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Grand Park operations transfer complete; city staff outline escrow, prorations and early payments
Summary
City staff reported the Grand Park Public-Private Agreement (PPA) was executed Dec. 30, 2024, transferring operations to Grand Park Sports and Entertainment (GPSC). Staff described escrow setup, prorated sponsorship payments, two early GPSC installment payments and follow-up items including IT and water-management coordination.
Matthew Deck, director of facilities and events, told the Finance Committee that the Grand Park PPA was fully executed on Dec. 30, 2024, and Grand Park Sports and Entertainment (GPSC) took over operations on Jan. 1, 2025.
Deck said utilities and staff employment transferred to GPSC and that the agreement included a prorations clause: contracts or sponsorships entered by the city in 2024 that apply to events held in 2025 will have payments prorated to GPSC. "So quite simply ... if they got a tournament and they signed the deal on June first of 2024 in the amount of $30,000 and the tournament took place in its entirety in 2025, that $30,000 would be paid to GPSC because that's when all the expense and the labor would be put forth in hosting the tournament," Deck said.
Staff reported the initial $2,000,000 escrow required by the agreement is in process of being set up in a separate bank account and will be transferred when the account is finalized; the clerk/treasurer's office is handling deposit details. Deck said an initial set of prorated receipts totaling $490,470.72 had been processed at the clerk's office and that two additional invoices totaling $27,447.19 were discovered and will be submitted and paid to GPSC.
City staff clarified timing and receipts: GPSC's first scheduled payment to the city is due May 30, 2025, for $333,000, with a second payment of $333,000 due June 1, 2025. Staff said the two earlier installs from GPSC will be deposited into fund 640 (and related subaccounts) as determined by the clerk/treasurer and mayoral direction.
Committee members asked for detail on related agreements that moved with the PPA. Deck confirmed executed agreements include IT-services arrangements, liquor licensing, permitting, and a guarantee agreement between GPSC-related entities. Deck said GPSC is paying for required software licenses and that additional IT support would be billed at an hourly rate if used; staff cited a $300/hour hourly assistance rate for on-call IT work.
Deck and committee members also discussed site work observed at Grand Park, including dewatering work and the potential need for permanent drains or wells during construction. Deck said GPSC may consider permanent deep-watering installations or connections to existing lakes and suggested coordination with city utilities to explore options to capture or re-use onsite water.
Committee members asked staff to provide an itemized invoice detail and to confirm account lines on the claims docket so the finance committee can verify that the prorated amounts and escrow transfers are reflected correctly.
The presentation closed with staff saying they will hold biweekly check-ins with GPSC while the operator ramps up operations and that city staff will provide requested backup detail on invoices and the escrow account once the bank account is active.
