$1 stadium lease in works between Kannapolis, Intimidators

KANNAPOLIS, N.C. — A new lease in the works for Fieldcrest-Cannon Stadium with the Kannapolis Intimidators will reduce city liability and give the team a financial break.

The $1 a year lease will reduce the money paid by the team’s ownership group, Smith Family Baseball, but eventually turn over maintenance responsibilities to the team.

“It’s not a revenue-generating lease. It is a risk-reducing lease for the city,” City Manager Mike Legg told Kannapolis City Council Monday.

Previous leases with the team generated net revenue of $20,000 to $30,000 per year, depending on attendance and how much maintenance cost each season, Legg said.

Kannapolis now owns the stadium and 55.68 acres that surrounds it. Previously Kannapolis and Rowan County had been in partnership, with Rowan taking on the primary financial responsibility. Kannapolis recently bought out Rowan County’s interest in the stadium.

The 5-year lease calls for Kannapolis to be responsible for maintenance costs, except the playing field, for the first three years, and then responsibility would shift to Smith Family Baseball. The team would be responsible for year-round utilities, which are currently split.

Deferred maintenance is an issue currently with the stadium, and the city will be bringing it up to date in the first three years, Legg said. Those items include some roofing, outdoor speakers and the netting behind home plate.

The stadium fund with $325,000 came to Kannapolis as part of the purchase from Rowan County.

“The fund should cover our expenses in the first three years, but the first year will likely be the most expensive,” Legg said.

City council approved the lease subject to Legg and city attorney Wally Safrit being able to work out concerns over a provision added by Minor League Baseball about possible league or baseball changes that could be required.

Safrit said the team has agreed to a provision that would require the team to pay for any building or structural costs that league might require, but the provision would not cover a change such as shifting field maintenance away from the team.

“I’m about 90 percent satisfied, but it still doesn’t cover it all,” Safrit said.

City council also approved two resolutions regarding annexation of the stadium property. A public hearing is set for April 9.

The move into the city would allow for city fire and police protection, and would give the city zoning authority on the property, much of which is undeveloped.

“There’s a lot of potential on this property, and it would be better for us to have control of the zoning. Right now Rowan County has the zoning,” Legg said.

The new lease would replace a lease that was first established in the mid-1990s. The team previously paid $50,000 a year plus 65 cents per ticket, 65 percent of the parking revenue and 10 percent of the concession revenues.

“It was very complicated, and record and bookkeeping was difficult for the team,” Legg said.

An attractive lease is also a way to help make sure minor league baseball is in Kannapolis for years to come, Legg said.

Naming rights to the stadium, which are set to expire, will now go to the team. An announcement on a new name for the stadium may be made at the April 3 open house.

WSOC