Title
Maryvale Baseball Park Renovations with Milwaukee Brewers (Ordinance S-44071)
Description
Request to authorize the City Manager, or his designee, to enter into 25-year operating, lease and non-relocation agreements with the Milwaukee Brewers Baseball Club, or City-approved designee, for the renovation, operations, maintenance and capital replacement of Maryvale Baseball Park; and to enter into an option agreement and other agreements as necessary and appropriate. Further request authorization for the City Treasurer to accept, and for the City Controller to disburse, all funds related to this item, pursuant to the agreements.
Report
Summary
The City opened Maryvale Baseball Park (Park) in 1998 on land donated by John F. Long Properties, Inc. Since that time, the Park has been home to spring training games hosted by Major League Baseball's (MLB) Milwaukee Brewers Baseball Club (Brewers), as well as various community events. The Brewers originally agreed to play spring training games in Maryvale for 15 years. Since that agreement expired, the Brewers have been on a year-to-year contract.
Given the age of the stadium and other park infrastructure, and the temporary nature of the existing City agreement with the Brewers, the facilities are in need of renovations. Additionally, given the economic impact of MLB spring training on the City and state, and the community benefits of an updated and well-maintained property that can host community events as well as professional baseball operations, the City and Brewers signed a Letter of Intent dated Oct. 25, 2017, regarding the Park.
The Brewers will invest $41 million to $63 million renovating the Park and commit to playing spring training games in Maryvale for 25 years, through 2042. The City will contribute $2 million per year for five years ($10 million total) toward the renovations. Improvements at the stadium are anticipated to include more shade, wider concourses, modernized concessions, remodeled restrooms and a new kids play area. In addition, the Brewers intend to develop at the Park a new retail and ticketing building, a new clubhouse, a new major league practice field that mimics Miller Park (the regular season home of the Brewers), a new parking lot and entry feature as well as new fencing and landscaping throughout.
The Brewers will also take on responsibility for Park operations, maintenance and future capital replacement, all of which are currently the City’s responsibility. The City’s current net operations and maintenance costs are approximately $1.4 million annually. The City would continue that level of support for the Park, growing at 4 percent annually. However, unlike today, the City’s investment would be capped under the new agreement. Also, all future capital replacement needs would be completely funded by the Brewers, who will contribute $1 million annually into a capital replacement account starting in 2022 and continuing for the remainder of the term.
At the end of the 25-year term, the Brewers will have an option to acquire the property at appraised value, with credit provided based on the Brewers’ investments in the property. At the end of the agreement, if the Brewers decide to purchase and develop the property, the City will have the exclusive option to negotiate acquisition of youth playing fields. In addition to paying for the majority of the renovation and taking on future operating and capital replacement liabilities, the Brewers will make further investments in the community. The team will provide $50,000 annually to the City’s Kool Kids program, which provides free open swim admission to community youth at City of Phoenix pools. The Brewers will also designate a Learning Lounge at the facility that would be available to Phoenix students. Through a new partnership, Grand Canyon University will provide tutoring, mentoring and other youth educational activities. Also, community programming that has historically occurred at the Park will continue, such as the annual Light Up the Sky fireworks display around Independence Day.
Financial Impact
The City’s annual investment of approximately $1.4 million, consistent with current net operating expenses, would continue to be paid out of the Parks and Recreation Department operating budget as it has historically. The City’s $2 million annual contribution over five years ($10 million total) toward the $41 million to $63 million renovation will be paid out of the Sports Facilities Fund.
Location
Maryvale Baseball Park: 3600 N. 51st Ave.
Council District: 5
Department
Responsible Department
This item is submitted by Assistant City Manager Milton Dohoney, Jr., Deputy City Manager Deanna Jonovich and the Parks and Recreation Department.