Subject:
Title
Interlocal Agreement with the City of St. Petersburg for sharing consultant costs associated with the development of financing, design, and construction of the new stadium project.
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Recommended Action:
Recommended Action
Approval of the Interlocal Agreement with the City of St. Petersburg (City) for equal share of the costs from Inner Circle Sports LLC (Inner Circle) as they engage in the development of financing, design, and construction of the new stadium project for the Tampa Bay Rays Major League Baseball Team (Rays).
• County will reimburse the City up to a maximum of $624,000.00 for 50% of Inner Circle’s consulting costs:
o $99,000.00 for the financial analysis of the new stadium project.
o $175,000.00 upon City, County and Rays reaching an agreement on the terms of the new stadium project.
o $350,000.00 upon execution of project agreements (contingent upon City not identifying a third-party to pay these costs).
• Interlocal Agreement will terminate on December 31, 2024, or earlier, if all services have been provided and payments made.
• City will consider the Interlocal Agreement for cost sharing on November 30, 2023, subsequent to the agreement between the City and Inner Circle for financial analysis and funding development of the new stadium project.
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Strategic Plan:
Foster Continual Economic Growth and Vitality
4.6 Support a vibrant community with recreation, arts, and culture to attract residents and visitors
Deliver First-Class Services to the Public and Our Customers
5.1 Maximize partner relationships and outreach
Summary:
Summary
The Interlocal Agreement will provide the County an opportunity to participate in discussions with Inner Circle, the consulting firm retained by the City to navigate the process for the new stadium project. In exchange, the County will reimburse the City for 50% of Inner Circle’s services which include, conducting a financial analysis and developing a funding strategy, advising the City and County in the development of a framework including the outline with the Rays, land use and a calendar of events, providing negotiation strategies, serving as a liaison between the City, County and the Rays, reviewing construction documents, and more as described in Exhibit A of the agreement between the City and Inner Circle. The City is scheduled to consider the Interlocal Agreement with the County on November 30, 2023, subsequent to approval of the City’s agreement with Inner Circle.
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Background Information:
On September 24, 2021, the County entered into an Interlocal Agreement to reimburse the City a total of $42,250.00 for Inner Circle consulting costs. In exchange, the County was provided opportunities to engage in discussions with Inner Circle regarding multi-use stadium finance structures, financial structure of an MLB franchise and negotiation strategies. This Agreement expired on December 31,2021.
On June 28, 2022, the County entered into a subsequent Interlocal Agreement with the City to equally share Inner Circle consulting costs and the City agreed to reimburse the County for a total amount of $110,000.00. Inner Circle services included negotiation and other strategies for redevelopment of the proposed stadium site and to provide information and expertise on activities related to the implementation and execution phases of the stadium and related development. The Interlocal Agreement was amended on November 17, 2022, to add $22,475.00, or 50% of the costs, for Victus Advisors LLC to provide an economic and social impact analysis. The First Amendment increased the total amount of the Interlocal to a maximum of $132,475.00. The Interlocal Agreement would terminate upon receiving 30 days written notice, or upon a notice of Fiscal Non-Funding.
The Interlocal Agreement being presented today replaces the June 28th Interlocal and represents the County and City’s agreement to equally share in a maximum amount of $1,248,000.00 ($624,000.00 from the City and $624,000.00 from the County) for Inner Circle’s services associated with the new stadium project. The Interlocal Agreement provides for reimbursement of $274,000.00 in costs paid by the City to Inner Circle for services including conducting a financial analysis and developing a funding strategy, advising the City and County in the development of a framework including the outline with the Rays, land use and a calendar of events, providing negotiation strategies, serving as a liaison between the City, County and the Rays, reviewing construction documents, and more as detailed in the Exhibit A to the agreement between the City and Inner Circle. In addition, if the City is unable to obligate a third party to pay Inner Circle $700,000.00 once the final milestone has been reached, this Interlocal Agreement will be amended and increased by $350,000.00 (County’s 50%) for a total reimbursement amount of $624,000.00 to be paid by the County. The Interlocal Agreement is set to terminate on December 31, 2024, or earlier, if all services and payments have been provided.
Fiscal Impact:
Total Not-To-Exceed Cost: $624,000.00
Funding to support the Interlocal Agreement for a maximum amount of $624,000.00 will be provided through a budget amendment. The source of funding is the Tourist Development Tax Fund.
Staff Member Responsible:
Brian Lowack, Director, Convention and Visitors Bureau
Partners:
Tourist Development Council
City of St. Petersburg
Attachments:
Interlocal Agreement
Agreement between the City and Inner Circle