Explanation
BACKGROUND: The Haslam Sports Group (“HSG”) together with Drs. Pete and Chris Edwards (“Edwards”) collectively own the entity that is the investor operator of the Columbus Crew Major League Soccer club (the “Crew”), and through the Crew, they have been leaders in advancing soccer and investing community-driven and youth sports initiatives in Central Ohio. Building on the success of the Crew, HSG, Edwards, and NRI Holdings, LLC through NWSL Columbus LLC (together with one or more to be identified affiliates, “NEWCO”) is actively seeking an opportunity to secure a National Women’s Soccer League (the “NWSL”) franchise for Columbus (the “Team”) that would be operated by NEWCO and play its home matches at the ScottsMiracle-Gro Field, located on Franklin County Parcel ID No.010-300553-00 (the “Stadium”). Women’s professional sports are experiencing sustained national growth in participation, viewership, investment, and media visibility, and communities that invest strategically in this emerging sector are increasingly recognized for strengthening economic competitiveness, civic identity, and opportunity for women and girls. NEWCO, the Confluence Community Authority (the “NCA”), the City of Columbus, Ohio (the “City”), and County of Franklin, Ohio (the “County”) will help finance and develop certain facilities required by the NWSL and necessary to secure the Team. The proposed facilities are intended not only to support a NWSL franchise, but also to enhance community assets, expand youth sports opportunities, and generate additional economic activity through construction, team operations, and increased visitation. This ordinance authorizes the City to enter into a Development Agreement with the County, NCA, and NEWCO regarding the financing, development, construction, operation, and occupancy of the certain facilities projects for the Team and the community benefits commitments of NEWCO.
The facilities would include a new state-of-the-art practice facility and training complex to serve as the permanent home and training base for the Team (the “Training Facility”) located on an approximately 28-acre site owned by the City that encompasses McCoy Park (the “Training Facility Land”). The Training Facility is anticipated to incorporate improvements to park space and recreational amenities that complement existing uses at McCoy Park and support community access, youth sports programming, and neighborhood engagement, subject to final design and operational requirements. The Training Facility will be owned by the NCA then subleased to NEWCO, and the Training Facility Land will be leased from the City to the NCA and then subleased to NEWCO. The NCA was established by the City in 2019 to own the Stadium and the Crew’s OhioHealth Performance Training Center. The NCA will facilitate the design, development, financing, and construction of the Training Facility, all of which will be controlled and executed by NEWCO in consultation with the County and City. Facility modifications to the Stadium, such as a women’s locker room (the “Stadium Enhancements” and together with the Training Facility, the “Facilities Projects”), are also required to accommodate the Team and meet or exceed NWSL standards. Subject to respective legislative approval of budgets and annual appropriations, the City and County have agreed to make respective commitments of twenty-five million dollars ($25,000,000.00) each towards the costs of the Facilities Projects, and NEWCO will be responsible for costs above such combined amount. These public investments are intended to support infrastructure and community assets that will serve both the Team and the broader public while leveraging substantial private investment required to secure and operate the Team. Independent economic analysis indicates that the Team and Facilities Projects are projected to generate positive long-term fiscal impacts for the City, County, and State through construction activity, payroll-related income tax, admissions fee, and related economic activity.
NEWCO is committed to i) working alongside the HSG’s Stay in the Game! initiative to implement community programming and contributions aimed at addressing chronic absenteeism; ii) partnering with local organizations to bring soccer programming to Central Ohio’s youth; iii) charitable donations including sports equipment, uniforms, and gear to local schools and youth programs; iv) community camps and clinics by the Team; v) ticket and Team matchday experience donations to local schools and nonprofits; and vi) annual volunteer and service initiatives. NEWCO and the Crew will support modifying the City’s admissions fee from five percent (5%) to seven percent (7%) with respect to all ticketed events at the Stadium. For purposes of this Ordinance, “Additional Admission Fee Revenue” shall mean: (i) one hundred percent (100%) of the City’s admissions fee revenues collected from the incremental two percent (2%) increase in the City’s admissions fee applied to all non-Team ticketed events at the Stadium, and (ii) one hundred percent (100%) of the City’s admissions fee revenues collected at the seven percent (7%) rate from all Team ticketed events at the Stadium. NEWCO will make a community benefit private investment totaling twelve million dollars ($12,000,000). The investment will be made over a 12-year period and focus on the areas of early childhood education, workforce development, and food insecurity.
It is the intent of the City to utilize the Additional Admission Fee Revenue from Stadium generated events to pay the debt service associated with the $25 million community investment in the state-of-the-art Facilities Projects.
Fiscal Impact: No immediate funding is required for this legislation. The City’s financial commitments contemplated herein, including the City Contribution, will be subject to future appropriation and authorization by City Council.
Title
To authorize the Director of the Department of Development to enter into a Development Agreement with the County of Franklin, Ohio, Confluence Community Authority, and NWSL Columbus LLC (together with one or more to be identified affiliates, “NEWCO”) to finance and develop certain facilities required by the National Women’s Soccer League (NWSL) necessary to secure a franchise for Columbus and to deliver certain community benefits commitments from NEWCO, all in furtherance of improvements to community assets and Columbus’ position as a national leader in women’s sports; to authorize the Director of the Department of Development and/or Recreation and Parks Director to enter into any leases with the Confluence Community Authority contemplated by the Development Agreement for the NWSL team’s Training Facility; to waive the provisions of Chapter 328 of the Columbus City Codes; to authorize the Director of the Department of Development to execute a contribution agreement with the Confluence Community Authority for the City’s capital contribution towards the Training Facility and modifications to the Stadium as contemplated in the Development Agreement; and to authorize the Director of the Department of Development and/or Recreation and Parks Director to consent and file such consent with the City Clerk to add the property of the Training Facility to the new community district of the Confluence Community Authority per Ohio Revised Code Chapter 349. ($0.00)
Body
WHEREAS, Haslam Sports Group, NRI Holdings, LLC., and Drs. Pete and Chris Edwards, through NWSL Columbus LLC (together with one or more to be identified affiliates, “NEWCO”) is actively seeking an opportunity to secure a National Women’s Soccer League (the “NWSL”) franchise for Columbus (the “Team”) that would be operated by NEWCO and play its home matches at the ScottsMiracle-Gro Field, located on Franklin County Parcel ID No.010-300553-00 (the “Stadium”); and
WHEREAS, women’s professional sports represent one of the fastest-growing segments of the global sports economy and have experienced sustained growth in participation, investment, and national visibility; and
WHEREAS, research consistently demonstrates that participation in sports is strongly associated with leadership development and upward mobility for women and girls, and that visible professional opportunities in women’s sports can help sustain youth participation and expand pathways to leadership and economic opportunity; and
WHEREAS, the City has long pursued strategic public-private partnerships that strengthen economic vitality, improve community assets, and expand opportunity for residents across Columbus neighborhoods; and
WHEREAS, the City of Columbus, Ohio (the “City”), County of Franklin, Ohio (the “County”), Confluence Community Authority (the “NCA”), and NEWCO desire to enter into a Development Agreement (the “Development Agreement”) regarding the proposed financing, development, construction, operation of a new training facility for the Team (the “Training Facility”) located at the City’s McCoy Park (the “Training Facility Land”), and certain modifications to the Stadium (the “Stadium Enhancements” and together with the Training Facility, the “Facilities Projects”) to accommodate the Team and satisfy NWSL requirements; and
WHEREAS, the Training Facility is expected to incorporate recreational and park improvements that complement the existing public park and support community programming, youth sports participation, and neighborhood access, subject to final design and operational plans; and
WHEREAS, the City, pursuant to Resolution Nos. 0230X-2019 and 0252X-2019, established the NCA to own the Stadium and the Crew’s OhioHealth Performance Training Center, and it is intended that the NCA will lease the Training Facility Land from the City and the NCA will thereafter sublease the Training Facility Land to NEWCO; and
WHEREAS, it is contemplated that the City will submit subsequent legislation to expand the new community district of the NCA to include the Training Facility and Training Facility Land; and
WHEREAS, subject to budgeting and annual appropriations to be approved by the respective legislative authority, the City and County have agreed to make respective commitments of twenty-five million dollars ($25,000,000.00) each towards the costs of the Facilities Projects (the City’s $25 million commitment being, the “City Contribution”) and NEWCO will be responsible for costs above such combined amount; and
WHEREAS, NEWCO and the Crew agree to support an increase of the City’s admissions fee from five percent (5%) to seven percent (7%) with respect to all ticketed events at the Stadium. For purposes of this Ordinance, “Additional Admission Fee Revenue” shall mean: (i) one hundred percent (100%) of the City’s admissions fee revenues collected from the incremental two percent (2%) increase in the City’s admissions fee applied to all non-Team ticketed events at the Stadium, and (ii) one hundred percent (100%) of the City’s admissions fee revenues collected at the seven percent (7%) rate from all Team ticketed events at the Stadium; and
WHEREAS, it is the intent of the City to utilize the Additional Admission Fee Revenue from all Stadium generated events to pay the debt service associated with the City Contribution for the Facilities Projects to accommodate the Team and satisfy the NWSL requirements; and
WHEREAS, if total Additional Admission Fee Revenue generated at the end of the 2032-2033 NWSL season is less than the revenue projections for Additional Admission Fee Revenue as set forth in the Development Agreement (the “Revenue Projections”) then the City and NEWCO shall negotiate modifications; and
WHEREAS, upon the completion of the 2032-2033 NWSL season, the City and NEWCO shall evaluate whether cumulative Additional Admission Fee Revenue has met or exceeded the Revenue Projections said Additional Admission Fee Revenue shall be used to satisfy the debt obligations of the City Contribution, either for past debt service payment or future; and
WHEREAS, if cumulative Additional Admission Fee Revenue is less than the Revenue Projections, the City and NEWCO shall in good faith negotiate modifications to address such shortfall, which may include, but are not limited to, adjustments to admission fee structures, facility-related charges, lease payments, or other mutually agreed-upon revenue sources, provided that such modifications shall not include the imposition of additional City income or property taxes; and
WHEREAS, the Facilities Projects are expected to leverage significant private investment associated with securing and operating the Team while supporting long-term economic activity through construction, team operations, and increased visitation to the City; and
WHEREAS, independent economic analysis indicates that the Team and Facilities Projects are projected to produce positive and meaningful long-term fiscal impacts to the City, County, and State; and
WHEREAS, NEWCO agrees to use commercially reasonable efforts to deliver meaningful community benefits such as initiatives focused on workforce development; small, regional business participation; youth sports programming; neighborhood engagement; and community access to the facilities and programming; and
WHEREAS, NEWCO will make a community benefit private investment totaling twelve million dollars ($12,000,000) over a 12-year period focusing on the areas of early childhood education, workforce development, and food insecurity; and
WHEREAS, these investments and partnerships are intended to strengthen Columbus’ position as a national leader in women’s sports while advancing economic vitality, community engagement, and opportunity for residents across the region; and
WHEREAS, the Development Agreement will include a reasonable non-relocation provision, and generally require that the Team play a majority of its home matches at the Stadium; and
WHEREAS, the provisions, commitments, and obligations outlined in this ordinance are contingent on NEWCO successfully acquiring the Team; and
WHEREAS, it has become necessary in the daily operation of the Department of Development for the Director of the Department of Development to enter into the Development Agreement with the County, the NCA, and NEWCO and additional agreements contemplated thereunder regarding the financing, development, construction, operation, and occupancy of the Facilities Projects for the Team and regarding the community benefits commitments of NEWCO all to help establish Columbus as a leader in women’s sports nationally; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of the Department of Development or his or her designee (the “Director”), on behalf of the City, is hereby authorized to enter into the Development Agreement presently on file with the Department of Development, along with any changes or amendments thereto not inconsistent with this Ordinance and not substantially adverse to the City and which shall be approved by the Director and the City Attorney, provided that the approval of such changes and amendments thereto, and the character of those changes and amendments not being substantially adverse to the City, shall be evidenced conclusively by the Director’s execution and delivery thereof, to outline the plans and certain commitments of the City, the County, the NCA, and NEWCO relating to the proposed development of the Facilities Projects and to outline the community benefits commitments of NEWCO.
SECTION 2. That the Director and/or Recreation and Parks Director, as applicable, on behalf of the City, is authorized to execute and acknowledge any documents necessary to lease any fee simple title or lesser real estate associated with the Training Facility as contemplated in the Development Agreement, and subject to any approvals that may be required by the Recreation and Parks Commission per City Charter Sections 128 and 129, including any leases to the NCA and provided such leases or agreements require subsequent leases as contemplated in the Development Agreement.
SECTION 3. That City Council finds and determines that it is in the City’s best interests to waive the provisions of Chapter 328 (Sale and Lease of City-Owned Realty) of the Columbus City Codes and does hereby waive the same.
SECTION 4. That the Director of the Department of Development is hereby authorized to enter into a Contribution Agreement with the NCA, along with any changes or amendments thereto not inconsistent with this Ordinance and not substantially adverse to the City and which shall be approved by the Director and the City Attorney; provided that the approval of such changes and amendments thereto, and the character of those changes and amendments as not being substantially adverse to the City, shall be evidenced conclusively by the Director’s execution and delivery thereof to outline the timing and other mechanics relating to all or a portion of the City Contribution contemplated under the Development Agreement; provided further that the City Contribution shall be the subject of future legislation submitted for City Council consideration.
SECTION 5. That, pursuant to R.C. Section 349.03(B), this City Council ratifies, approves, and authorizes the Director and/or Recreation and Park Director, as applicable, for and in the name of the City as the property owner of the Training Facility Land, to sign and file a written consent with the Clerk of City Council to add the Training Facility and Training Facility Land to the NCA’s new community district.
SECTION 6. That the Director of the Department of Development, or such other appropriate officers of the City, on behalf of the City, are authorized to execute and approve such other agreements and instruments and to take all actions necessary to implement this ordinance and the transactions contemplated by the Development Agreement; provided, however, that the increase to the admissions fee, expansion of the NCA, and budgeting, appropriating, and expenditure of the City Contribution will require separate subsequent legislation to be submitted for City Council consideration.
SECTION 7. That this Ordinance shall take effect and be in force from and after the earliest period allowed by law.