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HomeMy WebLinkAbout154-97 OrdinanceRECORD OF ORDINANCES Davton Leeal Blank Co. Form No. 8U04S __ .. f ~r Ordinance No.--- I54-97 Passed------ --- -- ------ ------- ----- ------------19------- AN ORDINANCE CALLING FOR A SPECIAL ELECTION IN THE CITY OF DUBLIN ON FEBRUARY 3, 1998 PURSUANT TO THE REFERENDUM PETITION FILED BY THE ELECTORS WHEREAS, Ordinance No. 135-97, authorizing the Dublin City Manager to execute a Letter of Intent with the Hunt Sports Group for the proposed expansion of Cosgray Park and stadium project, was passed by City Council on October 13, 1997; and WHEREAS, referendum petitions were filed with the Finance Director on November 10, 1997 at approximately 3:30 p.m. with originals delivered to the Franklin County Board of Elections on November 20, 1997 at approximately 4:00 p.m. pursuant to law; and WHEREAS, Section 9.02 of the Revised Charter of Dublin, Ohio provides that, "Council may, at any time, order a special election by legislation which shall set forth the date and purpose of the election, including but not limited to the referral of pending legislation to the electors for their approval or rejection. Special elections maybe held on any date"; and WHEREAS, Council desires to afford the citizens of Dublin a meaningful opportunity to consider the referendum and determine if the stadium project should proceed; and WHEREAS, any delay in holding the election on the February 3, 1998 statewide special election date could render the referendum moot by virtue of the fact that any such delay would make it impossible for the Hunt Sports Group to construct the stadium in time for the 1999 soccer season. WHEREAS, the Franklin, Union and Delaware County Boards of Elections as appropriate are in the process of examining the referendum petitions as to Ordinance No. 135-97; NOW, THEREFORE, BE IT ORDAINED by the Council of the City of Dublin, State of Ohio, ~ of the elected members concurring that: Section 1. Council hereby directs the Franklin, Union and Delaware County Boards of Elections to place the referendum on Ordinance 135-97, a certified copy which is attached hereto as "Exhibit A", on the February 3, 1998 ballot, provided that the respective Boards of Elections determine that a sufficient number of Dublin electors have signed the referendum petition, as required by law. e i n 2. In the event the number of valid signatures as determined by the respective Boards of Elections, equals or exceeds 10% of the number of electors who voted for the governor at the most recent general election, City Council hereby ratifies the previous certification provided to the respective Boards of Elections by the Finance Director on November 20, 1997. Section 3. That this Ordinance shall be effective immediately upon passage in accordance with Section 4.04.(a)(4) of the Revised Charter. Passed thisa~ day of November, 1997. or -Presiding Officer ATTEST: L/~'Zy-'t/~- ~ Clerk of Council l hereby cerfify tbnt (w~ie5 of t'1is D t ~~.~r~ /~,., of D"++bltn !l1 c~ccoroe~ce ~;;;".: ,vct,v.?t i.l.~' .` . cty ` tierk of Council, Dublin, (3l,ia RECORD OF ORDINANCES Dayton Legal Blank Co. Form No. 30043 135-97 Ordinance No.------------------------ Passed----- -------------------- --------1~- - AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE ALETTER OF INTENT WITH THE HUNT SPORTS GROUP FOR THE PROPOSED EXPANSION OF COSGRAY PARK AND STADIUM PROJECT WHEREAS, Mr. Lamaz Hunt, on behalf of Hunt Sports Group, has executed a Letter of Intent to develop and operate a soccer specific stadium complex, including parking facilities and related appurtenances, to be located on approximately 180 acres adjacent to Cosgray Park; and WI~REAS, Dublin City Council has reviewed the proposal as outlined in the Letter of Intent (attached hereto as Exhibit "A") and held a public discussion regarding the parkland expansion and stadium project on Monday, September 29, 1997; and WHEREAS, Council has determined that the project as proposed will further the City's public purposes of enhancing the economic welfare by creating jobs and employment opportunities, by providing increased opportunities for parks and recreation programs and by providing a venue for community and cultural events. NOW, THEREFORE BE IT ORDAINED by the Council of the City of Dublin, State of Ohio, (~ of the elected members concurring: Section 1. That the City Manager is hereby authorized to execute the Letter of Intent attached hereto as Exhibit "A". Section 2. That this ordinance shall be effective at the earliest date permitted by law. Passed this ~3~~ day of D~,-tob~~ , 1997. ~~ ~ 1V~ayor -Presiding Officer ATTEST: I j;~~~r~~~e~t~~f~Cs~ttC*.c~~'f~izlOtd9t~aTlte~tT wefC Ci~yYoP~OB~~N~d~~a~~~e~t~s~~o~~s us~~f ~ne'~fia•A 7 ~. ~ _ Clerk of Council ~ ei~C o~ N~~~. ~~~%~ dlhro ~,o~'~ ~ ~ a, ~' e~°E ~~~ ~°~o, ~° 1~ ~ of 0~ ~f'~ ° pti+o o tNg co `oU~~ o ~ pob~`~. Eo~~ ~o `g~by ~hg ~ t~ o~ Co~u~. a~~y o ~ L ~ ~Y of 'r~ ~, f~-:.~~ IHI 1LT I~ ~C ~ IE~ ®IEg 7C ~ ~ Ifs ®~J ]E~ LETTER OF INTENT September 17, 1997 Mr. Tim Hansley ~._.x' City Manager -City of Dublin 5200 Emerald Parkway Dublin, Ohio 43017-1006 Dear Mr. Hansley: Thank you for your attention to our various conversations over the last several months. This letter is intended to summarize those discussions and describe the basic responsibilities of the parties under the proposed venture. Acceptance of all terms and conditions. outlined in this letter are subject to the review and approval of the Dublin City Council ("Council"). Hunt Sports Group ("Hunt") understands that any City obligations to negotiate appropriate agreements pursuant to this letter are null and void if the Council does not approve and authorize the execution of this letter on behalf of the City. Further, any agreements negotiated pursuant to this letter of commitment will not be binding upon the City until the Council approves those agreements. This letter is being written to confirm the mutual understanding of the City of Dublin, Ohio ("City") and Hunt regarding the development and operation of a soccer specific stadium complex, including parking facilities and other related appurtenances (collectively, the "Stadium") to be located in the City, all consistent with afifty-year vision. If the general terms outlined in this letter are acceptable, we would propose that this letter serve as a letter of intent for a plan of development for the Stadium. Furtherance of Public Purposes Hunt acknowledges that any City participation facilitating the development of the Stadium as outlined in this letter will be in furtherance of the City's public purposes of (i) providing parks and recreation, community and cultural programs and services, and (ii) creating jobs and employment opportunities, and improving the economic welfare of the people of the City, all as authorized in Section 13 of Article VIII, and Section 3 of Article XVIII of the Ohio Constitution, the laws of Ohio and the Charter and ordinances of the City. D A L L A S K A N S A S C I T Y Commerce Bank Building 1000 R'elnut Street Suitc 1520 Kansas City, Alissouri 64105 Telephone 816 472 1SOL Fax 816 472 1186 Hunt Sports Group Letter of Intent for City of Dublin Soccer Specific Stadium September 17, 1997 Page 2 Stadium Site <~. w. Hunt understands that in exchange for its commitment to cause the Stadium to be designed and built, the City will acquire, or cause to be acquired, a site for the proposed Stadium wluc consists of three different parcels of land aggregating approximately 180 acres all as more fully described in Exhibit A ("Site"). If the City has not obtained an option to buy the Site prior to the time Council approves the execution of this letter, the Council will at the time of its approval of this letter authorize the City to commence eminent domain proceedings with respect to the Site. The City will acquire the Site by purchase or by settlement of an eminent domain action at a price which is satisfactory to the City or by court order pursuant to an eminent domain action. Following acquisition, the City will annex the Site into its corporate jurisdiction. If the City commences an eminent domain action to acquire the Site, the City will agree to take any steps reasonably necessary and practicable to allow Hunt or any designee of Hunt (collectively "Designee") approved by the City to cause construction of the Stadium to commence in accordance with the milestone schedule attached as Exhibit B. Hunt expects to offer ownership interests in and to require financial guarantees of the debt of the Designee to the owners of the Columbus Crew ("Crew") on a pro rata basis reflective of the ownership structure of the Crew. Hunt understands the City will ground lease the Site to anot-for-profit stadium development corporation ("SDC ") to be created under the laws of the State of Ohio. The SDC is expected to have a Board of Trustees of three members, one of whom will be nominated by Designee. Any membership interests in SDC will be subject to rights of first refusal and other customary transfer restrictions. The SDC will lease the Site from the City for nominal rent pursuant to an approximately 25-year ground lease with a 25-year renewal option with terms to be agreed upon. SDC will, in turn, sub-lease the Site to Designee for nominal rent for an equal period. Hunt understands that, in furtherance of the City's public parks and recreation and community and cultural programs purposes, including but not limited to providing parking for expanded activities at adjacent Cosgray Park, the City will retain certain rights to the Site under its ground lease to SDC, which rights will not be in conflict with the design, construction and operation of the Stadium on the Site by Designee. Stadium Designee will design, or cause to be designed, the Stadium which will be used primarily for outdoor professional soccer, but will also provide for the exhibition of a multitude of other entertainment, community and sporting events. The Stadium will initially be designed, subject to the budget and financing objectives, for a preliminary capacity of approximately 30,000 - 35,000 seats (25,000 - 30,000 permanent seats and 5,000 temporary seats) with the ability for future expansion in various stages to approximately 60,000 seats. Any future expansion and financing therefore will be by mutual agreement. Hunt Sports Group Letter of Intent for City of Dublin Soccer Specific Stadium September 17, 1997 Page 3 The Stadium design and construction will be subject to customary City planning and zoning approvals. Stadium Financing OAt10nS Designee will assume ultimate responsibility for all costs (including costs of financing) the design and construction of the Stadium. Regardless of the method of financing which method and terms Designee and Hunt must approve, Hunt agrees to guarantee the payment of debt service on that financing. To protect the City's public interest in the Stadium project and investment in the Site, the City will have an option (but no obligation) to cure any financial defaults related to Stadium financing. At the end of the initia125-year ground lease term (or 50- year ground lease term if the renewal option has been exercised), the Stadium will be transferred to the City with that transfer coupled, at Designee's option, with a mutually agreed upon lease or use agreement of the Stadium to Designee. As an alternative to traditional bank financing, Designee may request the SDC to facilitate a taxable public bond offering ("Bonds") to finance the Stadium. In this case, the SDC would lease the Stadium to Designee, under a financing lease/management agreement, and Designee will guarantee the payment of the lease rentals to cover all debt service payments on the SDC bonds. It is expected that the financing lease and the initial ground lease will have the same term. Further, any interest earnings on the Bond proceeds will be within the control of Designee. Upon final payment of the Bonds, the City and Designee shall renegotiate any underlying financing/ground lease upon terms which are mutually acceptable to each party. Designee acknowledges that the SDC bonds will be payable from the lease rentals received in connection with the lease of the Stadium from the SDC to Designee, and the SDC Bonds will not constitute a general obligation or indebtedness of the SDC or the City and neither the faith and credit nor the taxing power of the SDC or the City shall be pledged to the payment of the SDC Bonds. In connection with the issuance of the SDC Bonds, Designee will take those steps reasonably necessary to secure such credit enhancement (i.e. a bank letter of credit or other acceptable enhancement) as may be necessary, in the mutual judgment of Designee and the SDC, to market the SDC bonds on the most advantageous terms within the budget and financing objectives which we have presented to you. Regardless of the financing option chosen by Designee, Designee understands that, if necessary, SDC will mortgage its leasehold interest in the Site (excluding the City's land). The City's retained rights as described above will in no way be impaired by any SDC mortgage. f Hunt Sports Group Letter of Intent for City of Dublin Soccer Specific Stadium September 17, 1997 Page 4 Infrastructure Financing -. Hunt understands that the City will commit to the public construction and financing of a .~.~.~ mutually agreed upon program of public infrastructure improvements related to Stadium development and support, including extending at City cost sewer and water service to the Site, and undertaking, on a mutually agreeable schedule, road improvements to accommodate Stadium event traffic. Under Ohio law, the Stadium improvements will be subject to real property taxation. The City therefore agrees to impose tax increment financing on the Stadium to the maximum extent permitted by law so property taxes will be used, together with other resources, to support the mutually agreed upon public improvements. Any bonds issued by the City to finance the public improvements shall be general obligation bonds of the City supported by the full faith and credit of the City including any revenues received from the imposition of the tax increment on the Stadium. Operating Commitment Designee will have responsibility for the operation and management of the Stadium. At this time, Hunt expects that the Major League Soccer team known as the Crew will be the prime tenant of the Stadium. Designee would pledge to establish a continuing scheduling agreement which would recognize the needs of its prime tenant of the Stadium to have certain priority scheduling rights. The City will provide the option for the future use of an adjacent practice soccer field in Cosgray Park by the Crew and/or visiting teams, together with an option for the Crew to use the soccer fields of Cosgray Park to conduct related game day events. The City will also provide for ingress and egress roads through Cosgray Park to facilitate automobile access to the parking lots at the Stadium. As part of its operating commitment, Designee will agree to maintain the Stadium and Site as a first class performance, sporting and assembly facility and in as near original condition as is possible through normal operation and maintenance of such facilities, and that commitment will be memorialized in an operating agreement; provided however, that Designee will not be responsible for any damages caused by any force majeure (i.e. act of war, natural disaster, etc.) event. Designee will be fully responsible for generating revenue for the Stadium by securing long-term tenants as well as the standard array of concerts, sports events, conventions, family shows, and any secondary tenants that scheduling permits and for paying all operating costs, including but not limited to lease fees in support of debt service, of the Stadium without risk to the City or Hunt Sports Group Letter of Intent for City of Dublin Soccer Specific Stadium September 17, 1997 Page 5 the SDC, if any, for any shortfalls. The City and SDC will not be responsible for any operating deficits. City's Use of the Stadium In furtherance of its public parks and recreation purposes, the City will commit to purchase under a long term agreement and in furtherance of its parks and recreation and community and cultural programs, a mutually agreed upon number of annual public dates at the Stadium with mutually agreed upon terms. The City's use of the Stadium will not be competitive with professional soccer, and will not resemble traditional "for-profit" events. The scheduling of such events will be around the dates for professional soccer, and without prior consent of the Stadium operator, any event that involves the use of the playing surface will cease 72 hours before the commencement of a professional soccer event. City Service Support The City will agree to provide or arrange for the provision, at City cost, of the additional, off- site police and traffic control services required for not more than (20) events per year at the Stadium consisting of Crew games and other professional soccer games and related events (i.e. exhibition soccer games, MLS All Star Game, MLS League Championship game and men's or women's National Team games). The City will agree to discuss the provision of such services for additional soccer related events and for any other events hosted by the Stadium. Other Conditions It is understood that the final agreement will be contingent on the City being satisfied with the financial strength of the operator of the Stadium and guarantor of any Stadium financing. Except for the legal fees of Designee's counsel, the City will be responsible for all costs and expenses associated with the performance of the City's obligations described herein. Designee and the City mutually pledge to use every effort to reach agreement on all of the legal terms and provisions which either of them requires in the definitive agreements, consistent with the above provisions, in order to reach a complete, binding agreement. Except for the foregoing sentence, neither party will be legally bound until such complete, definitive agreements are signed and with respect to the City's obligations, approved by Council. Upon Council's approval, please indicate your agreement to these terms on behalf of the City by signing this letter where indicated below. We look forward to working together to develop a plan that will provide the venues needed for public sports, recreational, and entertainment events in the City. Please let me know if you have questions or would like additional information. r_ Hunt Sports Group Letter of Intent for City of Dublin Soccer Specific Stadium September 17, 1997 Page 6 Sincerely, Hunt Sports Group - --~ Lamar Hunt Authorized Agent Accepted By: ~~ - Tim Hansley City Manager, at the direction and on behalf of the Dublin City Council Date: ~ (S 1997 Approved as to form: Director of Law cc: Rick Helwig Marsha Grigsby Stephen Smith ~, EXHIBIT A DESCRIPTION OF SITE EXHIBIT B 1. Final SDC corporation documents and the final versions of any lease and sublease and related documents shall have been agreed upon by the parties by January 15, 1998, with work to commence first on the corporate, lease and sublease documents with the mutual goal of those documents being in nearly final form by November 15, 1997. ~.~ 2. Groundbreaking : As soon as possible, but in no event later than March 15, 1998, when excavation can be commenced on the site in order to accommodate a construction schedule that allows the Stadium to be opened by April 1, 1999. ADDENDUM TO LETTER OF INTENT DATED SEPTEMBER 17, 1997 Following the public hearing hosted by the Dublin City Council on Monday, September 29, 1997, and the City Council meeting held Monday, October 6, 1997, the parties have identified several common concerns which need to be mutually agreed upon in the negotiations held subsequent to executing the Letter of Intent for the soccer specific stadium proposed to be built with the assistance of the City of Dublin. The purpose of this Addendum is to convey the intent of the parties to make a good faith effort to reach a mutually acceptable resolution of the issues identified. The parties again acknowledge that any agreements negotiated regarding the issues contained in this Addendum will not be binding upon the parties until the parties approve those agreements. Issues which have been mutually identified and for which mutual agreement will be pursued: Stormwater drainage is a concern in the unincorporated area where the stadium is proposed to be located. The impact of the proposed stadium development on stormwater drainage will be jointly analyzed and solutions which benefit the project and the surrounding area will be sought. 2. The impact of the project on land uses surrounding the proposed stadium needs to be jointly analyzed and addressed in a proactive manner by the parties. 3. Already mentioned in the Letter of Intent is the need to mutually agree upon a program and timetable of road improvements and game-day traffic management programs to accommodate stadium event traffic. This issue is repeated for the sake of added emphasis. The road improvement program and timetable cannot alter the City Council adopted 1998-2002 Capital Improvement Program. 4. A policy regarding alcohol use at the stadium site shall be developed. 5. The type and maximum number ofnon-athletic events (such as concerts and large group gatherings) and related noise levels permitted need to be determined. A process for local control and approval needs to be established. 6. The feasibility of an entertainment/admissions tax. 7. The use of "Dublin" in the stadium name, possibly in conjunction with a corporate identification, needs to be explored. 8. Applicable City of Dublin codes and regulations (e.g. building, landscaping, parking, site layout, lighting, etc.) shall be complied with. Above ground structure shall be masonry or shall meet the architectural requirements of Planning & Zoning. Stadium seats shall be armchair type. Addendum to Letter of Intent Page 2 9. Parking fees for City-sponsored events. 10. In the unlikely event that professional soccer would cease to be the primary tenant in the stadium, the parties would jointly seek another tenant(s) to ensure that the facility would always remain primarily an athletic venue. 11. Permanent seat licensing shall be discussed. Notwithstanding the terms of this letter or the amendment, if during the course of further negotiations the City acquires additional information, reports, or other data which would indicate that it would not be in the best interest of the City to enter into an agreement containing language evidencing the said term or terms, it shall not be considered bad faith to object to the inclusion of the term or terms. Further, each party hereby expressly waives any and all potential claims whatsoever should they fail to mutually agree. CG~_ Lamar Hunt Hunt Sport Group a Tim Hansley City Manager City of Dublin October ,~, 1997 cc: Rick Helwig Marsha Grigsby Stephen Smith