City proposes 15‑year Hillcats franchise and $5.25M stadium upgrades, recommends ending Hillcats' broad tax exemption

City staff told the council on April 8 that they have negotiated a proposed 15‑year franchise agreement with the Lynchburg Hillcats ownership group and proposed a related package of stadium improvements funded largely from revenues generated by the team’s operations.

Under the proposal staff described, the new franchise would run 15 years (beginning to overlap the final year of the existing franchise), require the team to pay rent and certain fees, increase the annual stadium maintenance reserve from $100,000 to $150,000, and generate revenue to support a more than $5.25 million upfront investment in fan amenities at Bank of the James Stadium.

A central element would be amending the city code provision that currently exempts admissions to athletic events held at a municipal facility from the local amusement/admissions tax. Staff proposed changing the exemption to apply only to youth athletic events (players under 18) and thereby collect admissions tax on professional or semi‑professional events. Staff and the Hillcats told council the change is acceptable to the team and that the tax would function like a user fee, with revenues dedicated to stadium improvements.

City attorney Matt Friedman participated in drafting the amendment language, staff said. The proposal would require three council actions: approve the franchise, amend the admissions‑tax code, and add a $5.25 million project to the FY25–29 capital plan for stadium improvements. Staff forecasted multi‑scenario (baseline/pessimistic/optimistic) financial projections prepared with a sports‑consultancy partner and estimated $7.5 million in potential revenue over 15 years under the baseline model if the amendments and franchise are approved.

Staff also described protections for the city if the team leaves: early termination would require the Hillcats to pay $100,000 per year remaining on the franchise plus repayment of the unamortized portion of the $5.25 million stadium investment (the city’s approach is to amortize that investment across the 15‑year term for vesting purposes).

Ending: Staff said next steps would include a public hearing and council vote on May 13 on the franchise and code change, an RFP posting/response process required by the state, and budget‑amendment actions in May for the capital appropriation. Councilmembers asked clarifying questions about potential edge cases (for example, a player under 18 playing for the Hillcats) and about competitive solicitation; staff said bids will be posted and any response would be evaluated but said the current ownership group is engaged and the proposal was structured with protections for the city.