DATE: October 31, 2014
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Vernon Gerth, ACA Community & Economic Development
Lisa R. Clayton, Parks Director
SUBJECT: .title
Consideration of Lease Agreement between the City of Franklin and the Friends of Franklin Parks, LLC for the Multi-purpose Equestrian Arena at Harlinsdale Farm (COF Contract #2014-0281) (11/12/14 WS)
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Purpose
The purpose of this memorandum is to provide information to the Franklin Board of Mayor and Aldermen (BOMA) concerning entering into a multi-year lease with the Friends of Franklin Parks, LLC ("FOFP") for the purpose of constructing a multi-use equestrian arena and the management of event space at the Park at Harlinsdale Farm.
Background
On November 26, 2013, the Friends of Franklin Parks, LLC signed a Letter of Intent with the City to further the mission of the Friends of Franklin Parks, which is to "cultivate stewardship within our community to preserve our culture and natural resources, enhance the park experience and expand its legacy for future generations." In April 2013, the FOFP presented the concept of developing a multi-purpose equestrian complex and arena for the Park at Harlinsdale Farm. Since then, the FOFP has privately fundraised within the community and surrounding area to fund construction of a multi-use equestrian facility and event space within a five acre area of the park.
The FOFP submitted and received approval from the Franklin Municipal Planning Commission and the Historic Zoning Commission for the arena along with concessions, restrooms, event space, fencing, utilities, stormwater and paddocks. Over the past year, the FOFP Board of Directors formed subcommittees that concentrated on design and construction and worked tirelessly on developing the lease, business plan and budget jointly with City personnel.
The Land Trust of TN was contacted by the FOFP and the City. After the review of the construction documents and the lease, they are in agreement with the partnership for the property. Their only request was to add language that the Conservation Easement and Master Plan be followed at all times within the lease agreement.
Financial Impact
The total impact for the capital construction costs range approximately over $900,000 for the multi-purpose equestrian arena and event space. The City is proposing to contribute a not-to-exceed $200,000 toward the construction of the project. The total of $160,000 from the Hotel-Motel Tax funding was budgeted within Parks Department budget for public restrooms and utility relocations for electrical, water and sewer connections.
In addition to the one time appropriation of $200,000 for initial construction, the City currently maintains with personnel and equipment the daily duties associated with City facilities or fields with all current lessees under contract (Franklin Baseball, Franklin Cowboys and Williamson County). The FOFP new facility would require seasonal personnel and one full-time employee to assist with the day-to-day operations, planning, coordinating and special events during the weekend hours. Please see the attached budget for consideration as a planning tool for the Parks Department and the FOFP as specific details regarding programming develops over the next six months prior to City budget meetings in the spring of 2015. Additional costs and responsibilities are also listed within the proposed lease agreement.
Liability
The liability with such a project was discussed during the planning and development phase of the project with City personnel and the City's insurance provider, Travelers Insurance. The insurance requirements is included in detail within the lease agreement.
Recommendation
Approval of the proposed lease agreement with the Friends of Franklin Parks, LLC is recommended.