Fort Wayne has Harrison Square agreements

BY DERRICK GINGERY, Greater Fort Wayne Business Weekly

If all goes as planned, the major pieces of Harrison Square's first phase would be built by 2009.

City officials today announced Hardball Capital LLC, the owner of the Fort Wayne Wizards, and Barry Real Estate Cos. LLC have signed an agreement to develop the stadium, as well as downtown condominiums and retail space. Acquest Realty Advisors Inc. and White Lodging Services Corp. were expected to sign a similar memorandum for development of the hotel portion of the project today.

The stadium ideally would be under construction by Sept. 1 and open by the start of the 2009 baseball season. City officials said the hotel and retail components also are expected to be under construction at the same time.

Steve Brody, Harrison Square project manager, said the hotel may be finished after the stadium and retail portion, likely in early summer 2009. But that would not impact the financing package for the project.

City officials had said the hotel is crucial to Harrison Square because taxes it would generate are slated to help pay for the rest of the project.

The Fort Wayne Redevelopment Commission is expected to consider both agreements at 4:30 p.m. today.

The City Council likely will view a presentation on the project at 5:30 p.m. Tuesday. The council must approve allocating city economic development and other funds for the project.

The first phase of Harrison Square is expected to cost $125 million. About $68 million will come from private investment. The remaining total will come from public funds. Property taxes will not be used.

The stadium memorandum states Hardball Capital will pay $5 million toward construction of the facility. The city will pay $1.45 million for infrastructure improvements for each phase of the condo and retail development.

Hardball Capital will be responsible for operating the stadium and receive all revenue from events the facility holds. The city, which would own the stadium, will get a share of ticket revenue, as well as all revenue related to community events held there.

If Hardball Capital sells the stadium's naming rights, the city would receive 50 percent of the revenue, up to $300,000 per year. The city would get all naming-rights revenue beyond that amount.

The city also will establish a capital maintenance fund for major stadium improvements that will include portions of stadium revenue it receives.

The full-service hotel must have at least 250 rooms, according to the agreement. It is expected to be a Marriott brand, but the memorandum of understanding did not include specifically what type of Marriott hotel would be built.

City officials will give a 10-year property tax abatement for the hotel project, as well as a personal property tax abatement on information technology and at least $1 million in infrastructure improvements.

The developer also could receive a portion of innkeeper tax revenue the hotel generates for a negotiated period of time.

Final development agreements for the project will take several months to complete, said Mayor Graham Richard.

As city officials announced they were moving forward with Harrison Square, Nelson Peters, an Allen County commissioner and candidate for Fort Wayne Mayor, today said he is seeking state approval for a public vote on the project.

The Peters campaign said in a press release deadlines for certain project economic incentives should be extended and the Legislature should allow Fort Wayne residents to vote in a special Harrison Square referendum.