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HomeMy WebLinkAboutMinutes - City Council - Special - 2/17/1995CITY OF LUBBOCK SPECIAL CITY COUNCIL MEETING February 17, 1995 10:30 A.M. The City Council of the City of Lubbock, Texas, met in special session on the 17th day of February 1995 in the City Council Chambers, first floor, City Hall, 1625 13th Street, Lubbock, Texas, at 10:30 A.M. Present: Mayor David R. Langston, Mayor Pro Tem Randy Neugebauer, Councilmember Victor Hernandez, Councilmember T. J. Patterson, Councilmember Windy Sitton, Councilmember Max L. Ince, Councilmember Alex Cooke, City Manager Bob Cass, City Attorney John C. Ross, Jr., and City Secretary Betty M. Johnson. Mayor Langston called the meeting to order at 10:37 A.M. ( 1.) The Invocation was given by Councilmember T. J. Patterson. ( 2.) Pledge of Allegiance was given in unison by those in the Council Chambers. (3.) Consider Resolution #4746 authorizing the Mayor to execute an interlocal agreement with Texas Tech University for the use of Dan Law Field by Texas Professional Baseball, Inc., for professional baseball. RESOLUTION #4746 WHEREAS, Section 380.001 of the Local Government Code and Article 835s of Vernon's Annotated Civil Statutes permits municipalities to establish and provide for the administration of one or more programs to promote local economic development and to stimulate business and commercial activity within the municipality; and WHEREAS, a municipality may contract for the administration of such a program with a state agency; and WHEREAS, the City Council of the City of Lubbock deems it to be in the best interest of the citizens of the City of Lubbock to establish a commercial program to bring professional baseball to Lubbock; and WHEREAS, the City Council desires to contract with Texas Tech University to provide for Texas Tech University to administer such program and to provide a place for such professional team to play; NOW THEREFORE: BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: SECTION 1. THAT the City Council for the City of Lubbock hereby establishes a commercial economic development program under Section 380.001 of the Local Government Code and Article 835s, Vernon's Annotated Civil Statutes to bring professional baseball to Lubbock. City Council Minutes February 17, 1995, Special Meeting Page 118 SECTION 2. THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock an Interlocal Agreement, attached herewith, by and between the City of Lubbock and Texas Tech University with regard to a professional baseball team, and any associated documents, which Agreement shall be spread upon the minutes of the Council and as spread upon the minutes of this Council shall constitute and be a part of this Resolution as if fully copied herein in detail. Passed by the City Council this 17th day of February, 1995. /s/ David R. Langston DAVID R. LANGSTON, MAYOR ATTEST: /s/ Betty M. Johnson Betty M. Johnson, City Secretary APPROVED AS TO CONTENT: /s/ Rod Ellis Rod Ellis, Director of Business Development APPROVED AS TO FORM: /s/ Donald G. Vandiver Donald G. Vandiver, First Assistant City Attorney A copy of the Interlocal Agreement with Texas Tech University is filed with Resolution No. 4746. Mr. David Fleming spoke on behalf of Texas Professional Baseball, Inc. (TPB), regarding the possibility of bringing professional baseball to Lubbock. Mr. Fleming told the Council that the greatest need in bringing professional baseball to Lubbock is a facility, indicating that, like in any business, there has to be real estate to house the business. TPB's real estate needs include adequate lighting, a great playing field, scoreboard, pressbox, fencing, backstops, dugouts, seating, restroom facilities, concessions, and a laundry list of other items. Currently there are no facilities in Lubbock that meet those needs. Dan Law Field is the closest one to meeting those needs. However, it lacks the necessary seating, restrooms, and concession areas. Tech and TPB have worked on the lease and have almost completed the negotiations. TPB is requesting partial funding for the improvements to Dan Law Field. Mr. Fleming then showed a short promotional film regarding the league. Mr. Fleming indicated that a .50 per ticket surcharge would be used to pay back the City's portion, with an anticipated average attendance per game of 2,000- 2,500 people. The lease between the TPB and Texas Tech University is a five-year lease with two five-year options. The .50 per ticket surcharge would carry through on both of those options. Mayor Langston pointed out that the success of the pay back arrangement would be tied to the support that the people of the region give to the league. 118 City Council Minutes February 17, 1995, Special Meeting Page 119 City Attorney John Ross confirmed that the City of Lubbock would not be making a loan to TPB because that is prohibited by law. Rather, the City's contribution of $350,000 would go toward improvements to Dan Law Field, with the project being overseen by the Texas Tech University Athletic Department. Mayor Langston reiterated that a check would not be written to TPB with the potential for the firm to renege on the improvements to Dan Law Field. In response to questioning regarding the City's authority to enter into this agreement with Texas Tech University, City Attorney John Ross responded that the City of Lubbock has authority to enter into an Interlocal Agreement with Texas Tech University to promote economic development and commercial activity within the municipality. The precise sections of the statutes that authorize such activity are Section 380.001 of the Local Government Code of the State of Texas and Article 835s, Vernon's Annotated Civil Statutes. Mr. Ross said that it is his professional opinion that the agreement between the City of Lubbock and Texas Tech University is legally supportable. Mr. Ross described the arrangement as a triangle. The first leg of the triangle is that the City of Lubbock would agree to pay $350,000 to Texas Tech University. The second leg of the triangle is that Texas Tech University would agree to upgrade the stadium to the league's standards and enter into a lease with TPB for utilization of Texas Tech's facility. The third leg of the triangle is the commitment of TPB to bring a franchise team to Lubbock, play at Dan Law Field and to pay the City of Lubbock the .50 surcharge on every ticket sold. Mr. Ross confirmed that such an agreement is specifically authorized under the economic development statutes and that such an agreement is not a loan. In response to questions regarding the potential for local athletes to try out for the league, Mr. Fleming indicated that local athletes would have the opportunity to travel to the various sites where tryouts would be taking place as well as to try out during the local tryout session. However, no more than two local players from the local tryouts would be offered a contract to play. Mr. Fleming confirmed that the three-way arrangement that would exist among the City of Lubbock, Texas Tech University, and TPB, does not exist in any of the other cities where TPB is operating. Mr. Bob Bockrath, Texas Tech University Athletic Director, then gave an overview of Texas Tech's commitment to the agreement. He admitted that the agreement would be good for Texas Tech University in that the additional seating at Dan Law Field would allow Texas Tech to host the Southwest Conference Baseball Tournament, and the same rules regarding seating capacity at the host university field would apply in the Big 12 Conference. Mr. Bockrath said the cost of the improvements to be made at Dan Law Field is estimated at $515,000, with the City of Lubbock contributing $350,000. Additionally, regardless of whether the City of Lubbock chooses to participate in the interlocal agreement, Texas Tech will be constructing skyboxes at an estimated cost of $279,000. 119 City Council Minutes February 17, 1995, Special Meeting Page 120 Mayor Pro Tern Neugebauer asked whether there had been any discussion about a .50 surcharge to the cost of tickets for Tech baseball games in order to have a source of recovery from both beneficiaries, to which Mr. Bockrath responded that such an arrangement had been discussed and rejected by Texas Tech University. In response to a question from Councilwoman Sitton regarding conflicts between Texas Tech baseball games and TPB games, Mr. Bockrath replied that the contract between Texas Tech University and TPB will include written provisions to ensure that TPB will adjust its scheduled to accommodate Texas Tech baseball games. Mr. Bockrath said that Texas Tech would be paid a $39,000 per summer (mid -May to mid -September) break-even management fee in return for use of Dan Law Field, electricity water, field maintenance, lighting, scoreboard operation, and security. Councilmember Hernandez asked Mr. Bockrath to speak to 11 points of concern addressed by City Attorney John Ross in a memorandum to council members dated February 15, 1995. Before Mr. Bockrath responded, Mr. Ross clarified that most of the points in the memorandum were based on the fact that Mr. Ross had not yet seen a copy of the final agreement between Texas Tech University and TPB, and the 11 points may not be of concern in the final agreement. Mr. Bockrath's responses to the 11 points of concern are as follows: 1) Yes, the City of Lubbock will receive .50 per ticket for the occupancy sky boxes. 2) Yes, Texas Tech can attach a plat or map of the parking area referred to in paragraph 1 of the draft agreement. 3) The issue of conflict between TPB and Texas Tech's use of Dan Law Field has already been addressed (Texas Tech would have priority). 4) The final agreement will include a lease for five years with two five-year options. 5) The league's appearance will not be put off for one year because the improvements will be taking place during Texas Tech's current baseball season. 6) Skyboxes are not part of the improvement package; therefore, those improvements will not have to be completed prior to the start of the TPB's 1995 season. 120 City Council Minutes February 17, 1995, Special Meeting Page 121 7) Language will be incorporated into the agreement regarding TPB's responsibility for securing authority to use City of Lubbock owned parking areas adjacent to the stadium on its west side on a per event basis. 8) Factors regarding natural disaster scenarios affecting the revenue stream running to the City of Lubbock cannot be calculated. 9) This item would be left to the negotiating attorneys in the final lease agreement. 10) This item would be left to the negotiating attorneys in the final lease agreement. 11) This item would be left to the negotiating attorneys in the final lease agreement. Mr. Ross reminded the Council that his points of concern were raised on the draft agreement in order to give the Council as much information as possible in order to make this risk versus benefit decision. Councilmember Hernandez asked Mr. Ross to address whether the funding could come from either the hotel/motel tax fund or the economic development fund. Mr. Ross responded that the hotel/motel tax is a dedicated tax, the expenditure of which is limited to enumerated items within the statutes, and a baseball facility is not one of the enumerated items. Mr. Ross indicated that it is his opinion that hotel/motel tax funds cannot be used for this project. Councilmember Hernandez then questioned whether economic development funds should be used for this project and asked Rod Ellis, Director of Business Development, to respond. Mr. Ellis outlined three standard analyses that have been done when making decisions regarding whether to contribute economic development funds to a project. Mr. Ellis' analyses indicated that this project would be eligible for approximately $43,000 in LP&L infrastructure funds but does not meet the informal criteria that have been used to consider other economic development loan projects. Further, Mr. Ellis said it was his opinion that this project would not provide substantial economic development to the city. Councilmember Hernandez said that, based on this and the other information presented, he could not support the project. Mayor Langston and Councilwoman Sitton compared the project to the multi -purpose arena project that the Council supported in order to make Lubbock the regional center for recreation and entertainment. Mayor Pro Tem Neugebauer asked whether another source of funds could be used, to which Mr. Ross responded that the only legal way to fund the project would be through economic development funds. Councilmember Ince acknowledged that the project would bring additional entertainment and leisure outlets to 121 City Council Minutes February 17, 1995, Special Meeting Page 122 the city, but it is only a very minor economic development project that is high risk and for which the City of Lubbock has no recourse in case of default. Following further questions regarding the legitimacy of the project as an economic development venture, Mr. Ross reiterated that the project does qualify under Section 380.001 because it is a commercial activity. Mayor Langston reminded the Council that the state legislature thinks that a ball park in an economic development issue because they created Section 4(b) so that the half -cent sales tax for economic development could be used to construct The Ballpark at Arlington. Motion was made by Councilmember Sitton, seconded by Councilmember Patterson to authorize Resolution 44746. Motion carried: 4 Yeas; 3 Nays --Mayor Pro Tem Neugebauer, Councilmember Ince and Councilmember Hernandez. (4.) Consider Resolution #4747 authorizing the Mayor to execute an agreement with Texas Professional Baseball, Inc., for a professional baseball team to Play in Lubbock. RESOLUTION #4747 WHEREAS, Section 380.001 of the Local Government Code and Article 835s of Vernon's Annotated Civil Statutes permits municipalities to establish and provide for the administration of one or more programs to promote local economic development and to stimulate business and commercial activity within the municipality; and WHEREAS, the City Council of the City of Lubbock deems it to be in the best interest of the citizens of the City of Lubbock to establish a commercial program to bring professional baseball to Lubbock; and WHEREAS, the City Council desires to contract with Texas Professional Baseball, Inc., to provide a Texas -Louisiana League professional baseball team to play in Lubbock; and WHEREAS, the City Council by means of a separate interlocal agreement with Texas Tech University will provide a stadium for professional baseball use by Texas Professional Baseball, Inc.; NOW THEREFORE: BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: SECTION 1. THAT the City Council for the City of Lubbock hereby establishes a commercial economic development program under Section 380.001 of the Local Government Code and Article 835s, Vernon's Annotated Civil Statutes, to bring professional baseball to Lubbock. 122 City Council Minutes February 17, 1995, Special Meeting Page 123 SECTION 2. THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock an Agreement, attached herewith, by and between the City of Lubbock and Texas Professional Baseball, Inc., with regard to fielding a professional baseball team in Lubbock, and any associated documents, which Agreement shall be spread upon the minutes of the Council and as spread upon the minutes of this Council shall constitute and be a part of this Resolution as if fully copied herein in detail. Passed by the City Council this 17th day of February, 1995. /s/ David R. Langston DAVID R. LANGSTON, MAYOR ATTEST: /s/ Betty M. Johnson Betty M. Johnson, City Secretary APPROVED AS TO CONTENT: /s/ Rod Ellis Rod Ellis, Director of Business Development /s/ Donald G. Vandiver Donald G. Vandiver, First Assistant City Attorney A copy of the Agreement with Texas Professional Baseball, Inc., is filed with Resolution No. 4747. Motion was made by Councilmember Patterson, seconded by Councilmember Sitton to authorize Resolution #4747 as recommended by staff. Motion carried: 4 Yeas; 3 Nays --Mayor Pro Tem Neugebauer, Councilmember Ince and Councilmember Hernandez. 123 City Council Minutes February 17, 1995, Special Meeting Page 124 There being no further business to come before Council, motion was made by Councilmember Patterson, seconded by Crscil�� oke to adjourn the meeting at 12:35 p.m. Motion carried: 7 Yeas; 0 Na .VID R.LANCSTON, MA ATTEST: �'� lK Betty MO. Johnson, tity Secretary Read and approved this the 9th day of ATTEST: Betty M. Johnson, ity Secretary 124