oard of Supervisors Memorandum

Transcription

1 oard of Supervisors Memorandum December 2, 2008 Final Agreement with the Chicago White Sox Regarding Use Agreement Modifications Releasing Them From Spring Training at Tucson Electric Park Introduction Based on Board direction at the meeting of November 18, 2008, and the attached Sports Facilities Use Agreement, upon adoption I would recommend the Board direct the County Administrator to issue a written notice of the County's election to receive the cash payment identified in the agreement in lieu of the Youth Tournament Complex option. These funds will be deposited in the Stadium District for the benefit of the District and subsequent Board direction regarding the development of a youth and amateur sports complex at this facility for both baseball and softball. Announcement of the Arizona Diamondbacks Possiblv Leavina Prior to the Term of Their Use Aareement Regarding the Arizona Diamondbacks continuing spring training at Tucson Electric Park, the present use agreement for Arizona Diamondbacks Major League Baseball spring training states "if fewer than two (2) MLB teams conduct spring training operations in Tucson." Certainly the County will not consent to the release of the Arizona Diamondbacks before the end of the present term. Their quoted statement that they may leave before the end of the present agreement with the County was quite surprising and apparently a misunderstanding. In an effort to cooperate with the Diamondbacks in their remaining term, the County, at the Diamondbacks request, has undertaken a series of improvements for their spring training facilities. These are substantial improvements and investments as identified in the attached memorandum dated October 10, 2008 from myself to County staff, and a letter dated October 9, 2008 from Tom Tracy, Chair of the Pima County Sports and Tourism Authority. The County has acted in good faith to improve the Diamondbacks spring training facilities on the assumption that they would remain at least through the term of their agreement. To eliminate any possible financial impact to the County and the District should the Diamondbacks choose to leave before the term of their agreement, I have included in the agreement with the White Sox a penalty clause where the White Sox would pay to the County or District $250,000 for each year the Arizona Diamondbacks fail to fulfill the term of their use agreement. I doubt very seriously if the penalty clause will be exercised since on Friday morning I discussed the issue of the Diamondbacks remaining for their full use term with Derrick Hall, President of the Arizona Diamondbacks. Mr. Hall indicated that they had every intention of

2 The Honorable Chairman and Members, Pima County Board of Supervisors Final Agreement with the Chicago White Sox Regarding Use Agreement Modifications Releasing Them From Spring Training at Tucson Electric Park December 2, 2008 Page 2 completing their spring training in Tucson and fulfilling the term of the existing use agreement. In addition, Mr. Hall stated that he would also like to remain in Tucson for spring training for the indefinite future. His only concern was whether or not there would be at least three and hopefully four Major League Baseball teams training in the Tucson and Pima County region within the next few years. We also share that desire with Mr. Hall, and I appreciate his candor in stating they have no intentions to try to leave before the term of the existing use agreement. Arizona S~orts and Tourism Authority 'There has been a lot of discussion regarding the loss of spring training in Pima County. Such would be a disaster. However, the actions leading up to the present calamity can be traced to legislation establishing the Arizona Sports and Tourism Authority, which was primarily focused on building a new football stadium for the professional Phoenix Cardinals. To encourage the voters in Maricopa County to pass the Arizona Sports and Tourism Authority, other sports improvement packages were included, primarily youth and amateur sports, and Cactus League spring training facilities. These byproducts of the original legislation created a substantially uneven playing field in Arizona when competing for Cactus League spring training sports venues. Separate funding and partially state-subsidized tax revenues are being used to attract teams to the Phoenix metropolitan area, such as the Chicago White Sox. In 1996, the two-team spring training facility for the Arizona Diamondbacks and Chicago White Sox was completed by Pima County at a cost of $38 million. The new spring training facility in Glendale, which will provide for spring training for the Chicago White Sox and Los Angeles Dodgers, will cost over $100 million when completed. A majority of this cost is being paid by the Arizona Sports and Tourism Authority. Pima County has no such authority or revenue source. Attempts to attain equal footing with Maricopa County in the last legislative session failed. There is plenty of blame to go around in losing spring training in Tucson and Pima County; however, the first solution to the existing problem would be enactment of legislation prohibiting the Arizona Sports and Tourism Authority from building other facilities to attract spring training teams from Tucson. Second, voters in Pima County should have the same opportunity to enact a sports and tourism authority; hence, voter approval of a funding source for an authority is necessary. The funds provided by the White Sox early use agreement spring training termination should be used primarily to develop a youth and amateur sports tournament facility for baseball and softball at the Kino Sports Complex. The White Sox have provided the plans, specifications and other information developed by them in their analysis of developing such a facility at Kino. The existing Major League Baseball spring training facilities will not be altered and will remain fully available to accommodate additional Major League Baseball spring training if a replacement team or teams can be found for the Chicago White Sox.

3 The Honorable Chairman and Members, Pima County Board of Supervisors Final Agreement with the Chicago White Sox Regarding Use Agreement Modifications Releasing Them From Spring Training at Tucson Electric Park December 2, 2008 Page 3 In developing the youth tournament complex at Kino, the goal will be to develop the first major tournament complex in Pima County for youth softball and baseball using a model similar to that envisioned by the White Sox. To ensure inclusion of all points of view from all youth league and amateur sports interests, an advisory body will be structured such that it is a hybrid of the Pima County Sports and Tourism Authority, with five members from the Pima County Sports and Tourism Authority and five members from the youth and amateur sports community. This advisory committee, with ex-officio membership from the Stadium District Director and the Director of the Natural Resources, Parks and Recreation Department, as well as the Director of the Tucson Parks and Recreation Department, will assist in governance as well as management development of the youth tournament complex in advising the County Administrator and Board of Supervisors of actions necessary to accomplish same. Financial Su~port for the Pima County Sports and Tourism Authority I will recommend that the Board of Supervisors reserve up to $300,000 of the Chicago White Sox settlement for a two-year period for budget assistance to the Pima County Sports and Tourism Authority, subject to an annual match of outside revenues of at least $50,000 per year and a budget submission of the Pima County Sports and Tourism Authority for Board of Supervisors approval. Since the settlement money from the Chicago White Sox becomes public money, the Authority and expenditure of same must comply with all appropriate County procurement and accounting requirements. This financial assistance will provide necessary funding to the Sports and Tourism Authority to carry out their mission, with a primary focus for the attraction of professional baseball sports venues to take the place of the Chicago White Sox spring training activities. Recommendation It is recommended the Board of Supervisors: 1. Approve the Sports Facilities Use Agreement with the Chicago White Sox, which allows the White Sox to terminate spring training early in consideration of a cash payment and a number of Club Covenants, including a penalty clause and financial payment to the County and District should the Arizona Diamondbacks fail to complete their facility use agreement term at Tucson Electric Park. 2. Pledge that there be no modifications for a 180-day period, nor any proposed activities associated with any sports venue that would conflict with the ability of the Pima County Sports and Tourism Authority to attract an additional professional sports venue to substitute for the Chicago White Sox during Major League Baseball spring training.

4 The Honorable Chairman and Members, Pima County Board of Supervisors Final Agreement with the Chicago White Sox Regarding Use Agreement Modifications Releasing Them From Spring Training at Tucson Electric Park December 2, 2008 Page 4 3. Direct that staff plan and develop a youth tournament, softball and baseball complex on the Kino Sportspark property, using the proceeds from the White Sox settlement to construct said facilities. 4. Appoint a youth and amateur sports tournament facility advisory committee consisting of five members of the Pima County Sports and Tourism Authority appointed by the Chair of the Authority and five members of the community with interest in development and advancement of youth amateur sports in the areas of baseball and softball. 5. Allocate up to $300,000 of the White Sox settlement funds to the Pima County Sports and Tourism Authority over a two-year period, with funds to be budgeted with specific expenditures identified and submitted to the Board of Supervisors for budget approval, subject to at least a $50,000 match to said funds from other sources. 6. Ensure that all spring training facilities at Tucson Electric Park or Kino Sports Complex are made available, to the maximum extent possible when spring training activities do not conflict, to youth and amateur sports activities related to baseball and softball. 7. Direct the County Administrator to give notice to the Chicago White Sox of our desire to exercise the Club Payment Option in the Agreement. Respectfully submitted, C.H. Huckelberry County Administrator /' CHHIjj (November 24, Attachments

5 MEMORANDUM Date: October To: Reid Spaulding, Director Facilities Management Department Chris Bartos, Manager Major League Baseball Complex Re: Attached Letter from Tom Tracy, Chairman of the Pima County Sports and Tourism Authority, Regarding Upgrades to Facilities at Tucson Electric Park Please review the attached information regarding modifications andlor upgrades to the Minor and Major League Arizona Diamondbacks Spring Training facilities. What is now necessary is to A) take care of the simple items that require very little if any expenditure, and then, 6) develop cost estimates on the balance of the requested actions. Obviously, those that require new or expanded facilities will require a new contract with the Diamondbacks. Others could be accomplished through small project or program capital funding. However, it is first necessary to determine the approximate cost of these items. Tom Moulton facilitated the development of the list with Mr. Tom Tracy and personnel from the Arizona Diamondbacks. I would suggest that Mr. Moulton be asked to coordinate the proposed improvements andlor modifications, their implementation and cost estimation. Attachment c: Hank Atha, Deputy County Administrator for Community and Economic Development Tom Moulton, Economic Development and Tourism Director Tom Tracy, Chairman, Pima County Sports and Tourism Authority

6 PIMA COUNTY sports 5 ~ouvisvu ~uthovity October 9,2008 C.H. Huckelberry Pima County Administrator 130 West Congress - 10" Floor Tucson, AZ Dear Chuck, Over the past few months we have been working with the Arizona Diamondbacks on ensuring they remain in Tucson during the Spring Training season at Tucson Electric Park for years to come. One item that began as a conversation, not a complaint, was to develop a short and long term plan to upgrade the facilities at TEP. With the assistance of Tom Moulton's office, Kino Sports Complex facility personnel, and a top trainer from the Dbacks, we have toured the Diamondback facilities several times and have prioritized the requested upgrades to both the Dbacks major and minor league club houses. The entire list of potential upgrades has been seen by your office some time ago, however we added a few columns so you can see the requested upgrades and associated comments being considered for the upcoming 2009 season. Special consideration was given to the items the Dbacks personnel were very vocal on and involved, especially in the training areas and those items around the safety, health and welfare of their players. All parties engaged were cognizant on the availability of funds especially in the remodeling, or expansion of any particular section of a building and the possible addition of a new building. Thank you for your consideration of the items attached. I believe making a "best effott" attempt at these priority projects will ensure a smooth transition into renewing their agreement. After your review, if you have any questions, please give me a call. Sincerely, Tom Tracy Chairman Pima County Sports and Tourism Authority 33 North Stone Ave., Suite 700 Tucson, AZ = Office: Fax:

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