A few points about this supposedly GREAT deal.
First the link to the deal from the city’s website:
First – the land. $6M is appropriated for the land. This does NOT include any remediation: AND if the land costs less than $6M that excess is contributed to the cost of the stadium which may raise the preice from the $31M
“If the combined cost to the City of site acquisition and any remediation needed for site preparation exceeds six million dollars ($6,000,000), the City shall be responsible for funding any such excess, which excess shall not increase either the rent paid by the Operator for the Office Space (as defined below) or the management fee paid by the Operator for use of For consideration at Sept. 18 City Council Meeting the Ballpark. If the combined cost to the City of site acquisition and any remediation needed for site preparation is less than six million dollars ($6,000,000), the City shall contribute whatever portion of the $6,000,000 is not spent on site acquisition and such remediation to the project development budget for the Ballpark".
This is interesting, as it now ALLOWS for cost over runs which will be covered partially by this “contribution” to the development of the ballpark.
Second – the land includes a 1.5 acre ball park. The pro side lead you to believe that this was going to be a good thing for the city and included in the ballpark proposal. Guess what? It’s not. It’s totally separate and totally paid for by city funds.
“The City and the Operator understand and agree that the site, in addition to being developed for the Ballpark, may include a public park along the riverfront that would be approximately one (1) to one-and-a-half (1.5) acres in size and that would be developed and financed by the City separately from the Ballpark, with the Operator having no responsibility for the public park’s financing or development.”
So the down town park will cost extra Millions of taxpayer dollars.
Cost over runs? This is rich.
"If pursuant to the discussions referenced in Section 3(b) below the Parties agree that a suitable and appropriate Ballpark can be built within the $31 million cap on hard and soft construction costs, but then later the estimated budget for the Ballpark exceeds the $31 million cap, the City and the Operator agree to contribute up to five hundred thousand dollars ($500,000) towards the overrun, with the City and the Operator each making matching contributions of up to two hundred and fifty thousand dollars ($250,000) to pay for those overruns; provided that the Operator shall pay its portion to the City in ten (10) equal annual installments".
So if it goes over the $31M (plus the city’s “contribution”) Then the city pays out $500,000 IMMEDIATELY. Mandalay then splits the overrun $250K apiece which THEY pay to the city in 10 equal payments. The city is guaranteeing the $500K in over runs for Mandlalay.
Delay in stadium construction? Another disaster !!!
“… and that the fixed fee contract will include: (i) an express deadline for completing the project and financial penalties imposed on the contractor for failing to meet that deadline, with eighty-five percent (85%) of those penalties being paid to the Operator and fifteen percent (15%) of those penalties being paid to the City.”
So, if the contractor chosen by the city is slow they pay a penalty. 85% of that penalty goes to Mandalay, 15% to the city (but the city pays for the stadium? So how does Mandalay warrant penalties?
But here’s a kicker for you. The Braves play in, and maintain the park, BUT in the event of wind damage who fixes it? Yep the city
“and the City shall be responsible at its expense for all insurance covering any damage or destruction to the Ballpark including providing “all risk” or “extended’ coverage for any damage outside of the control of the Parties including, without limitation, flood, wind, hail, lightning, earthquake or other casualty, with limits to be agreed upon between the City and the Operator. “
So, city residents? Be prepared! WE get a hurricane here and the WE repair the ballpark for them!!
And the Azalea Festival? Free right? Wrong. The city pays for all operating costs AND pays Mandalay to get the field back in playing shape:
“Notwithstanding the above provisions, the City shall receive all revenues (and be responsible for all expenses) from any City-sponsored event held at the Ballpark, and the City will pay the Operator for its actual incremental operating costs plus a reasonable management fee (i.e., only those costs beyond the costs that the Operator would have incurred if there had been no event) for such City-sponsored events for which the Operator has agreed to provide services, including, without limitation, costs and expenses of clean-up of the Ballpark to the Operator’s satisfaction and costs and expenses of event operations (e.g., security, fire and medical personnel, ticket selling, ticket taking, ushers).”
Now, I agree that any damage caused by third party events that cause damage should be fixed but if we have to pay Mandalay for ticket sales and other costs for Azalea Festival events WE LOSE OUT!!!
And of course this:
“ANLBC shall cause the Team to use the Ballpark as the home facility for a Class A (Advanced) or higher Minor League Baseball club affiliated with the Atlanta Braves, and home games for the Team shall be played in the Ballpark; and”
This means of course that if the team is sold and is no longer affiliated with ANLBC (Atlanta National League Ball Club) then…….legally? No agreement.
This deal is not sweet. This deal is not good for the city. This deal could cost much more than $37M.
Vote “NO” in November – STOP the city from going backwards – and stop Saffo and crew from humiliating themselves and our city anymore
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