Yet another pitch for city funding in a proposed uptown Charlotte baseball stadium arrived Tuesday. This time, property tax revenue would be limited to an existing dedicated district, and the total city investment drops to $8 million.

Executives from city government and the Knights now recommend a combination of tourism taxes, totaling $7.25 million, and $750,000 from the tax district that funds Charlotte Center City Partners. The nonprofit economic-development and promotional agency receives $3.25 million from the tax, with an additional $1 million to $1.5 million coming from advertising and sponsorship revenue. Terms call for Center City Partners to contribute $164,000 for the stadium in 2015, followed by annual payments of $50,694 for 20 years.

Charlotte Mayor Anthony Foxx is not a fan of the proposal. “I can’t say right now that I’m an enthusiastic supporter of this project,” he said.

City Council will vote on the stadium proposal June 11. The Knights already have a 49-year lease with Mecklenburg County for the 8-acre stadium site in Third Ward. That agreement calls for the team to pay $1 annually for the property. The county paid $24 million for the land; it will contribute an additional $8 million in grants to the Knights as repayment for improvements to the landscape and streets near the ballpark.

Total cost for the 10,000-capacity stadium is $54 million. Last month, BB&T Corp. reached an agreement to buy corporate naming rights at the stadium. Planned opening is in 2014. County terms require the Knights to secure funding for the stadium by June 30 and to start construction no later than Oct. 1.

Architects of the revised deal, including Democratic City Councilman James Mitchell, cite the removal of property taxes from the funding plan as cause for optimism. “It gets us close to getting the votes (for approval) but there are no guarantees,” says Mitchell, who chairs the council’s economic development committee.

Some council members signaled their opposition to the previous recommendation, which would’ve used $2.5 million in general property tax revenue anticipated from the addition of the stadium and related development. Instead, the city sought a contribution from an agency it helps fund, Center City Partners, and tapped the Charlotte Regional Visitors Authority to increase the amount of tourism tax money used for the stadium.

The Charlotte Knights currently play in Fort Mill. Center City Partners began working on the uptown stadium plan in 2005. Lawsuits, the recession and other circumstances have derailed the ballpark project several times.

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Erik Spanberg

Senior Staff Writer- Charlotte Business Journal
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An uptown baseball stadium for the Charlotte Knights appears closer to reality, after a majority of City Council members indicated Tuesday they could vote for a new $8 million subsidy plan that doesn’t include a property tax rebate.

Council members won’t take a formal vote on the baseball plan until June 11. But the most recent proposal to help the Class AAA baseball team, which was shown to the council Tuesday, seems close to getting a majority of votes.

In its most recent proposal to help the Knights, city of Charlotte staff stripped out a proposed $2.5 million property tax rebate for the team, a feature that had made some council members uneasy.

City staff members instead proposed adding more hotel/motel tax revenues to the project – for $7.25 million total – along with $750,000 from Center City Partners, an uptown booster group.

The Knights, who currently play in Fort Mill, S.C., want to move to uptown’s Third Ward for the 2014 season. The team has said a new stadium would double its annual attendance, to 600,000.

Supporters have also said it would transform that side of uptown with new apartments and restaurants.

The team originally asked for $11 million from the city. It’s already getting $8 million from Mecklenburg County, plus county land valued between $20 million and $24 million.

City staff first proposed giving the Knights $9 million, and then revised that to $8.5 million. That plan would have used $6.5 million from the county’s hotel/motel occupancy tax revenues and a $2.5 million rebate of the stadium’s future property taxes.

But some council members balked at the property tax rebate, in part because they are considering a $926 million capital building plan that would be funded by an 8 percent city property tax increase.

The new plan tries to avoid that controversy by cutting out the property tax rebate.

There are still four of 11 council members who have said they will vote against the stadium plan or who have been highly critical of it: Democrats Michael Barnes, Beth Pickering, Patsy Kinsey and Claire Fallon.

Changes win some over

But Tuesday’s changes appeared to win some council members over.

Democrat John Autry, considered a swing vote on the project, said he would likely vote yes. Republican Warren Cooksey said the use of hospitality taxes – which can only be used for tourism purposes – would produce new property taxes for the general fund.

And Republican Andy Dulin, who was once a firm “no” vote, said he could support it. He said one reason is that the city has protected itself financially, and that the Knights won’t receive any money unless they finish the stadium and play baseball uptown.

Mayor Anthony Foxx, a Democrat, doesn’t vote with the council, though he could veto the subsidy. Foxx said Tuesday that he’s still “ambivalent” about the proposal, but hasn’t said whether he would use his veto if the council passes the measure.

“When I think about the future of our city, I don’t think the lack of baseball is a threat,” Foxx said.

After the meeting, Foxx said the city’s capital plan is more important for the city’s long-term future than baseball. Council members will also vote on the capital-spending plan June 11.

Deputy City Manager Ron Kimble, who has been negotiating with the Knights, told council members he believed the Knights couldn’t pay for any more of the stadium from the team’s own money.

The city said the Knights would be responsible for $38 million of the stadium project, which has a total cost of $74 million.

“I don’t think the project can go forward (without city help),” Kimble said. “That’s what the Knights are telling us.”

Knights general manager Dan Rajkowski told council members that without city money, the team would return to Fort Mill and “re-evaluate.”

Some council members were concerned the city was spending too much of the hotel/motel tax money, which would put other projects in jeopardy.

Kimble said the city had made sure it could afford money for baseball and still meet debt obligations.

Kinsey said she was still concerned about the subsidy plan, even with the property tax rebate eliminated.

“However we slice the onion, it’s tax money,” she said.

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By Steve Harrison
Posted: Tuesday, May. 29, 2012

CHARLOTTE, N.C. – The Charlotte Knights and City Council continued negotiations over a proposed uptown ballpark on Wednesday.

The Knights said they’ve received commitments from two corporate partners, a requirement to continue discussions about a new ballpark in uptown Charlotte.

The names of the two businesses were not released, but the Knights say the long-term sponsorship agreements help move the stadium project in the right direction.  The team was required to show proof of two partners by March 31 to maintain validity of the Knights’ lease agreement with Mecklenburg County.

Meanwhile, the team asked for $11 million from taxpayers to help fund the stadium, and team owner Don Beaver said the change would create a $38 million economic impact.

But City Council members have voiced concerns about noise and traffic for residents in the area and concerns over where the money would come from. City Council countered Wednesday, saying they were willing to give $9 million toward the stadium.

That $9 million would come from the three percent hotel/motel occupancy tax and an economic development grant.

A City Council economic committee is expected to vote on the recommendation in two weeks before it will be considered by the full City Council.

If approved, the Knights and the public would split the $74 million cost for the ballpark.

The Knights have already built a symbolic home plate on the property and are currently working on designs for the stadium.   They hope to start construction in October of this year and actually play ball in April 2014.

The Charlotte Observer contributed to this article.

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CHARLOTTE, NC (WBTV) – New numbers are in regarding how much the City of Charlotte might pay to move the Charlotte Knights uptown.

City council’s economic committee is proposing $9 million, but the Knights wanted $11 Million to help pay for a new ball park to be built in Third Ward.

The current price tag for a new stadium is in the range of $54 Million.

The city of Charlotte is expected to pony up $9 Million that will come from property taxes, and the Knight’s will be responsible for financing $41 Million; Mecklenburg County is also offering $8 million.

Charlotte Knights owner Don Beaver was on the front row when the pitch for dollars went public.

“It seems like a lot risk and we know what we’re doing in the project,” he said. “And we’ve got our numbers together.”

Several council members worry about the issue of timing.

Mayor Pro-Tem Patrick Cannon is among those in search of a different funding formula.

“I think we need to some other revenue stream,”he said. “Some alternative sources for revenue streams that don’t directly impact the tax payers.”

Predictions are that a ripple effect will be created, and Center City Partners confirms once ground is broken for a stadium other development will follow.

Michael Smith who heads Center City Partners has been in touch with investors who want to build near the site.

“It’s an apartment complex. It is a large investment that’s been trying to get moving, and they’ve done enough research to know equity partners are going to respond to this ball park,” Smith said.

Late Wednesday, the Charlotte Knights said that the team has lined up clients for naming rights and other corporate sponsorships.

Members of the economic development committee will decide if full council will consider the plan on April 18^th.

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