Two MCC Trustees Have Qualms About Baseball Stadium Financing

One thing was clear after the Thursday night meeting of the McHenry County College Board.

Two of the trustees—Donna Kurtz and Scott Summers—are having second thoughts about whether the proposed baseball stadium is financially sound. A third, George Lowe, would like to have an outside expert take another look at the financial feasibility of the stadium proposal.

The board heard a presentation by the man they have placed complete faith in—Mark Houser. His no bid hiring was unanimous. Both Kurtz and Summers bought his pitch and voted to hire him.

Kurtz questioned the auditing of attendance:

”In the interest of fair disclosure, one of the things I’ve found out is that attendance numbers are not audited. There isn’t any oversight.”

At that point, baseball promoter Pete Heitman, sitting to my left, interjected from his seat in the audience,

“It is not audited by the league supervises very carefully.”

Someone also mentioned that ticketing is automated now, so easy to keep track of.

When I was taking this picture of Heitman, he asked, “Can I take a picture of you?”

“Sure,” I answered as he held up his picture phone.

“The baseball license does provide for an annual audit,” Board attorney Sandy Kerrick added.

Summers is also having second thoughts about whether the naming rights for the baseball stadium and the indoor facility.

“I most assuredly do not want the citizens of McHenry County left on the hook,” the Board President asserted.

He referenced the PMA study of Houser’s and Heitman’s figures, speaking of “due diligence.” He said he would be very appreciative” if there were “another outside look at this.

“It is absolutely imperative that the numbers work.”

Houser mentioned “due diligence” at this point, speaking of soil borings and similar site checks.

MCC President Walt Packard pointed out that the “due diligence” being referenced “really wasn’t for the (finance side).

George Lowe said he was OK with it “back in March.”

“I’d like an update of it. Here we are six months late,” Summers replied.

“I’m all for that,” Lowe agreed.

“Let me weigh in on that,” Kurtz said. “I agree. I think (we should have) someone with a heavy duty background in baseball stadiums.”

Later in the discussion, Summers pointed out that $250,000 per year is expected to be paid by some business to have its name on the stadium and $120,000 per year for where the four basketball courts and fitness center will be.

“I have long thought it’s pretty ephemeral,” Summers observed. “It approaches pie in the sky.”

He compared that revenue flow with the net income and loss at the bottom of a page that Houser passed out to board members and college President Walt Packard. No copies were available for the public.

Summers noted that the $366,000 net income was “a very similar amount.”

“If you take out the naming rights, that leaves it fairly flat for the first five years,” he said.

“I really hope we can be very hard-nosed. This is not a free lunch. We are defraying expenses…(with the stadium revenue), but the dollars have to (come in).”

“None of these figures have been changed since the February feasibility study,” Houser replied. “We fully expect to get that. I think we could show that is a very (good) source of revenue.

“If you want to argue the numbers, that’s fine.”

“If we’re wrong on any of these numbers, we’re in trouble,” Kurtz replied. “The record of this board is that we take our fiduciary duties very seriously. I can’t imagine anyone of us (not) being concerned.”

“We’re looking at a visionary way to finance something. I think the college is to be congratulated on it,” Trustee Carol Larson said.

“I think there’ll be plenty of people beating down our door to have their name on this facility,” she added later.

“This kind of model is being used extensively in Australia, Great Britain and Europe,” Packard said. “Public entities are not being supported by the taxpayers any more.

He went on to praise the method as a way “to expand out campus…and we are getting consistent reports from those who have the ability to analyze this (that they work).”

Kurtz then asked Packard for his overall business plan for the facility.

“We are already in the business of renting facilities,” Packard replied. “In the initial years, we would be working with a partner to get organized sports in, even the park district (has approached us). It’s a pretty straight forward process.”

When asked by Kurtz who was doing the marketing, Packard identified Houser.

“The need is there,” he explained. “We just need to be turned loose.”

“One million dollars per year revenue for the (fitness center and gyms)?” Kurtz said.

“I don’t think it’s as difficult as you expect,” Packard said.

“It’s not a big facility,” Houser added after giving details.

“We have the (nursing) certificate,” Trustee Barbara Walters said. “(In) the exuberance of the baseball we forget (the nursing program).”

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Mark Houser of EquityOne is seen testifying in the top picture. Below is baseball promoter Pete Heitman. Next is MCC Board President Scott Summers. College President Walt Packard appears next in the story. Then comes Trustees Carol Larson, Donna Kurtz and Barbara Walters.


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