From
Becky L. Brooks, CFO
Title
Ordinance amending the FY 2020/2021 Baseball Operating Fund by appropriating $1,300,000 from fund balance for a cash grant to MLC Dallas Stadium Co, LLC (or related assignee), and $200,000 from contingency for a maintenance reserve deposit
Presenter
Becky L. Brooks. Chief Financial Officer
Recommended Action
Approve
Analysis
On 11/17/2020, City Council approved agenda item 20-10384 authorizing City Manager to execute a 380 Agreement and a Ground Lease with MLC Dallas Stadium Co, LLC in the amount of $1,300,000 cash grant and another $200,000 maintenance reserve deposit. The cash grant is to be paid upon final execution of all legal matters, and written request of the tenant, which will occur prior to commencement of construction. The maintenance reserve deposit is to be provided on or before the Rent Commencement Date (as defined in the Lease) and after tenant has met agreement provisions. If the provisions are not met within the FY 2020/2021, the authorization will lapse and a new appropriation requested in FY 2021/2022.
The Baseball Operating Fund is a fund that originally collected an optional sales tax levy. Once the levy was discontinued for that purpose, the fund continued to carry residual balances and accrued rent payments, which are now in excess of $1,800,000. Staff and outside bond counsel believe that the use of those funds toward another sports-related project at the same location is appropriate.
Financial Consideration
Funding for the grant, in the amount of $1,300,000, is available from the unobligated fund balance in the FY 2020/2021 Baseball Operating Fund (317992). The $200,000 in maintenance reserve deposit will also come from the Baseball Operating Fund in an contingency account of $500,000 previously authorized.
Body
AN ORDINANCE OF THE CITY OF GRAND PRAIRIE, TEXAS, AMENDING THE FY 2020/21 BASEBALL OPERATING FUND BY APPROPRIATING $1,300,000 FROM THE UNOBLIGATED FUND BALANCE IN THE FY 2020/2021 BASEBALL OPERATING FUND (317992) AND FOR A CASH GRANT AND $200,000 FROM CONTINGENCY FOR A MAINTENANCE RESERVE DEPOSIT
WHEREAS, on 11/17/2020 City Council authorized the execution of a 380 cash grant and a ground lease agreement with MLC Dallas Stadium Co, LLC;
WHEREAS, said cash grant requires official appropriation of the City Council through a formal budget amendment; and
WHEREAS, balances in the Baseball Operating Fund are deemed available for this purpose.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF GRAND PRAIRIE, TEXAS:
SECTION 1. That the FY 2020/2021 Baseball Operating Fund be amended by appropriating $1,300,000 from the unobligated fund balance for the cash grant.
SECTION 2. That the FY 2020/2021 Baseball Operating Fund be amended by transferring $200,000 from contingency to use as a Maintenance Reserve deposit.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAND PRAIRIE, TEXAS, December 15, 2020.