Council approves LOI to negotiate Midtown baseball and hospitality project; staff to seek feasibility and finance details
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Summary
Council unanimously approved a letter of intent Feb. 26 to begin negotiating an economic development agreement and lease for a proposed nine‑field baseball/softball complex and hospitality component in the Midtown Business Park; the LOI includes up to $20 million in city reimbursement for public improvements and a 10‑year tax abatement for the complex side.
The City Council voted Feb. 26 to approve a letter of intent (LOI) to begin negotiating agreements with Station Baseball LLC for a proposed baseball and softball complex within the Midtown Business Park.
Michael Ostrovsky outlined LOI basics: the project would occupy roughly 90 acres inside the Midtown parcel the city owns. The developer would lease about 63 acres for the sports complex on a 50‑year lease with a 10‑year extension option; a roughly 30‑acre hospitality/amenity parcel would be sold for development at a negotiated price (the LOI lists $20,000 per acre as a starting figure). Staff noted the last undeveloped appraisal for the Midtown acreage was about $150,000 per acre.
Key city incentives in the LOI: up to $20 million in reimbursement for public‑purpose improvements to the complex site (not the hospitality parcel), a 10‑year property‑tax abatement on the complex side, and commitment to construct off‑site utilities and access road improvements. Developer commitments include raising initial equity, securing financing (the developer estimated $35–$50 million in project costs), maintaining a 12‑month debt reserve, taking responsibility for operations, maintenance and capital replacement, and a cap of $30 million of debt on the sports side.
The LOI calls for public access during weekday evenings at rates comparable to city facilities and provides potential priority weekend access for the city and for the Brazos Valley Bombers to use the championship field for home games. The developer committed to run tournament programming and submit a business plan, financials and a third‑party market feasibility study within 30 days of LOI approval (market study expected to take 90–120 days).
Economic impact estimates provided by staff and the developer project roughly $28 million in annual economic activity and about 60,000 hotel room nights when the facility operates at scale; staff emphasized those figures will be vetted by the forthcoming market study.
Council members asked about capital exposure (city incentives plus infrastructure), the potential for RV or cabin‑style hospitality uses during football games, and whether tournament organizers would be required to book hotels inside city limits; staff said the LOI includes provisions to pursue those objectives, and future agreements would clarify obligations.
The council approved the LOI unanimously, authorizing staff to seek the developer’s business plan, feasibility study and financials and to proceed with negotiation of an economic development agreement and associated real‑estate and lease contracts.
Quote: “Our payment would be $20 million worth of the cash incentive, the discounted land, as well as the use of the leased land,” Chief Development Officer Michael Ostrovsky said when summarizing city obligations under the LOI.
Next steps: Staff will review the market study and developer submittals and present a detailed analysis for council consideration before any grant, abatement or sale is executed.
