The future of the city
’s outdoor sports complex is uncertain as the recreational group
the city had hoped would run the new facility has backed out of the
project and two local sports groups are struggling to reach an
agreement on operating the facility. Early this month, the city
learned the Coliseum Recreation Group
was abandoning the project because they felt “deal points”
created by the city made the group assume all of the risks.
The future of the city’s outdoor sports complex is uncertain as the recreational group the city had hoped would run the new facility has backed out of the project and two local sports groups are struggling to reach an agreement on operating the facility.
Early this month, the city learned the Coliseum Recreation Group was abandoning the project because they felt “deal points” created by the city made the group assume all of the risks.
Meanwhile, two local sports groups are vying for control of the project without the help of the CRG. Both the Morgan Hill Youth Sports Alliance and the Morgan Hill Youth Sports League believe they can manage the new facility.
“The MHYSA is ready to move without the CRG,” Jeff Bernardini, vice president of the Morgan Hill Youth Sports Alliance announced to the city council Wednesday night.
“We are prepared to apply as a 501c3 (nonprofit) corporation if the city council considers our proposal,” Don Mott, spokesperson for several nonprofit youth groups under a loose affiliation called the Morgan Hill Youth Sports League, told the Times Monday.
The city council in July considered a public-private partnership venture and ground lease arrangement with the Coliseum Recreation Group and also asked the two youth sports groups to join together as one entity.
The Coliseum Recreation Group was interested in leasing at least a portion of the site with a plan to have indoor fields, fitness areas, a restaurant, and locker rooms in a 86,000 sq. ft. building for Phase I of the project.
The CRG, however, felt it could not shoulder the full costs for development. City officials estimated the CRG proposal required a $2.5 million city subsidy for development costs. CRG’s request was greater than the city had budgeted for phase I of the project and the council was unwilling to commit more money to the venture.
City Manager Ed Tewes disclosed the city received a letter Sept. 1 from the CRG stating it would not be moving forward with the proposal.
“I understand the CRG is no longer there,” Bernardini told the council last week. “If there is no more interest, we’re interested in operation and maintenance of the complex. We need to re-evaluate our focus. We need to be totally self-sufficient and move towards that goal. Youth is our priority, not an outside agency making money out of our property.”
The proposed outdoor sports complex, slated to open in the spring of 2007, would make up 36 acres bordered by Condit, Murphy, Barret and San Pedro Avenues. The concept incorporates six existing soccer fields, a concession/restroom building, volleyball courts, backstops and fencing up to the dugouts base of several baseball fields.
The Redevelopment Agency has devoted $7.5 million for the land, but the project’s construction is estimated to cost $10.65 million. At this point, the city has a budget of $2.5 million for the first phase of the project. The city wants to recover costs by the facility’s third year of operation.
Along with MHYSA, five youth organizations (Pony Baseball, Orchard Valley Youth Soccer, Pop Warner Football and South Valley Sand Volleyball League, and PRIDE Softball), under the MHYSL, are also interested in operating fields.
Special Assistant to the City Manager Julie Spier told the council last Wednesday the sports groups are still considering a unified proposal which they intend to submit to the city by Oct. 20.
On Monday, however, representatives of both groups reported negotiations between them were at an impasse, and each group indicated they are prepared to move ahead single-handedly and operate and maintain the fields.
MHYSL estimates operating and maintenance costs of the outside fields between $160,000 to $170,000 annually, while MHYSA pegs costs at about $127,000. The city, however, has estimated costs at $273,000 annually.
Bernardini said MHYSA can move ahead without MHYSL.
“We think we can do it,” according to Bernardini. “Everyone has playing skills. All of the leagues don’t have enough fields on which to practice. We’d like the fields to be open to everybody in the community for practice during the week and then for tournament play, by reservation, during the weekends.”
Bernardini said the group is optimistic it can raise the money for operating and maintaining the fields through tournament fees, gate fees, field usage fees, sponsorships, along with rent from CYSA for use of the soccer fields.
Mott, who is also the vice president of the Orchard Valley Youth Soccer League, said Monday while MHYSL hopes CRG will renegotiate with the city so CRG lease payments could assist the sports groups in operating and maintaining the fields, MHSYL is still seriously considering taking on the task alone. He said representatives of the sports groups are meeting on Wednesday to discuss ways they could financially support the venture.
He said at this juncture, it was unlikely that the MHYSL and the MHYSA could become one entity.
“There have been disagreements with representatives of both groups and we question how the MHYSA intends to fund the fields,” he said.
When informed about the youth sports groups’ intentions, Councilman Greg Sellers, a strong proponent of the outdoor sports complex, said, “I think it’s still premature to comment, but I remain hopeful that they can work something out, and if not, I hope the leadership in the council will show the focus in what makes sense in order to maximize the resources we already have.”
Sellers said he is still hopeful that the CRG will reconsider.
Doug Payne of CRG said he didn’t feel the city was really committed to turning Morgan Hill into a regional sports destination. He said the city wanted to approve CRG’s operation plans, programming and subleases and CRG had to bear all the financial cost with no risk assumed by the city.
“We also found out later, that the city wanted a percent share of the gross revenues of our sales. We are not a profit center for the city … It wasn’t a partnership. It wasn’t good business, in fact, it was bad business,” Payne concluded.
Sellers said, “It’s clear that it will take a little more time because it (the outdoor sports complex) has a lot more components than the other facilities we have built. It will take longer to do it, but we want to make sure we get it right.”
