COFFEYVILLE — Whether Coffeyville City Commission should continue to pay $50,000 per month for loan payments for the construction of Veterans Memorial Stadium was the subject of intense debate at Tuesday’s city commission meeting.
City staff is currently in discussions with Coffeyville Community College regarding the annual operational agreement for the city-owned stadium, which opened in 2001. Under an agreement between the City of Coffeyville and CCC in 2010, the City of Coffeyville will continue to make the $50,000 monthly payments on the stadium’s construction loan (that loan is due to expire in 2023) while CCC will pay all operational costs and liability insurance of the facility because the college is the primary user of that facility.
Money from the sale of city electricity to Coffeyville Resources’ nitrogen fertilizer plant is used as the primary source of revenue for the city’s monthly loan obligations.
A separate agreement also calls for CCC, the City of Coffeyville and USD 445 to make annuual contributions to a capital maintenance fund that will be used for maintenance or replacement of the field turf or other structural issues. CCC and the City’s annual committment to that maintenance fund is $25,000 per year. USD 445’s committment is $40,000 per year with $25,000 going to capital maintenance and $15,000 to operational costs.
The current stadium agreement between the City and CCC expires on June 30. In preliminary discussions between CCC and the college, both entities expressed satisfaction in the 2010 operational agreement. CCC has asked for an extension of the contract for three years with an automatic extension for two years thereafter.
However, city commissioner Jim Taylor, Sr., said the agreement was flawed due to the City of Coffeyville making $50,000 monthly loan payments for a facility it does use for its own benefit.
Taylor said CCC is much better versed to assume full operations and debt management of the stadium because of the college’s larger tax base and because the college is the primary user of the stadium complex.
“Why should we spend $50,000 per month through 2023 for a stadium that is primarily for the college’s use,” asked Taylor.
Taylor suggested that CCC assume the burden of the debt payments and operational costs. If CCC chose not to to accept that offer, then the city can lock the stadium and prohibit its use.
Padlocking the doors to the stadium would be a “lose-lose situation” for the City and the college, said commissioner Richard Gonzales. Even if the stadium could be locked, the City would still be obligated to pay the $50,000 monthly loan payments.
Mayor Alec Hendryx said he did not feel comfortable granting a three-year contract to the college for the operational costs of the stadium. He felt the commission should be able to oversee how the facility is being used on a yearly basis — even though CCC and USD 445 are the only entities that use the stadium.
“I do not think we should burden future city commissions with a three-year contract,” said Hendryx.
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Under the terms of a 2010 agreement concerning Veterans Memorial Stadium:
Coffeyville Community College will . . .
. . . assume the operational costs of Veterans Memorial Stadium, which, according to estimates provided by the City of Coffeyville, are between $105,000 and $130,000. CCC will provide the labor for upkeep and operations of the facility on a daily basis.
. . . continue to pay $25,000 per year for the stadium’s capital maintenance fund, which goes to larger maintenance items, such as turf replacement, repairs to heating and cooling systems, roof replacement, etc.
. . . be able to keep revenue from advertising, concessions and rental of suites.
. . . provide property and liability insurance coverage for the stadium property.
The City of Coffeyville will . . .
. . . continue to be the owner of the stadium property and continue to make yearly debt payments of $580,000. The debt payments will expire in 2023.
. . . provide CCC with electricity to the stadium complex at wholesale cost.
. . . continue to provide $25,000 per year to the stadium’s capital maintenance fund.
USD 445 Coffeyville will . . .
. . . continue to provide $40,000 per year to the stadium with $25,000 going to the capital maintenance fund and $15,000 devoted to operational costs.
