The Aces Edge

Here's a breakdown of the baseball stadium deal approved by the Reno City Council on September 27, 2007.

» Interactive Map of Ballpark Deal Parcels

The Players

Land Exchange: Siena Communities

In exchange for giving up its parcel in the ballpark block, Siena Communities will receive from the Reno Redevelopment Agency the following properties:

• Men's Club Building
• East 2nd Street Motel
  • Siena will provide an option for the Redevelopment Agency to repurchase the property
  • Option is transferable to a third party in order to facilitate possible hotel development on the river
• South Sierra Street Lot
  The empty lot west of the Riverside Artists' Lofts where BCN, developer of the Palladio, proposed in 2006 building another condo tower called Chambolle
  • If Siena fails to develop the property within four years, the Redevelopment Agency gains the right to repurchase the land
• Industrial Land
  • acreage can be adjusted up or down to ensure land transfer is of equal value for both parties

Land and Stadium Leaseback

• Developer owns or leases all stadium land
• Agency owns stadium improvements
• Developer leases land to Agency
• Agency leases stadium to Developer
• Agency has reversionary interest in land and improvements if lease terminates, the team moves or the stadium is not constructed
• The lease/leaseback arrangement facilitates tax-exempt financing of Car Rental Revenue Bonds

Stadium Lease

• 20-year term
• Agency leases stadium to Developer for $1 per year
• Developer responsible for all operations and maintenance
• Developer agrees to pay home games at the stadium throughout lease term
• Developer will not initiate relocation of team
• Stadium name and advertising will not be "offensive"

Ground Lease

• 20-year term, or until Rental Car Tax bonds are retired
• Developer leases stadium land to Agency for $1 per year
• Developer retains all obligation for insurance, taxes, maintenance, operations, and construction

Usage Agreement

• Contract between Nevada Land LLC and SK Baseball LLC for team to play at stadium
• Team will not "initiate" relocation

Stadium Perks for Agency

• Luxury suite
• 12 adjacent tickets to all home games
• Half-price admission to City and Agency employees to one game per year
• Information kiosk
• Agency and City can hold special events 12 days per year

Hazardous Materials

• Agency will remediate hazardous materials on all property conveyed by agency
• Agency, City, and Developer will be insured against environmental remediation costs

Fire Station No. 1

• Personnel and equipment to be relocated by January 31, 2008
• Potential extensions subject to construction schedule
• Developer loans City $10 million toward construction of new permanent fire station
• Developer will make $1.5 million available to the City for relocation costs

Agency's Financial Contributions

• Agency will reimburse Developer for stadium costs up to $2 million per year for 20 years
  • Payment agreement terminates if lease terminates
• Agency pays Developer's costs to relocate team from Tucson
• Developer reimburses Agency for relocation costs with Rental Car Tax dollars

Developer Obligations

• Construction to begin by January 1, 2008
• Construction must be complete by April 1, 2010
• Developer pays all costs of stadium construction including overruns, unexpected expenses and cost of delays
• Developer must pay "prevailing wage"
• Developer must make "commercially responsible" efforts to hire Northern Nevada-based contractors
• Developer must commit at least 2% of total project budget to public art projects in and around the stadium
• Developer must consult with Agency staff on stadium design and submit monthly progress reports
• 10-year "No-Move" clause
  • If Developer moves team during lease term, Developer must pay full mortgage on ballpark
• The Katzoffs and Herb Simon will provide a personal guaranty of stadium completion (or other such option as approved by both parties)
• Developers will provide $1 million set-aside to guarantee project completion

Retail Component

• Agency conveys 427 Evans Ave. to Developer for $1
• Agency makes "best efforts" to acquire RTC Site
  • If RTC acquisition is not successful, Agency will provide another site (to be determined) for retail developement
• Agency makes "best efforts" to facilitate lease of National Bowling Stadium ground floor retail, subject to RSCVA approval
• Lease term 20 years with two 10-year options
• Rent $1 per year
• City/Agency to make "best efforts" to partially abandon Evans Ave.
  • Tentative agreement exists with RTC
  • Area to be used as public plaza

The Ballpark District

• Developer is designated Master Developer of district
• Developer gains first right to acquire City/Agency-owned properties in district intended for conveyance to third party for redevelopment
• Agency will cooperate with Developer to establish a specific land-use plan for district
  • Land-use plan to be established through normal community development process
• Purpose of district
  • Required to calculate Tax Increment growth for purposes of making payments to Developer pursuant to the various agreements
  • Does not create a formal taxing district for the purpose of creating any property assessments or any other special taxes

Proposed Costs

Source: City of Reno presentation materials dated 09/21/07 (PDF)