Why Ocala/Why The Yankees/Why Now

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1 Why Ocala/Why The Yankees/Why Now Why Ocala The Yankees ties to Ocala date back to 1969 with George Steinbrenner s purchase of what became Kinsman Farm and is still owned and operated by the Steinbrenner family. The family has had numerous business interests in the area through the years including having built or owned numerous local hotels. The family has long been recognized for their generous contributions to local charities and programs. In addition to the family ties, the Ocala MSA is well-suited for minor league baseball. In the Florida State League where the Ocala Yankees will play, the Ocala market draw would be the 3 th largest of the 12 team league. As opposed to the Tampa market where the team currently competes with the Major League Rays, NFL Buccaneers, and NHL Lightning, the team would be the only professional sports team. Finally, the family focus of minor league baseball is a perfect fit for the area. With average ticket prices of $7-9 and the constant array of promotions that accompanies minor league baseball, Ocala Yankees games would be easily accessible to retirees, families with children, and young professionals. Why The Yankees The New York Yankees are one of the most valuable and respected brands in the world. The Yankees brand is globally recognized for excellence. Unlike many other baseball franchises, the Yankees own their farm teams and carry The Yankees excellence through to their minor league affiliates. The new stadium will have the same field dimensions as Yankees Stadium in New York. The Yankees name will be on the team and on the stadium and thus, in turn, on Ocala and Marion County. Why Now As previously mentioned, The Yankees farm team in Tampa is overshadowed by all of the other professional sporting options in Tampa. By approving the stadium referendum and voting to build the stadium in March 2014, The Yankees can be in the new stadium for the first pitch of the 2016 season. This is our chance to attach the Yankees brand of global excellence to our community and show the world (and the 70,000+ cars heading down I-75 each day) that this is a community that makes things happen.

2 The Specifics The Marion County Board of County Commissioners is considering a referendum to go to the voters to fund a stadium and an extensive network of road and infrastructure to support the relocation of the New York Yankees Class A minor league team from Tampa to Ocala through a local option sales tax (1/2 cent, five years). How is this any different from other recent referendums? A sales tax is significantly different than other recent ad valorem tax requests (i.e. Marion County School Board and Marion County Hospital District) which do not sunset and are only paid by Marion County property owners Do other counties currently have this option? Yes, most Florida counties are already using this to fund important community projects. Marion is one of only 12 counties in Florida currently without a local option sales tax. The community has previously supported the local option with the Penny for Parks and the construction of the Judicial Center. How much revenue would this generate? The proposed sales tax is conservatively estimated to generate $16.5 million annually and $82.8 million over five years. It is estimated that approximately 20% of the sales tax would be paid by outof-town visitors. This represents less than $100 annually per Marion County household. What is the estimated cost of the stadium? Total project cost is approximately $52,800,000 which includes a 20% contingency as well as building all of the infrastructure (roads, parking, utilities, etc.) and land purchase. How would the additional funds be spent? Through inter-local agreement, the remaining $22.5 million will be administered by the County with strict citizen supervision and criteria. These expenditures will be limited to local projects that advance Marion County s economic and commercial development, create jobs or enhance County tourist attractors. Who will own the Stadium? The stadium will be owned by Marion County and allow for other special events like concerts, tournaments, fairs, holiday celebrations, etc.

3 What is the Economic Impact (direct spending, indirect spending, induced spending, and employment)? 700 temporary construction jobs 332 full-time jobs $18.4 million in annual visitor spending $14.1 million spent locally on construction materials The stadium is estimated to generate 84 events, 173,350 attendees and 3,010 players, coaches and media annually. The project also includes 10 acres of commercial development likely to include a hotel, retail and restaurants, which will create even more jobs. The Yankees will use good faith efforts to hire Marion County residents. This does not take into count the substantially increased ad valorem revenue which will result from the development of the hundreds of acres of property which will now be accessible. Based on examples in our communities and with its prime location and the added amenity of the stadium, the stadium will be the lynchpin for millions of dollars in new investment and tax revenue for the community. Where will the Stadium be located? Between State Road 200 and I-75, south of the new SW 42 nd Street Overpass. The stadium would be roughly behind the Market Street at Heath Brook mall and would be accessed by a new road running from SW 42 nd St towards SW 66 th Street or by a new access road from State Road 200. The stadium would front on I-75 and would have excellent traffic flow. This site would open up additional property for development with a number of retailers and other companies already expressing interest. What will the stadium look like? With its direct exposure to I-75 the stadium will provide an excellent first impression of the community. The stadium will incorporate classic baseball architecture and include a Stadium Club, team store, restaurant, Kid Zone, and terraced seating as well as a Yankees hall of fame plaza. The stadium will offer a variety of seating options for up to 4,000. Each seat will have a chair back, armrest and cup holder. Additionally, grass berm seating in the outfield will accommodate up to 1,500 additional people. Who will be responsible for the ongoing costs? The Yankees will be a tenant of the stadium and responsible for most expenses, including operations and maintenance

4 The City will receive a portion of the tickets sales, naming rights and a ticket surcharge all of which will be placed in a capital improvement account to support capital maintenance items. If a capital expense (i.e. replacing seats) will cost more than the amount of funds available in the capital improvement account, the Yankees will be responsible for the additional costs. What will it cost to go to a game? Aren t professional sports expensive? Minor League baseball is about the fans. The average ticket price will be between $7-9. A family of four could go to a game for less than $30!! Additionally, The Yankees will host at least four charity days per season, donating at least 250 tickets to a charitable organization or school. This is great for baseball, but will other events be held in the stadium? The City shall be entitled to use the stadium for up to 20 community events each calendar year. Additionally, other groups can rent the facility at a very modest cost with anticipated pricing being very comparable to other facilities in the region. The Yankees will make reasonable efforts to conduct at least one spring training game at the stadium with another major league baseball team or college team. Additionally, the Yankees are committed to bringing other events to the stadium. Since they are responsible for the ongoing costs, they will be motivated to bring in additional events which will benefit both residents and tourism. The stadium could serve as a potential host for tournaments as well as intercollegiate games among colleges. How will the City and County benefit? The stadium is an investment. This investment will result in the development of millions of dollars of new development, increased land value, and will raise the community s profile. It will keep entertainment spending in the community and will attract others to come and spend money here as well. The stadium is much like the City and County s joint investment with a private developer of the new Ocala-Marion County Commerce Park. That significant investment (more than $13 million by the City and County each) was made without any tenants or prospects but has already resulted in the location of the FedEx Ground Hub. This project will result in similar benefits.

5 Who will pay the property taxes? Most stadiums in Florida are either owned by the county or by a sports authority. This allows the stadium to be exempt from property taxes. If The Yankees are ultimately held responsible for the taxes, the City shall reimburse The Yankees for 100% of the taxes payable by The Yankees. The City may apply such reimbursement to commercial rent due from The Yankees. Taxes upon The Yankees equipment, fixtures, furniture or other personal tangible and intangible property located in the stadium premises shall be paid for by The Yankees.

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