HomeMy WebLinkAbout100708 Indoor Sports FacilityPrincess Anne Athletic Development, LLC (PAAD)
Status Report
October 7, 2008
1
LANDSTOWN ROAD
AERIAL VIEW OF VIRGINIA BEACH SPORTSPLEX
2
Jan 2007
CurrentReality
CurrentReality
3
Timeline
Timeline
Sept 4, 2007
Council briefed on study. Council approves RFI.
Oct 4, 2007
RFI advertised.
Nov 26, 2007
Staff recommended two groups.
Dec 11, 2007
Council briefed on RFI responses.
Dec 21, 2007
Finances reviewed. Both firms OK’d.
Feb 12, 2008
Council briefed on Redskins. RFI revised.
Council briefed on interviews; approves
Apr 21, 2008
negotiations with PAAD.
Sep 9, 2008
Council briefed on term sheet.
Council briefed on term sheet.
Sep 23, 2008
4
Site Concept
Site Concept
$3,500,000
Infrastructure
$6,475,000
Retail Complex
$12,850,000
Field House
$135,000
USFH Upgrade
$1,060,000
SportsplexUpgrade
5
Field House
Field House
6
Sportsplex Commons -Retail
Sportsplex Commons -Retail
7
The Proposal
The Proposal
Construction of
Private Sector Investment
?
$12,850,000
166,000 ftindoor sports fieldhouse facility
2
?
50,000 ftsports retail center –Sportsplex
2
$ 6,475,000
?
Commons
Upgrade of
?
Sportsplex (artificial turf and concession
$ 1,060,000
?
upgrades)
USFHA facility (spectator seating, video
$ 135,000
?
towers, etc.)
Infrastructure improvements
?
$ 3,500,000
Access road
?
Stormwater ponds
?
Parking lot paving for all facilities
?
$24,020,000
8
More Proposal Details
More Proposal Details
Two-year option to build six (6) lighted
?
artificial turf fields
Option to enclose Sportsplexfield during
?
winter months
Cost of future capital improvements/
?
replacements to be City responsibility for
Sportsplexand USFH
Field House and artificial turf fields can be
?
built without retail center
Management of Sportsplex and USFH
?
facilities depends on retail center
9
Business Structure
Business Structure
1. Master Developer with PAAD, LLC
1. Master Developer with PAAD, LLC
Development Agreement for construction of
?
infrastructure
Timeframe for completion
?
Construction standards
?
Investment criteria defined
?
Pond
?
Parking
?
Access Road
?
10
Business Structure
Business Structure
2.Virginia Beach Field House, LLC
2.Virginia Beach Field House, LLC
(Principals –John Wack, Tom Wack, & Cathy Wack, et al.)
Ground Lease for Field House
?
Construction of Field House with
?
timeframe of completion (Nov 2009),
construction standards and investment
criteria
Performance parameters and thresholds
?
City profit sharing defined
?
13.9 acres
?
Option on 23.6 acres for six (6)
?
additional fields
11
Business Structure
Business Structure
3.SportsplexCommons, LLC
3.SportsplexCommons, LLC
(Principals –Paul Van & Chuck Thorton, et al.)
Ground Lease for Retail Center
?
Construction of Retail Center with timeframe of
?
completion, construction standards and investment
criteria
Performance parameters and thresholds
?
City profit sharing defined
?
4.Hometown Sports Management, LLC
4.Hometown Sports Management, LLC
(Principals –Paul Van & Chuck Thorton, et al.)
Management Agreements for Sportsplex& USFH
?
Performance parameters and thresholds
?
Types of usage allowed
?
Still needs further negotiation
?
City profit-sharing defined
?
12
Summary of Terms
Summary of Terms
I.Term20 years, with two 10-year renewal
periods, at lessee option
II.RentNominal for all land leased
III.Management For Sportsplex and USFH
Agreement
IV.Incentive Paid by Annual performance grant for 10
Cityyears equal to real estate taxes
paid
V.Revenue Sharing General 5% of gross revenues over
Received by Citya threshold level
13
Summary of Cash Flows to City
Summary of Cash Flows to City
First 20 Years
The components of the net cash flow are as follows:
Real Estate Taxes Paid to the City$ 7.5 million
Incentive Grant Paid to PAAD (10 years) -3.2 million
Revenue Sharing paid to the City3.0 million
Cost Savings Sportsplex& USFH Operations12.0 million
Total Cash Flows to the City$19.3 million
Other Fiscal Impacts$47.4 million
TOTAL
$66.7 million
14
Timeline –Next Steps
Timeline –Next Steps
Public Presentation.
Oct 7, 2008
Conditional Rezoning (from AG to B2) &
Oct 8, 2008
Conditional Use Permit to Planning Commission.
Open House at the Advanced
Oct 30, 2008
Technology Center.
Conditional Rezoning & Conditional
Nov 25, 2008
Use Permit to Council.
Complete negotiations with PAAD, LLC.
Nov 30, 2008
Final Lease/Management Terms
Dec 2, 2008
to Council for consideration.
Feb, 2009
Construction begins.
Nov, 2009
Facility Open.
15
Benefits of the Project
Benefits of the Project
Community Recreation amenity that would not
?
happen otherwise
Opportunity to improve and expand use of existing
?
Sportsplexand USFH facility
Infrastructure to support future economic
?
development
Fulfills master plan goals of Princess Anne
?
Commons and provides needed athletic retail
services
Attract large regional sporting events
?
Avoids operating expenses of Sportsplex
?
Positive financial impact for the City
?
16