Stadium Private Development Agreement

March 19, 2019

2015 West Bank of River

• Aging stadium

• Unimproved waterfront

• Limited development activity

• No East and West bank continuity

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Lawrence Dumont Stadium• Built in the 1930s• Grandstand, sky boxes, press box and clubhouse degrading• Rehabilitation not possible to accommodate affiliated baseball

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2016 Challenge

How to:

• Energize the West Bank?

• Attract an affiliated baseball team?

• Ensure the team’s sustainability?

• Minimize the cost to property tax payers?

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Early Efforts

• Market concerns and affiliated baseball rules impeded City attempt

• In 2017, staff hired firms specializing in franchise relocations and stadium construction

• They identified conditions for successful relocations1. Construction of a new, state-of-the-art stadium2. Ability to host wide range of community and sporting events3. Availability of land adjacent for private development by team

ownership

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West Bank Redevelopment• Multi-sports stadium – anchored by affiliated baseball

• Hall of Fame museum

• Projected 888,400 visitors annually – Independent

report by Development Strategies to meet State

STAR bond requirement

• Pedestrian bridge (Stadium to Performing Arts

Complex)

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Triple-A Baseball-New Stadium • Pacific Coast League-New Orleans

franchise filed application to relocate to Wichita in a new Triple A quality stadium

• City, Minor League Baseball (MiLB), Pacific Coast League (PCL) and Team negotiated agreements to move to Wichita

• Ballpark Development Agreement and Facility Use Management Agreement details each party’s commitment

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Under the Ballpark Development Agreement the City committed to the

following:

• Design and construct a new multi-sport stadium to house a Pacific Coast League, Triple-A baseball franchise at a cost not to exceed $75M

• The stadium shall be completed by March 15, 2020 unless extended by mutual agreement

8Ballpark Development Agreement

In exchange for the City’s commitment, the Team committed to the following:

• Relocate the New Orleans Triple-A franchise to Wichita

• Contribute approximately $5-7.5 million for furniture, fixtures and equipment (FF&E) in the Ballpark

• A CID on applicable revenue generated by the Team operations at the Ballpark

9Ballpark Development Agreement

• Initial management agreement term of twenty (20) years with two, five (5) year extensions

• Initial management agreement fee that the Team will pay each year will be $350,000

• The Team and City will jointly secure a naming rights agreement for the Ballpark. Proceeds will be applied to first, hard and soft costs, second, then up to $250,000 to the City and remainder will go to the team

10Facility Use Management Agreement

This Agreement is the third leg of the stool. The stadium pro-forma works if revenue from community activities and private development is earmarked for stadium construction. This was a finding of firms specializing in baseball franchise relocations and stadium construction.

11Private Development Agreement

Private Development Agreement -Sites

• Stadium is 16 acres

• Roads/riverfront is 4acres

• City will retain ownership of stadium, riverfront and infrastructure

• Eligible private development sites total approximately 4 acres

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• City grants the Developer exclusive right to purchase the Private Development Site for the development of the hospitality, commercial, retail, office and residential uses, as contemplated herein, for $1.00 an acre

However, private development must occur on the following schedule to meet the debt obligations for the stadium:

• Phase I: 30,000 sq. ft. of commercial space completed no later than 33 months from stadium opening day

• Phase II: 20,000 sq. ft. of commercial space completed no later than 30 months after Phase I

• Phase III: 15,000 sq. ft. of commercial space completed no later than 30 months after Phase II

13Private Development Agreement

Default provision allows the City to repurchase property if phases are not completed on time. A default may be forestalled if personal financial guarantees are provided to cover revenue shortfalls to the City.

14Private Development Agreement

• For ten (10) years after the Completion of Construction for the Phase One Development, no business may be relocated to the development site from anywhere within a 2 mile radius

• The Developer will design and engineer the Private Development in accordance with the Ballpark Village Master Plan and the Delano Neighborhood Plan

15Private Development Agreement

Private Development Site

The City shall redesign and reconstruct McLean Boulevard, at its sole cost and expense, into a pedestrian-friendly two-way public street, the primary purpose of which shall be to encourage pedestrian and bike access alongside vehicular traffic by the Opening Date.

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Private Development Agreement• Due to the City providing less than the

anticipated 7-9 acres adjacent to the Stadium, the City has provided additional property for development

• The City owns property consisting of 2.63 acres located north of the Drury Plaza Hotel Broadview. The Developer has the option to purchase this property for $1,000,000

• Development of the Option Site shall be consistent with the development parameters as set forth in the Project Downtown Catalyst Site 2 plan

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Stadium Financing FundsThrough 2017 & 2018 the City identified financing tools

• STAR Bonds

• Tax Increment Financing (TIF)

• Community Improvement District (CID)

• General Obligation Bonds (GOB)

Ballpark Village Financing

Private Development Agreement- ROI20

In order to partially fund the stadium, provide a debt contingency fund and to fund future stadium upgrades, the project will generate $38.5M for the City.

Private Development Agreement

Staff recommends approving the Private Development Agreement.

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