Public Information Office
For Immediate Release:
Wednesday, Sept. 27, 2006
Goodyear Signs Deals with Indians, Developers for Spring Training Complex
(GOODYEAR, AZ) The Goodyear City Council approved two historic agreements today that would bring the Cleveland Indians to the Cactus League and pave the way for a new spring training and entertainment complex in Goodyear. The agreements were signed in a ceremony following a special meeting of the Goodyear City Council.
The City Council voted to sign a Memorandum of Understanding (MOU) with the Indians that established terms for the financing, design, construction, use, operation and maintenance of a Major League baseball spring training facility in Goodyear. The MOU includes a 20-year use agreement by the Indians and calls for the creation of six full practice baseball fields, two half practice baseball fields per team, an agility field, one major league clubhouse per team, a ballpark with seating capacity for 10,000 persons, equipment facilities, media facilities, a scoreboard, and parking.
“The Indians are eager to return to Arizona and to partner with the City of Goodyear in this exciting project,” said Paul Dolan, president of the Cleveland Indians, who participated in the signing ceremony by telephone. “We are impressed by the commitment of the City, the support of the citizenry, and by the exciting development concept that will make this facility much more than a ballpark.” The Indians sent a letter to the STA on September 21st confirming their intentions to move to Goodyear. The team had trained in Tucson, Arizona, from 1947 until 1992, when they moved to Winter Haven, Florida.
“The citizens of Goodyear have made a significant financial commitment to the Cleveland Indians to build the best spring training complex in baseball,” said Goodyear Mayor Jim Cavanaugh after the City Council signed the Memoranda of Understanding. “We are extremely excited that the Indians are committed to Goodyear. We fully expect the support of the STA and are moving forward to actively market for a second team to share our ballpark.”
The City also approved and signed a MOU with the Rose Properties Southwest, LLC and Wood Family Enterprises, LTD, to convey the land for a Major League baseball spring training facility. The MOU outlined the development terms for the public/private partnership between the City and Rose Properties Southwest, the developer, and the Wood family, the owners of the 240-acre site located adjacent to Goodyear’s planned City Center.
According to the Rose/Wood MOU, the spring training facility would be integrated into a “ballpark village,” consisting of hotels, retail, restaurants, and offices owned and operated by Rose Properties Southwest. The ballpark would be owned, operated, and maintained by the City of Goodyear and utilized for spring training use from approximately February 1 through March 31 each year. The ballpark facility but would be available for recreational, entertainment, and other public uses during the remainder of the year.
The signing of these two MOUs allows the City to proceed with an application to the Arizona Sports & Tourism Authority (AZSTA) for eventual cost reimbursement.
“As West Valley families, we are thrilled to partner with the City of Goodyear to create a dynamic regional destination for sports and entertainment,” said John Ruggieri, managing director of Rose Properties Southwest, LLC, adding, “This development will be a centerpiece in the West Valley.”
“Today’s action is a testament to Goodyear’s dedication and perseverance,” said Erik Judson, principal of JMI Sports LLC, who has been a partner with Goodyear and Rose Properties Southwest in recruiting the Cleveland Indians. “Luring the Indians from Florida to Arizona was an incredibly challenging and complex process and the City is to be congratulated.”
In March 2006, the City Council approved the Wood family land (represented by Rose Properties) as the site of the sports and recreation campus following a Request for Proposal sent out by the City. Previously, in September 2004, the citizens of Goodyear passed by nearly a 2-1 margin a bond issue for $10 million earmarked for a spring training complex and recreational facility.
A.Highlights of the MOU with the Cleveland Indians
B. Highlights of the MOU with landowners
Highlights of Memorandum of Agreement between
City of Goodyear and Cleveland Indians
- City will be in charge of Design and Construction services with input and expertise provided by the team. A conceptual site plan is anticipated on or before December 31, 2006.
- Elements of the project are anticipated to include six full practice baseball fields, two half practice baseball fields per team, an agility field, one major league clubhouse per team (and those related facilities and equipment), a ballpark with seating capacity of 10,000 persons (8,000 seats and 2,000 berm), equipment facilities, and public parking.
- AZSTA financing anticipated for up to two-thirds the cost of the Spring Training Facility and AZSTA funds will reimburse or pay the debt service on City bridge financing.
- City will provide permanent funding in the amount of $10 million from the sale of City general obligation bonds.
- Rose Properties will convey all land for the project site (as defined in the second MOU).
- Team will pay all costs of furnishing and equipping its clubhouse, the pitching machines, and medical and personal training equipment.
- Use Agreement
- Team has 20-year term with the option of two five-year extensions.
- Exclusive use of the team training facility for the team during the spring training season
- Team will pay a rental use fee of $100,000 per year, adjusted by inflation
- Intention to have integrated retail and commercial uses on the site that will operate on a year-round basis.
- Operation and Maintenance
- City will own, operate and maintain the Spring Training Facility and pay all expenses related to the facility (maintenance, utilities).
- Team will pay for expenses related to the clubhouse (utilities, communications)
- Payment Splits
- Ticket Sales – City 20%, Indians 80%
- Other Spring Training Revenues (ie: concessions, parking) – City 50%, Indians 50%
- Advertising – City 50%, Indians 50%
- Broadcast rights – Indians 100%
- Ticket surcharge – City 100%
- Naming Rights – City 100%
Highlights of the MOU with
Rose Properties and Wood Family Enterprises
- The Spring Training Facility would be owned, operated, and maintained by the City of Goodyear.
- The facility would be utilized for spring training use from approximately February 1-March 31 each year, but would be available for recreational, entertainment, and other public uses during the remainder of the year.
- The Spring Training Facility would be integrated into a “Ballpark Village”, consisting of hotels, retail, restaurants, and offices owned and operated by the private owners.
- Dedication of the rights-of-way necessary to serve the Ballpark Village in its entirety, including the Spring Training Facility.
- Dedication of the land necessary to construct either a one-team or a two-team facility. In the event that the one-team facility is initially constructed, a provision is included that stipulates Rose Properties would reserve the land necessary for expansion to a two-team facility for not less than a one-year period in the event the City is successful in its endeavor to secure a second team.