The construction contract for a $35 million publicly funded baseball stadium requires the selection of a minor-league team by October and exposes the city to $50,000-per-week penalties if the ballpark is not ready by March 1, 2016.
But the draft contract has a provision that allows the city to pass late penalties to the contractor the city selects to build the stadium.
Other key elements in the contract, on which City Council is to cast its first vote Tuesday, are:
Officials from the city and Freier’s company will meet at least every two weeks after the stadium opens to coordinate events at the facility.
The 49-page contract, which addresses a range of issues from managing the plaza around the stadium to testing for soil contamination, is scheduled for a second and final council vote on June 24.
The city, Freier and Hughes would be signatories to the contract.
So far, every vote on key decisions about the stadium have split the council, resulting in years-long commitments that sometimes pass by one- or two-vote margins.
City Hall released a draft of the contract this week by posting it on the city’s website.
The late-penalty provision states, “In the event the venue (ballpark) is not completed by the substantial completion date (March 1, 2015) .. and club is not in default ... city shall pay to club a liquidated damages amount of $50,000 per week during the period of such delay plus any fines or penalties assessed (by Major League Baseball). ...”
Late charges are intended to compensate Hardball Capital for money it spends on team salaries, travel and lodging as well as the debt payments it must make on its investment in the stadium while the team cannot play on its home field.
Freier said Friday the $50,000 figure is “very much on the low end” of similar provisions in other stadium construction contracts.
“If we don’t have a place for events, $50,000 wouldn’t even come close to covering our costs,” he said.
Assistant city manager Missy Gentry said the $50,000 figure surprised her during contract negotiations.
“I ... was a little bit blown away by the number,” said Gentry, City Hall’s liaison for the entire Bull Street neighborhood project.
She said the contract’s requirement that Freier abide by a clear timetable for bringing a team to town answers skeptics.
“A lot of people questioned ... whether a team was really coming here,” Gentry said.
Freier repeated his pledge to the city. “We’re absolutely going to have a team in Columbia for 30 years.”
The cost overrun provision shifts much of the burden to Hardball Capital and Hughes Development Corp., she said. “If they want to build something that drives it to $36 million, they can pay for it. This gives them that flexibility if they want to put more money in the game.
“But that’s not going to happen. We’re building a $35 million stadium.”
The city is moving ahead with other timetables on key decision related to or separate from the construction contract.
An initial vote on using meal-taxes to pay for the stadium is tentatively scheduled for June 24.
Architectural firms interested in designing the ballpark have until Monday to submit their plans. Council could select a firm at its July 15 meeting.
Ballpark noise and lighting studies are to be done this summer. Hardball Capital is paying for them, Gentry said.
In July, the city will ask whether any investors are interested in building two parking garages on the Bull Street property or in teaming with the city to meet that commitment to Hughes.