Case Study - Ohio Expo Center and Crew Stadium

Discussion in 'Columbus Crew' started by Flyer Fan, Aug 30, 2010.

  1. Flyer Fan

    Flyer Fan Member+

    Apr 18, 1999
    Columbus, OH
    A number of years ago, venerable BigSoccer poster CrewSchmack found a document online that a consulting firm prepared for Larimer County (Colorado, maybe?). The county was investigating public/private partnerships as it considered constructing a new county fairgrounds facility. The report included six case studies in which the consulting firm, Markin Consulting, provided information on various public/private partnerships throughout the country. One case study included Crew Stadium, and it represents one of the most "key" documents when discussing Crew Stadium's revenues and its relationship with the Ohio Exposition Center and the Ohio Exposition Commission (OEC). I saved a copy of the .pdf to which CrewSchmack linked when he first found the document, and I keep a version at work for handy BigSoccer reference. However, since we continue to come back to this topic both in the Crew forum and in other locations, I finally decided to do what I have thought about doing before: I'm going to format this information in BigSoccer formatting. That way everyone has access to it. So, here we go...

    Case Study - Ohio Expo Center and Crew Soccer

    • Project: MLS SOCCER STADIUM - Columbus Crew | Initial capacity of 22,500 seats with expansion capability to 45,000 seats
    • Property: Approximately 14 acres of land, various rights of way
    • Location: Ohio Exposition Center, Columbus, Ohio
    • Lessor: Ohio Exposition Commission (OEC) | Holds Fee Simple Ownership
    • Lessee: Crew Soccer Stadium, a Delaware LLC (or designee named by Hunt Sports LLC) | Holds leasehold to structures on land

    Terms: General
    1. 25 years (beginning 1999) with one 25 year renewal option
    2. $50,000 per year - paid annually on April 1
    3. Rent adjusted (up only) to CPI on each 5th anniversary
    4. Renewal rate mutually agrred or submitted for Arbitration (in no case to be less than initial lease rate)
    5. OEC agredd to make all utilities available to the property and provide tie-in rights (Crew paid for tie-in). All utility metering will be separate.
    6. At end of lease, title in improvements is transferred to OEC
    7. At end of lease, OEC may require removal of all facilities
    8. No assignment or sublease without written approval from OEC
    9. If entire facilities are appropriated making facility unusable Crew may terminate the lease with net proceeds going to the Crew - unless taking is within 12 months of lease expiration in which case OEC gets 100% of proceeds
    10. No mortgage, sale, assignment, pledge or grant of lease is allowed
    11. Lease is fully guaranteed by Lamar Hunt

    Terms: Capital Improvements and Expansions
    1. Crew was solely responsible for all costs of design, construction, permits, licenses etc.
    2. Crew posted a performance bond assuring completion of the project and was required to settle all mechanics' liens (and any other liens) within 30 days - whether contested or not
    3. OEC had no interest or responsibility (financial or otherwise) for the design, construction, or operation of the facilities
    4. OEC agreed to ensure parking area (not included in lease) was available
    5. OEC ensured access to facilities and maintains all ingress & egress routes - including mowing, and snow removal
    6. OEC Manager and the Director of the Department of Administrative Services reviewed and approved site and building plans and specifications (no other approval required beyond normal zoning, permits, etc.)

    Terms: Operating Revenues and Expenses
    1. OEC manages all parking operations (through a third party contractor who provides for liability insurance). OEC pays for this contractor from its portion of parking revenues
    2. OEC receives 25% of parking revenues for events held in the Stadium up to breakpoint ($300,000 from 4/1999 to 4/2004 - adjusted upward only by CPI every fifth anniversary after that), with 12.5% of all revenues above the breakpoint. However,

      OEC will receive 50% of gross parking revenues for all OEC Events. OEC will also share in proceeds from any season parking passes purchased by Crew for season ticket holders.
    3. Crew retains all revenues except for parking as discussed above
    4. Crew retains all concession revenues - must use OEC provider but will negotiate own contract with provider
    5. Crew retains all revenues from advertising sales, including Stadium naming rights (with OEC having the right to approve the name). Crew will provide OEC with one sign panel inside the Stadium with OEC logo
    6. Crew is responsible for all taxes, operations, maintenance and upkeep costs
    7. Crew provides all cleanup, trash removal, security, temporary traffic signage, ticket takers, box office workers, ushers, etc.

    Terms: Events
    1. Crew has priority scheduling rights over all events EXCEPT the Ohio State Fair and the All-American Quarter Horse Congress
    2. OEC has the right to require rescheduling of any event other than a Crew Game when the OEC Manager provides notice in writing within 10 days of receiving notice of a scheduled event
    3. OEC has the right to use facilities during the lease term, as available, under standard contract terms
    4. Crew agress to accomodate current use of parking lot by Ohio State Highway Patrol Academy and Roadmaster Trucking Company
    5. OEC allows Crew the use of 2 additional OEC buildings (Lausche and DeSalle) for pre and post events at no charge (if no admission is charged then OEC will charge Crew $500 per event per building)
    6. All other OEC facilities are available for Crew at standard contract rental rates
    7. A Maintenance Program is to be followed that is consistent and customary with other facilities at the OEC

    Terms: Insurance
    1. Crew indemnifies both OEC and the State of Ohio from all liability
    2. Crew must comply with all insurance requirements (publi liability insurance with a $5 million minimum and a deductable not to exceed $1 million), at its own cost, and both OEC and the State of Ohio will be named as insured parties
    3. In case of damage or destruction the lease is maintained at existing terms with all payments due unless use of facilities is prevented for more than one year. The lease payment may be abated for no more than two years.

    Terms: Dispute Resolution
    1. If Crew terminates operations as a team lessee shall look in good faith for another team. Lease is not terminated even if another team is not found
    2. In case of default, Crew may be responsible for any OEC legal fees
    3. Default will be triggered by non-payment of lease, non-performance of contract terms or voluntary or involuntary bankruptcy by Crew
    4. In case of default, OEC make take possession of property, may terminate the contract and evict Crew, may terminate contract and require compliance. In all cases, Crew remains liable for all contract terms
     
  2. THOMA GOL

    THOMA GOL BigSoccer Supporter

    Jul 16, 1999
    Frontier
    Club:
    Columbus Crew
    Nat'l Team:
    United States
    That is what those book club milf cougars call a good read
     
  3. patricksp

    patricksp 91.9 Crew Fan Rating

    Nov 4, 2007
    Columbus
    Club:
    Columbus Crew
    Nat'l Team:
    United States
    Wow so if they want they can stay for 50 years and the OEC can't jack up the rent with out going through Arbitration. I always wondered why the food stinks now I know, we have use what OEC wants and they can reject who wants to buy the naming rights.
     
  4. stanger

    stanger BigSoccer Supporter

    Nov 29, 2008
    Columbus
    Club:
    Columbus Crew
    Nat'l Team:
    United States
    Can we pass a copy of this over to the CBJ?
     
  5. CrewBeat

    CrewBeat Be Massive My Friends

    Jul 27, 2004
    Manhattan
    Club:
    Columbus Crew
    Nat'l Team:
    United States
    So we're stuck with Sodexo because that's the OEC vendor, guess that makes sense why the Crew haven't been able to upgrade to a better food vendor.
     
  6. YITBOS

    YITBOS Member+

    Jul 2, 2001
    1.3 hours from CCS
    Club:
    Columbus Crew
    Nat'l Team:
    United States
    I'm not sure if I've seen the sign. I have been described as inattentive, but I honestly can't remember ever seeing an OEC sign panel.
     
  7. patricksp

    patricksp 91.9 Crew Fan Rating

    Nov 4, 2007
    Columbus
    Club:
    Columbus Crew
    Nat'l Team:
    United States

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