Economic Development Authority - Erik Thorvig, Community Development Director
Title
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Letter of Intent with Minnesota Amateur Sports Commission
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Background
During recent American Rescue Plan (ARP) discussions, the City Council identified up to $2 million to provide to the National Sports Center (NSC) for the installation of two lighted turf fields.
Turf fields are becoming increasingly important to the NSC as it allows them to compete for larger tournaments as turf fields have more playability than grass fields that are stressed during high activity. Turf fields can be utilized earlier and later in the season and do not require “rest” like typical grass fields. Lighting of the fields also allows for use in the evening.
The primary funding source for such capital improvements at the NSC is typically through the Minnesota State Legislature, which is problematic as the NSC is constantly competing with projects throughout the entire State of Minnesota.
The viability of the NSC is extremely important to the local Blaine economy and assisting in the construction of infrastructure that assists the NSC to be more successful is important for the long-term viability of the facility and local Blaine economy.
Providing ARP funds for the construction of turf fields would allow the Minnesota Amateur Sports Commission (MASC) to provide the City with rights to construct, operate and maintain the primary lake feature of the 105th Avenue redevelopment plan on MASC-owned property, and deed this property to the Blaine EDA as part of the redevelopment area.
City and NSC staff have been working on a draft letter of intent outlining terms and expectations of the deal outlined above. The MASC board met on June 15, 2022 and are in general support of the parameters of the agreement. Further details of the agreement are being discussed and it is anticipated a draft letter of intent will be presented to the Blaine EDA sometime in July.
When initial discussions occurred between NSC and city staff, the estimated cost of one lighted turf field was $1 million. This information was the basis for the City committing $2 million to fund two turf fields. Unfortunately, since those initial discussions, costs estimates have increased. City staff requested information from NSC staff on what various funding amounts could provide for.
Note that the MASC/NSC aren’t requesting a specific amount and are appreciative of any level of city involvement. The following is information and numbers that provide information on what certain levels of investment can attain.
City partnership with the National Sports Center will create a world class sports destination that solidifies the “Heart of the City” concept located on the NSC Campus in Blaine.
Specifically, investment in artificial turf advances the goal of having 12 lit turf fields able to host local, regional, and national events that will generate millions of dollars in economic impact, as well as, establishing the City of Blaine as the #1 sports city in the state.
2022 Investment Levels:
$2.54 Million
- 185,400 Sq/ft of artificial turf
- Two recreational sized fields or one professional size field - no lights, lines, logos
$3.02 Million
- 185,400 Sq/ft of artificial turf
- Two recreational sized fields or one professional size field
- Includes LED lights, lines, logos
$3.24 Million
- 262,800 Sq/ft of artificial turf
- Three recreational sized fields or two professional sized fields
- No lights, lines - NSC would fundraise to include lights into the future
- City of Blaine logo/NSC logo included
$3.93 Million
- 262,800 Sq/ft of artificial turf
- Three recreational sized fields or two professional sized fields
- LED lights, lines
- City of Blaine logo/NSC logo included
*NOTE THIS OPTION IS LIKELY LESS (HOWEVER NOT SIGNIFICANTLY) DUE TO THE DESIRE BY THE NSC TO NOT HAVE LINES AND LOGOS. THIS PROVIDES MAXIMUM FLEXIBILITY ON THE USE OF THE FIELDS.
Funding of turf fields was discussed at the July 6, 2022, workshop. The City Council/EDA indicated interest in funding, at a minimum, the $3.24 million option. Several councilmembers were open to the full funding amount of $3.93 million. Below are various options for the City/EDA to fund the project. The $2.5 million from ARP includes the original $2 million identified plus the $500,000 that had been discussed for business grants.
$3.24 Million Option
• $2,500,000 from ARP funds
• $XXX,XXX from EDA Fund Balances
• $XXX,XXX from Strategic Priorities Fund
• NSC/MASC fundraises for lights
$3.93 Million Option
• $2,500,000 from ARP funds
• $XXX,XXX from EDA Fund Balances
• $XXX,XXX from Strategic Priorities Fund
• NSC/MASC fundraises and pays back EDA $700,000 for lights
The action requested by the EDA is to agree to a funding amount, the commitment of ARP funds, and the other aspects of the real estate deal including obtaining rights from MASC to develop, maintain and operate the lake feature and obtain ownership of property at 10600 Nassau Street currently owned by MASC, both of which are part of the 105th Avenue redevelopment plan. A letter of intent would be executed with the MASC/NSC based on these perimeters.
Once the funding amount is determined, staff will internally review how to fund the gap between EDA fund balances and the strategic priority fund and bring forward a recommendation later when the expenditures are formally approved, hence no specific dollar amounts from either account being identified.
Strategic Plan Relationship
Successful redevelopment of the 105th Avenue corridor has been identified as a desired outcome in the Growth Management section of the strategic plan. This package advances the desired outcome.
Financial Impact
The funding will come from the city’s allocation of ARP funds in the amount of $2.5 million. The remaining funding will come from EDA fund balances and/or strategic priority fund. The EDA will be obtaining a land asset which could be sold in the future to a private developer. The value of the land asset is unknown at this time until negotiations occur with the selected master developer.
Staff Recommendation
The action requested is by motion:
1. Agree to a funding amount;
2. The commitment of ARP funds and at what amount; and
3. The aspects of the real estate deal including obtaining rights from MASC to develop, maintain and operate the lake feature and obtain ownership of property at 10600 Nassau Street currently owned by MASC, both of which are part of the 105th Avenue Redevelopment Plan.
Attachment List
Page from Draft Master Plan