be leaving. By contrast, the USOC recently rewrote its bylaws to keep Peter Ueberroth on in an honorary capacity after his term as chairman ended last year.
Streeter said continuity is important, but stressed the equal importance of "making changes to address the needs of the organization for the future." She said her board membership sine 2004 offers a level of continuity, as does Sherr's agreeing to be assist the transition to her leadership. "I don't see a huge impact on the bid or the USOC," she said.
Instead, Mr. Kasten said he is seeking to move in 1989 that if the Georgia Dome is built, there is little chance the baseball team will stay in downtown Atlanta. "If the dome is reality, then the Braves are outta here," Mr. Kasten said. Jim Scherr resigned as the chief executive officer of the U.S. Olympic Committee today, an awkwardly timed move that comes with the federation attempting to shore up its finances while bidding to bring the 2016 Olympics to Chicago.
Scherr will be replaced on an interim basis by Stephanie Streeter, a member of the USOC board of directors. Streeter described the move as a way to bring a different "set of skills" to the top of the USOC's salaried staff.
During a 25-minute teleconference with reporters, neither she nor USOC chairman Larry Probst did anything to debunk the notion that Scherr was eased out after more than six years on the job, the first two on an interim basis.
"It was mutually decided upon by both parties," Probst said, as he and Streeter declined three times to say whose idea it was.
Scherr was not on the conference call and did not return messages left by The Associated Press seeking comment.
The power shift started to emerge at the USOC board meeting Tuesday, the same day Scherr announced the USOC must trim up to 15 percent of its staff as a way of paring $7.1 million from its 2009 budget.
Streeter, who has been on the board for 4½ years, said she had the tools to deal with some of the new challenges facing the USOC -- the economy, a changing media climate and a more difficult sponsorship atmosphere.
Scherr will leave more than six years after taking over at the USOC, where he helped the federation streamline a bulky governing structure and regain a reputation that was sullied in the wake of the Salt Lake City Olympics bid scandal.
He oversaw a period of growth and success at the USOC that included significant decreases in administrative costs and a doubling in direct contributions to athletes. Meanwhile, the U.S. team succeeded in the Olympics, most recently winning a games-high 110 medals in Beijing in a year in which most people thought the hosts would beat the United States. It has been, by almost every measure, the most successful six-year period in the federation's history.
"Jim brought a lot of stability to the movement over the past few years," said Steve Penny, president of USA Gymnastics. "He had what I'd call an even-keeled perspective in addressing issues and he kept the interest of the athletes at the forefront of his decision making."
The timing of the move did raise questions.
The USOC is moving into the final stages of helping with the bid to bring the 2016 Olympics to Chicago. The SportAccord, an international gathering of sports dignitaries, including those from the International Olympic Committee, is set for later this month in Denver with all four finalists scheduled to present their pitches for the games. In early April, the IOC makes its bid visit to Chicago -- the most important meeting before the games are awarded in October.
One of the USOC's biggest challenges over the past few years has been to establish a sense of continuity in its organization, so international types will feel more comfortable with leaders of the richest and largest Olympic federation in the world.
Scherr was, of course, a key part of that leadership team, but he'll soon be leaving. By contrast, the USOC recently rewrote its bylaws to keep Peter Ueberroth on in an honorary capacity after his term as chairman ended last year.
Streeter said continuity is important, but stressed the equal importance of "making changes to address the needs of the organization for the future." She said her board membership sine 2004 offers a level of continuity, as does Sherr's agreeing to be assist the transition to her leadership. "I don't see a huge impact on the bid or the USOC," she said.
Friday, February 27, 2009
Jim Bowden is loser in Richmond
(owner Mark Lerner, President Stan Kasten and GM Jim Bowden) flew up to Syracuse to check out the facilities, ask questions and try to make their pitch Washington makes sense for us," said John Simone, the Chiefs' GM.
Simone said that Syracuse particularly liked Washington's minor league system,
Simone also acknowledged that the Mets were always Syracuse's top choice. But the Mets picked Buffalo in 2007 …there is increased buzz from Syracuse noting that the Mets triple-a affiliate will leave New Orleans at the end of this season, and move to Syracuse…
…all sorts of people continue to tell me that staff up in Syracuse have already been notified of the change…of course, from what i can gather, that’s news to people in New Orleans, who feel very comfortable with the one full year left on their current deal with the Mets…
…one thing i do know, the people of Syracuse are already quite cozy with the colors blue and orange, so that should make for easy marketing… On Sept. 19, 2006, Mets general manager Omar Minaya and senior executive vice president Jeff Wilpon spent the morning in Scranton, Pa., and New York Yankees officials spent the afternoon. Both teams wanted to be in Scranton, and Scranton chose the Yankees in 2008 What started as a dream has become a team," said county commissioner Bert Nasuti, who led the effort to bring minor league baseball to Gwinnett.
the city being left behind would be an ideal place for the Nationals to put their top farm club. Could the Nationals sign a two-year deal with New Orleans (the shortest allowable length of time for an affiliation contract), buy the club and move it to Richmond for the 2011 season on September Senator Chuck Schumer spoke with Mets owner Jeff Wilpon Tuesday night about the team’s plans for its minor league team, and while Schumer says there’s a 90 percent chance the Mets will relocate upstate, Syracuse is in a close fight with Buffalo for the Mets on 09-04-08 Schumer's statement:
"I spoke with Jeff Wilpon, who is in charge of the Mets' relationship with farm teams, and there is good news here. It is virtually certain that the Mets will not renew their relationship with their farm team in New Orleans, and there is over a 90 percent chance that they will affiliate with a New York State team, which would be a huge win for Upstate New York.
"The competition is between two great cities -- Syracuse and Buffalo -- and franchises in both cities must make their best case to Mets management over the coming days and weeks on 09-06-08
Onondaga County and local business groups say they're ready to help organize a red-carpet greeting or do whatever it takes to help the Chiefs land the Mets. They're just waiting for the Chiefs to ask.
But the Chiefs say they favor a more low-key approach that team officials believe will be just as effective as red carpets or marching bands.
Chiefs general manager John Simone said he is planning a quiet meeting with the Mets Sept. 18, the first day the Mets can talk to Syracuse and Buffalo. on 09-09-08 A strike for the Syracuse Chiefs Tuesday. Onondaga County's facilities committee chose not to vote on bonding $1.3 million dollars for a new scoreboard at Alliance Bank Stadium. Team manager John Simone was disappointed by the delay.
"We had a very good season this year and hope to keep improving on it, hopefully with what major league team comes here and all the improvements to be made in the facility and the fan experience of a new score board will make it even better," said Simone.
on 09-10-08 The Daily News has learned that the Mets are trying to buy a portion of the Syracuse franchise. on Thursday September 18, 2008 Officials from the Washington Nationals major league baseball team visited Syracuse this afternoon to discuss moving its Triple-A team here.
The contingent, which included several of the National's top executives, arrived at Alliance Bank Stadium at 1:30 p.m. today.
They toured the clubhouse, looked at the grass and at 2 p.m. met with Syracuse Chiefs officials
But it looks like the Mets are heading to Buffalo on Tuesday September 16, 2008 the New York Mets will send their top prospects to Buffalo, not Syracuse. Mike Harrington of The Buffalo News reports that the Mets will go to Buffalo's Dunn Tire Park because of a sequence of events in the past week.
With the moratorium on discussions having ended at 12:01 a.m. on 09-18-08 the Buffalo Bisons and Syracuse Chiefs officially began courting the Mets New York Mets to move their Triple-A affiliate on
09-19-2008
According to The Buffalo News, the Mets’ triple-A affiliate in New Orleans will be moving to Buffalo in 2009.
The team has called a press conference for Monday to apparently name the Mets as the new parent team to the Buffalo Bisons. the Wilpon Omar Minaya and Sen. Charles E. Schumer become heros This is very good news for sports fans in Western New York,” Schumer said. “The marriage between Buffalo and the Mets looks like it’s a great one and I believe it will last a long time. The Mets are a great organization and so are the Bisons. The merger of the two will create even better minor-league ball I’m just glad the Mets stayed in Upstate,” Schumer said. “Once I learned Buffalo would be available, all I told the Wilpons was, ‘Do it in New York and pick whatever bid you’re comfortable with.’”
on 09-20-08 NewsChannel 9 has learned the Syracuse Chiefs will take on the Washington Nationals as the city's new Major League affiliate.
The Chiefs' board of directors made the decision Saturday after a visit from the Florida Marlins.
The Nationals were in town for a tour of Alliance Bank Stadium on Thursday.
A press conference announcing the pairing is expected to take place Monday morning.
Central New York's preferred affiliate, the New York Mets, took a pass on the Chiefs earlier this week and opted to go further west with the Buffalo Bisons. That marriage was announced Friday on 09-22-2008 The Indians' GM raved about one of his Minor League affiliates, the Buffalo Bisons. Minaya listened to Shapiro's stories about owner Bob Rich, the way the players were treated and the amount of talent in upstate New York.
So, to answer Wilpon's question, "Where's the best place to develop our players?" Minaya stood on Shapiro's word. The Mets will no longer have their Triple-A affiliate in New Orleans as of 2009, and have moved closer to home by signing a two-year player-development contract with Buffalo.
The announcement was made on Monday at what will become the Mets' Triple-A stadium, Dunn Tire Park, where Wilpon, Minaya and Adam Wogan, the director of Minor League operations, were accompanied by Rich; his wife, Mindy; Buffalo Mayor Byron W. Brown; and New York Governor David Paterson.
"The Mets are one of the most highly recognizable franchises in all of sports and have a well-established tradition of winning and excellence, which makes them a perfect fit for the Buffalo Bisons," Rich said. "The Bisons recognize the importance of having a strong Major League partner and feel that this new connection with an in-state team will provide our fans with many seasons of great baseball."
This is the second time in the Bisons' 124-year history that they have paired with the Mets. The Bisons were the Mets' International League affiliate for three seasons (1963-65). In fact, former first baseman Ed Kranepool played in Buffalo in 1963 and '64 before beginning his 18-year Mets career.
Moving from New Orleans to Buffalo makes the most sense geographically, Minaya said in a statement, as it keeps three of the Mets' affiliates in New York State (joining Class A Brooklyn and Double-A Binghamton). From a travel perspective, designating players will be an easier chore, as well.
"We look forward to being in Buffalo as an organization and in the community, and working with the Rich family as home base for our top Minor League team," Wilpon said. "Their commitment to innovation has earned them the well-deserved reputation for management excellence and providing the finest fan experience in the Minor Leagues."
Paterson expressed his hope that another hardy generation of talent will come through the Buffalo system. Following Sunday's loss to Atlanta, spurred by the Braves' four-run eighth inning, the governor hoped for better things for the Mets in the season's final week.
"The Mets' bullpen is going to kill me," Paterson joked. "It's not the budget, it's not AIG, it's not the Federal Reserve -- it's the Mets' bullpen
Simone said that Syracuse particularly liked Washington's minor league system,
Simone also acknowledged that the Mets were always Syracuse's top choice. But the Mets picked Buffalo in 2007 …there is increased buzz from Syracuse noting that the Mets triple-a affiliate will leave New Orleans at the end of this season, and move to Syracuse…
…all sorts of people continue to tell me that staff up in Syracuse have already been notified of the change…of course, from what i can gather, that’s news to people in New Orleans, who feel very comfortable with the one full year left on their current deal with the Mets…
…one thing i do know, the people of Syracuse are already quite cozy with the colors blue and orange, so that should make for easy marketing… On Sept. 19, 2006, Mets general manager Omar Minaya and senior executive vice president Jeff Wilpon spent the morning in Scranton, Pa., and New York Yankees officials spent the afternoon. Both teams wanted to be in Scranton, and Scranton chose the Yankees in 2008 What started as a dream has become a team," said county commissioner Bert Nasuti, who led the effort to bring minor league baseball to Gwinnett.
the city being left behind would be an ideal place for the Nationals to put their top farm club. Could the Nationals sign a two-year deal with New Orleans (the shortest allowable length of time for an affiliation contract), buy the club and move it to Richmond for the 2011 season on September Senator Chuck Schumer spoke with Mets owner Jeff Wilpon Tuesday night about the team’s plans for its minor league team, and while Schumer says there’s a 90 percent chance the Mets will relocate upstate, Syracuse is in a close fight with Buffalo for the Mets on 09-04-08 Schumer's statement:
"I spoke with Jeff Wilpon, who is in charge of the Mets' relationship with farm teams, and there is good news here. It is virtually certain that the Mets will not renew their relationship with their farm team in New Orleans, and there is over a 90 percent chance that they will affiliate with a New York State team, which would be a huge win for Upstate New York.
"The competition is between two great cities -- Syracuse and Buffalo -- and franchises in both cities must make their best case to Mets management over the coming days and weeks on 09-06-08
Onondaga County and local business groups say they're ready to help organize a red-carpet greeting or do whatever it takes to help the Chiefs land the Mets. They're just waiting for the Chiefs to ask.
But the Chiefs say they favor a more low-key approach that team officials believe will be just as effective as red carpets or marching bands.
Chiefs general manager John Simone said he is planning a quiet meeting with the Mets Sept. 18, the first day the Mets can talk to Syracuse and Buffalo. on 09-09-08 A strike for the Syracuse Chiefs Tuesday. Onondaga County's facilities committee chose not to vote on bonding $1.3 million dollars for a new scoreboard at Alliance Bank Stadium. Team manager John Simone was disappointed by the delay.
"We had a very good season this year and hope to keep improving on it, hopefully with what major league team comes here and all the improvements to be made in the facility and the fan experience of a new score board will make it even better," said Simone.
on 09-10-08 The Daily News has learned that the Mets are trying to buy a portion of the Syracuse franchise. on Thursday September 18, 2008 Officials from the Washington Nationals major league baseball team visited Syracuse this afternoon to discuss moving its Triple-A team here.
The contingent, which included several of the National's top executives, arrived at Alliance Bank Stadium at 1:30 p.m. today.
They toured the clubhouse, looked at the grass and at 2 p.m. met with Syracuse Chiefs officials
But it looks like the Mets are heading to Buffalo on Tuesday September 16, 2008 the New York Mets will send their top prospects to Buffalo, not Syracuse. Mike Harrington of The Buffalo News reports that the Mets will go to Buffalo's Dunn Tire Park because of a sequence of events in the past week.
With the moratorium on discussions having ended at 12:01 a.m. on 09-18-08 the Buffalo Bisons and Syracuse Chiefs officially began courting the Mets New York Mets to move their Triple-A affiliate on
09-19-2008
According to The Buffalo News, the Mets’ triple-A affiliate in New Orleans will be moving to Buffalo in 2009.
The team has called a press conference for Monday to apparently name the Mets as the new parent team to the Buffalo Bisons. the Wilpon Omar Minaya and Sen. Charles E. Schumer become heros This is very good news for sports fans in Western New York,” Schumer said. “The marriage between Buffalo and the Mets looks like it’s a great one and I believe it will last a long time. The Mets are a great organization and so are the Bisons. The merger of the two will create even better minor-league ball I’m just glad the Mets stayed in Upstate,” Schumer said. “Once I learned Buffalo would be available, all I told the Wilpons was, ‘Do it in New York and pick whatever bid you’re comfortable with.’”
on 09-20-08 NewsChannel 9 has learned the Syracuse Chiefs will take on the Washington Nationals as the city's new Major League affiliate.
The Chiefs' board of directors made the decision Saturday after a visit from the Florida Marlins.
The Nationals were in town for a tour of Alliance Bank Stadium on Thursday.
A press conference announcing the pairing is expected to take place Monday morning.
Central New York's preferred affiliate, the New York Mets, took a pass on the Chiefs earlier this week and opted to go further west with the Buffalo Bisons. That marriage was announced Friday on 09-22-2008 The Indians' GM raved about one of his Minor League affiliates, the Buffalo Bisons. Minaya listened to Shapiro's stories about owner Bob Rich, the way the players were treated and the amount of talent in upstate New York.
So, to answer Wilpon's question, "Where's the best place to develop our players?" Minaya stood on Shapiro's word. The Mets will no longer have their Triple-A affiliate in New Orleans as of 2009, and have moved closer to home by signing a two-year player-development contract with Buffalo.
The announcement was made on Monday at what will become the Mets' Triple-A stadium, Dunn Tire Park, where Wilpon, Minaya and Adam Wogan, the director of Minor League operations, were accompanied by Rich; his wife, Mindy; Buffalo Mayor Byron W. Brown; and New York Governor David Paterson.
"The Mets are one of the most highly recognizable franchises in all of sports and have a well-established tradition of winning and excellence, which makes them a perfect fit for the Buffalo Bisons," Rich said. "The Bisons recognize the importance of having a strong Major League partner and feel that this new connection with an in-state team will provide our fans with many seasons of great baseball."
This is the second time in the Bisons' 124-year history that they have paired with the Mets. The Bisons were the Mets' International League affiliate for three seasons (1963-65). In fact, former first baseman Ed Kranepool played in Buffalo in 1963 and '64 before beginning his 18-year Mets career.
Moving from New Orleans to Buffalo makes the most sense geographically, Minaya said in a statement, as it keeps three of the Mets' affiliates in New York State (joining Class A Brooklyn and Double-A Binghamton). From a travel perspective, designating players will be an easier chore, as well.
"We look forward to being in Buffalo as an organization and in the community, and working with the Rich family as home base for our top Minor League team," Wilpon said. "Their commitment to innovation has earned them the well-deserved reputation for management excellence and providing the finest fan experience in the Minor Leagues."
Paterson expressed his hope that another hardy generation of talent will come through the Buffalo system. Following Sunday's loss to Atlanta, spurred by the Braves' four-run eighth inning, the governor hoped for better things for the Mets in the season's final week.
"The Mets' bullpen is going to kill me," Paterson joked. "It's not the budget, it's not AIG, it's not the Federal Reserve -- it's the Mets' bullpen
Saturday, February 21, 2009
Minor League Baseball wants progress on stadium plan
Before a Class AA franchise in Connecticut can be moved to Richmond, Minor League Baseball says it wants to see firm evidence that the city will get a new ballpark.
Tim Purpura, Minor League Baseball's executive vice president, said this week that the organization, which oversees all minor leagues affiliated with Major League Baseball, wants a sense of "what commitment is made by the municipalities involved, and some rudimentary idea of the leasing arrangements" before allowing relocation.
A group of Richmond investors is working to acquire the Class AA Eastern League franchise in Norwich, Conn., and move it to Richmond for the 2010 season. However, a $60 million ballpark -- proposed by Highwoods Properties as part of a $363 million development, Shockoe Center -- has not been approved by the city.
The Eastern League president, Joe McEacharn, said a relocation application must be submitted by August for an Eastern League franchise to be in a new locale for 2010. The August deadline is for scheduling, marketing and sales purposes, he said.
"At the present time, we have no relocation applications submitted to us," McEacharn said. "If a relocation application were to be filed, and I want to reiterate that none has been, the facility, as well as lease terms and long-term viability are all factors that are investigated and reviewed, prior to making any decisions on relocation applications."
The league's timetable coincides with an Aug. 1 deadline for Mayor Dwight C. Jones' administration to sign a letter of intent to move forward with the Shockoe Center development. City officials continue to study the proposal and are planning to hire a consultant to review the project's finances and other aspects, said Tammy Hawley, Jones' press secretary.
The House of Delegates and the state Senate have voted to approve House Bill 1803, proposed by Del. G. Manoli Loupassi, R-Richmond, which would use a portion of sales-tax proceeds to pay for a Richmond ballpark that's part of Shockoe Center.
The legislation would designate 2.5 percent of the sales-tax collections derived from the stadium -- and the development it spawns -- toward paying the bonds to finance the construction.
A companion bill, Senate Bill 1021, sponsored by Sen. A. Donald McEachin, D-Henrico, has passed the Senate and now is in committee.
A group of Shockoe Slip business owners has asked lawmakers to refer the bills back to committee out of concern that they might allow private facilities to be financed with public bonds.
"At a time when our economy is in a major recession, tax dollars should not be spent to fund the so-called private facilities," the group wrote in a letter to lawmakers. "In addition, private business in the city should not be placed at a disadvantage due to a special financing vehicle provided by the commonwealth."
The group includes representatives of The Tobacco Company Restaurant, the Omni Richmond Hotel, Richbrau Brewing Company, and Sam Miller's Restaurant.
Several sources identified the Norwich franchise as the one Richmond Baseball Club LC is attempting to purchase for about $15 million. If the deal is completed next month as expected, Richmond Baseball Club LC would operate the franchise in Norwich this season with the intention of moving it to Richmond for 2010.
"Certainly the Eastern League has significant interest in the Richmond market," the Eastern League's McEacharn said. "It was host for a Triple-A team [the Richmond Braves] -- a very successful one for a number of years. It's got great demographics."
There are no Class AAA franchises for sale in the International League, which is why the Richmond investment group is targeting Class AA.
"There's a reason there are no Triple-A teams available," said Bryan Bostic, chairman of the Richmond group. "The reason is they have [new ballparks]. We don't."
A Class AA franchise sale to Bostic's group could be announced soon after Minor League Baseball secures a Class A franchise for Norwich. That franchise would start play in Norwich in 2010, so that community would have uninterrupted professional baseball.
The Class AA franchise in Norwich is affiliated with the San Francisco Giants in an agreement that extends through the 2010 season
Tim Purpura, Minor League Baseball's executive vice president, said this week that the organization, which oversees all minor leagues affiliated with Major League Baseball, wants a sense of "what commitment is made by the municipalities involved, and some rudimentary idea of the leasing arrangements" before allowing relocation.
A group of Richmond investors is working to acquire the Class AA Eastern League franchise in Norwich, Conn., and move it to Richmond for the 2010 season. However, a $60 million ballpark -- proposed by Highwoods Properties as part of a $363 million development, Shockoe Center -- has not been approved by the city.
The Eastern League president, Joe McEacharn, said a relocation application must be submitted by August for an Eastern League franchise to be in a new locale for 2010. The August deadline is for scheduling, marketing and sales purposes, he said.
"At the present time, we have no relocation applications submitted to us," McEacharn said. "If a relocation application were to be filed, and I want to reiterate that none has been, the facility, as well as lease terms and long-term viability are all factors that are investigated and reviewed, prior to making any decisions on relocation applications."
The league's timetable coincides with an Aug. 1 deadline for Mayor Dwight C. Jones' administration to sign a letter of intent to move forward with the Shockoe Center development. City officials continue to study the proposal and are planning to hire a consultant to review the project's finances and other aspects, said Tammy Hawley, Jones' press secretary.
The House of Delegates and the state Senate have voted to approve House Bill 1803, proposed by Del. G. Manoli Loupassi, R-Richmond, which would use a portion of sales-tax proceeds to pay for a Richmond ballpark that's part of Shockoe Center.
The legislation would designate 2.5 percent of the sales-tax collections derived from the stadium -- and the development it spawns -- toward paying the bonds to finance the construction.
A companion bill, Senate Bill 1021, sponsored by Sen. A. Donald McEachin, D-Henrico, has passed the Senate and now is in committee.
A group of Shockoe Slip business owners has asked lawmakers to refer the bills back to committee out of concern that they might allow private facilities to be financed with public bonds.
"At a time when our economy is in a major recession, tax dollars should not be spent to fund the so-called private facilities," the group wrote in a letter to lawmakers. "In addition, private business in the city should not be placed at a disadvantage due to a special financing vehicle provided by the commonwealth."
The group includes representatives of The Tobacco Company Restaurant, the Omni Richmond Hotel, Richbrau Brewing Company, and Sam Miller's Restaurant.
Several sources identified the Norwich franchise as the one Richmond Baseball Club LC is attempting to purchase for about $15 million. If the deal is completed next month as expected, Richmond Baseball Club LC would operate the franchise in Norwich this season with the intention of moving it to Richmond for 2010.
"Certainly the Eastern League has significant interest in the Richmond market," the Eastern League's McEacharn said. "It was host for a Triple-A team [the Richmond Braves] -- a very successful one for a number of years. It's got great demographics."
There are no Class AAA franchises for sale in the International League, which is why the Richmond investment group is targeting Class AA.
"There's a reason there are no Triple-A teams available," said Bryan Bostic, chairman of the Richmond group. "The reason is they have [new ballparks]. We don't."
A Class AA franchise sale to Bostic's group could be announced soon after Minor League Baseball secures a Class A franchise for Norwich. That franchise would start play in Norwich in 2010, so that community would have uninterrupted professional baseball.
The Class AA franchise in Norwich is affiliated with the San Francisco Giants in an agreement that extends through the 2010 season
Tuesday, January 27, 2009
Omaha is a Cubs town.
It will remake the look and feel of North Downtown Omaha. Wednesday city leaders and other dignitaries officially broke ground on the new home of the College World Series.
It comes as a private group raising money for the project says its quickly approaching its 43-million dollar fundraising goal.
Omaha leaders and NCAA officials grab shovels and turn over some dirt. Getting here wasn't always easy. "I never once thought at any time that we weren't all shooting for the same goal and that's to make sure we do what is best not only for the CWS and the NCAA, but for this community," said the NCAA's Dennis Pope.
The 128-million dollar stadium should be completed by the spring of 2011. It will host the College World Series for at least the next 25 years. "There are a lot of people that had a lot to do with this stadium, getting it to this point. It did not happen in a vacuum," said Omaha Mayor Mike Fahey.
Wednesday night members of the public got a closer look at the latest ballpark designs. They include an open-air concourse and other features catering to fans and student athletes. "I like Rosenblatt, but I want to see the new stadium, I think it's time for a change," said one baseball fan.
The stadium will seat 24,000 fans, with 26 luxury suites and 1,000 club seats. Omahans KPTM talked to liked what they saw. "Up to date, little deeper seats, more room for your legs," said one man.
It's still unclear which teams will play in the new ballpark. MECA says they're very close to a deal with Creighton University and the paperwork is out to potential owners of a new independent minor league team. "I think it's going to be fine, it's going to work and everybody should be excited about this new progress we've got going on," said MECA President Roger Dixon.
Current designs also call for 5,000 square feet of retail space though more can be added later.
Officials say the ballpark will be financially sound with or without the Omaha Royals. They say taxpayers will be protected because every year revenues will pay off construction debt before they go toward anything else. When Mayor Mike Fahey learned of a loophole that would allow him to oust his leading adversary on the Metropolitan Entertainment and Convention Authority (MECA) board, he jumped on it. MECA chairman David Sokol had changed his mailing address from his Omaha condo to his home at the foothills of the Wyoming Tetons, altering his voter registration. According to the city’s agreement with MECA, all MECA board members must be registered voters in Douglas County. But the chairman of the largest private energy company in the region (MidAmerican Energy) and an established member of Omaha’s philanthropic corporate elite wouldn’t be brushed aside so easily. Despite the legal backing of City Attorney Paul Kratz, Fahey’s power play at the beginning of the 2008 College World Series hit him where it hurts: the pocketbook. As plans were moving forward for a new downtown stadium (Fahey’s legacy project), the mayor learned private donors, who pledged $31 million, were getting uneasy. The short-lived squabble provided a very public insight into the tensions between Fahey and Sokol and the broader schism between the city and MECA. Sokol has served as MECA chairman since the organization formed in 2000. He publicly backed former Mayor Hal Daub when Fahey successfully challenged Daub’s re-election as mayor in 2001. Since then, Fahey and Sokol have butted heads over the Qwest Center, the new stadium and other development issues.Some tensions between MECA and the city result from the organizations’ differing public roles and responsibilities. MECA’s powers are broad and its accountability to the mayor and city council is limited. MECA officials are not privy to the same direct public scrutiny as governmental bodies, which may partially explain President Roger Dixon’s agitated response to some relatively polite criticism during MECA’s recent stadium presentation to the Urban Design Review Board.As construction crews get ready to dig pilings into north downtown to make way for the new stadium, plans for the area’s development as the new jewel of downtown are being squeezed by MECA’s symbiotic, yet at times fractured, relationship with the city. Motives can jibe and clash, and the outcome tarnishes the promises that led small business owners to stake their future with the city in North Downtown. Indebted to MECAIn May 2000, voters amended the city charter to create MECA to take over development and operation of the Qwest Center. The city ultimately issued about $216 million in bonds for construction costs; approximately $205 million still needs to be paid off. The charter gives MECA “complete responsibility for and control over any or all aspects of project development, operation … including the power to enter into any contracts, have control and management of property, personnel, equipment, facilities and finances.” The same powers apply to any future facility handed over to MECA — including the Civic Auditorium in 2004 and now the downtown stadium. Five MECA board members are appointed alternately by the mayor and city council. They include: Chairman David L. Sokol; Vice Chairman Gail Werner-Robertson; Secretary: Terry Moore; Treasurer David Kramer; Board Member Jennifer Mahlendorf; President/CEO:Roger A. Dixon; and Assistant Secretary Robert L. Freeman. Mahlendorf will be the next to leave the board. The city council will choose her replacement. As a nonprofit organization, MECA can use the profit it generates for future operating costs, such as salaries and maintaining and building the organization. At the end of June 2008, MECA reserve balances totaled just under $12 million; net assets rose to $44.3 million. Since 2003, MECA overall has generated significant profits. The city agreed to pay MECA $1.5 million for any operational losses the Qwest Center incurred. The payments, which started in 2007, were scheduled to last through 2013; but due to MECA’s positive profit margins, the payments stopped. For the fiscal year that ended in June 2007, the arena and convention center and the Civic Auditorium took in more than $27.4 million — a $1.8 million increase compared with the previous year.But operating profits for the two facilities fell by more than $300,000 to $4.7 million. Most of the money MECA earns stays with MECA. Those funds do not go to the city to help pay off the $198 million in construction bonds approved by city voters in 2000 for the Qwest Center. This set-up sparked controversy in 2005 when Fahey and city council members called on MECA to help the city pay off the Qwest Center debt. Fahey and city finance director Carol Ebdon said at the time raising property taxes might be necessary to pay off the debt. Warnings of a tax increase still loom, especially after the recent economic downturn; but a higher-than-expected return on the so-called “turn back tax” from the state last year kept a property tax hike at bay. Essentially, all state sales tax (5.5 percent) generated at the Hilton and Qwest Center goes to the state turn-back fund to help spur more tourism to the area.MECA was at a new high during the most recent fiscal year, which ended in June, netting $5.45 million in operating profits — an 18.1 percent increase from the previous year. MECA’s status as a 501(c)(3)(nonprofit) organization means it doesn’t pay state or federal income taxes. The city and state do collect sales and seat tax generated from the Qwest Center and Civic Auditorium. Because MECA is not a public entity, it is required only to give the public a glimpse into inner operations. MECA board meetings are public and an annual financial audit is submitted to the city council for anyone to see. MECA must also submit annual Form 990 to the Internal Revenue Service, another financial audit form that lists some salaries and donors. According to MECA’s Code of Business Ethics, all other information is confidential, including terms of all agreements, licenses and contracts, all legal opinions and fees and all information regarding “internal operations.” Open-government advocates argue 990s do not provide enough transparency and accountability considering non-profit’s public roles and tax exempt status.MECA cannot impose or raise taxes, issue bonds or take out loans, which might go a long way to explaining why MECA is so focused on operational issues. The organization has solicited millions in gifts from private donors, but the Qwest Center and the new stadium relied heavily on city-issued bonds for funding. Debt from the Qwest Center is retired primarily through property tax revenues. The city is still approximately $216 million in the hole for the Qwest Center. The budget burden has been heavier than expected. The city won’t start chipping away at the principal until 2012, when the city’s annual debt payment for the convention center and arena will jump by $12.8 million from $6.2 million to $19 million. Stadium feverPublicly, MECA stayed out of initial stadium negotiations between the city, the Royals and CWS Inc. It wasn’t until October 2007 when Fahey went public with this downtown stadium proposal that Sokol joined the fray. Sokol opposed a stadium on Lot D, or any large development near the Qwest Center, because it would impede the Qwest Center’s ability to expand. Despite efforts by City Councilman Garry Gernandt and the Save Rosenblatt Committee to keep Rosenblatt, plans to close it and build a new downtown stadium in NODO solidified. In early February, members of the CWS Oversight Committee, including Fahey, presented plans for the 25,000 seat stadium on lots C and E. Ken Stinson, committee chairman and chairman of Peter Kiewit and Sons Inc., highlighted a study by the committee which compared the costs of building a new stadium to renovating Rosenblatt. The study estimated it would cost $80 million to renovate Rosenblatt and $140 million to build a new stadium. Stinson and Fahey argued the higher cost of a new building would be offset by private donations, a lucrative naming rights contract and tax increases. Still leery of a new stadium encroaching on Qwest Center expansion, Sokol threatened to sue if the city took legal action to build on the parking lots. Neither side wanted the property struggle to be waged in court, especially the mayor, who was in the middle of negotiating a contract with the NCAA to keep the College World Series in Omaha for another 25 years. Later in February, Fahey and Sokol signed a memorandum of understanding that said neither would take the issue to court. In return for Sokols support of a downtown stadium on lots C and E, Fahey made him an offer: MECA would get complete control over the operations and management of the new stadium. Once the lease agreement was signed for MECA to take control of the downtown stadium project parking became a top priority. Sokol was also adamant about securing the former Pinnacle plant lot, owned by the city, to build a new hotel. The $127.8 million project, not including nearly $15 million in debt on previous Rosenblatt improvements, is largely funded through bonds issued by the City of Omaha. The city has issued $94.8 million in municipal bonds for the downtown stadium project. The city expects to pay off the bonds in 25 years. At least $31 million in private donations were raised for the project and MECA secured $2 million in food and beverage agreements. Unlike the Qwest Center, debt service on the city’s bonds will be paid from revenue generated through the stadium (naming rights, seat tax, hotel tax, etc.) The city was careful to construct the financing of the stadium so the stadium could pay for itself, according to Ebon. The cost of development in NODOMECA’s primary interest lies in creating the best consumer experience for events in their facilities. Generating revenue is also crucial to attracting more fans and establishing clout as an effective, necessary entity. From a financial perspective, the city is also pushing for the optimum consumer experience; better parking options lead to higher attendance, which generates more money for the city to pay off the bonds. However, more mixed-use development in NODO could also generate property and sales tax revenues for the city. The city’s concerns over the new stadium reach beyond putting butts in the seats and bucks in the bank. The city’s Urban Design Review Board is charged with reviewing the design of all above ground construction projects with substantial public funding. Along with the Planning Department, the board assures projects meet design codes and meld with the aesthetics of the surrounding area. In December, stadium architect Bruce Carpenter of HDR and MECA President Roger Dixon presented the stadium design to the UDRB.Small business owners from the NODO neighborhood and others who attended the meeting were primarily concerned with the lack of retail spaces built into the stadium walls. The issue boiled down to parking and funding. Developers argued there is not enough time or money to add more retail space into the design. The 331 spots MECA insists on having in the same lot as the stadium would eliminate room to provide more retail or creative approaches to what is supposed to be a civic landmark.When asked about the 331 spaces on Lot C, MECA spokesperson Rebecca Kleeman said “Providing adequate and convenient parking for guests has always been a key focus for Qwest Center Omaha.”But the option is out of the question, now that the stadiums foundation is about to be cemented. Kleeman said a public opinion poll in Douglas County, conducted by MECA, showed parking to be the top concern. “Once the new stadium opens, there will be more people attending events and the demand for parking will increase,” she said. In 2008, parking generated more than $2 million for MECA — its fifth highest revenue source. Food, beverage and merchandise brought in the most money, generating $11.4 million in revenue, representing 38 percent of MECA’s total income. According to the original 2000 lease agreement, the city must provide at least 4,000 parking spots for the Qwest Center. MECA retains the right to set parking rates and to keep the revenue.The stadium lease agreement notes there are numerous parking spaces in close proximity to the stadium site. City Attorney Paul Kratz told The Reader the terms of the agreement are broad enough to move the spots to another location. Kleeman said, via a Jan. 12 email correspondence with The Reader, she was surprised at the criticism to the stadiums design because the city council already held meetings on the new downtown stadium. Planning Department Director Steve Jensen said that, compared to planning board meetings, “It was a fairly easy review.” In a draft memo to the board, planning department staff suggested the stadium design did not fit development plans for the area. According to the North Omaha Development Plan, covering the stadium area, development is supposed to create more retail growth and “buildings … will be required to address the street and activate the sidewalk … in order to encourage … street level activity.” As the downtown landscapes begins its transformation, so do the player who set the change in motion — Sokol’s term on the MECA board expires in 2011 and Fahey will leave office this year. With a new downtown development plan reportedly in the works, who wins out in NODO’s future Does a new baseball stadium plus apparent strong local ties to the Chicago Cubs equal a Cubs farm team moving to Omaha?It's an equation that doesn't add up — at least not in the near future.One reason is obvious: The Ricketts family of Omaha is in position to buy the Chicago Cubs, not the Iowa Cubs, which has separate ownership. Another has to do with player development contracts, which tie major league teams to minor league affiliates. Major league teams provide minor league teams with their players during the length of the contracts.A third reason has to do with territorial rights.In Omaha, there is a contract between the Omaha Royals and Kansas City Royals that expires after the 2010 season. The Chicago Cubs are bound with the Iowa Cubs, located in Des Moines, through 2012."We're extraordinarily happy with our relationship with the Kansas City Royals," said Omaha Royals President Alan Stein, who is negotiating with Sarpy County to build a new ballpark there.Also, as long as the Royals stay in the Omaha area, the ownership group, headed by principal owner Bill Shea and led by Stein, has territorial rights to the area and would have to relinquish control before a team affiliated with another major league baseball franchise could move here. So there's no chance of a Royals team playing in Sarpy County and a Cubs affiliate downtown.Regardless of what happens with the Omaha Royals in the future, the Iowa Cubs, which like the Royals are members of the Class AAA Pacific Coast League, are settled in Des Moines.The Iowa franchise, which has been affiliated with Chicago since 1982, has been successful in undergoing a near-total makeover of its stadium in recent years and consistently posts higher attendance figures than the Omaha Royals. The Cubs' average attendance last year was nearly 7,400 a game. The Omaha Royals' paid attendance averaged close to 5,400 people a game.Owner Michael Gartner of Des Moines has not considered selling the team since purchasing it in 1999, said Sam Bernabe, I-Cubs president and general manager.Are the I-Cubs looking to move to Omaha?"If this is a serious question, then I can't really comment on it because it would be an infringement on the Omaha Royals," Bernabe said.By rule, major- and minor-league personnel are not allowed to comment directly on their player development contracts, other than in a 30-day window near the expiration of the current contract.Still, speculation around Omaha isn't likely to die easily.The Ricketts family is negotiating to buy the big league Cubs, Wrigley Field and a 25 percent stake in Comcast SportsNet. Sources have put the value of the bid at about $900 million.Omaha's new downtown stadium could bear the name of the business Joe Ricketts started, TD Ameritrade. Joe Moglia, chief executive officer of TD Ameritrade, confirmed to The World-Herald in June that he hopes to gain naming rights to the new ballpark.Also, Jim Hendry, the Chicago Cubs' general manager, is a former Creighton baseball coach. Oneri Fleita, the team's director of minor league operations, is a former Creighton player. Those typically are the positions within an organization with the most influence on the placement of its minor league affiliates, and those two have been at their posts for several years.Neither immediately returned phone calls.The Omaha Royals' future home is in flux. The team is bound to play at Rosenblatt Stadium until the end of the 2010 season, at which time the Royals hope to move to Sarpy County. But that is far from a done deal. The team is negotiating exclusively with the county until March 15, but after that point it could enter negotiations with another city. A move to the new downtown park seems unlikely, and the city has expressed interest in placing an American Association team there. The American Association is an independent league not affiliated with major league baseball.Should the Omaha Royals move, it's more likely that another PCL team would move to Omaha than it would be for Des Moines to make the shift. For that to happen, the new Omaha franchise would then have to wrestle the Cubs' player development agreement from Iowa. But even a new team is not likely. PCL President Branch Rickey has expressed doubt about the potential for Omaha to land another PCL team if the current franchise leaves.But what about another Chicago Cubs affiliate moving to Omaha? They are Class AA Tennessee (near Knoxville) of the Southern League, high Class A Daytona of the Florida State League, low Class A Peoria (Ill.) of the Midwest League, Boise (Idaho) of the short season Class A Northwest League and the rookie-level affiliate in the Arizona League, which plays at the team's spring training complex. Joe, Tom and Pete Ricketts are buying the Chicago Cubs,
It comes as a private group raising money for the project says its quickly approaching its 43-million dollar fundraising goal.
Omaha leaders and NCAA officials grab shovels and turn over some dirt. Getting here wasn't always easy. "I never once thought at any time that we weren't all shooting for the same goal and that's to make sure we do what is best not only for the CWS and the NCAA, but for this community," said the NCAA's Dennis Pope.
The 128-million dollar stadium should be completed by the spring of 2011. It will host the College World Series for at least the next 25 years. "There are a lot of people that had a lot to do with this stadium, getting it to this point. It did not happen in a vacuum," said Omaha Mayor Mike Fahey.
Wednesday night members of the public got a closer look at the latest ballpark designs. They include an open-air concourse and other features catering to fans and student athletes. "I like Rosenblatt, but I want to see the new stadium, I think it's time for a change," said one baseball fan.
The stadium will seat 24,000 fans, with 26 luxury suites and 1,000 club seats. Omahans KPTM talked to liked what they saw. "Up to date, little deeper seats, more room for your legs," said one man.
It's still unclear which teams will play in the new ballpark. MECA says they're very close to a deal with Creighton University and the paperwork is out to potential owners of a new independent minor league team. "I think it's going to be fine, it's going to work and everybody should be excited about this new progress we've got going on," said MECA President Roger Dixon.
Current designs also call for 5,000 square feet of retail space though more can be added later.
Officials say the ballpark will be financially sound with or without the Omaha Royals. They say taxpayers will be protected because every year revenues will pay off construction debt before they go toward anything else. When Mayor Mike Fahey learned of a loophole that would allow him to oust his leading adversary on the Metropolitan Entertainment and Convention Authority (MECA) board, he jumped on it. MECA chairman David Sokol had changed his mailing address from his Omaha condo to his home at the foothills of the Wyoming Tetons, altering his voter registration. According to the city’s agreement with MECA, all MECA board members must be registered voters in Douglas County. But the chairman of the largest private energy company in the region (MidAmerican Energy) and an established member of Omaha’s philanthropic corporate elite wouldn’t be brushed aside so easily. Despite the legal backing of City Attorney Paul Kratz, Fahey’s power play at the beginning of the 2008 College World Series hit him where it hurts: the pocketbook. As plans were moving forward for a new downtown stadium (Fahey’s legacy project), the mayor learned private donors, who pledged $31 million, were getting uneasy. The short-lived squabble provided a very public insight into the tensions between Fahey and Sokol and the broader schism between the city and MECA. Sokol has served as MECA chairman since the organization formed in 2000. He publicly backed former Mayor Hal Daub when Fahey successfully challenged Daub’s re-election as mayor in 2001. Since then, Fahey and Sokol have butted heads over the Qwest Center, the new stadium and other development issues.Some tensions between MECA and the city result from the organizations’ differing public roles and responsibilities. MECA’s powers are broad and its accountability to the mayor and city council is limited. MECA officials are not privy to the same direct public scrutiny as governmental bodies, which may partially explain President Roger Dixon’s agitated response to some relatively polite criticism during MECA’s recent stadium presentation to the Urban Design Review Board.As construction crews get ready to dig pilings into north downtown to make way for the new stadium, plans for the area’s development as the new jewel of downtown are being squeezed by MECA’s symbiotic, yet at times fractured, relationship with the city. Motives can jibe and clash, and the outcome tarnishes the promises that led small business owners to stake their future with the city in North Downtown. Indebted to MECAIn May 2000, voters amended the city charter to create MECA to take over development and operation of the Qwest Center. The city ultimately issued about $216 million in bonds for construction costs; approximately $205 million still needs to be paid off. The charter gives MECA “complete responsibility for and control over any or all aspects of project development, operation … including the power to enter into any contracts, have control and management of property, personnel, equipment, facilities and finances.” The same powers apply to any future facility handed over to MECA — including the Civic Auditorium in 2004 and now the downtown stadium. Five MECA board members are appointed alternately by the mayor and city council. They include: Chairman David L. Sokol; Vice Chairman Gail Werner-Robertson; Secretary: Terry Moore; Treasurer David Kramer; Board Member Jennifer Mahlendorf; President/CEO:Roger A. Dixon; and Assistant Secretary Robert L. Freeman. Mahlendorf will be the next to leave the board. The city council will choose her replacement. As a nonprofit organization, MECA can use the profit it generates for future operating costs, such as salaries and maintaining and building the organization. At the end of June 2008, MECA reserve balances totaled just under $12 million; net assets rose to $44.3 million. Since 2003, MECA overall has generated significant profits. The city agreed to pay MECA $1.5 million for any operational losses the Qwest Center incurred. The payments, which started in 2007, were scheduled to last through 2013; but due to MECA’s positive profit margins, the payments stopped. For the fiscal year that ended in June 2007, the arena and convention center and the Civic Auditorium took in more than $27.4 million — a $1.8 million increase compared with the previous year.But operating profits for the two facilities fell by more than $300,000 to $4.7 million. Most of the money MECA earns stays with MECA. Those funds do not go to the city to help pay off the $198 million in construction bonds approved by city voters in 2000 for the Qwest Center. This set-up sparked controversy in 2005 when Fahey and city council members called on MECA to help the city pay off the Qwest Center debt. Fahey and city finance director Carol Ebdon said at the time raising property taxes might be necessary to pay off the debt. Warnings of a tax increase still loom, especially after the recent economic downturn; but a higher-than-expected return on the so-called “turn back tax” from the state last year kept a property tax hike at bay. Essentially, all state sales tax (5.5 percent) generated at the Hilton and Qwest Center goes to the state turn-back fund to help spur more tourism to the area.MECA was at a new high during the most recent fiscal year, which ended in June, netting $5.45 million in operating profits — an 18.1 percent increase from the previous year. MECA’s status as a 501(c)(3)(nonprofit) organization means it doesn’t pay state or federal income taxes. The city and state do collect sales and seat tax generated from the Qwest Center and Civic Auditorium. Because MECA is not a public entity, it is required only to give the public a glimpse into inner operations. MECA board meetings are public and an annual financial audit is submitted to the city council for anyone to see. MECA must also submit annual Form 990 to the Internal Revenue Service, another financial audit form that lists some salaries and donors. According to MECA’s Code of Business Ethics, all other information is confidential, including terms of all agreements, licenses and contracts, all legal opinions and fees and all information regarding “internal operations.” Open-government advocates argue 990s do not provide enough transparency and accountability considering non-profit’s public roles and tax exempt status.MECA cannot impose or raise taxes, issue bonds or take out loans, which might go a long way to explaining why MECA is so focused on operational issues. The organization has solicited millions in gifts from private donors, but the Qwest Center and the new stadium relied heavily on city-issued bonds for funding. Debt from the Qwest Center is retired primarily through property tax revenues. The city is still approximately $216 million in the hole for the Qwest Center. The budget burden has been heavier than expected. The city won’t start chipping away at the principal until 2012, when the city’s annual debt payment for the convention center and arena will jump by $12.8 million from $6.2 million to $19 million. Stadium feverPublicly, MECA stayed out of initial stadium negotiations between the city, the Royals and CWS Inc. It wasn’t until October 2007 when Fahey went public with this downtown stadium proposal that Sokol joined the fray. Sokol opposed a stadium on Lot D, or any large development near the Qwest Center, because it would impede the Qwest Center’s ability to expand. Despite efforts by City Councilman Garry Gernandt and the Save Rosenblatt Committee to keep Rosenblatt, plans to close it and build a new downtown stadium in NODO solidified. In early February, members of the CWS Oversight Committee, including Fahey, presented plans for the 25,000 seat stadium on lots C and E. Ken Stinson, committee chairman and chairman of Peter Kiewit and Sons Inc., highlighted a study by the committee which compared the costs of building a new stadium to renovating Rosenblatt. The study estimated it would cost $80 million to renovate Rosenblatt and $140 million to build a new stadium. Stinson and Fahey argued the higher cost of a new building would be offset by private donations, a lucrative naming rights contract and tax increases. Still leery of a new stadium encroaching on Qwest Center expansion, Sokol threatened to sue if the city took legal action to build on the parking lots. Neither side wanted the property struggle to be waged in court, especially the mayor, who was in the middle of negotiating a contract with the NCAA to keep the College World Series in Omaha for another 25 years. Later in February, Fahey and Sokol signed a memorandum of understanding that said neither would take the issue to court. In return for Sokols support of a downtown stadium on lots C and E, Fahey made him an offer: MECA would get complete control over the operations and management of the new stadium. Once the lease agreement was signed for MECA to take control of the downtown stadium project parking became a top priority. Sokol was also adamant about securing the former Pinnacle plant lot, owned by the city, to build a new hotel. The $127.8 million project, not including nearly $15 million in debt on previous Rosenblatt improvements, is largely funded through bonds issued by the City of Omaha. The city has issued $94.8 million in municipal bonds for the downtown stadium project. The city expects to pay off the bonds in 25 years. At least $31 million in private donations were raised for the project and MECA secured $2 million in food and beverage agreements. Unlike the Qwest Center, debt service on the city’s bonds will be paid from revenue generated through the stadium (naming rights, seat tax, hotel tax, etc.) The city was careful to construct the financing of the stadium so the stadium could pay for itself, according to Ebon. The cost of development in NODOMECA’s primary interest lies in creating the best consumer experience for events in their facilities. Generating revenue is also crucial to attracting more fans and establishing clout as an effective, necessary entity. From a financial perspective, the city is also pushing for the optimum consumer experience; better parking options lead to higher attendance, which generates more money for the city to pay off the bonds. However, more mixed-use development in NODO could also generate property and sales tax revenues for the city. The city’s concerns over the new stadium reach beyond putting butts in the seats and bucks in the bank. The city’s Urban Design Review Board is charged with reviewing the design of all above ground construction projects with substantial public funding. Along with the Planning Department, the board assures projects meet design codes and meld with the aesthetics of the surrounding area. In December, stadium architect Bruce Carpenter of HDR and MECA President Roger Dixon presented the stadium design to the UDRB.Small business owners from the NODO neighborhood and others who attended the meeting were primarily concerned with the lack of retail spaces built into the stadium walls. The issue boiled down to parking and funding. Developers argued there is not enough time or money to add more retail space into the design. The 331 spots MECA insists on having in the same lot as the stadium would eliminate room to provide more retail or creative approaches to what is supposed to be a civic landmark.When asked about the 331 spaces on Lot C, MECA spokesperson Rebecca Kleeman said “Providing adequate and convenient parking for guests has always been a key focus for Qwest Center Omaha.”But the option is out of the question, now that the stadiums foundation is about to be cemented. Kleeman said a public opinion poll in Douglas County, conducted by MECA, showed parking to be the top concern. “Once the new stadium opens, there will be more people attending events and the demand for parking will increase,” she said. In 2008, parking generated more than $2 million for MECA — its fifth highest revenue source. Food, beverage and merchandise brought in the most money, generating $11.4 million in revenue, representing 38 percent of MECA’s total income. According to the original 2000 lease agreement, the city must provide at least 4,000 parking spots for the Qwest Center. MECA retains the right to set parking rates and to keep the revenue.The stadium lease agreement notes there are numerous parking spaces in close proximity to the stadium site. City Attorney Paul Kratz told The Reader the terms of the agreement are broad enough to move the spots to another location. Kleeman said, via a Jan. 12 email correspondence with The Reader, she was surprised at the criticism to the stadiums design because the city council already held meetings on the new downtown stadium. Planning Department Director Steve Jensen said that, compared to planning board meetings, “It was a fairly easy review.” In a draft memo to the board, planning department staff suggested the stadium design did not fit development plans for the area. According to the North Omaha Development Plan, covering the stadium area, development is supposed to create more retail growth and “buildings … will be required to address the street and activate the sidewalk … in order to encourage … street level activity.” As the downtown landscapes begins its transformation, so do the player who set the change in motion — Sokol’s term on the MECA board expires in 2011 and Fahey will leave office this year. With a new downtown development plan reportedly in the works, who wins out in NODO’s future Does a new baseball stadium plus apparent strong local ties to the Chicago Cubs equal a Cubs farm team moving to Omaha?It's an equation that doesn't add up — at least not in the near future.One reason is obvious: The Ricketts family of Omaha is in position to buy the Chicago Cubs, not the Iowa Cubs, which has separate ownership. Another has to do with player development contracts, which tie major league teams to minor league affiliates. Major league teams provide minor league teams with their players during the length of the contracts.A third reason has to do with territorial rights.In Omaha, there is a contract between the Omaha Royals and Kansas City Royals that expires after the 2010 season. The Chicago Cubs are bound with the Iowa Cubs, located in Des Moines, through 2012."We're extraordinarily happy with our relationship with the Kansas City Royals," said Omaha Royals President Alan Stein, who is negotiating with Sarpy County to build a new ballpark there.Also, as long as the Royals stay in the Omaha area, the ownership group, headed by principal owner Bill Shea and led by Stein, has territorial rights to the area and would have to relinquish control before a team affiliated with another major league baseball franchise could move here. So there's no chance of a Royals team playing in Sarpy County and a Cubs affiliate downtown.Regardless of what happens with the Omaha Royals in the future, the Iowa Cubs, which like the Royals are members of the Class AAA Pacific Coast League, are settled in Des Moines.The Iowa franchise, which has been affiliated with Chicago since 1982, has been successful in undergoing a near-total makeover of its stadium in recent years and consistently posts higher attendance figures than the Omaha Royals. The Cubs' average attendance last year was nearly 7,400 a game. The Omaha Royals' paid attendance averaged close to 5,400 people a game.Owner Michael Gartner of Des Moines has not considered selling the team since purchasing it in 1999, said Sam Bernabe, I-Cubs president and general manager.Are the I-Cubs looking to move to Omaha?"If this is a serious question, then I can't really comment on it because it would be an infringement on the Omaha Royals," Bernabe said.By rule, major- and minor-league personnel are not allowed to comment directly on their player development contracts, other than in a 30-day window near the expiration of the current contract.Still, speculation around Omaha isn't likely to die easily.The Ricketts family is negotiating to buy the big league Cubs, Wrigley Field and a 25 percent stake in Comcast SportsNet. Sources have put the value of the bid at about $900 million.Omaha's new downtown stadium could bear the name of the business Joe Ricketts started, TD Ameritrade. Joe Moglia, chief executive officer of TD Ameritrade, confirmed to The World-Herald in June that he hopes to gain naming rights to the new ballpark.Also, Jim Hendry, the Chicago Cubs' general manager, is a former Creighton baseball coach. Oneri Fleita, the team's director of minor league operations, is a former Creighton player. Those typically are the positions within an organization with the most influence on the placement of its minor league affiliates, and those two have been at their posts for several years.Neither immediately returned phone calls.The Omaha Royals' future home is in flux. The team is bound to play at Rosenblatt Stadium until the end of the 2010 season, at which time the Royals hope to move to Sarpy County. But that is far from a done deal. The team is negotiating exclusively with the county until March 15, but after that point it could enter negotiations with another city. A move to the new downtown park seems unlikely, and the city has expressed interest in placing an American Association team there. The American Association is an independent league not affiliated with major league baseball.Should the Omaha Royals move, it's more likely that another PCL team would move to Omaha than it would be for Des Moines to make the shift. For that to happen, the new Omaha franchise would then have to wrestle the Cubs' player development agreement from Iowa. But even a new team is not likely. PCL President Branch Rickey has expressed doubt about the potential for Omaha to land another PCL team if the current franchise leaves.But what about another Chicago Cubs affiliate moving to Omaha? They are Class AA Tennessee (near Knoxville) of the Southern League, high Class A Daytona of the Florida State League, low Class A Peoria (Ill.) of the Midwest League, Boise (Idaho) of the short season Class A Northwest League and the rookie-level affiliate in the Arizona League, which plays at the team's spring training complex. Joe, Tom and Pete Ricketts are buying the Chicago Cubs,
GWINNETT BRAVES: STADIUM COSTS: COUNTY SAYS IT GOT A DEAL
When they surprised the public with plans for a new ballpark for the minor-league Braves a year ago, Gwinnett County officials said the stadium would cost $40 million and would pay for itself from Day One.
Neither statement has come true.
So far, county commissioners have committed $31 million in taxpayer cash for the stadium. And in September, they approved increasing the ballpark’s cost by nearly 50 percent for amenities and changes, much of which aren’t required for the Braves to play ball.
Still, three of Gwinnett County’s top elected officials say they stand by their decision to put taxpayer money into the stadium —- which now carries a $64 million price tag —- even as they slash scores of county jobs and cut services amid a recession.
“Our board was completely unanimous on baseball Jan. 15 of last year, and I think our board will be completely unanimous on baseball today,” said Commissioner Bert Nasuti, the project’s chief proponent.
Gwinnett Board of Commissioners Chairman Charles Bannister, Commissioner Kevin Kenerly and Nasuti said they would have voted for financing the stadium last year even if they had known what they know now about the economy and the county’s finances.
“I think we would have voted for it,” Bannister said. “It would have been much cleaner —- perhaps prettier —- publicwise if all the dollars had been in the accounting upfront.”
It’s too late to back out of the financing for the ballpark. The county’s development authority issued $33 million in bonds for it last year. And Gwinnett is legally required to spend the proceeds from those bonds on the stadium, County Attorney Karen Thomas said.
Gwinnett is now counting on several sources of revenue to pay off that debt, which will total more than $77 million over 30 years. Those revenue sources are: stadium rental, ticket and parking revenue; selling the naming rights to the stadium; county rental car taxes; and contributions from the Gwinnett Convention and Visitors Bureau. Under the deal, the Braves will get to keep substantial portions of the stadium ticket and parking revenue and a share of the proceeds from selling the stadium’s naming rights.
With construction of the ballpark more than 70 percent complete, the county wired on Jan. 2 its first semi-annual debt payment of $1.5 million. Four days later, the commissioners voted to cut nearly $26.2 million from the county’s 2009 budget.
Meanwhile, home foreclosures have been sapping county property tax revenue, and the recession has cut sales tax income. The county has eliminated 115 jobs in the planning, parks and water resources departments, most of which were filled, and postponed adding 88 positions for public safety and the courts. Commissioners said they eliminated some of the positions because they were unnecessary, not because the county is short of money.
To balance their budget this month, the commissioners pulled about $12 million out of the county’s reserve fund. That is equal to the amount of taxpayer money the commissioners initially approved for the ballpark in January of last year. Commissioners say they will adopt a final county budget March 3 after weighing more job and service cuts. Things aren’t looking up for Gwinnett’s revenue projections.
“At best, it’s the same. And it possibly could be a little bit diminished,” said Gwinnett County Administrator Jock Connell, who made the claim last year that the stadium “would pay for itself from Day One.” “They are tough times. I am 51 years old, and I don’t think I have quite seen times like this before.”
At the same time, the county is having trouble selling the naming rights for the stadium, which it expected to be a major source of cash to pay off the debt. Selling the naming rights was projected to raise as much as $1 million annually, though the Braves are supposed to get a substantial portion. If the county does not land a deal before September, the Braves will have the right to sell the naming rights and keep more of the money.
“We are not very optimistic about it at this point given the economic climate right now,” Preston Williams, the Gwinnett Convention and Visitors Bureau’s point man for the construction project, said about selling the naming rights by Sept. 1. “I don’t think the business environment right now would lend itself to a significant naming rights deal.”
The visitors bureau is also projecting a loss of $80,000 to $100,000 in rental income because the Arena Football League canceled its 2009 season. Williams, however, said that amount could be replaced easily through concert bookings.
Commissioner Shirley Lasseter, who was not on the board when it voted for the stadium funding last year, declined to say what position she would have taken on the issue at the time. Commissioner Mike Beaudreau did not respond to repeated requests for comment.
Nasuti is betting the ballpark will help boost Gwinnett’s economy. Conventions, Sports & Leisure International, the consulting company hired to study the feasibility of bringing baseball to the county, said a $38 million ballpark would generate $6.3 million to $8 million in net new spending each year, create 130 to 170 jobs and generate between $267,000 and $342,000 a year in taxes.
“You don’t shut down economic development opportunities when times are bad,” Nasuti said. “That is when you look at economic development opportunities.”
But critics question the economic benefits projected for the stadium and fear the costs for the ballpark will increase.
“These stadiums always go over budget,” said J.C. Bradbury, a Kennesaw State University sports economist who has been critical of the county’s handling of the stadium deal. “I will be more shocked if the budget doesn’t go up.”
STADIUM FINANCING
Gwinnett County taxpayers have already contributed $5 million to buy the land for the stadium and $26 million for construction. Also, the county borrowed $33 million for the stadium last year, and it’s obligated to pay back an average of about $2.5 million annually for 30 years, a total of more than $77.5 million. Here’s where the county expects to get the money to pay the annual debt:
COUNTY’S STADIUM REVENUE
> Rent: $250,000
Paid by the Braves, adjusted every five years based on Consumer Price Index. Estimated average annual revenue over 30 years, based on 3 percent increases in CPI: $365,000. The rent is due in two equal installments. The first $125,000 is due April 1 and the second installment is due June 1.
> Parking: $200,000
County splits net parking revenue with the Braves, who will operate the lots. Estimate is based on projected attendance and three ticket holders per car being charged $3 a car. Parking revenue is due on June 1 and the balance on Oct. 15.
> Ticket fee: $400,000 to $468,000
Braves will pay the county $1 for every ticket sold, with a $400,000 minimum. A feasibility study projected attendance of 468,000 annually. The ticket revenues are to be paid in two installments: $200,000 is due June 1, with the balance due on Oct. 15.
> Naming rights: $100,000 to $650,000
This is the biggest variable. The Braves get $350,000 a year; the county gets the rest. Estimates range from a total deal worth $450,000 to $1 million annually. So far, there’s no deal.
> County events: Negligible
County can use stadium for 10 days per year, subject to the Braves’ approval. County reimburses Braves for operations and cleanup on those days. If the county charges for admission, it would likely be to cover those expenses. The Braves keep all concession sales on those days.
OTHER REVENUE
> Rental car tax: $600,000 to $800,000
The revenues from this tax, which took effect on April 1, are exceeding expectations. The county budgeted $425,000 in revenue for 2008. Collections to date for 2008 total $571,655. The county has budgeted $700,000 in revenue for this year.
> GCVB contribution: $400,000 maximum
The Gwinnett Convention and Visitors Bureau gets its money from the county, which collects a hotel-motel tax to pay off debt on the Gwinnett Arena and to underwrite the GCVB operation. The agency, which runs the Arena, also gets money from the Arena’s profits. The GCVB has already put $2 million in reserves to pay its share of the debt for the first five years.
Sources used in compiling this information: Documents obtained under Georgia’s Open Records Act from Gwinnett County government and the Gwinnett Convention and Visitors Bureau and interviews with county leaders and experts in sports economics and marketing.
Note: All figures are annual.
Staff
Map locates stadium site. Inset map outlines area of detail in
When they surprised the public with plans for a new ballpark for the minor-league Braves a year ago, Gwinnett County officials said the stadium would cost $40 million and would pay for itself from Day One.
Neither statement has come true.
So far, county commissioners have committed $31 million in taxpayer cash for the stadium. And in September, they approved increasing the ballpark’s cost by nearly 50 percent for amenities and changes, much of which aren’t required for the Braves to play ball.
Still, three of Gwinnett County’s top elected officials say they stand by their decision to put taxpayer money into the stadium —- which now carries a $64 million price tag —- even as they slash scores of county jobs and cut services amid a recession.
“Our board was completely unanimous on baseball Jan. 15 of last year, and I think our board will be completely unanimous on baseball today,” said Commissioner Bert Nasuti, the project’s chief proponent.
Gwinnett Board of Commissioners Chairman Charles Bannister, Commissioner Kevin Kenerly and Nasuti said they would have voted for financing the stadium last year even if they had known what they know now about the economy and the county’s finances.
“I think we would have voted for it,” Bannister said. “It would have been much cleaner —- perhaps prettier —- publicwise if all the dollars had been in the accounting upfront.”
It’s too late to back out of the financing for the ballpark. The county’s development authority issued $33 million in bonds for it last year. And Gwinnett is legally required to spend the proceeds from those bonds on the stadium, County Attorney Karen Thomas said.
Gwinnett is now counting on several sources of revenue to pay off that debt, which will total more than $77 million over 30 years. Those revenue sources are: stadium rental, ticket and parking revenue; selling the naming rights to the stadium; county rental car taxes; and contributions from the Gwinnett Convention and Visitors Bureau. Under the deal, the Braves will get to keep substantial portions of the stadium ticket and parking revenue and a share of the proceeds from selling the stadium’s naming rights.
With construction of the ballpark more than 70 percent complete, the county wired on Jan. 2 its first semi-annual debt payment of $1.5 million. Four days later, the commissioners voted to cut nearly $26.2 million from the county’s 2009 budget.
Meanwhile, home foreclosures have been sapping county property tax revenue, and the recession has cut sales tax income. The county has eliminated 115 jobs in the planning, parks and water resources departments, most of which were filled, and postponed adding 88 positions for public safety and the courts. Commissioners said they eliminated some of the positions because they were unnecessary, not because the county is short of money.
To balance their budget this month, the commissioners pulled about $12 million out of the county’s reserve fund. That is equal to the amount of taxpayer money the commissioners initially approved for the ballpark in January of last year. Commissioners say they will adopt a final county budget March 3 after weighing more job and service cuts. Things aren’t looking up for Gwinnett’s revenue projections.
“At best, it’s the same. And it possibly could be a little bit diminished,” said Gwinnett County Administrator Jock Connell, who made the claim last year that the stadium “would pay for itself from Day One.” “They are tough times. I am 51 years old, and I don’t think I have quite seen times like this before.”
At the same time, the county is having trouble selling the naming rights for the stadium, which it expected to be a major source of cash to pay off the debt. Selling the naming rights was projected to raise as much as $1 million annually, though the Braves are supposed to get a substantial portion. If the county does not land a deal before September, the Braves will have the right to sell the naming rights and keep more of the money.
“We are not very optimistic about it at this point given the economic climate right now,” Preston Williams, the Gwinnett Convention and Visitors Bureau’s point man for the construction project, said about selling the naming rights by Sept. 1. “I don’t think the business environment right now would lend itself to a significant naming rights deal.”
The visitors bureau is also projecting a loss of $80,000 to $100,000 in rental income because the Arena Football League canceled its 2009 season. Williams, however, said that amount could be replaced easily through concert bookings.
Commissioner Shirley Lasseter, who was not on the board when it voted for the stadium funding last year, declined to say what position she would have taken on the issue at the time. Commissioner Mike Beaudreau did not respond to repeated requests for comment.
Nasuti is betting the ballpark will help boost Gwinnett’s economy. Conventions, Sports & Leisure International, the consulting company hired to study the feasibility of bringing baseball to the county, said a $38 million ballpark would generate $6.3 million to $8 million in net new spending each year, create 130 to 170 jobs and generate between $267,000 and $342,000 a year in taxes.
“You don’t shut down economic development opportunities when times are bad,” Nasuti said. “That is when you look at economic development opportunities.”
But critics question the economic benefits projected for the stadium and fear the costs for the ballpark will increase.
“These stadiums always go over budget,” said J.C. Bradbury, a Kennesaw State University sports economist who has been critical of the county’s handling of the stadium deal. “I will be more shocked if the budget doesn’t go up.”
STADIUM FINANCING
Gwinnett County taxpayers have already contributed $5 million to buy the land for the stadium and $26 million for construction. Also, the county borrowed $33 million for the stadium last year, and it’s obligated to pay back an average of about $2.5 million annually for 30 years, a total of more than $77.5 million. Here’s where the county expects to get the money to pay the annual debt:
COUNTY’S STADIUM REVENUE
> Rent: $250,000
Paid by the Braves, adjusted every five years based on Consumer Price Index. Estimated average annual revenue over 30 years, based on 3 percent increases in CPI: $365,000. The rent is due in two equal installments. The first $125,000 is due April 1 and the second installment is due June 1.
> Parking: $200,000
County splits net parking revenue with the Braves, who will operate the lots. Estimate is based on projected attendance and three ticket holders per car being charged $3 a car. Parking revenue is due on June 1 and the balance on Oct. 15.
> Ticket fee: $400,000 to $468,000
Braves will pay the county $1 for every ticket sold, with a $400,000 minimum. A feasibility study projected attendance of 468,000 annually. The ticket revenues are to be paid in two installments: $200,000 is due June 1, with the balance due on Oct. 15.
> Naming rights: $100,000 to $650,000
This is the biggest variable. The Braves get $350,000 a year; the county gets the rest. Estimates range from a total deal worth $450,000 to $1 million annually. So far, there’s no deal.
> County events: Negligible
County can use stadium for 10 days per year, subject to the Braves’ approval. County reimburses Braves for operations and cleanup on those days. If the county charges for admission, it would likely be to cover those expenses. The Braves keep all concession sales on those days.
OTHER REVENUE
> Rental car tax: $600,000 to $800,000
The revenues from this tax, which took effect on April 1, are exceeding expectations. The county budgeted $425,000 in revenue for 2008. Collections to date for 2008 total $571,655. The county has budgeted $700,000 in revenue for this year.
> GCVB contribution: $400,000 maximum
The Gwinnett Convention and Visitors Bureau gets its money from the county, which collects a hotel-motel tax to pay off debt on the Gwinnett Arena and to underwrite the GCVB operation. The agency, which runs the Arena, also gets money from the Arena’s profits. The GCVB has already put $2 million in reserves to pay its share of the debt for the first five years.
Sources used in compiling this information: Documents obtained under Georgia’s Open Records Act from Gwinnett County government and the Gwinnett Convention and Visitors Bureau and interviews with county leaders and experts in sports economics and marketing.
Note: All figures are annual.
Staff
Map locates stadium site. Inset map outlines area of detail in Gwinnett County relative to metro Atlanta.
Neither statement has come true.
So far, county commissioners have committed $31 million in taxpayer cash for the stadium. And in September, they approved increasing the ballpark’s cost by nearly 50 percent for amenities and changes, much of which aren’t required for the Braves to play ball.
Still, three of Gwinnett County’s top elected officials say they stand by their decision to put taxpayer money into the stadium —- which now carries a $64 million price tag —- even as they slash scores of county jobs and cut services amid a recession.
“Our board was completely unanimous on baseball Jan. 15 of last year, and I think our board will be completely unanimous on baseball today,” said Commissioner Bert Nasuti, the project’s chief proponent.
Gwinnett Board of Commissioners Chairman Charles Bannister, Commissioner Kevin Kenerly and Nasuti said they would have voted for financing the stadium last year even if they had known what they know now about the economy and the county’s finances.
“I think we would have voted for it,” Bannister said. “It would have been much cleaner —- perhaps prettier —- publicwise if all the dollars had been in the accounting upfront.”
It’s too late to back out of the financing for the ballpark. The county’s development authority issued $33 million in bonds for it last year. And Gwinnett is legally required to spend the proceeds from those bonds on the stadium, County Attorney Karen Thomas said.
Gwinnett is now counting on several sources of revenue to pay off that debt, which will total more than $77 million over 30 years. Those revenue sources are: stadium rental, ticket and parking revenue; selling the naming rights to the stadium; county rental car taxes; and contributions from the Gwinnett Convention and Visitors Bureau. Under the deal, the Braves will get to keep substantial portions of the stadium ticket and parking revenue and a share of the proceeds from selling the stadium’s naming rights.
With construction of the ballpark more than 70 percent complete, the county wired on Jan. 2 its first semi-annual debt payment of $1.5 million. Four days later, the commissioners voted to cut nearly $26.2 million from the county’s 2009 budget.
Meanwhile, home foreclosures have been sapping county property tax revenue, and the recession has cut sales tax income. The county has eliminated 115 jobs in the planning, parks and water resources departments, most of which were filled, and postponed adding 88 positions for public safety and the courts. Commissioners said they eliminated some of the positions because they were unnecessary, not because the county is short of money.
To balance their budget this month, the commissioners pulled about $12 million out of the county’s reserve fund. That is equal to the amount of taxpayer money the commissioners initially approved for the ballpark in January of last year. Commissioners say they will adopt a final county budget March 3 after weighing more job and service cuts. Things aren’t looking up for Gwinnett’s revenue projections.
“At best, it’s the same. And it possibly could be a little bit diminished,” said Gwinnett County Administrator Jock Connell, who made the claim last year that the stadium “would pay for itself from Day One.” “They are tough times. I am 51 years old, and I don’t think I have quite seen times like this before.”
At the same time, the county is having trouble selling the naming rights for the stadium, which it expected to be a major source of cash to pay off the debt. Selling the naming rights was projected to raise as much as $1 million annually, though the Braves are supposed to get a substantial portion. If the county does not land a deal before September, the Braves will have the right to sell the naming rights and keep more of the money.
“We are not very optimistic about it at this point given the economic climate right now,” Preston Williams, the Gwinnett Convention and Visitors Bureau’s point man for the construction project, said about selling the naming rights by Sept. 1. “I don’t think the business environment right now would lend itself to a significant naming rights deal.”
The visitors bureau is also projecting a loss of $80,000 to $100,000 in rental income because the Arena Football League canceled its 2009 season. Williams, however, said that amount could be replaced easily through concert bookings.
Commissioner Shirley Lasseter, who was not on the board when it voted for the stadium funding last year, declined to say what position she would have taken on the issue at the time. Commissioner Mike Beaudreau did not respond to repeated requests for comment.
Nasuti is betting the ballpark will help boost Gwinnett’s economy. Conventions, Sports & Leisure International, the consulting company hired to study the feasibility of bringing baseball to the county, said a $38 million ballpark would generate $6.3 million to $8 million in net new spending each year, create 130 to 170 jobs and generate between $267,000 and $342,000 a year in taxes.
“You don’t shut down economic development opportunities when times are bad,” Nasuti said. “That is when you look at economic development opportunities.”
But critics question the economic benefits projected for the stadium and fear the costs for the ballpark will increase.
“These stadiums always go over budget,” said J.C. Bradbury, a Kennesaw State University sports economist who has been critical of the county’s handling of the stadium deal. “I will be more shocked if the budget doesn’t go up.”
STADIUM FINANCING
Gwinnett County taxpayers have already contributed $5 million to buy the land for the stadium and $26 million for construction. Also, the county borrowed $33 million for the stadium last year, and it’s obligated to pay back an average of about $2.5 million annually for 30 years, a total of more than $77.5 million. Here’s where the county expects to get the money to pay the annual debt:
COUNTY’S STADIUM REVENUE
> Rent: $250,000
Paid by the Braves, adjusted every five years based on Consumer Price Index. Estimated average annual revenue over 30 years, based on 3 percent increases in CPI: $365,000. The rent is due in two equal installments. The first $125,000 is due April 1 and the second installment is due June 1.
> Parking: $200,000
County splits net parking revenue with the Braves, who will operate the lots. Estimate is based on projected attendance and three ticket holders per car being charged $3 a car. Parking revenue is due on June 1 and the balance on Oct. 15.
> Ticket fee: $400,000 to $468,000
Braves will pay the county $1 for every ticket sold, with a $400,000 minimum. A feasibility study projected attendance of 468,000 annually. The ticket revenues are to be paid in two installments: $200,000 is due June 1, with the balance due on Oct. 15.
> Naming rights: $100,000 to $650,000
This is the biggest variable. The Braves get $350,000 a year; the county gets the rest. Estimates range from a total deal worth $450,000 to $1 million annually. So far, there’s no deal.
> County events: Negligible
County can use stadium for 10 days per year, subject to the Braves’ approval. County reimburses Braves for operations and cleanup on those days. If the county charges for admission, it would likely be to cover those expenses. The Braves keep all concession sales on those days.
OTHER REVENUE
> Rental car tax: $600,000 to $800,000
The revenues from this tax, which took effect on April 1, are exceeding expectations. The county budgeted $425,000 in revenue for 2008. Collections to date for 2008 total $571,655. The county has budgeted $700,000 in revenue for this year.
> GCVB contribution: $400,000 maximum
The Gwinnett Convention and Visitors Bureau gets its money from the county, which collects a hotel-motel tax to pay off debt on the Gwinnett Arena and to underwrite the GCVB operation. The agency, which runs the Arena, also gets money from the Arena’s profits. The GCVB has already put $2 million in reserves to pay its share of the debt for the first five years.
Sources used in compiling this information: Documents obtained under Georgia’s Open Records Act from Gwinnett County government and the Gwinnett Convention and Visitors Bureau and interviews with county leaders and experts in sports economics and marketing.
Note: All figures are annual.
Staff
Map locates stadium site. Inset map outlines area of detail in
When they surprised the public with plans for a new ballpark for the minor-league Braves a year ago, Gwinnett County officials said the stadium would cost $40 million and would pay for itself from Day One.
Neither statement has come true.
So far, county commissioners have committed $31 million in taxpayer cash for the stadium. And in September, they approved increasing the ballpark’s cost by nearly 50 percent for amenities and changes, much of which aren’t required for the Braves to play ball.
Still, three of Gwinnett County’s top elected officials say they stand by their decision to put taxpayer money into the stadium —- which now carries a $64 million price tag —- even as they slash scores of county jobs and cut services amid a recession.
“Our board was completely unanimous on baseball Jan. 15 of last year, and I think our board will be completely unanimous on baseball today,” said Commissioner Bert Nasuti, the project’s chief proponent.
Gwinnett Board of Commissioners Chairman Charles Bannister, Commissioner Kevin Kenerly and Nasuti said they would have voted for financing the stadium last year even if they had known what they know now about the economy and the county’s finances.
“I think we would have voted for it,” Bannister said. “It would have been much cleaner —- perhaps prettier —- publicwise if all the dollars had been in the accounting upfront.”
It’s too late to back out of the financing for the ballpark. The county’s development authority issued $33 million in bonds for it last year. And Gwinnett is legally required to spend the proceeds from those bonds on the stadium, County Attorney Karen Thomas said.
Gwinnett is now counting on several sources of revenue to pay off that debt, which will total more than $77 million over 30 years. Those revenue sources are: stadium rental, ticket and parking revenue; selling the naming rights to the stadium; county rental car taxes; and contributions from the Gwinnett Convention and Visitors Bureau. Under the deal, the Braves will get to keep substantial portions of the stadium ticket and parking revenue and a share of the proceeds from selling the stadium’s naming rights.
With construction of the ballpark more than 70 percent complete, the county wired on Jan. 2 its first semi-annual debt payment of $1.5 million. Four days later, the commissioners voted to cut nearly $26.2 million from the county’s 2009 budget.
Meanwhile, home foreclosures have been sapping county property tax revenue, and the recession has cut sales tax income. The county has eliminated 115 jobs in the planning, parks and water resources departments, most of which were filled, and postponed adding 88 positions for public safety and the courts. Commissioners said they eliminated some of the positions because they were unnecessary, not because the county is short of money.
To balance their budget this month, the commissioners pulled about $12 million out of the county’s reserve fund. That is equal to the amount of taxpayer money the commissioners initially approved for the ballpark in January of last year. Commissioners say they will adopt a final county budget March 3 after weighing more job and service cuts. Things aren’t looking up for Gwinnett’s revenue projections.
“At best, it’s the same. And it possibly could be a little bit diminished,” said Gwinnett County Administrator Jock Connell, who made the claim last year that the stadium “would pay for itself from Day One.” “They are tough times. I am 51 years old, and I don’t think I have quite seen times like this before.”
At the same time, the county is having trouble selling the naming rights for the stadium, which it expected to be a major source of cash to pay off the debt. Selling the naming rights was projected to raise as much as $1 million annually, though the Braves are supposed to get a substantial portion. If the county does not land a deal before September, the Braves will have the right to sell the naming rights and keep more of the money.
“We are not very optimistic about it at this point given the economic climate right now,” Preston Williams, the Gwinnett Convention and Visitors Bureau’s point man for the construction project, said about selling the naming rights by Sept. 1. “I don’t think the business environment right now would lend itself to a significant naming rights deal.”
The visitors bureau is also projecting a loss of $80,000 to $100,000 in rental income because the Arena Football League canceled its 2009 season. Williams, however, said that amount could be replaced easily through concert bookings.
Commissioner Shirley Lasseter, who was not on the board when it voted for the stadium funding last year, declined to say what position she would have taken on the issue at the time. Commissioner Mike Beaudreau did not respond to repeated requests for comment.
Nasuti is betting the ballpark will help boost Gwinnett’s economy. Conventions, Sports & Leisure International, the consulting company hired to study the feasibility of bringing baseball to the county, said a $38 million ballpark would generate $6.3 million to $8 million in net new spending each year, create 130 to 170 jobs and generate between $267,000 and $342,000 a year in taxes.
“You don’t shut down economic development opportunities when times are bad,” Nasuti said. “That is when you look at economic development opportunities.”
But critics question the economic benefits projected for the stadium and fear the costs for the ballpark will increase.
“These stadiums always go over budget,” said J.C. Bradbury, a Kennesaw State University sports economist who has been critical of the county’s handling of the stadium deal. “I will be more shocked if the budget doesn’t go up.”
STADIUM FINANCING
Gwinnett County taxpayers have already contributed $5 million to buy the land for the stadium and $26 million for construction. Also, the county borrowed $33 million for the stadium last year, and it’s obligated to pay back an average of about $2.5 million annually for 30 years, a total of more than $77.5 million. Here’s where the county expects to get the money to pay the annual debt:
COUNTY’S STADIUM REVENUE
> Rent: $250,000
Paid by the Braves, adjusted every five years based on Consumer Price Index. Estimated average annual revenue over 30 years, based on 3 percent increases in CPI: $365,000. The rent is due in two equal installments. The first $125,000 is due April 1 and the second installment is due June 1.
> Parking: $200,000
County splits net parking revenue with the Braves, who will operate the lots. Estimate is based on projected attendance and three ticket holders per car being charged $3 a car. Parking revenue is due on June 1 and the balance on Oct. 15.
> Ticket fee: $400,000 to $468,000
Braves will pay the county $1 for every ticket sold, with a $400,000 minimum. A feasibility study projected attendance of 468,000 annually. The ticket revenues are to be paid in two installments: $200,000 is due June 1, with the balance due on Oct. 15.
> Naming rights: $100,000 to $650,000
This is the biggest variable. The Braves get $350,000 a year; the county gets the rest. Estimates range from a total deal worth $450,000 to $1 million annually. So far, there’s no deal.
> County events: Negligible
County can use stadium for 10 days per year, subject to the Braves’ approval. County reimburses Braves for operations and cleanup on those days. If the county charges for admission, it would likely be to cover those expenses. The Braves keep all concession sales on those days.
OTHER REVENUE
> Rental car tax: $600,000 to $800,000
The revenues from this tax, which took effect on April 1, are exceeding expectations. The county budgeted $425,000 in revenue for 2008. Collections to date for 2008 total $571,655. The county has budgeted $700,000 in revenue for this year.
> GCVB contribution: $400,000 maximum
The Gwinnett Convention and Visitors Bureau gets its money from the county, which collects a hotel-motel tax to pay off debt on the Gwinnett Arena and to underwrite the GCVB operation. The agency, which runs the Arena, also gets money from the Arena’s profits. The GCVB has already put $2 million in reserves to pay its share of the debt for the first five years.
Sources used in compiling this information: Documents obtained under Georgia’s Open Records Act from Gwinnett County government and the Gwinnett Convention and Visitors Bureau and interviews with county leaders and experts in sports economics and marketing.
Note: All figures are annual.
Staff
Map locates stadium site. Inset map outlines area of detail in Gwinnett County relative to metro Atlanta.
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