The City Council postponed action on a Dehler Park Agreement on Dec. 19, 2016, after Mustangs Managing Partner David Heller said he could not agree to a Parks, Recreation & Cemetery Board recommendation that the City receive 15% of the revenue from future naming rights for the ball field, unless the City was willing to contribute additional money to a repair fund for the ballpark.  The Council appointed a subcommittee to negotiate further with Mr. Heller.

The Council Subcommittee met Feb. 20, March 14 and March 22, 2017.  Mr. Heller submitted a  new lease to the City on March 21.  The Subcommittee instructed the staff to return to the City's version of the agreement prior to the Park Board recommendations in November, and to reconcile it to the extent possible with Mr. Heller's agreement.

The agreement is being finalized, and will be provided to the Council by separate email no later than Wednesday, April 19.  The agreement:
1)  Extends the Dehler Park lease with the Mustangs through Dec. 31, 2026, with options to renew for two, 5-year options by mutual consent in 2024;
2)  Gives the Mustangs the revenue for any naming rights at the Ballpark, with the exception of the City-owned Dehler Ballpark naming rights that continue through June 26, 2032, and current electronic scoreboard rights (Wendy's, First Interstate Bank and Pepsi) through September 30, 2017.
3) Increases the Mustangs' annual rent from $30,000 to $60,000 per year, which will be deposited in the Ballpark Permanent Fund for major repairs and capital improvements to the Ballpark;
4)  Establishes a City Ballpark Repair Fund which requires the Mustangs to provide up to $5,000 of repairs each year and the City to provide an additional $30,000 a year to handle non-capital repairs within the City's Purchasing Policies and Procedures;
5)  Changes the Facility Review Committee from a 3-member board to a 5-member Ballpark Review Committee, with one member each from the City and the Mustangs, and three mutually agreed-upon members appointed through the Mayor and City Council;
6)  Provides an annual review of the condition of the Ballpark by the City and the Mustangs, with a recommendation to be made to the Ballpark Review Committee for needed annual capital and repair items to be made;
7)   Replaces an annual financial report to the Parks Board with a copy to be given to the Finance Department of the Mustang's annual report on its debt to Minor League Baseball, and a review and certification of solvency by the City's financial advisor;
8)  Reserves 15 days between May 1 and September 30 for City events at the Ballpark, up from 10 days in the current contract, and ensures that they will include a 3-day block each in June, July and August, to allow the City time to set up and take down major events;
9)  Identifies City and Team responsibilities for improvements, concessions and maintenance.

Mr. Heller is expected to be present at the April 24 meeting.



 

City Council may:

• Approve the agreement as proposed;
• Postpone approval and conduct further negotiations, or;
• Disapprove the contract, leaving the agreement with the Mustangs to expire at the end of 2017.

The City will need to initiate a $30,000 Ballpark Repair Fund to help maintain Dehler Park..

The Ballpark Permanent Fund will receive an additional $30,000 annually from the Mustangs to assist in long-term improvements to Dehler Park.

The Mustangs agree to remain at Dehler Park for an additional 10 years, the time necessary to pay for the remaining general obligation bonds issued to build the ballpark.

Staff recommends that the City Council approve the agreement.