Updated: 11/19/2013 4:53 PM KSTP.com By: Cassie Hart
While the Minnesota Vikings stadium has been dominating the headlines, the St. Paul Saints are still working out a deal.
The team and the City of St. Paul have been quietly negotiating a unique agreement. The city will share profits with the team when the new downtown ballpark opens in 2015.
While the site continues to be cleared for the new Saints ballpark in Lowertown, the team is one step closer to a deal to play there.
“It's probably a unique arrangement for Minor League Baseball. There's probably other arrangements elsewhere that have this type of contract language,” said Brad Meyer, a spokesman for St. Paul Parks and Recreation.
The lease agreement calls for the Saints to keep the first $500,000 of any net revenue or profit. From $500,000 to $1.5 million the city will get 5 percent. The city will receive 7.5 percent of net revenue between $1.5 million and $2.5 million. The figure bumps up to 10 percent when any profit is more than $2.5 million.
“We feel we've gotten the best deal for the city and the Saints they feel they've gotten a good deal, so it's really a win, win, win for all parties involved,” said Meyer.
The lease agreement also gives the naming rights of the new ballpark to the Saints, but the revenue the team derives will be subject to the revenue sharing agreement.
The Saints, the City of St. Paul and the state of Minnesota are sharing the cost of building the 7,000 seat stadium; where the price tag grew from $54 million to $63 million last summer.
“Really once game days and different things start happening at the ballpark that's when you'll see the investment pay off,” said Meyer.
The city council will vote on the agreement next week.