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Committee on Riverfront and Baseball Meeting Minutes

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Committee on Riverfront and Baseball Meeting Minutes 7/9/2007 Riverfront 1 SPECIAL COMMITTEE ON RIVERFRONT ACTIVITIES AND BASEBALL July 9, 2007 3:00 PM Aldermen Lopez, Gatsas, Aldermanic Chambers Smith, DeVries, Roy City Hall (3rd Floor) Chairman Lopez called the meeting to order. The Clerk called the roll. Present: Aldermen Lopez, Gatsas, Smith, DeVries, Roy Messrs.: R. Miller, A. Solomon, R. Duval, J. Cook, T. Clark 3. Chairman Lopez advises the purpose of the meeting is to discuss recent communications received relating to a proposed development near the baseball stadium. A handout was distributed to members. Chairman Lopez stated we are going to try to get through this I don’t want to say fast, but in a way that we are not going to look at the legality of a lot of things that we received from correspondence, that would be for our City Solicitor to look at as time goes on. But I want to thank everybody for being here at this last minute because tomorrow evening we have a Board of Mayor and Aldermen meeting and the committee will make some type of recommendation. Last time we were here we did not have the information that we received through the City Clerk which was the correspondence from the chairman and CEO Art Solomon, and more detail Attorney Robert Miller representing Fischer Cats with a lot of legal complaints. Letter from the Eastern League President and a letter that’s included from former Mayor Baines. So to move this thing along, I think all the Committee members have read the letters and to save time I would like all of 7/9/2007 Riverfront 2 those who are going to speak to get right to the point, I think we can follow you pretty good. Chairman Lopez recognized Attorney Miller and Art Solomon to come forward and make comments in reference to the communications forwarded to the Committee. Attorney Miller stated we would like to just briefly address the various contractual obligations that we believe are at issue before the Board in terms of the City’s obligations with respect to the Fischer Cats, Eastern League and major league baseball that would be implicated by the proposed project. I am going to turn it over to Art Solomon to explain to you why these things are relevant. Mr. Arthur Solomon addressed the Committee stating I appreciate the opportunity to address the Special Committee so that I can explain why the Fischer Cats are so strongly opposed to this proposed development. As my attorney said I will concentrate this afternoon really on how this proposed development if approved will violate the City of Manchester’s pre-existing contractual agreements. First of all let me talk about the Red Sox territorial waver which was incorporated into two inter-related agreements. In march of 2003 there was a Red Sox Agreement that former Mayor Baines, with the support of his friend the Mayor of Boston negotiated with the Red Sox. As most of you know in major league baseball, each major league team has a geographic area and for any team to play in that area they need the major league team’s approval. So on March 20, 2003 the Red Sox gave a territorial waver so that the Fischer Cats could come to Manchester, New Hampshire. And that was signed by Larry Letino, the CEO of the Red Sox, and Drew Weber. Equivocal condition required by the Red Sox was that they should have a retail presence of 2,500 square feet in the redevelopment area in close proximity to the stadium. In order to sell Red Sox merchandise and also sell tickets to events at Fenway Park. And if there was a failure to provide this retail store then the Red Sox could terminate the territorial waver. The City obviously is an important third party beneficiary because without the territorial waver there could not be a baseball team, there would not be a stadium which was the engine for development for the whole riverfront area development and there would not be a riverfront development area. Now related to this a few months later in November of 2003, there was an agreement signed by Frank Catapano on behalf of Manchester Down Visions and Drew Weber for 6-to-4-to-3 and as you know I succeeded through Weber as the controlling owner of Fischer Cats. The agreement specifically acknowledges the previous Red Sox agreement which I mentioned. And in the very first section, the section on the lease and I quote “the land developer whose merchants Downtown Vision agrees to offer to the Red Sox under its agreement with 6-to-4-to-3 the 2500 square feet of retail space on the terms set forth in that earlier agreement.” And that agreement with the Red Sox 7/9/2007 Riverfront 3 would last at that point until the year 2013 unless there was an extension, and I did get an extension when I acquired control of the Fischer Cats. So now that agreement goes through the year 2023. Furthermore it states that this 2500 retail space obligation continues even if the land developers interest is sold, transferred, or assigned. Let me tell you what’s critical about this. What’s critical about this is that there is no other location in close proximity to the stadium in the redevelopment area for this 2500 square foot store except for the 11,000 square feet parcel that we are talking about today. That this parcel at 2 Line Drive was the very parcel designated by Manchester Downtown Visions for retail use. That this Red Sox store obligation was not included in the sale of the two other parcels to Chinburg way behind the stadium and to the Rodells for the hotel, and this is the only parcel still owned by Manchester Downtown Visions which could fulfill the Red Sox obligation. The City negotiated the territory waiver, the city has an enormous stake in not loosing the baseball team if the Red Sox terminated the territorial waiver or required huge payment for it. That’s the territorial waiver issue of which the city is a major third party beneficiary, in fact the former mayor negotiated it. Secondly, let me talk about the agreement with the Eastern League and Major League Baseball. This agreement as you know was negotiated between the Riverfront Development Committee, the Board of Mayor and Aldermen, and the President of the Eastern League, Joe McEcheren. I believe that President McEcheren’s letter speaks for itself. So let me just highlight his major points. He made three very important points. One is if this proposed 36 unit residential development was permitted to be built in the only parcel designated and available for the Red Sox retail store it would violate the territorial waiver with the Red Sox. So he also representing the Easter League and Major League Baseball says this would violate the Red Sox territorial agreement. Secondly he said because of the threat to the safety of fans walking to and from the stadium from all the additional cars that would be caused by this development, because of the threat to the health and welfare of the fans, the players, and the service providers from the environmental contaminants caused by the excavation below ground for a two story parking garage below ground, and the threat to the financial viability to the Fischer Cats, who already have as you know the most onerous lease in Double A baseball. That this proposed development is totally incompatible with the Eastern League’s conditional approval that allowed the team to relocate from New Haven, Connecticut to Manchester, NH, and that the high standards of Class-A professional baseball would not be met and the relocation to Manchester would never have been approved if this were part of the initial development scheme. So he concludes if this proposed residential development is permitted it’s the position of the Eastern League that the existing management and operations agreement with the Fischer Cats will be null and void and subject to re-negotiation and the League will not longer recognize the long term obligation of the team. He also indicates and as you know we were awarded the 2008 All Star Game for the Eastern League that the League would have no 7/9/2007 Riverfront 4 other choice but to reconsider moving the all star game to another city. Something which obviously we don’t want, the City shouldn’t want. The third contract is the basic agreement between the City of Manchester and the Fischer Cats. The amended and restated management and operations agreement. Let me just highlight a few of the most relevant provisions. As you know the City granted to the manager, the Fischer Cats, considerable authority with respect to both the baseball franchise and the stadium, and it required the Fischer Cats to perform its obligations to the highest industry standard of care that a manager of a comparable sports team or entertainment ballpark would enjoy. The contract had a number of very specific requirements for the Fischer Cats to carry out their fiduciary responsibility. The manager shall manage and operate the franchise in the ballpark in a first class manner. The manager should promote and maintain a friendly family oriented environment. The manager should maximize the financial success of the ballpark. The manager should serve the public interest. The manager should maximize the revenue and minimize the expenses during each fiscal year. And the manager should protect the safety health and welfare of the fans.
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