TO: Mayor and Members of City Council
THRU: Adam Lindsay, Assistant City Manager
Jeffrey Yates, Assistant City Manager
FROM: Kimberly Leonard, CLGFO, CLGBO, CPA, MPA
Budget and Evaluation Director
DATE: September 23, 2024
RE:
Title
Adoption of Capital Project Ordinance Amendment to appropriate $668,861 in Funding for Segra Stadium Improvements from the Segra Stadium Account to bring Segra Stadium into Compliance with the Latest Minor League Baseball Requirements
end
COUNCIL DISTRICT(S):
Council District(s)
District 2
b
Relationship To Strategic Plan:
Goal IV: The City of Fayetteville will be a highly desirable place to live, work, and recreate.
Executive Summary:
On April 24, 2023, the Council approved Capital Project Ordinance (CPO) 2023-18 to appropriate $150,000 from the Segra Stadium Account (“Account”) to begin improvements to Segra Stadium. Council’s approval for construction specified that the improvements were not to exceed $750,000, however the final cost is $869,414. The Segra Stadium Capital Improvements Board of Advisors had previously recommended Council spend up to $818,861 for the required Minor League Baseball (MiLB) stadium compliance improvements. The Woodpeckers (Houston Astros) agreed to pay the actual cost overage of $50,553. The improvements included the following:
• Female Locker Room
• Visitors Commissary and Dining Area
This left $668,861 remaining for the City to cover, which is the difference between the amount not paid by the Woodpeckers $818,861 less the $150,000 already appropriated. To cover these expenditures, the Council is asked to adopt Capital Project Ordinance Amendment (CPOA) 2025-30 to appropriate an additional $668,861, from the Segra Stadium Account fund balance for these improvements.
Background:
The City executed a Use and Operating Agreement (“Agreement”) for Segra Stadium with the Fayetteville Woodpeckers (“Operator”), a subsidiary of Houston Baseball Partners, in December 2016. The Agreement set up a mechanism to identify and fund capital improvements to the stadium over the life of the Agreement.
The Agreement references a Capital Repair, Maintenance and Improvements Schedule (“Schedule”) that is to guide expenditures from the Account over the term of that Agreement.
The Woodpeckers requested specific expenditures for MiLB updates from the Segra Stadium Account, in addition to the scheduled maintenance, which the Council authorized at the April 24, 2023, Council Meeting.
At the time, there were not enough funds in the account to fully fund the improvements, but due to the requirement of the MiLB, the Houston Astros decided to fund the project in its entirety and requested reimbursement from the Account in future installments.
Issues/Analysis:
MiLB grades stadiums based on a points system, with points added when particular amenities are absent. MiLB clubs attempt to keep these scores as low as possible. Graded amenities evolve over each season, requiring MiLB clubs to make modifications to remain in compliance. The requested modifications ensure Segra Stadium meets current MiLB requirements, which were put in place before the start of the 2023 season.
Budget Impact:
There will be no impact to the General Fund fund balance.
Options:
1) Adopt Capital Project Ordinance Amendment 2025-30 to appropriate funding for Segra Stadium improvements.
2) Do not adopt Capital Project Ordinance Amendment 2025-30 and provide additional guidance to staff.
Recommended Action:
Staff recommends that Council adopt Capital Project Ordinance Amendment 2025-30 as presented.
Attachments:
CPOA 2025-30