By Jessie Burchette
jburchette@salisburypost
Rowan County commissioners have approved new lease terms for Fieldcrest Cannon Stadium and agreed to consider “good faith” offers to buy the stadium in Kannapolis.
Under the new deal, Smith Family Baseball, owners of the Intimidators franchise, will pay $56,000 per year for 2008 and 2009. The entire payment will go to Rowan County, which owns 75 percent of the stadium. The city of Kannapolis has waived its 25 percent of the rent to lower the rate.
After months of off-and-on negotiations, a committee consisting of Commissioners Jim Sides and Tina Hall and County Attorney Jay Dees met last week again with representatives of Smith Family Baseball to reach an agreement on new terms.
The Board of Commissioners unanimously approved the new lease terms.
For three years, the county had leased the stadium at a flat rate of $75,000 per year, while paying for utilities and some other costs.
Earlier this year, the Smiths had asked for an extension of that lease. Commissioners refused, citing the costs to the county.
In June, commissioners voted to revert to the original lease, which bases the fee on attendance, concessions, parking and other factors.
On Sept. 30, an attorney for Smith Family Baseball made a new proposal including giving the Smith Family the right to sell naming rights to the stadium.
The attorney, Lyman G. Bullard Jr. of Boston, Mass., noted in a letter that the Smiths remain interested in discussing the purchase of the stadium or an option to do so based on an “appropriate appraisal price that reflects the lease of the baseball stadium and the restrictions on development of the property.”
The committee of Sides and Hall agreed on several points, which were approved by the Board of Commissioners Monday night. In addition to the rental fee, other terms include:
– Smith Family Baseball will be responsible for all utilities year-round as well as all maintenance and landscaping obligations, water/sewer, liability and business insurance and day-to-day maintenance costs of the entire leased property, including the entrance, without reimbursement from the county.
– The county will retain responsibility for major structural repairs.
– Smith Family Baseball will retain all revenue generated from the use of the premises, except for two suites currently retained by Kannapolis and the county. The city and county will continue to received 12 tickets to each game.- The county agrees to negotiate with Smith Family Baseball regarding naming rights to the stadium at such time the county completes an ownership agreement with the city of Kannapolis.The county is continuing to negotiate with Kannpolis over an ownership agreement.
Existing legal papers show the city and county as equal owners based on the original 1994-95 plan to equally share the cost of building the stadium.
The funding plan changed, with the county picking up 75 percent. For two years or more, the county has sought a new agreement that reflects the 75-25 percent ownership.
– Lease can be extended an additional five years with the terms to be negotiated.