Highlights of Court Sports 4 Life’s Contract with the City

2nd reading and City Council vote on November 10th

 

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 this week’s City Council Meeting. 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.)