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some of the above artist rendered images are provided by the City of Fort Wayne or developers of the project

 

AroundFortWayne.com

Deputy Mayor Mark Becker Interview

April 25, 2007

 

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Congratulations on the vote last night, it was very exciting!

I'm just really impressed with the amount of support from the business community and also the elected leadership of County Council members that came and spoke.  Karen Richards (Allen County Prosecutor) coming and speaking as powerfully as she did, I didn't expect that.  Every week has been a different step on our journey and it's gone well and I couldn't be more pleased. Now we can focus on the design details and how the site will develop.  I know there are tweaks that might happen.  Hardball Capital is even talking about a public meeting where we would talk about the site plan and get other ideas.  We're in a phase now where we have the support of Council so there's a stronger team working to achieve the best project.  It's just refreshing now to be in this phase.  We can focus on those details where up until last night we'd done as much as we could do.  (Return to the top.)

 

I noticed in the Memorandum of Understanding (MOU) with Hardball Capital that the stadium is to be built to Class AA standards even though the Wizards are a Class A team.  (Note 1)

They want to make sure the stadium has the ability through its design from day one to be able to accommodate a potential move up in the leagues if that opportunity presents itself.

Will the difference in standards result in added construction costs?

I don't think it will be that significant.  Some of the other changes like being able to accommodate football games and other sports in the facility would probably have more cost implications than the double A design.  This was something that came out of the task force (Baseball Plus Report) that made recommendations to the Mayor that it should be designed and built to double A standards.  The ball team, after they entered into discussions with us, made this one of their preliminary recommendations so it was just alignment between us and them on achieving that goal.  (Return to the top.)

 

The MOU also states that a Capital Maintenance Fund will be set up for the stadium.  The city will contribute 1% of the hard construction costs to annually, which would be approximately $300,000?  (Note 2)

Actually, the hard cost of construction is estimated at closer to $23 million.  The $30 Million would include all costs including architectural fees, engineering costs and so on.  The amount we contribute to that Capital Maintenance Fund would be 1% of the hard construction costs which will probably be between $23 and $24 million which would mean the city's contribution would be $230,000 to $240,000 at the minimum.  (Return to the top.)

Would the city's contribution strictly come from what's spelled out here?  I guess the concern I would have is what happens if there is a shortfall? (Note 3)

We feel very confident based on what we've seen with the naming rights deals done around the country and the ticket sales projections that we can fund this at not less than 1%. We are looking at parking revenues we can set aside from the new parking garage that will be built right there and also from the Civic Center Garage.  We have enough years of experience in what our revenue streams are that we'll know what increase is caused by Harrison Square.  Also as we see the spike in certain nights, we'll know it's caused by the ballpark.  We are looking at setting a portion of those funds aside for possible use if we have a shortfall on the Capital Maintenance Fund.

So even if we're over in those areas, it still goes into the Capital Maintenance Fund?  (Note 4)

Yes, obviously if it's really well capitalized, we could look at other projects in the area.  Maybe there are some upgrades we want to take immediately that we couldn't afford when we built the stadium initially.  We will have a lease agreement with the team to play baseball there and basically have use of the stadium during that time of the year.  But they'll also have a management agreement with us.  There was a question last night about why do they have a 20-year lease with two 5-year options but only a five-year management agreement?  We wanted an out in case they're not managing the stadium well.  They'll have performance standards and a board of advisors that will oversee with them the management of the facility.  This board will help make the decisions on what capital improvements happen.  If the ball team wants new seats, but the seats in the judgment of the advisory board are fine for another year or two then, we'll wait. There will be that kind of check and balance.  (Return to the top.)

 

One of the problems you face at some venues in Fort Wayne if you want to host a public event, is the need to provide Liability Insurance, which can be quite expensive.  Will that be a requirement for public and or community events held in the new ballpark?

I don't know those details at this point.  I would think the fee structure for use of the facility, would be similar to what you'd pay at the Grand Wayne.  This would be in terms of some base amount that turns the lights on and then the costs of clean up.  You would probably have choices in between - if you'd want concessions or whatever.  Contrary to what was again stated last night, they're not going to operate their concessions out of Roanoke Virginia.  They're going to have their own people here managing and upgrading it.  There will be opportunities for vendors, which was good to hear, to be able to provide catering.  Now that we're at the point where we are going forward, they'll be able to look at these details more seriously.  In fact they're coming in today and I look forward to seeing them - especially after last night.  (Return to the top.)

 

The details we've received to date concerning the condominiums are 60 luxury units to be built in each phase.  Are you concerned about a lack of diversity?

From the earliest stages of the project going back to June or July of last year after the Baseball Plus Report was released to the Mayor, Hardball Capital and Barry Real Estate came in to discuss for the first time being a partner.  They had some projections based on their analysis, of our housing study which we did last year.  These projections were for the amount they felt they would be willing to commit to.  They were saying 60 condominiums of this amount of investment from day one.  There will be a range of price points within the building and of course the first phase will help them understand the market even better.  The condominium entry level price points will be perhaps, $130,000 to $150,000 and on up to whatever you'd want to spend depending on the kind of finishes and other things you'd want in a unit.  Their goal is to respond to a range of the market and they're doing a detailed analysis now.  They clearly want the product to be not only responsive to the market, but also well received by it.  They want to respond to what we all see as a pent-up demand for quality-housing product in downtown.  It may be more condos, it may be slightly less in the final analysis.  What we're focused on is the investment they're willing to make and having that first phase be successful as possible so the second and third phases will follow quickly after that so the area West of Ewing sees the benefit of reinvestment.  A lot of people divided 60 units into the $14.5 M investment or $12 M on the condos side and ended up with a number that was $250,000 or something like that.  That is one way to look at it, that's not what's going to end up happening.  (Return to the top.)

 

One of the biggest complaints you hear about downtown is lack of a grocery store.  Will Hardball Capital and Barry Real Estate try to bring a grocer into the development?

They've got a lot of ideas for what they'd like to see in the first phase.  My assumption is that you're probably going to see things that are more of an entertainment nature, restaurants and that kind.  But I think to be successful and attract a small grocer is probably going to require more residential so maybe as the second or third phases come online, it will happen then.  I was just down to Greenville, South Carolina over the weekend where we moved back from and they've seen a huge boom in downtown housing in the last 5 or 6 years.  They're just now seeing their first grocery store being built in downtown. I would see it here, several years out if we can sustain additional housing.  I think our housing study shows there is strong demand for a lot of new owner-occupied housing.  If this project can demonstrate to local investors in particular that there is in fact a market for new housing downtown, it won't be surprising to see one of the chain groceries or something like a Trader Joes, or whole foods.  I don't think it's unrealistic to see a nice grocery come through.

Maybe a grocery store isn't a good fit for Harrison Square?

It's probably more likely to happen up Harrison Street.  It's going to happen.  (Return to the top.)

 

I completely agree with the philosophy or thinking that we want people walking the streets of downtown.  Personally, I don't mind parking a block away and walking.  I know for some with physical difficulties that is hard.  Time and again however, this topic comes up.

Parking clearly is an issue and has been for every city that has developed a project like this.  At the front end, more so than as the facility opened and people became comfortable with the whole experience of parking and going to the games and walking and so on.  What you see happen, is that cities have a comprehensive parking strategy, which is something we will do.  We want to engage not just publicly available facilities like the Civic Center Garage or the new garage that will be right there on site, but also private property owners.  These lots may otherwise sit empty in the evenings so we will see if they would be willing to make their parking area available for games or other events.  In Greenville for example, there are arrangements with not for profit groups.  For example you might be an attorney near the ballpark and you have 20 spots.  One game it's the Boy Scouts collecting the money at the entrance into your parking lot.  They get a cut of the money, which helps them as well as your making some revenue that you wouldn't otherwise realize. 

At the City-County Parking Garage for example, we could run a shuttle back and forth between it and the ballpark.  We want to talk with Citilink about opportunities like that.  (Note 5Greenville has a large lot built where their county government complex is and their ballpark is on their Main Street. This street goes quite a distance to the Hyatt Regency and a trolley now runs all the time in the area because people just love the trolley.  It started initially for just the ballgames - now everyone is riding it all the time.  So there are other opportunities like that.

The supply of parking in downtown is more than adequate when you look at the average of one car per three people that attend the games at Memorial Stadium.  So even with a sell-out downtown, you've got 3,000 cars and that can easily be accommodated in the public and private parking that is in proximity to the ball field. (Note 6)

Again, over time as more activity happens downtown, more investment happens downtown.  More people are going to park in the garage back here, or in other parts of the downtown.  They may have dinner at the North end of Harrison Street and walk to the game.  That's what we want to have happen.  The last thing we want, and we're nervous about building a parking structure right next to the ballpark, is for the majority of people to park in that garage, go to the game, get back in their car and leave. (Note 7)

We want to achieve the synergy that having this downtown will be able to accomplish.  There will also be adequate parking in the close proximity of the stadium for people that have disabilities and other challenges in terms of accessing the field, seating and so on.  In this ballpark again, unlike the current field, you will enter at street level on the concourse level.  It's going to be a much more accessible field for folks that are in wheelchairs or other disabilities because you won't even have to ride in an elevator to have a good seat to see the game.

I don't think it's too early to start looking at a parking campaign to get people acclimated to the idea of parking and walking to a destination downtown.

You'll see a lot more of that as we improve our wayfinding.  You're going to see the new international parking symbols going up on both publicly and privately owned lots this summer.  You'll also see additional wayfinding signage from the interstates which will start to look like what you see downtown so people can become acclimated to the same look in signage. 

We want to have a parking authority as opposed to the way we look at parking today.  In this way, we'll look at the whole system of on street and public and private facility parking – how we can do that more effectively, efficiently and be more customer friendly.  A possible idea would include the first fifteen minutes or half-hour free.

In every other city where they built ballparks, parking was a big issue up front, but it's not an issue today.  I know we've heard that time and time again.  One of the reasons you'd build a facility like this downtown is because you have more parking in the downtown area than any other part of the city.  People say the parking at Memorial Stadium is so convenient and who wants to move the stadium and give that up?  Well I've gone to a lot of games out there where I sat in the lot for 45 or 50 minutes after a game and could not even get out of my parking space.  It's not a perfect situation. 

Downtown you have so many more options to choose in terms of where you park and if you want to be able to stick around or whatever and not sit in your car in the parking lot.  They could go to a restaurant and enjoy something after the game.  That's an important dimension that I don't want to understate, and we will be looking at carefully.  Hopefully from day one people coming downtown for maybe the first time, much less a ballgame, will have a positive experience on the parking side in addition to the game experience.  (Return to the top.)

 

Quite a few years ago, I attended the Indy 500.  We parked in someone's front yard for a price on the northwest side of the racetrack and walked back to the race.  Leaving, we encountered a nightmarish mix of cars, bicycles and pedestrians, all trying to exit the area.  Are you concerned about people in the area west of Ewing Street turning their lawns into parking lots?

I don't think that we will see that, although that's a good question.  Obviously we haven't thought through some of those kinds of things that could happen.  But my guess would be that you'd be seeing reinvestment happening in those neighborhoods to the west. West Central will benefit from this investment occurring and you're not going to have situations where that kind of activity is either going to happen or be tolerated. There maybe a few times a year when there's a huge event like the Three Rivers Festival and thousands of people coming downtown for fireworks with an extraordinary number of people both in the ballpark and the entire downtown area.  This might be something we need to look at.  (Return to the top.)

 

Are there concerns about cars whose passengers are attending a ballgame being parked in the residential area between Ewing and Broadway?  Right now, if you drive through those streets in the evening, they are crowded with residential parking.

We'll look at all that.  We've worked with Carl Walker, a parking consultant we've used over the years and we'll want to engage them or someone as qualified as they are to help us look at this.  We don't need to reinvent the wheel.  There are cities around America that are dealing with some of the same issues you're sharing and I think you raised some good points.  However, I think we can learn from what others have done and how they've dealt with these situations so that we can hopefully anticipate as many challenges as possible and deal with them up front before they become problems.  (Return to the top.)

 

Is the City looking at offering incentives in that neighborhood to properties owners in the area adjacent to Harrison Square?

We're looking at all that, yes – to see what would be appropriate.  Last night, Councilman Smith said acquire those properties.  Even as we looked at land acquisition in that area, we thought initially about whether we could look West of Ewing.  I think we'll continue to look at that but probably now, as part of this planning process, we'll be partnering with the West Central Neighborhood Association.  (Return to the top.)

 

When the Crowe Report was released, WANE-TV and several other opponents took the Earnings from Table E on page 5 and divided it by the Estimated Employment.  This yields a dollar amount of $15,252.04 which they claimed as the average wage to be earned by workers once the project is operational.  They didn't give any thought to whether these were part-time or full-time jobs, or even seasonal jobs which commons sense tells you would be included in a ballpark involving concessions. How did Crowe develop the figures in the report?

In the Crowe Report, they applied standard multipliers.  You can argue with some of them, but I think overall if you look at the impact that they're indicating that would come from this project, it's approximately what other cities have experienced in similar kinds of developments which is how those multipliers are developed.  I think you're probably looking at full-time equivalents so you'd have two part-time people but counted as one full-time people.

The parking garage indicates 1 person working with projected earnings of $23,395.

I'm not sure how that would work in the parking garage, whether you would have someone sitting there 8 hours.  They're just standard multipliers that are accepted in the industry if you will, to help a community. 

This is the reason we commissioned Crowe to do this - to help us understand the direct impact of the development of Harrison Square. Obviously, once we get through the development of it and we see the actual employment and actual labor we can then compare back to Crowe's analysis.  This will be helpful to determine whether they hit the mark or whether they underestimated or maybe they overestimated.  But the analysis was just to help us understand what the direct impact of the project could be. Crowe has much experience in applying standard multipliers and they do good work.  We've learned to trust them on all of our financial analysis.  (Return to the top.)

 

The one complaint I have about the building along Jefferson Boulevard is that it will block the view of the field and stadium from Jefferson.  You'll know something is going on, but it won't feel inclusive, rather exclusive like Memorial Stadium.  Admittedly, there won't be much of a view from the ballpark as you're looking north over Jefferson Boulevard.  You'd have a good view of the King Gyros, Rally's, Taco Bell and the Allen County Public Library, but not much else.  The other thing to be considered (and again, I thought of this after the interview) is if future redevelopment of that area would happen, might it be better to have an open view of it?

The field will be 18 feet below street level - more than a story underground.  On the Harrison Street side, the scale of the facility will seem lower,  but on the Ewing Street side it will be about a two-story structure to allow it to blend well with the neighborhood.  (Aside: Harrison Street sits many feet higher than Ewing Street, which is downhill.  This slope is between Webster and Harrison streets as the area between Webster and Ewing streets is more level.)  Our current stadium is all above ground.  While there will be an elevator to get to street level from the field level, it's not going to be a 3 or 4 story ride.  They've talked about batting cages which will be in the structure along Ewing Street where their offices and other facilities will be located.  These batting cages, which are normally below ground and you never see them, will be above ground and in a glass enclosed area.  You can just walk along there and watch the guys doing their batting practice.  Hardball is thinking about design considerations like that to make it a place that will generate activity at all times - regardless of a game being played or not.

In our original proposal, we have buildings along Jefferson.  That was another architect's rendering that had condos wrapped around the parking garage.  One of the goals we want to achieve with all of our development downtown is to have an urban feel.  To accomplish this, we want buildings, to the greatest degree possible, that are built along the frontages of the streets.  This doesn't give the feel of being out in the suburbs, but rather a feeling of being downtown.  This feeling is unique to downtown so that's why you see a lot of buildings in these renderings showing parking in the middle of the block because you don't want to see a parking lot.  So, in the case of the condos and the retail building along Jefferson, it might be shifted down slightly to give you a view as you come to Ewing and Jefferson into the ballpark. I think that's one of the things they want to look at.  There might also be a public meeting to offer the opportunity to get input regarding the design of the project.  (Return to the top.)

 

There's been some confusion about the City Council's role from this point forward.  What is the next step for them?

We'll be going back to the City Council when we conclude the definitive agreements that will be the binding agreements.  At that point and time we'll have done all the due diligence on their financial capabilities and all that so we'll go back to the Council to get their approval for the bond financing for the project. Their role in the project is relative to the financing of the deal – to give us the financial resources to participate in accomplishing this project. 

Last night was the approval of the two revenue streams and expansion of the Jefferson Pointe Economic Development Area. Now we can use the revenue streams both from Jefferson Pointe and the Harrison Square area as it generates new property tax.  The benefits can be taken back out the corridor toward Jefferson Pointe over time. The Redevelopment Commission has the power to acquire land and they're also the entity that captures tax increments that are used once the districts are created by City Council.  They've approved the MOU's and they'll also approve the definitive agreements.  They are the entity that actually oversees development of the project.  The City Council is more the financial end of it.  (Return to the top.)

 

What lessons can the city take from this project and use with the North River Development?

The North River Development is going to be another very exciting opportunity for downtown.  It would provide an anchor north of the St. Mary's River.  The development could include a natatorium, housing and retail redevelopment along Harrison Street and some sports facilities on the east part of the former YWCA campus. Harrison Square would provide an anchor on the south and then you will see a lot of other investment happening in the core in between.  Harrison Street will become what I think we all envision it can be with the redevelopment of all those parking lots.

I think one lesson that we've learned from Harrison Square is about what we have the capacity to do.  I think a project of this magnitude is for all kinds of reasons very complex.  From the planning that led up to it, to just the fact that we have a partner that came forward - timing is everything.  I think when we started the Baseball Plus analysis, for example, we all believed this was eight or ten years out.  We thought that at some point and time we were going to need to invest significant money in Memorial Stadium or the ball team might not want to play there anymore.  The point was to be thinking today where you would want that facility to be and go about acquiring the land.  In Indianapolis they made a decision about the new stadium ten years ago and they acquired the land.  When it got to the point where they needed to build it, they didn't have to worry about being able to assemble the property – they already had that.  They just had to be concerned about the financing.

The Wizard's Team was sold to a group of very highly respected, qualified urban developers from the southeast part of the United States.  They had an interest in exploring this opportunity with us and were willing to invest private money in the deal.  They also understood the importance of this kind of project not only to the ball team but to our city and region as well.

The period between the end of July and December 2006 when the Mayor made his announcement was a time when we didn't know if we had a project.  We couldn't talk about details when we weren't even sure if it was viable or not.  That was a very awkward time to be in.  We were looking at how we could finance the project.  We were looking at the details of what Hardball was willing or not willing to do.  There were a lot of challenging meetings during that time leading up to the point where we had a project defined enough that Mayor Graham Richard was comfortable with it and also felt the community could support it.  He was willing to go public and that was what happened in December. 

We emphasized last night that this wasn't something the ball team proposed to us.  It wasn't something that came out of nowhere.  The Mayor wasn't looking out his window one day and said, "I want to do this.”  It was a planning process that led us to this point, and it was one of the reasons Hardball bought the team.  They were impressed with our downtown planning and the fact we were even having this discussion in the community about a ballpark being downtown.

 

We'll engage this new North River Development task force to do what we did with Baseball Plus and they're charged as the Baseball Plus group was charged out of the Blueprint Plus.  The Blueprint said to form a task force to look at this idea of a youth sports complex north of the river.  We didn't want to proceed with that until we had control of the land.  Well we got control of the land through an option agreement with OmniSource so it's a little different than Harrison Square.  But we'll have a lot of community input over the next three months.  We'll also have professional guidance on what's feasible in terms of a youth sports complex as well as other ideas that include housing, retail, and things that could potentially be developed north of the river.  How does it interface with Lawton Park, the former YWCA Campus, Science Central, the St. Mary's River and Headwaters Park

The other issue will be how we can finance these things.  We can use the experience we've gained on Harrison Square in terms of how we financed it on the public side to challenge our thinking about what's possible North of the River.  But this project will have different opportunities in financing.  Foundations, which weren't appropriate to assist with Harrison Square, might be considered for the North River Development.  If there's different components of a youth sports complex involved, perhaps it will be appropriate to go to the State Legislature with a request.  There might be an opportunity to interface with educational facilities be it Science Central or what's happening with the former YWCA Campus.  There's been discussion about the new Fort Wayne Community School's Science and Technology Center being a component of this project. 

We want to engage the public again - and all these meetings will be open to the public.  There will be charrettes and we're going to use Gianni Longo again to help facilitate the process because he's just outstanding in helping to build consensus.  We'll use CSL (Conventions, Sports & Leisure International) who helped us with the Memorial Stadium to look at the feasibility of these different components.  So hopefully we'll have an end result that is an action plan that we're prepared to aggressively go forward and implement. I wouldn't be surprised if by the end of the year you don't see some very specific proposals for redevelopment of that land.  The city's already budgeted, as part of our CEDIT plan, the funds to acquire the land.  I'm hopeful that we'll go forward and frankly identify other strategies for how we can acquire the land with the CEDIT budget as a backup. 

Our hope here is that we'll go through this process of identifying what's feasible for the North River Development and how it can be accomplished and then go forward.  My hope is that it can always be in a more public setting. The fact of the matter is that when you're negotiating with private parties, those are private negotiations.  There's not a deal till there's a deal. I think the community, as with Harrison Square, needs to trust that it's public officials will be negotiating with the best interests of the community at heart.  The community needs to know those officials are working toward goals that hopefully we all share.  At the end of the day if it's not a project the Mayor can support, it probably isn't even going to be proposed.  And at the end of the day, if the City Council can't get enough votes to support the project it's not going to go forward either and that's the environment we work in – and that's the environment we accept.  (Return to the top.)

 

Report Links (all reports are in the pdf format Download free Adobe Reader - required for this document)

 

Notes:

1. "The City, through the Redevelopment Commission or other related entity, will, subject to the capital contribution of HC defined below, finance and construct the Stadium, which will be designed for multiple uses, and, unless otherwise agreed, in compliance with the Professional Baseball Agreement Minimum Facility Standards for Class AA baseball stadiums. (Memorandum of Understanding with Hardball Capital and Barry Real Estate: page 4, (2) Stadium Facility.)  (Return)

2. "The City shall establish the Capital Maintenance Fund to cover Capital Maintenance and other capital expenditures required during the License Term to maintain the Stadium in proper repair and condition.  The City shall annually deposit a sum equal to not less than 1% of the hard construction costs of the Stadium.” (Memorandum of Understanding with Hardball Capital and Barry Real Estate: page 11, (d).)  (Return)

3. "The Capital Maintenance Fund shall be funded from:

(i) The City's share of Naming Rights Revenues…

(ii) Any revenues generated from the Attendance payment described in section 10 (b)(ii) herin; 

(iii) The City's share of any revenue generated from Community events as described in Sections 10(c) and 10(d) herin; and

(iv) If necessary, the City's share of other revenues generated from the Project.

(Memorandum of Understanding with Hardball Capital and Barry Real Estate: page 12, (e).)  (Return)

4. For comparison, Memorial Stadium does not currently have a Capital Maintenance Fund.  If it were to continue use for Wizards games, capital improvements estimated to be over $3 million would be required.  These improvements would include turf replacement, replacement of seats and the cost of bringing the facility into compliance with ADA regulations among various other fixes.  With no current funding stream in place for this, a bond issue might need to happen which would possibly lead to higher taxes.  This example alone justifies the need for this CM Fund to further protect taxpaying citizens. (Analysis of Potential Re-Use Opportunities for Memorial Stadium, page 27 and comments made by CSL personnel during presentation of the report's findings to the City Council on April 17.) (Return)

5. Citilink already operates "Citiloop" daily during summer months around the downtown.  I didn't think of this quick enough to ask if there's been any talk with them on extending the hours and times to accommodate baseball games at the new ballpark.  (Return)

6. According to the Redevelopment Commission, there are 4,321 spaces within ¼ mile of the ballpark and 9,495 within ½ mile.  Parking Availability Analysis. (Return)

7. "The Parking Structure would be owned and operated by the City and/or the City of Fort Wayne Redevelopment Commission to service the Hotel, Lincoln National Corporation, public parking and the Stadium.  The Parking Structure is not intended to serve as the primary parking facility for the Stadium. (Memorandum of Understanding with Hardball Capital and Barry Real Estate: page 3, (b).) 

From the Hotel MOU: "The Commission is also the owner of real estate located in the block south of the Project Site and has a Memorandum of Understanding with respect to the balance of the block south of the Project Site on which the Commission intends to build a parking facility which will serve the Project with three hundred (300) dedicated spaces, along with providing parking for Lincoln National Life Insurance Company and satisfy other parking needs in the area (parking Facility). Overflow parking after 6pm and weekends will be made available as required. (Return)

 

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