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Summary of Rapid Park Site Ballpark Plan
1. The Minnesota Twins (“Twins”) have agreed with Hennepin County (“County”) to recognize the Rapid Park Site exclusively as the site to build a new Major League Baseball park. 2. The Rapid Park Site will represent the convergence point for: - Light Rail Transit - The Proposed Northstar Commuter Rail - Interstate 394/94 Termination Into Downtown Minneapolis - TAD Parking Facilities - Target Center - Warehouse District - Downtown Minneapolis Business District - Other Future Mixed Use Development
3. HOK architects have developed a preliminary plan and design for an open air ballpark. The County and the Twins will jointly finalize the ballpark plan. The ballpark is expected to cost $360 million, and be completed by 2009, without a retractable roof. - The Twins still favor a retractable roof and believe the State of Minnesota (“State”) can facilitate funding without using general funds using incremental sales and player income taxes or other methods. - The County would agree to a roof only if no additional tax burden is imposed on Hennepin County residents.
4. The Twins will: - Pay $125 million of the ballpark costs, of which $40 million will be paid initially, with the remaining $85 million secured and paid prior to completion (see Exhibit 1). — This commitment is not conditioned on financing and requires no County credit support or enhancement. - Assume responsibility for ballpark construction cost overruns. - Enter into a 30-year, no-escape use agreement which must be approved by Major League Baseball, to the satisfaction of the County. - Pay ballpark operating expenses (estimated at $10 million per year) and receive ballpark-related operating revenues. - Pay $0.6 million annually, with escalation, to fund future capital improvements of the ballpark. - Share up to 18% of gross franchise sales proceeds if the Twins are sold prior to 2016. - Provide for affordable tickets.
5. The County will: - Fund $235 million of the ballpark costs and approximately $84 million for land, surface parking, site improvements and infrastructure. The ballpark will be publicly owned (see Exhibit 1). - Fund the above investment by issuing tax-exempt, County bonds payable from a countywide sales tax to be authorized by the legislature, without a required referendum. - Pay $1.4 million annually, with escalation, to fund future capital improvements of the ballpark. - Maintain the right to use of the facility rent free for public events, subject to scheduling agreement.
Hennepin County/Twins Proposal | (Dollars in Millions) | | | | | | | | | | | | | | | | | | | | | | Team Share | | County Share | | Total | | | | | | | | | | | | | | | | | Project Costs | | | | | | | | | | | | | | Ballpark Construction Costs | | | $125 | | | | $ 235 | | | | $360 | | | On/Off Site Development Costs | | | - | | | | 84 | | | | 84 | | | Total Project Costs | | | | $1251 | | | | $3191 | | | | $444 | Sources and Uses Statement2 | | | | | | | | | | | | | | Approximate Sources of Funds: | | | | | | | | | | | | | | | Team Up-Front Cash Contribution | | | $ 40 | | | | | | | | $ 40 | | | | Team Second Cash Payment/Financing | | | 85 | | | | | | | | 85 | | | | Net Proceeds From County Financing | | | | | | | $ 319 | | | | $319 | | | | Total Sources | | | $ 125 | | | | $ 319 | | | | $444 | | | Approximate Uses of Funds: | | | | | | | | | | | | | | | Ballpark Construction | | | | | | | | | | | $360 | | | | On/Off Site Development Costs | | | | | | | | | | | 84 | | | | Total Uses | | | | | | | | | | | $444 | | Estimated Sizing of County Debt | | | | | | | | | | | | | | Net Proceeds from County Debt Issuance | | | | | | | | | | | $319 | | | Issuance Cost/Debt Service Reserve/Bond Insurance | | | | | | | | | | | 34 | | | Total County Debt Issuance | | | | | | | | | | | $353 | | | Estimated Annual County Debt Service Payment | | | | | | | $21.5 | | | | | | | Estimated Annual Tax Revenue Required at 130% Coverage | | | | | 28 | | | | | | | Estimated Annual Sales Tax Proceeds at .15% | | | | | | | 28 | | | | | | County Debt Statistics | | | | | | | | | | | | | | Estimated Average Interest Rate (Variable and Fixed Rate Debt) | | | | 4.75%2 | | | | | | Coupon Range | | | | | | 3.4%-51.5% | | | | | | Assumed Underlying Rating | | | | | | | "A" | | | | | | | Insured Rating | | | | | | | "AAA" | | | | | | | | | | | | | | | | | | | | | | 1 | The team share can increase to $127.5; the County share can increase to $321.5 based on cost sharing | | | | associated with surface parking. | | | | | | | | | | | | | 2 | It is assumed current market rates plus 50 basis points. |
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