Lynchburg City Council considers 15 year franchise agreement with Hillcats baseball team

In a recent work session, the Lynchburg City Council discussed significant developments regarding the Lynchburg Hillcats baseball franchise, focusing on a proposed 15-year franchise agreement and changes to local tax exemptions. This meeting highlighted the city's ongoing commitment to enhancing its sports infrastructure and community engagement through minor league baseball.

City staff, aided by a consultancy specializing in minor league baseball, presented a comprehensive plan for the Hillcats, which included the approval of the new franchise agreement. This agreement is crucial as it allows the Hillcats to utilize public infrastructure at the Bank of the James Stadium, one of the oldest active ballparks in minor league baseball, which has been operational since 1940. The current franchise agreement is set to expire at the end of the 2025 season, making the new agreement timely and essential for the continuity of the team.

Key components of the proposed agreement involve the removal of an existing amusement tax exemption unique to the Hillcats. This change would enable the team to begin collecting an amusement tax on ticket sales, a move that the Hillcats support as it will help fund improvements to fan amenities at the stadium. The anticipated revenue from this tax is projected to exceed $2 million over the next 15 years, contributing to a broader investment of over $5 million aimed at enhancing the fan experience.

The financial implications of the new franchise agreement are significant. The city expects to generate approximately $7.5 million in revenue from various sources, including rent and local taxes, as a result of the Hillcats' operations. Additionally, the agreement includes provisions for an annual maintenance reserve, which will increase to $150,000 to ensure the stadium meets ongoing Major League Baseball requirements.

The council's discussions also addressed protections for the city in the event of an early termination of the franchise. Should the Hillcats decide to leave Lynchburg before the agreement's conclusion, they would be required to pay a substantial fee, ensuring that the city is safeguarded against potential financial losses.

In conclusion, the Lynchburg City Council's work session underscored the importance of the Hillcats franchise to the local community and economy. The proposed changes not only aim to enhance the fan experience but also ensure a sustainable financial model for the city. As the council moves forward with these discussions, the anticipated approval of the franchise agreement and tax changes will play a pivotal role in shaping the future of minor league baseball in Lynchburg.