A new-ballpark lease between the city of St. Paul and the St. Paul Saints (independent; American Association) calls for an expected rent of $600,000 annually, with profit-sharing in the mix.
Though the final details still need to be ironed out, there is a framework in place to be presented to the St. Paul City Council next Wednesday. From the Pioneer Press:
The plan includes a new idea for St. Paul professional sports teams: a profit-sharing agreement that gives the city anywhere from 5 percent to 10 percent of a team's net annual revenue, though the team gets to keep the first $500,000....
The Saints will contribute $11 million toward ballpark construction, most of it through 25 years of rents that will go toward paying off $8.5 million in bonds issued on the team's behalf by the St. Paul Port Authority. The final bond terms have yet to be determined by the Port Authority, "which will then finalize what the rent payment will be," Meyer said.
The Saints also will contribute $1.5 million in cash, said City Finance Director Todd Hurley. The team has yet to decide how it plans to contribute the final $1 million. "They have until October 21 to notify us whether they're going to upsize the bonds -- which means upsizing their rents -- or bring additional cash or equipment to make up for the $1 million," Hurley said. "Their rent in general is right around $600,000."
Profit-sharing isn't used much in professional sports: for starters, they require teams to open up their books, and as we all know sports owners are a notoriously secretive bunch. But they're also lacking for one other reason: it's virtually impossible for municipalities to budget when the incoming figure is not known. It sounds like St. Paul is getting around this by not targeting profit-sharing for bond repayment, but rather to reimburse the city for funds spent on the ballpark as well as future capital expenditures -- an item usually covered separately in a ballpark lease via fixed payments.
The new ballpark is expected to open for the 2015 season.
RELATED STORIES: Worker killed at Saints new-ballpark construction site; Design deadlines slip on new Saints ballpark; Saints, city make up $8.8M ballpark funding shortfall; Saints add $1M to new ballpark funding; Price tag for new Saints ballpark rises by $9M; Testing at new Saints ballpark sites yields unexpected contamination; Saints ballpark renderings released; environmental study appoved; Ryan awarded Saints ballpark design/build contract; St. Paul reverses course, will let Saints ballpark contrat to bid; Opponents file TRO to halt work on new Saints ballpark; Saints ballpark design/construction reward under review; No reason to worry about gap in Saints ballpark funding -- yet; Design/build team announced for new Saints ballpark; Saints, Huskies ballparks pitched for Minnesota state funds; St. Paul: We'll request economic-development funds for new Saints ballpark; Affiliated ball in St. Paul? Don't hold your breath; Duluth: We'll continue seeking state fund for Wade Stadium renovations; Duluth Huskies unveil renovation plan for Wade Stadium; St. Paul officials confident in scoring state aid for Saints ballpark; Saints ballpark funding alive -- but just barely; State aid for Saints ballpark coming down to the wire; Saints ballpark bill suffers setback in state Senate; St. Paul close to acquiring land for new Saints ballpark; Saints ballpark funding passes hurdle; Saints ballpark funding part of state bonding bill
Share your news with the baseball community. Send it to us at firstname.lastname@example.org.
Are you a subscriber to the weekly Ballpark Digest newsletter? You can sign up for a free subscription at the Newsletter Signup Page.
|< Prev||Next >|