The contract for Court Sports 4 Life (CS4L) to take over the operation of the Steamboat Tennis & Pickleball Complex, including building an indoor Pickleball Center, had its first “reading” at the City Council Meeting on 10/20. You can read it here (start on page 117) … or you can read the highlights below. (You’re welcome!)
Ground Lease and Maintenance Agreement
The City will lease the property to CS4L for 20 years, renewable for a second term of 20 years. The lease rate will be $1 per year.
Starting in the 5th year, CS4L will transfer 4% of annual gross operating revenues over $500,000 to the Steamboat Tennis and Pickleball Maintenance Endowment Fund (now called the “Serve It Forward” Fund), which was started 4 years ago and is held at Yampa Valley Community Foundation. This is the 3rd component of our capital campaign.
CS4L will establish a Capital Projects Fund for improvements and repairs of the Complex, and starting in 2022, will contribute 2% of gross annual operating revenues to this fund. The 2nd component of our capital campaign is to grow the tennis part of this fund.
If any real property tax is levied on this property in the future (there is none currently), CS4L will only be responsible for taxes levied by an entity other than the City.
Pickleball Facility and Parking Expansion Project
CS4L must raise sufficient funds by December 31, 2021 for:
Construction of a new indoor/outdoor pickleball facility – This is the 1st component of our capital campaign.
Expansion of the available parking by at 24 new spaces – This is included with the 1st component of our capital campaign.
The City will pay or waive all construction-related application and permit fees, taxes, and other charges typically payable to the City.
Construction may not begin until:
70% of the construction budget (including 10% contingency) has been raised or pledged, and at least 40% has been received. Private financing shall not exceed 30% of construction costs.
Maintenance Endowment Fund reaches $200,000. (As of 10/1/23, the balance is $157,000.)
The Capital Projects Fund reaches $100,000.
The City will convey the existing facilities in the Tennis and Pickleball Complex to CS4L when the new Pickleball Facility is granted a Certificate of Occupancy. (We plan for this to be in Summer 2023.)
At the completion of the second 20-year lease term, the City has the right to reclaim all assets on the property.
Prior to receiving the building permit for the Pickleball Facility, CS4L and the City will develop a joint plan for parking management, irrigation, and dumpster use as these are shared with the Ski Town Sports athletic fields.
FYI, there will be some minor changes in the final version – such as renumbering the sections so that there aren’t two Section 18s and making the official names of the contract, facility, and endowment consistent.
If you have questions, please refer to the full contract before contacting us at email@example.com. We hope you will agree that this contract is a win-win public-private partnership for the entire community!
Steve “Moz” Modzelewski Court Sports 4 Life board chair