Title
Budget Amendment - Knights Baseball, LLC
Action
ACTION:
Amend the Budget Ordinance for Fiscal Year 2026 to allocated $2,492,659 of available fund balance to pay off the balance of the existing Economic Development agreement with Knights Baseball, LLC.
Staff Contact: Adrian Cox, Budget Director
Presentation: No
BACKGROUND/JUSTIFICATION:
On November 20, 2007, the County entered into an Economic Development Agreement with Knights Baseball LLC for the development of the Knights Stadium. The agreement provides Knights Baseball LLC with an amount equivalent to $8 million at net-present value over 20 years using a discount rate of 8.25%, which equates to $16,600,700 based on payments of $830,035 a year.
The Office of Economic Development, Finance, and the Office of Management and Budget have reviewed the contract and determined that it is in the best interest of the County to pay off the remaining balance of the agreement. The balance has been confirmed by Knights Baseball, LLC to be $2,492,659. Paying off the agreement now will save the county $5,807,691 (expressed in current value) and eliminate the 10 remaining annual payments of $830,035.
PROCUREMENT BACKGROUND:
N/A
POLICY IMPACT:
N/A
FISCAL IMPACT:
The proposed amendment will increase the FY2026 Budget by $2,492,649 in the General Fund (0001).