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HomeMy WebLinkAboutCouncil Minutes - 1992-07-13 SCOUNCIL\1992-07-13-SPE SPECIAL COMMITTEE OF THE WHOLE MINUTES JULY 13, 1992 The Committee of the Whole met this date commencing at 3:10 p.m. under the chairmanship of Mayor D.V. Cardillo with all members present except Alderman G. Lorentz. Notice of the special meeting to discuss the possibility of a Double A Baseball franchise for the municipality was given pursuant to Council's procedural by-law. 1. Double A Baseball Franchise Council was in receipt of a letter from Mayor D.V. Cardillo dated July 8, 1992 as well as reports from Mr. T. McKay and Mr. F.S. Graham, both dated July 9, 1992. Mr. R. McKillop, 54 Winding Way, appeared on behalf of RCAN and Associates, concerning a proposal to locate a professional baseball franchise at the Double A level in the municipality. Mr. McKillop stated that his company had been commissioned by the City to prepare a report assessing the facilities at Jack Couch Park relative to the accommodation of a professional sports franchise. He advised that he had attended the 1992 Baseball Winter Meetings in Miami, Florida, where a franchise opportunity arose. He noted that the City would have six weeks to respond to a franchise proposal based on the schedule imposed by the Applications Committee. Mr. McKillop advised that at present, the identity of the ownership group is confidential. In response to a question from Alderman M. Yantzi, Mr. F.S. Graham indicated that it was his understanding Council had no interest in a Single A franchise and pointed out that the proposal before them this date was not solicited by staff. Mr. McKillop added that he had travelled to Florida in order to finish the assessment report and while there, had made it known to delegates at the Winter Meetings that Kitchener may have an interest in a Double A expansion. Alderman C. Zehr enquired as to the profitability of a Double A franchise and requested various documents in this regard. Mr. McKillop replied that he has in his possession, three financial statements which meet State requirements and a good idea as to the operating expenses and market rate for stadium rental. He added that this type of information is difficult to obtain without an individual proposal submission. Mr. McKillop pointed out that an average rental rate of $50,000 could be assumed, however, other services such as providing a grounds crew may be included in this rate. Mayor D.V. Cardillo added that more detailed information will be forthcoming. Alderman B. Stortz questioned the accuracy of the $3,000,000 to $5,000,000 estimate of expenditures required to upgrade existing facilities. Mr. McKillop replied that the figures were prepared by a consulting engineer based on the Jack Couch site. He added that the existing stadium orientation is incorrect, but the site itself is promising. Mr. McKillop suggested that with regard to the stadium facility, the City would have the opinion of either changing the orientation, locating the field on another part of the site or assessing the feasibility of alternate sites. He pointed out that the City has a video tape of every site visited during the preparation of the RCAN Assessment Report, as well as the proposed layout of a Double A stadium. Alderman B. Stortz advised that abutting neighbours have expressed concern over the further development of Jack Couch Park and this would not be a preferred alternative. Alderman J. Ziegler entered the meeting at this time. A general discussion took place concerning details of a franchise arrangement. Mr. McKillop noted that under the present circumstances, the stadium would have to be renovated or constructed in 1993, with play beginning in 1994. In response to a question from Alderman M. Yantzi concerning the terms of the franchise, Mr. McKillop advised that there is the option of a two or four year term and the franchise would guarantee use beyond the four-year term. Alderman Zehr enquired as to the value of the guarantee and Mr. McKillop replied that the ownership group is prepared to make a commitment and that baseball leagues have a history of longevity. He added that there is however, a possibility of failure, but based on the study undertaken he feels the franchise would work. Alderman G. Leadston suggested that an additional report be prepared as outlined in Option B of Mr. McKay's report, which would also include information on the economic spinoffs and costs to the City. Mr. McKillop asked that RCAN and Associates be permitted to develop a final proposal and budget figures which would include the impact on both City facilities and taxpayers. Mr. F.S. Graham suggested that a third option would be to delay any action at this time pending an examination of the priority of a Double A franchise relative to other projects in the Capital Forecast. Moved by Alderman G. Leadston COUNCIL MINUTES - 422 - JULY 13, 1992 "That as soon as possible, staff prepare a report concerning possible accommodation of a Double A franchise and which will include the following: projected expenditures and expenditure timing; alternatives for financing; the net effect on the operating budget of entering into a franchise agreement over the next five years; the legal requirements of the agreement, including any requirements relative to Ontario Municipal Board approval; the impact on local baseball operations of accommodating a Double A franchise at Jack Couch Park and any other suitable facility; and the economic impact on the community of locating a franchise in Kitchener. Alderman C. Zehr reviewed the City's prior involvement with the Kitchener Rangers and the Kitchener Kickers and noted that with respect to the latter, capital expenditures exceeded return on investment by approximately 95%. He added that the $50,000 rental fee referred to earlier by Mr. McKillop may be insufficient. He suggested that at present, the City does not have $3,000,000 to invest in this project, nor is the economic climate favourable. He stated that if the motion of Alderman Leadston were defeated, he would be prepared to introduce a motion to assess the proposal relative to the Capital Forecast. The motion by Alderman G. Leadston directing staff to prepare a further report was voted on and LOST on a recorded vote. In favour: Mayor D.V. Cardillo, Aldermen G. Leadston and T. Galloway. Contra: Aldermen C. Zehr, M. Wagner, M. Yantzi, B. Stortz, J. Ziegler, J. Smola and C. Weylie. Alderman C. Zehr put forward a motion to consider the upgrading of Jack Couch Park to meet Double A Franchise standards as part of the budget process relative to the ten-year Capital Forecast. Alderman Zehr accepted, as a friendly amendment, the request of Alderman Stortz that other baseball facilities or site be considered in addition to Jack Couch Park. On motion by Alderman C. Zehr- It was resolved: "That the construction or upgrading of a facility in the City to meet the standards associated with a Double A Baseball Franchise be considered in conjunction with the budget process as it relates to the ten-year Capital Forecast, and further, That the above direction not be considered as an endorsement of the recent proposal to locate such a franchise in the City." On motion the meeting adjourned at 4:20 p.m. Mayor Clerk