Westfield has found its two anchor tenants for the indoor soccer facility it is building at Grand Park Sports Complex.
The Westfield City Council is considering two 10-year agreements to lease portions of facility to Byrd Enterprises and Indiana Sports Properties, which already manages fields at Grand Park.
“These two agreements provide cash flow needs for underwriting interest and operating costs,” Deputy Mayor Todd Burtron said. “The model is not unlike an office building or retail center.”
Combined, the tenants will pay more than $2 million annually. Burtron said that amount includes $250,000 of profit which will be used within Grand Park for maintenance and upkeep costs.
“The city is not using our budget to fund operating,” he said. “Our bills are covered with these two anchor tenants.”
Each agreement includes revenue-sharing plans between the city and the tenant.
In the Byrd agreement, Westfield will earn 12 percent of revenue earned through the rented space, which includes a restaurant and a sports bar. With the ISP agreement, the city will receive a sliding share of any revenue beyond $100,000 starting in the fifth year of the lease. The scale is 10 percent between $100,000 and $250,000; 15 percent for $250,000 to $400,000; and 20 percent of $400,000 or more.
Burtron said the amounts are prorated.
“It costs more to build out the kitchen area even though it takes less space,” he said.
ISP will rent the “Fields and Flex Center” consisting of 295,650 square feet of fields and 53,468 square feet in two concourses for locker rooms and office space (92.41 percent of rentable space). ISP also will sublease approximately 3,780 square feet of office space (1.08 percent) to another group that has not been determined.
Byrd will rent the “Food Service” area on the mezzanine level, the “Lounge” on the second floor and the dedicated restrooms on the second floor – a total of approximately 17,040 square feet (4.51 percent of the building).
“There is 7,000 square feet in unobligated space available for rent,” Burtron said.
The agreements were introduced to the council on Dec. 8 and may be approved at the Jan. 12 meeting.
Burtron said some site work is taking place and the building is expected to open by Jan. 15, 2016.
“It could be as early as Jan. 1 (2016) or Dec. 15 (2015),” he said.
By the numbers
Indiana Sports Properties will pay an annual rent of $1,635,163 throughout its 10-year contract. It also will pay $45,518 yearly for the subleased office space. Byrd will pay $352,676 by the end of its second year. That amount will increase to $404,533.82 by by year six and $491,713.37 in its 10th and final year. The city will receive a minimum monthly income of $29,389.66.