Council approves LOI for Midtown baseball and softball complex; developer to deliver pro forma and market study
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Summary
The council unanimously approved a letter of intent with Station Baseball LLC for a multi‑field baseball/softball complex and hospitality amenities in Midtown. The LOI outlines a 50‑year lease for the playing complex (63 acres) and sale of a 30‑acre hospitality parcel, up to $20 million in city reimbursement for public improvements and a 10‑year property tax abatement for the complex parcel; developer will provide business plan and third‑party market study.
The City Council voted unanimously on Feb. 26 to approve a letter of intent (LOI) with Station Baseball LLC to advance negotiations for a baseball and softball complex in the Midtown Business Park.
Under the LOI described by staff, the project would occupy roughly 90 acres on the eastern side of Midtown. The developer proposes a long‑term lease for approximately 63 acres for the baseball and softball complex and the sale of about 30 acres for hospitality and amenity uses. The LOI proposes the hospitality parcel be sold at a negotiated price (the LOI indicates $20,000 per acre for negotiation purposes) and contemplates city support for infrastructure.
Key terms staff summarized include: up to $20 million of city reimbursement for eligible public‑purpose improvements on the complex parcel; a 10‑year property tax abatement limited to the baseball/softball complex parcel (not the hospitality parcel); developer commitments to raise equity (reported in LOI as $10–20 million) and to limit debt on the complex side (proposal indicated no more than $30 million of debt on the baseball/softball portion). The developer said it expected a total project cost in the neighborhood of $35–50 million, with developer responsibility for operations, maintenance and a capital reserve for turf replacement.
Staff noted other implementation conditions in the LOI: the developer will provide a full business plan and financial package within 30 days of LOI approval and a third‑party market study (estimated 90–120 days) to validate tournament demand and economics. The LOI includes a public‑access requirement for community leagues during weekdays/evenings at rates comparable to city facilities and provides the city rolling calendar access to weekends when fields are available; the Brazos Valley Bombers were identified as a likely user for the championship field subject to a separate agreement.
Council members asked several questions about financing, the city’s capital exposure (staff quantified potential infrastructure improvements to the site at roughly $15 million), hotel‑occupancy impacts and whether project elements could be phased. Developer representatives said the business model relies on the combined hospitality and tournament programming (the integrated entertainment/hospitality overlay reduces overall project risk) and that some components would be more difficult to phase. Following the market study and submission of pro forma materials, staff will return to council with final negotiated agreements for any sale, lease, tax abatement or reimbursement package.
