Title
Ordinance - Third and Final Reading of an Ordinance Approving the Sports Facility Lease and Operating Agreement Between the City and Mansfield Fieldhouse, LLC for Mansfield Fieldhouse, USA
Requested Action
Consider approving the First Reading of an Ordinance Approving the Sports Facility Lease and Operating Agreement between the City and Mansfield Fieldhouse, LLC for Mansfield Fieldhouse, USA
Recommendation
Approve First Reading
Description/History
Fieldhouse, USA contacted the City to discuss the possibility of creating a public/private partnership for the construction and operation of a sports facility Fieldhouse, USA. During a Joint Work Session between City Council and the Mansfield Park Facilities Development Corporation (MPFDC) on July 13, 2015, the MPFDC agreed to fund construction of the project.
The Lease and Operating Agreement creates a partnership between Mansfield Fieldhouse and the City regarding how the sports facility will be maintained and operated. The facility will be built on city-owned property and the facility will be a city-owned facility. Mansfield Fieldhouse will operate the facility, pay for all the maintenance and operation expenses and make an annual lease payment back to the MPFDC. This is a 25 year lease with a base rent payment of $300,000 for years 1-5, in years 6-25 the lease payment will be a base payment of $500,000. Beginning in year 3, Mansfield Fieldhouse will pay the base rent plus 10% of gross revenues with a maximum rent of $600,000 and in years 4-25, Mansfield Fieldhouse will pay the base rent plus 15% of gross revenues with a maximum rent of $600,000. After 25 years, the lease allows for two extension options. The first extension is for 10 years, with a base lease rent of $300,000 plus 7% of gross revenue and the second extension is for five years with a base lease rent of $300,000 plus 7% of gross revenue.
The Lease and Operating Agreement also outlines how the facility should be operated including any future improvements, capital replacements, signage, sponsors, marketing, required insurance, and requirement to operate a year-round sports facility that hosts basketball/volleyball leagues and tournaments for youth and adults for both local residents and visitors.
Final changes are being made to the Lease and Operating Agreement and will be available on Monday. Staff will present a briefing prior to Council action.
Justification
By creating the partnership with Mansfield Fieldhouse, LLC, the City can add an additional in-door facility in the park system that will provide a place for local residents as well as visitors to participate in basketball and volleyball activities year-round, without having the cost of maintenance and operations of the facility.
Funding Source
MPFDC ½ cent sales tax for construction of the facility
Prepared By
Shelly Lanners, Director, Community Services
shelly.lanners@mansfield-tx.gov
817-276-4265