Grayson Stadium is a historic baseball stadium originally built in 1926 that is part of Daffin Park.  The stadium is situated at the southwest corner of Victory Drive and Bee Road and is currently leased to Fan First Entertainment, LLC (Tenant); owner of the Savannah Bananas.  The current lease commenced on October 1, 2015 and expires on September 20, 2020.  The City issued an RFP soliciting proposals and sealed bids to lease and operate the stadium once the current leases expires.  Only one response was received.  That sole respondent was Fan First Entertainment, LLC.

Subsequently, the City and Tenant negotiated a new lease that provides base rent of $25,000 per year (25% more rental income than the prior lease at $20,000 per year); requires Tenant contribute $250,000 in capital toward facility repairs and improvements; and provides better indemnification and remedy clauses to the City. The lease also provides the City with additional revenue opportunities resulting from third-party events held at the stadium. The term of the lease is for five years, with an option for an additional five years. The City maintains the facility and field and provides utilities and janitorial services. The Tenant books and manages events. Staff researched comparable rental rates of teams at other facilities in the South Atlantic League, and the new lease provides the City with better terms than most leases at competing facilities in the league.

Major League Baseball recently announced a major restructuring and contraction of its minor leagues’ resulting in the proposed elimination of 42 teams, a 24% reduction in the number of minor league baseball teams. As a result, many municipal stadiums across the country will go vacant, and competition for teams and activities at stadiums is expected to increase significantly. Therefore, staff recommends approval of the negotiated lease to keep baseball activities on-going at Grayson Stadium for the near-term future.

Approval