Title
Papago Baseball Complex (Ordinance S-44448)
Description
Request to authorize the City Manager, or his designee, to enter into an Intergovernmental Agreement with the City of Scottsdale for the improvement, operations, maintenance and use of the Papago baseball fields for Major League Baseball and to enter into other related agreements as necessary and appropriate. Further request to authorize the City Treasurer to accept all funds related to this item, pursuant to the agreements.
Report
Summary
The baseball complex at Papago Park, including four full fields, a clubhouse and batting tunnels, was utilized by the Oakland A’s for practice and player development during their tenure at nearby Phoenix Municipal Stadium, where they played their home spring training games. After 2014, the A’s relocated their spring training operations to the City of Mesa and the City of Phoenix partnered with Arizona State University (ASU) to utilize Phoenix Municipal Stadium as the home of Sun Devil Baseball.
Though ASU utilizes the stadium, it does not use the Papago baseball complex, so Phoenix has rented the facility to various baseball users such as charter schools and tournament organizers. Currently, Phoenix spends about $1.1 million annually to operate and maintain the Papago baseball complex, plus capital replacement as needed. Phoenix also receives approximately $250,000 in revenue, for a net cost of about $850,000 per year.
In 2016, Phoenix entered into a letter agreement with the City of Scottsdale to allow the San Francisco Giants to utilize the Papago baseball complex for player development and practice in the event the Scottsdale practice fields became temporarily unavailable. This letter also expressed Scottsdale’s intent to explore the possibility of permanently relocating the Giants’ player development program from the nearby Scottsdale Indian School Park to Papago. These agreements would not impact the adjacent softball fields or archery range in Papago Park.
Under the terms of a new Letter of Intent between the cities of Scottsdale and Phoenix, Scottsdale would lease the Papago baseball complex for 35 years. Together with the Giants, Scottsdale would invest approximately $35 million to expand the clubhouse, improve the playing fields and batting tunnels and make other upgrades, including netting and lighting. They would take responsibility for the baseball complex beginning December 1, 2018, and would be responsible for all improvements, operations, maintenance and capital replacement costs for the life of the agreement. Phoenix will also receive lease payments after initial renovations are completed.
Additionally, at no cost to Phoenix, Scottsdale would develop trail improvements around this area of Papago Park, add a shared-use parking lot for the benefit of the Giants as well as those using the trails, softball fields and archery range. In addition, the Giants have committed to hosting at least four clinics annually for the benefit of Phoenix youth.
Construction is anticipated to temporarily close the baseball facilities from the start of the term for about fourteen months. Shortly after the initial renovations to the Papago baseball complex are complete, Scottsdale would make the four nearby, lighted fields currently utilized by the Giants available to the public, including current users of the Papago baseball fields. Additionally, Scottsdale and the Giants will make both Papago and Scottsdale Stadium available to the public when not in use.
This action, if approved, would save the City of Phoenix Parks and Recreation budget approximately $51 million over the term in upkeep of the Papago baseball complex; it would also save Phoenix Parks and Recreation approximately $10 million in future capital replacement expenses. Additionally, this would be an important step toward retaining one of the Cactus League’s most popular teams in the Valley for the long-term, preserving a significant economic engine for the entire state. Lastly, the current users of the Papago baseball fields will have long-term access to not only Papago, but also Indian School Park and Scottsdale Stadium.
Financial Impact
There is no cost to the City of Phoenix from this item. The agreements will result in approximately $61 million in savings and approximately $2 million in rental income for the Parks and Recreation Department over the term.
Concurrence/Previous Council Action
This item was recommended for approval at the Parks and Recreation Board meeting on March 22, 2018, by a vote of 6-0.
Location
Papago Baseball Complex: 1802 N. 64th St.
Council District: 6
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.