DEPARTMENT: Parks & Recreation
DEPARTMENT HEAD: Xavier D. Urrutia
COUNCIL DISTRICTS IMPACTED: 10
SUBJECT:
Amendment No.2 to the Lease Agreement with Sports Outdoor and Recreation Park
SUMMARY:
This ordinance authorizes Amendment No. 2 to the lease agreement with Sports Outdoor and Recreation Park for the South Texas Area Regional Soccer Complex.
BACKGROUND INFORMATION:
In 2008, the City and Sports Outdoor and Recreation (SOAR) Park entered into a Funding Agreement to provide $6.2 million in 2007 Bond funds as approved by voters for the development of the South Texas Area Regional (STAR) Soccer Complex and Morgan's Wonderland recreational theme park for special needs individuals. Bexar County, through its Venue Tax Program, provided $5 million for construction of the STAR Soccer Complex. The complexes opened in April 2010.
Under the 2012 Ordinance which executed a lease agreement with SOAR, the parties determined it was mutually beneficial for SOAR to retain ownership and continue operation of the approximate 22-acre Morgan's Wonderland allowing SOAR maximum flexibility in the operation and fundraising for this unique recreational theme park designed with special needs individuals in mind. SOAR conveyed the STAR Soccer Complex, which is approximately 72 acres, to the City in August 2012. The first amendment to the lease agreement was approved by Ordinance No. 2013-01-10-0008, decreasing the amount of land covered to allow for the widening of David Edwards Drive. The City is now proposing to amend the lease a second time to reflect modified usage of the leased property consistent with the 2007 Bond language for the development of a soccer field complex and special needs park.
The Lease currently allows for SOAR to operate the STAR Soccer Complex, and the proposed modification will allow a portion of the soccer park to be used for water features or other recreational uses affiliated with SOAR's Morgan's Wonderland operation as approved by the Parks and Recreation Director. This amendment will also modify the lease to allow SOAR to establish and collect reasonable use fees for the water feature area and any remaining proceeds may be used to support the adjacent Morgan's Wonderland.
ISSUE:
Approving the modification of this lease will facilitate the use of a portion of the City's STAR Soccer Complex property for the construction of a special needs water park. This proposed language is consistent with the 2007 Bond language for the development of a soccer field complex and special needs park.
ALTERNATIVES:
The City could elect not to modify the use of the STAR Soccer Complex property. However, this would prohibit SOAR from increasing the service delivery of special needs programming.
FISCAL IMPACT:
This action has no fiscal impact to the City.
RECOMMENDATION:
Staff recommends approval of this lease amendment with SOAR.
The Discretionary Contracts Disclosure Form required by the Ethics ordinance is attached.