Will the City Council really kill the Everbank Field deal?

[copperfiend]

Personally, I think it is posturing but Tony Boselli is sounding the alarm.

IMPORTANT - JAGUARS/EVERBANK AGREEMENT AT RISK - SHOW YOUR TEAL

Today the Jacksonville City Council will vote on the EverBank Naming Rights agreement, bill number 2010-644. It appears that a number of members may vote against the acceptance of this agreement.

The City Council Finance Committee will vote at 3pm and the full Council will vote at 5pm. Both meetings are located on the first floor of City Hall located at 117 W. Duval Street, 32202. Please attend both meetings in your Jags attire, if possible. If you can only attend one meeting, I encourage you to attend the full council meeting at 5pm as this will be the final vote on whether to approve the EverBank agreement.

Also, please call the City Council at 630-1377 and tell them to VOTE YES on the EverBank naming rights agreement #2010-644.

Through the efforts of Team Teal and its members, this community has rallied to show its support of OUR team the Jacksonville Jaguars! We've sold in excess of 13,000 new season tickets.

The EverBank partnership and long term commitment that is before City Council is a critical component to the Jaguars long term viability in Jacksonville.

Rally your friends, family and co-workers and ask them to call the City Council at 630-1377 or email them at cityc@coj.net. Ask them to attend the meetings this afternoon and to tell the City Council to do their part by voting YES on the EverBank agreement!!

I look forward to seeing you at the meetings tonight! Show your TEAL!!

Tony

[duvaldude08]

I hope they do not kill it.  I was just reading on Jacksonville.com that are having an issue with the city waiving its 25%. But I honestly think that it will get pushed through. They could not get is passed at the last meeting because all of the council members were not there. All members except for one will be at todays meeting. Honestly, if they dont approve it I would just change the contract back to the 75/25 split and keep it moving. Regardless of how much, we need this deal. And to fight with the city council is a pointless battle. Looks like it is not the Peyton this time who is the issue, its the city council!

[fieldafm]

It's really mostly chest bumping.

Some want an amendment that if the Jags move during this deal, that the city gets reimbursed for the lost revenue they would have gotten in the deal.

However, the deal with Everbank includes a clause that the Jags owe Everbank 250k for every home game not held at JMS during the length of the deal.  So, there is already a built-in penalty if the Jags were to leave the city in the deal on the table.

In addition, during the last stadium lease amendment the city gets a higher fee than previously agreed upon during the original lease agreement if the Jags leave... so, the city already has greater financial protection built in to the lease they modified just a year ago.

It really is time to save the whale.  Two years ago, the Jags did file paperwork showing consecutive years of losses... the first step in voiding out their lease with the city.  I think Peyton finally got the message, and to his credit he has become a cheerleader for the team in this time of economic crisis.  I criticize him a lot, but I have to give him credit where credit is due.

Someone told me last night that 'this is all BS b/c the city is losing out on money at a time when they are going to raise property taxes again'  While Im not happy about another property tax increase, I had to point out that the city's share in this naming rights deal could only be spent on stadium improvements.  It doesnt go into the general fund.


Another contention about the bill is that the Jags are asking that they fund stadium improvements and have the city reimburse them for these improvements during the city's fiscal year(the Jags fiscal year and the city's fiscal years are very different).  Its just a simple common sense change to the accounting of the deal, but some council members are concerned that the bill then gives authority over which stadium improvements gets authorized to the JEDC and not the City Council.

So, there's also a second issue of who controls money for the stadium improvements in the already agreed upon capital improvement plan.

[Keith-N-Jax]

Lets hope a deal comes to pass that benefits all partys. Go Jags!!!!

[stjr]

While Im not happy about another property tax increase, I had to point out that the city's share in this naming rights deal could only be spent on stadium improvements.

Field, question: If the City does not get its share for stadium improvements as you mention, where does that money come from?  General tax revenues?  Is this just a shell game?

No opinion at present, just trying to get the facts.  Thanks.

[fieldafm]

Currently, the city pays for stadium maintenance from both ticket surcharges and from the convention development tax revenue.

Also, in city fiscal year 08-09 the Jags paid $4million in rent and $157k from parking revenues.  The city paid $2million for gameday expenses(which is a variety of items such as cleanup crews, JSO, etc.).  So there was a $2+million 'profit' from the stadium rent agreement.

[stjr]

...the city pays for stadium maintenance from both ticket surcharges and from the convention development tax revenue.

So, what is the 25% naming money supposed to be for?  Additional maintenance not covered by the above?  Something doesn't add up here.  Losing $4 million from naming rights has to cost somewhere else it seems.

The city paid $2million for gameday expenses(which is a variety of items such as cleanup crews, JSO, etc.).  So there was a $2+million 'profit' from the stadium rent agreement.

LOL, that's the first time I have ever seen the word "profit" used regarding the stadium.  I think when you add stadium depreciation (an annual slice of the cost of the stadium's construction), financing costs, etc.  you will find COJ losing money here.  Again, not out to make a comment at present, but the facts need to be clear for all in forming one's opinion.

[fieldafm]

So, what is the 25% naming money supposed to be for?  Additional maintenance not covered by the above?  Something doesn't add up here.  Losing $4 million from naming rights has to cost somewhere else it seems

It would add 725k/year to be used for stadium improvements.

LOL, that's the first time I have ever seen the word "profit" used regarding the stadium.  I think when you add stadium depreciation (an annual slice of the cost of the stadium's construction), financing costs, etc.  you will find COJ losing money here.  Again, not out to make a comment at present, but the facts need to be clear for all in forming one's opinion.

Admittedly, my comment was on the sunny side of things yes.  But you are correct there are financing costs, depreciation, etc... but these are fixed costs no matter if the Jags are here or not.  The revenues I posted were yearly cash flow from stadium operations in relation to the Jags gameday operations.  


This modified agreement being proposed is indeed a concession being asked of the city on behalf of the Jags.  You can't spin it any other way.  But, for a business that brings over 2k jobs into Jacksonville and has a $130million economic impact for the city... sometimes reasonable concessions need to be made when they make sense for the community as a whole.

[fieldafm]

Some updates from the Daily Record

http://jaxdailyrecord.com/showstory.php?Story_id=531633

One down, one to go.

The City Council Finance Committee approved an amended bill Monday that would allow the Jaguars to be reimbursed for stadium projects the team undertakes through future Convention Development Tax revenue.

The measure was on the agenda from last Tuesday’s regularly scheduled Finance Committee meeting, but was delayed along with another Jaguars measure because of questions by committee members.

Another bill relating to the naming-rights deal between EverBank and the Jaguars, in which the City would forgo its 25 percent stake in the five-year, $16.6 million deal, was again deferred Monday.

Finance Chair Daniel Davis, saying that the issue wasn’t right for the Monday special meeting, called for a special Finance meeting at 3 p.m. today to address the topic before the full Council meeting at 5 p.m.

“I think there are some details that need to be worked through,” said Davis.

The maintenance bill was amended twice before being approved unanimously 5-0, with Council members Kevin Hyde and Warren Jones having excused absences.

The first amendment was an adjustment to Council member Ronnie Fussell’s amendment from the last meeting. The original called for a 70 percent cap of Convention Development Tax revenues to go toward stadium projects, which would allow other venues such as the Baseball Grounds and Arena to receive a share of funding.

The new amendment would allow stadium projects to receive 80 percent of such funds for the 2010-11 fiscal year. The reason for the higher percentage, it was argued last week, is that the stadium is older than the other venues that benefit from the Convention Development Tax revenues and was catching up on improvements.

The higher percentage would be for just one year.

Bill language calls for the team to receive $2.47 million in future funds for projects currently undertaken that include point-of- service system upgrades, digital menu boards and replay system and electronic message board upgrades.

The second amendment related to the five-year sports complex capital maintenance improvement plan and its initial list of projects, which was submitted for approval in the upcoming City budget. The list of priority projects, submitted by Ron Barton, Jacksonville Economic Development Commission executive director, will need to be approved by the full Council to be incorporated into the upcoming budget discussions.
Council member Michael Corrigan said he felt more comfortable with the amendment and bill because the sports management company â€" and not the Jaguars â€" is coming up with the list of projects for the different venues that receive Convention Development Tax revenues.
Emergency maintenance issues that arise outside the five-year improvement plan would still come before Council for funding approval.

[downtownjag]

Anybody, any more word?  I'm frustrated over this.

[copperfiend]

Well, it has certainly been a popular topic on local sports radio. Unfortunately, a large number of people do not understand where these funds would be going if the city retained the 25 percent cut.

[downtownjag]

From what I understand the city could only use them for stadium improvements... it would be nice to have a team here to keep the stadium in good condition for.

[copperfiend]

From what I understand the city could only use them for stadium improvements... it would be nice to have a team here to keep the stadium in good condition for.

That is correct.

[Basstacular]

Well, it has certainly been a popular topic on local sports radio. Unfortunately, a large number of people do not understand where these funds would be going if the city retained the 25 percent cut.

I had to grin at one of the callers on 1010XL, who called in to say that he felt the "City should keep the entire 16 million because the City built and owns the stadium".....are people in this City really that ignorant?  Would there even be a 5 year / 16 million dollar deal from Everbank to put their name on that stadium for the FL/Ga game, Gator Bowl and Monster Truck Rally alone?  The Jags are the reason Everbank wants to put their name on the stadium.  And of course I would love the City to be able to keep their 25%, even if it just went to the Sports complex maintenance, but I understand how valuable the Jags are to this City.  I also know that if GM Gene is given a couple more years and we get the right QB, then this team can compete for a SB.  If the Jags can win a SB within the next five years, then lets think what the new stadium naming rights deal will be worth....That's when the City should hold their ground on the contractual lease terms.  This concession will further show the City wants the team and the City will be rewarded in the future for it.

[Steve]

Finance Committee did the right thing - approved 6-1.