ORLANDO'S BASEBALL EXPANSION TOUTS FAVORABLE LEASE AGREEMENT
The county commission in Orange County, FL, passed a
resolution on Tuesday that approves of the ownership group
seeking an expansion MLB franchise for Orlando and establishes an
understanding for the lease of a proposed baseball stadium in the
area, according to documents released to THE SPORTS BUISNESS
DAILY. FL developer Norton Herrick is the majority partner, with
CO accountant Stephen Kurtz and Rockies General Counsel Paul
Jacobs also in the management group. Highlights from the
-- The term of the lease will be 30 years (or such period
that matches the bond issue) with the Owner having the option to
renew for five 5-year periods. The Owner will have the option to
purchase the Ballpark, parking and related facilities at the end
of the term. Neither the Owner nor any successor may relocate
during the term.
-- Nominal rent ($100/year) will be paid to localities.
-- Commencing in the 3rd season, an amount will be paid
equal to the lesser of 5% of face value or $1 of each baseball
ticket sold; $1 for each non-baseball ticket sold.
-- The Owners receives ALL REVENUE from broadcast rights;
rent from private suites; novelties/merchandise;
concession/catering; Stadium Club memberships; non-baseball
events; advertising and naming rights revenue, including
scoreboard signage; all parking revenue; right of first refusal
to purchase or lease land for development within Sports
Development District; and approval rights over design and
construction of Ballpark and related facilities.
-- The Owner retains responsibilities for all facility
operations, parking and maintanence; guarantees payment of
principal and interest on parking revenue bonds (estimated at
$3.5M annually); maintains liability and property insurance;
provides security; and pays utilities.
-- The Local Gov't has responsibility for costs of design
and construction to be financed through a bond issue. The bond
issue will be supported by a one cent resort tax increase. The
localities will also receive $2M/year for up to 30 years from the
State of Florida for debt service.
-- The Ballpark will be an open-air stadium with a natural
grass surface and seat between 45,000 and 52,000, with a minumum
of 9,500 controlled parking spaces.
-- There are no real estate taxes (THE DAILY, 9/15).