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City Council approves 10-year management deal, turf plan for Stephen J. Underwood fields
Summary
The Des Moines City Council approved a 10-year management agreement with NWS Holdings (Perfect Game) to upgrade and operate the Stephen J. Underwood baseball complex, including a proposed conversion to synthetic turf at an estimated $400,000–$500,000 and a 10-year lease tied to turf life and a convenience-termination penalty.
The Des Moines City Council on Oct. 9 approved a 10-year management and improvement agreement with NWS Holdings (operating as Perfect Game) to manage, program and upgrade the Stephen J. Underwood (SJU) sports complex, including a plan to replace the three dirt fields with synthetic turf and to run regional tournaments at the site.
City Public Works Director Mike Slevin told the council NWS approached the city in July and proposed taking over operations and maintenance of the fields, programming tournament use, and installing synthetic turf over existing underdrainage. "They were very excited about that," Slevin said, noting the subsurface drainage already at SJU made a turf retrofit more feasible and could avoid additional SEPA review for certain work classified as maintenance. Slevin said NWS estimates the turf upgrade budget at about $400,000 to $500,000 for the three fields and that the turf's top layer is expected to last roughly 10 years.
The council majority approved the agreement 6–1. The agreed terms include a 10-year term with one renewal option, city approval of all construction plans and sponsorship signage, NWS responsibility for most operations and maintenance of the fields and tournament programming, and the city retaining ownership of the property. NWS will reimburse the city for utility costs; council materials note an estimated $1,100 per month for janitorial costs as part of the operational split.
Council debate focused on financial exposure and oversight. Council member Harris pressed the city attorney and staff on the agreement's "convenience termination payment," the formula the contract uses to reimburse NWS for unamortized improvements if the city terminates without cause. The city attorney explained the clause intends to protect a private operator that makes a substantial capital investment; under the draft formula discussed at the meeting, early termination soon after installation could require the city to pay up to roughly 1.2 times the unamortized cost (for example, a $500,000 investment could produce a substantially large early-termination obligation). Harris said that level of potential liability was "punitive to the city" and asked for options to limit exposure or add council review for significant additional projects proposed by NWS.
Deputy Mayor Steinmetz said such a termination provision is a common, reasonable protection when an outside party makes large capital investments, and that the clause helps prevent an incentive for the city to cancel after the private operator invests. Council members also won two contract clarifications during the discussion: (1) the city will retain approval over sponsorship signage and marketing and (2) the council may require review of any substantial, additional NWS projects during the contract term rather than leaving all additional work at the discretion of the public works director.
The council added conditions discussed at the meeting; staff said the final agreement would be updated to reflect the council's direction and corrected formula terms to match the revised scope. Council member Mahoney moved to approve the contract and Council member Nutting seconded; the motion passed 6–1 with Council member Harris recorded as opposed.
The signed agreement will authorize NWS to program tournaments, manage routine maintenance, and pursue turf installation; NWS will still be required to obtain the city's permits and comply with any applicable construction and permitting fees. Staff said the construction schedule depends on permit approval and weather; NWS hopes to start work as early as November but acknowledged the city must review plans and issue permits before work begins.
Council members emphasized that the city retains ultimate control over the site, approvals and any significant future changes; the council directed staff to return with revised contract language reflecting the council's requested limits on additional projects and clarification of the termination formula.
Votes at a glance: The motion to approve the management agreement with NWS Holdings passed 6–1; Council member Harris voted no.
