
April 10th / 12th
"Stadium Delays Must End"
In October of 2007, the public was invited to a groundbreaking ceremony for
the new Winston-Salem baseball stadium. It was replete with fanfare and
celebrities. The Winston-Salem State University marching band performed,
fireworks were ignited, and hall of fame slugger Henry Aaron was the keynote
speaker. Hammerin’ Hank promised those who gathered that he would return to throw
out the first pitch on opening day. But, alas, there’s the rub.
Currently the ball park is half-finished, with no projected date for
construction to resume, nor a prediction of when the Warthogs (now the Dash) might
play their first game there. The stadium went from eye opener to eye sore in
just a few short months, and it now stands as a constant reminder of what
can go wrong when developers don’t put their own money into their own projects.
Several years ago, Winston-Salem warthogs owner Billy Prim (also founder of
Blue Rhino propane tanks and Primo water) and his now ex-partner, Flip
Filipowski (a pioneer in the software industry) announced plans to move their team
from Ernie Shore Field into a brand new stadium that would overlook downtown.
The cost of construction was set at $22 million dollars, which was
comparable to that of the Greensboro Grasshoppers’ new digs. Billy and Flip
convinced City Council to put up $12 million dollars, while the two developers would
secure the other $10 million in loans from area banks. In addition to the
lure of a new ball park, the carrot that Prim held out to Council was a promise
of developing $189 million dollars worth of offices, stores, restaurants, and
apartments adjacent to the stadium.
Not long after construction began, however, Filipowski dropped out of the
deal, leaving Prim to complete the project. Then came news that the cost of
the stadium had been grossly under estimated, and would balloon to $38 million
dollars. Prim had hoped that City Council would cough up the difference,
but this time Mayor Joines refused, leaving Prim to search for other partners.
It is now believed that Prim has secured an additional $10 million dollars
in financing, leaving him just $6 million short of his new goal. As such he
has reportedly sought out partners, such as Richard Childress and ISP owner
Ben Sutton to ante up the needed cash, but, thus far, neither man has
expressed any interest in the deal, at least not publicly.
Meanwhile, Prim spokesperson Kevin Mortensen told the Business Journal
that completion of the stadium was not contingent upon securing another
investor. In fact, Mortensen indicated that, if need be, Prim would make up the
difference out of his own pocket. And that brings me to the main sticking
point.
Both Prim and Filipowski are very wealthy men, each reportedly capable of
paying for the project by themselves. So why the delays?
There is talk that Filipowski’s divorce triggered the entire financing
fiasco, and that the partnership demise was further complicated by the fact that
his ex-wife is also the sister of Prim’s wife. But, again, both men had the
means to build the stadium before the divorce or the dissolution of their
partnership. Instead, they sought and received public funds for what should
have been a privately held and financed project, something that worked well for
the Grasshoppers, who didn’t use a cent of taxpayer money to erect NewBridge
Bank Park.
So where do we go from here?
Everyone agrees that the City can’t afford to have a half built stadium
adorning the I-40 corridor in perpetuity. It’s bad for our image and can
impede future development deals. That’s why one option is for us to take Mr.
Mortensen at his word, and just wait for Prim to sink his own money into the
project, and hope that construction will resume quickly. On the other hand,
we have no guarantees of that happening. That leaves the second option,
which is for the City to do the unthinkable and chip in another $6 million
dollars to cover the shortfall.
If the latter course is pursued, Mr. Prim should realize that today’s
taxpayers are understandably angry about bailing out businesses, much less bailing
them out with no stake in the profits. That’s why if Council considers
pledging the additional funds, they should also insist upon one major caveat.
The City’s total investment would rise to $18 million dollars, so, in return,
Winston-Salem would own 51% of Prim’s Sports Menagerie Stadium, LLC. Under
the terms of this agreement, Prim could manage the company, but the City
would manage the finances and accounting. And, if things go as Prim has
suggested, then the City could recoup its investment three fold in 25 years. Along
the way, part of each year’s profits could be set aside for education and
public safety.
The idea of a municipality owning a stadium is not without precedent, and,
where the Dash is concerned, it was actually Hank Aaron himself who first
proffered the idea of public ownership. On that October day two years ago,
Aaron told the excited crowd, “Remember one thing. This is your ballpark. It’s
your dollars”.
Perhaps the home run king was trying to tell us something more prophetic
than we first realized. But if taxpayers do invest in the new stadium, we
should reap the benefits. Either way, City Council needs to move forward on this
matter quickly, and start exercising its power to control a development in
which it is already invested. Hammerin’ Hank is waiting. So are we.
|