Frequently Asked Questions Concerning New Spring Training Agreement With
Seattle Mariners and San Diego Padres
What is the term of the deal?
• This is a 20-year lease agreement.
• Baseball teams can opt out after year 15 should certain City funding
requirements not be addressed.*
• Teams can exercise an earlier “opt-out” clause. However, this comes at a
substantial cost. (High dollar penalty, pay off all remaining financing, bring
another team or be assessed an annual penalty).
What is the size of this deal?
• Includes an investment of $48 million over the life of the contract:
o In the next three years, the City will contribute $15 million per clubhouse,
plus $6 million for stadium improvements. Amount could be slightly more if
financing environment is favorable.
Total - $36 million
o By Year 14, City will contribute $3 million per team for clubhouse
improvements. After this, an additional $6 million is set aside for stadium
improvements.
Potential stadium improvements-Seating enhancements, party deck, façade
improvements, plaza area, field and lighting systems.
Total - $12 million-(*Should City not contribute this by Year 14 of agreement,
teams may opt-out of agreement in Year 15).
What about the Sports Authority? Are they contributing?
• The Arizona Sports and Tourism Authority (AZSTA) reimburses a significant
portion of this investment. However, the municipality must front all financing
costs. In addition, AZSTA funding is not expected to be available until at least
2020.
• AZSTA reimbursement estimated to be $11.2 million (adjusted by formula to
account for financing).
o Amount is an estimate only.
o Subject to Board Approval. (AZSTA Board has authorized development of an
intergovernmental agreement with these terms).
How is the City going to pay for this?
• The original $36 million will be largely financed
o The underlying revenue source for this financing will be the Half-Cent Sales
Tax Fund.
Stream of $2.5 million annually has been earmarked for this use.
Does NOT tap into funds previously set aside for economic development.
o Likely financing mechanism will be from a Municipal Development Authority (MDA).
• The latter year commitment of $12 million should be cash financed (largely a
direct compensation from AZSTA).
Does the City need voter authorization for such a deal?
• Voter authorization would only be required if the City were to use general
obligation bonds.
o Rationale-This financing tool puts an obligation on citizens “full faith and
credit”.
o City does have voter authority from a 2008 bond election. For roughly $6
million.
Is the lease much different than the last one?
• The vast majority of terms are comparable to the existing lease (revenue
splits, responsibilities).
• One exception: City is working to limit its exposure to payment of team
utility costs.
o In return-City will not charge an annual lease payment.
What is the construction schedule?
• Construction of clubhouses is expected to be completed by spring of 2014.
Additional stadium improvements would occur in the following year or so.
Will the improvements impact spring training?
• The clubhouse construction is scheduled to occur between April 2013 and
February 2014. So while Spring Training should not be materially affected, the
teams will be required to relocate for other year-round activities (Fall League,
Extended Spring Training…).
Interesting FACTS about the Peoria Sports Complex
• PSC had the highest Spring Training season attendance in the Cactus League for
14 years.
• PSC currently holds the Cactus League highest single game attendance record of
13,629 set on March 28, 2010 by Cubs vs. Mariners.
• Total Spring Training attendance over 18 years is 3.5 million. Adding an
average of 200,000 for non-spring attendance, the total year round attendance at
PSC over 18 years is approximately 7 million.
• Over 60,000 games have been played since 1994.
• Garth Brooks played with Padres in Spring Training.
• Michael Jordan played here while in AZ Fall League.
• PSC has been used by multiple Major League organizations as well as
international teams from
China, Korea, Japan and Australia during both Spring Training and Minor League
seasons.
• The complex hosts games for the World Baseball Classic.
• The complex has been utilized by professional soccer teams as well as the
Super Bowl Committee.
• The complex has hosted concerts featuring billboard superstars: Goo Goo Dolls,
Sugar Ray, Lenny Kravitz, Kid Rock, Collective Soul, Linkin Park, Alice in
Chains, My Chemical Romance, Blink 182, Melissa Etheridge, Enrique Iglesias,
Destiny's Child, Papa Roach, Three Dog Night and Starship.
Peoria Diamond Club facts:
• First season 1994 had 90 volunteers and awarded $7,000 in grants.
• 2011 season had 486 volunteers and awarded $109,000 in grants with a total of
$1,200,000 over the last 18 years.
• There are 34 volunteers that have been here since the first season.
