Part III in a four-part series on the prospects for and potential impact of professional baseball in Bay County
Baseball stadiums don’t come cheap.
That said, they can become lucrative investments and provide dividends for communities. The six-member Doré Energy Group sees the potential for professional baseball in Bay County and has designs to bring it back here for the first time in more than 50 years.
The first step in bringing Single-A or Double-A baseball to Bay County is breaking ground on a stadium, which the group estimates would cost $30 million. The remainder of the process then begins to fall into place, as owners expressing interest in possible movement would be more open to discuss impending relocation.
Finding a location for the stadium and financing it are two different endeavors. There are enticements to bring a team here, however, most recently with the Florida House of Representatives offering tax breaks to new teams. It’s one of the revenue streams to soothe the burden of bonds or public monies.
But building a stadium is only a small part of the larger picture. The stadium needs to attract spectators to be profitable. And there’s no way of knowing how well-received a team is until there’s one playing baseball 70 nights a summer.
Where’s the money?
Doré Energy Group is headed by Louisiana energy executive William J. Doré, whose estimated net worth is in the hundreds of millions. Doré is a businessman, and Harrison said he would be willing to back the project provided it’s profitable.
“He’s willing to invest in it, but there’s got to be a return on his investment,” Harrison said in a News Herald article published in May. “There’s got to be enough income for him.”
The Doré Energy Group’s complete vision includes a “sports village” which combines the minor league stadium with amateur fields, an indoor facility and also would include dining and entertainment options. The grand scale would cost countless millions. In terms of luring pro baseball, $30 million is the target figure.
The TDC has nearly $10 million available as part of a recurring revenue stream, Harrison said. Most if not all of that will be spent on the amateur sports facility or expanding Frank Brown Park, whichever is found to be more feasible by 2015.
Harrisonsaid the TDC could purchase bonds between $20-$30 million, but that would require paying off the debt and would require time to do so. But recently passed House Bill 7095 could generate state funds to do just that.
The bill, entitled “Professional Sports Facilities” was sponsored by Rep. Jimmy Patronis, R-Panama City, and first filed on March 5. It’s been through several amendments, including adding minor league baseball on the list of approved franchises as well as lowering the minimum amount for a stadium to qualify to $30 million.
The final version was passed on May 2 and sent to Gov. Rick Scott’s office for his signature on June 13. Scott signed the bill on Friday and the measure will become law on July 1.
The bill provides sales-tax refunds to approved applicants based on the initial cost of the facility. There are three tiers, the lowest between $30-$100 million, which provide recuperation of 75 percent of the facility’s annual state sales tax with a cap of $1 million. Stadium projects costing $200 million or more offer up to $3 million in reimbursement.
All funds through the bill may be used for upkeep and renovation of facilities and also applied to lowering bond debt. The bill serves as enticement for pro organizations to choose to play in and stay in Florida, Patronis said.
“We wanted to give some incentive for someone to make a large capital investment in order to end up helping all parties,” Patronis said. “If they’re willing to spend 30-plus million then we’re going to allow them to get some of their sales tax back.
“None of this guarantees any money. It’s a process, just like a mortgage application.”
The bill also includes a penalty for reneging on the criteria to remain certified or if the team relocates before the end of the agreement. Each beneficiary found to have defaulted will be required to reimburse the state the funds it collected through the program, which in many ways serves as a secondary lease to ensure teams remain in Florida.
“We set a formula in place that these applicants need to make,” Patronis said. “There’s a discount of 75 percent on the dollar, but we didn’t want to write them a blank check.
“We want to give them incentive, but at the same time we want to be reasonable with taxpayers’ money.”
Bay County support
Baseball follows a familiar formula. Teams won’t be profitable if they fail to draw spectators. And people can’t be forced to support a product if there’s a lack of interest.
That is the conundrum facing any potential new owner. The hope is not only to produce a stellar product on the field, but during the game provide the type of fun and entertainment that minor league baseball is known for.
Bay County had a pro baseball team until 1961. Today’s market is more diverse in many ways, but many believe baseball could find a supportive home here again.
Bay County has a population of 171,903, as of the 2012 Census. Panama City Beach has a population of 11,814, as of that last Census, with more in unincorporated surrounding areas. Panama City’s population is listed as 36,167.
The latter two figures aren’t overly impressive, but the entirety of the summer tourist trade lends optimism. A 2012 TDC visitor study estimated 10.8 million nights spent by 2.6 million travel parties generating more than $1 billion in spending. The survey also rated the destination high on overall experience with the majority of respondents saying they’d return to the area.
The survey didn’t take into account non-overnight stays or those living here as year-round residents. It also didn’t discuss the impact of families that attend baseball and softball tournaments at Frank Brown Park that encompass several days.
Patronis said there was no doubt the area is attractive year-round and especially so during the summer months when school is out and families have more free time.
“It would be an added attraction to this destination,” Patronis said. “People are here in the summer. It’s not like you’re trying to put one of these things out in the middle of nowhere.
“It would be awesome for Bay County. It would be a great way to complement the region along the I-10 corridor.”
Harrison agreed, and added he’d love nothing more than to retire from his law practice and enjoy baseball every summer accessible by a short drive.
“We have the right ingredients for phenomenal opportunities,” Harrison said. “It’s interesting how many people have said positive things about it.
“I’m sure there’s some negativity, but they haven’t voiced that to me. I think the chances are extremely good to be able to get a minor league team here.”
Next: Part IV looks at how other cities in the region and nation have acquired minor league teams and the impact on those communities.