LEGISLATIVE ACTION ITEM
 
SPONSOR:                         Grover C. Robinson, IV, Mayor
 
SUBJECT: 
 
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AMENDMENT NO. 5 TO THE USE AGREEMENT WITH NORTHWEST FLORIDA PROFESSIONAL BASEBALL FOR THE VINCE J. WHIBBS SR. COMMUNITY MARITIME PARK                     
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RECOMMENDATION:
 
recommendation
That City Council approve Amendment No. 5 to the Multi-Use Facility Non-Exclusive Use Agreement with Northwest Florida Professional Baseball LLC (NFPB) for the Vince J. Whibbs Sr. Community Maritime Park (CMP), renewing per the terms of the Agreement for two additional 5-year periods through March 30, 2032; and providing for the reimbursement to NFPB of various capital improvements for an amount not to exceed $2,000,000. Further, that City Council authorize the Mayor to execute all necessary documents related to the implementation of this Amendment.
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HEARING REQUIRED:  No Hearing Required
 
SUMMARY:
                                          
In July 2011, the Community Maritime Park Associates Inc. (CMPA) entered into a multi-use facility non-exclusive use agreement with Northwest Florida Professional Baseball LLC (NFPB) for the Pensacola Blue Wahoos to play baseball in the Community Maritime Park stadium.  Sections 1 and 2 of the original Agreement state that the term actually commences on the beneficial use date, which is April 1, 2012, as determined from NFPB records. Section 12 of the original Agreement states that the CMPA (now City) is generally responsible for repairs, maintenance, and capital improvements to the facility. This agreement was subordinated to the City with the sunsetting of the CMPA in 2017.  
 
NFPB wishes to exercise both extensions totaling ten (10) years contingent upon the construction and implementation of approximately $2,000,000 in capital improvements at the stadium.  The $2,000,000 in improvements include replacing the natural grass playing surface with artificial turf and replacing the regular stadium lights with LED stadium lights, and other items in keeping with modernization of the facility.  
 
Under the recent restructuring of the minor leagues by Major League Baseball (MLB), the number of teams were reduced and new requirements for modernized facilities were issued by MLB. Since the specifications of the artificial turf and LED lights must meet MLB requirements, NFPB will coordinate the purchase and installation of the capital improvements, with subsequent reimbursement by the City.  The Pensacola Blue Wahoos are now the Double-A affiliate for the Miami Marlins team.
 
 
PRIOR ACTION:                     
 
July 20, 2011 - The CMPA and NFPB entered into the Multi-Use Facility Non-Exclusive Use Agreement for baseball at the Community Maritime Park.
 
July 2014 - The CMPA and NFPB entered into the 1st amendment to the Multi-Use Agreement whereby NFPB cancelled any indebtedness to the CMPA and in return CMPA provided NFPB with office space at no charge.
 
April 2, 2015 - The CMPA and NFPB entered into the 2nd amendment to the Multi-Use Agreement whereby the CMPA sold the naming rights for the stadium to NFPB for a total of $787,500 to be paid in equal installments for seven years.
 
October 4, 2017 - The CMPA and NFPB entered into the 3rd amendment to the Multi-Use Agreement whereby the NFPB purchased a videoboard for $100,000, and the CMPA agreed to reimburse them $20,000 per year for five years.
 
March 14, 2019 - The City and NFPB entered into the 4th amendment to the Multi-Use Agreement whereby the Variable Attendance Surcharge was changed from a variable rate to a flat $1.50 per ticket.
 
FUNDING:                     
 
     Budget:                     $ 1,543,812                     CRA Fund - Property acquisition and redevelopment
      220,235                     CRA Fund - Complete streets - Main St
                                                115,623   CRA Fund - Property management - Baylen Slip 
                                                120,330   CRA Fund - Complete streets - Unallocated        
                                            $ 2,000,000                     Total    
             
      Actual:                     $ 2,000,000                     Multi-Use Facility Improvements
$ 2,000,000                     Total
 
FINANCIAL IMPACT:
                     
To avoid funding penalties related to the use of the Urban Core Redevelopment Revenue Bonds, Series 2017 Project Funds, funding from the CRA Fund must be utilized to fund the improvements. 
 
Funding from the CRA Fund will be re-allocated as outlined in the funding section of this item. However, allocations drawn from the property acquisition and redevelopment line item within the CRA Fund will be refunded through the Urban Core Redevelopment Revenue Bonds, Series 2017 Project Fund.  Funding re-allocated within the Urban Core Redevelopment Revenue Bonds, Series 2017 Project Fund, will include remaining budgets for the Reus Streetscape Revitalization project and project savings from the DeVilliers Streetscape Revitalization and Ferry Landing projects which include:
 
 
                                          $    992,476                     Bond Fund - Reus Street
                                                211,496                     Bond Fund - Devilliers Street - project savings
                                                129,960                     Bond Fund - Ferry construction - project savings
                                          $ 1,333,932                     Total   
 
LEGAL REVIEW ONLY BY CITY ATTORNEY:    Yes
 7/1/2021
    
STAFF CONTACT:
 
Keith Wilkins, City Administrator
Kerrith Fiddler, Deputy City Administrator - Community Development
Amy Lovoy, Finance Director
 
ATTACHMENTS:
 
1)                     5th Amendment to NFPB Use Agreement at CMP - revised draft
 
PRESENTATION:     No   end