AGENDA CAPTION:
Title
Consider approval of Ordinance 2020-75, on the first of two readings, dedicating approximately 30 acres of land in the vicinity of Centerpoint Road and Gregsons Bend as parkland in connection with the development of the City’s new Multi-purpose Sportsplex Facility; and including procedural provisions.
Body
Meeting date: September 1, 2020
Department: Parks and Recreation
Amount & Source of Funding
Funds Required: N/A
Account Number: N/A
Funds Available: N/A
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Fiscal Note:
Prior Council Action: City Council approved the Purchase & Sale Agreement with Pursuant Ventures, LLC on November 6, 2019.
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Background Information:
The City of San Marcos entered into a partnership with San Marcos Baseball Investments, LLC
(SMBI) and Pursuant Ventures Development, LLC (PVD) for the purpose of designing, constructing and operating a state-of-the art indoor/outdoor sports and entertainment complex intended to host national tournaments and showcase events that will attract visitors from across the United States. The complex will be located on Centerpoint Road between IH 35 and Hunter Road.
The facility will consist of 8 championship ballfields which will also be used by the local
youth baseball associations free of charge, per the agreement.
This project will be funded through Certificates of Obligation Bonds. The Certificates of Obligation will be secured by pledged ad valorem taxes and limited utility revenues. Due to the Certificates of Obligation being secured by ad valorem taxes the facility must be used for a public purpose. Staff and Bond Counsel have been working with the Attorney General’s Office since January to ensure they do not have any concerns. Their primary concern has been to ensure public purpose use. To provide the assurance required by the Attorney General related to the bonds, it is necessary to bring the sports complex property into the City’s park system upon purchase from the seller.
PVD is working with the City in the design of the facility and as the facility is constructed the City will make progress payments to the construction cost of the facility. Once the project is complete, the City will take over ownership of the sports complex and the land will be dedicated as parkland. The estimated purchase price is $19,372,217 but a 3% contingency has been added to bring the max price to $19,875,383.51. Any construction amounts above this amount will be the sole responsibility of PVD which is another benefit to the City.
This is the one of two related items. The other related item is the 1st Amendment to the Purchase and Sale Agreement including an acknowledgment of the the parkland dedication within the agreement.
Council Committee, Board/Commission Action:
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