PDA

View Full Version : Jackhammers in trouble, need cash for bills...


JAKMAN
09-23-2010, 04:47 PM
For those of you who haven't read the stories, the team owes a lot of money to people, especially the city of Joliet, who owns the stadium, and the San Diego Chicken. The Chicken's $8,000 check bounced.

Very sad it got to this point.

J.J. Smith
09-24-2010, 07:53 AM
The Jackhammers owe money to LOTS of people. Their reputation in the area is below zero. This last season, they used the ol' print um up and give um away strategy, and then bragged about bogus paid attendance increases. But come accounting time, the money isn't there, and the bills still are.

All of the Illinois Northern League teams are in financial jeopardy. It's just not working anymore. Big changes are going to have to be made with the business model of these teams if they are to be viable businesses and not just government welfare projects. Actually forming the long rumored Chicagoland circuit may be a step in the right direction. Or it may be too little, too late.

What I think is going to happen under any scenareo is the stadium owners, like the Village of Schaumburg and the City of Joliet, are going to have to accept way less in the way of rent than they ever imagined to at least keep someone playing in the parks. Sweetheart deals like the Railcats have will be the norm.

alkalinefan
09-24-2010, 04:11 PM
This is interesting news.Sometimes I get out of the loop in reguards to what is going on in the minors but this is a surprise.The whole picture I mean.

ca
09-25-2010, 09:46 PM
ones in trouble here in america's heartland as i wonder how much longer the AA can continue with its travel . as for the nol the windy cindy circuit may happen soon since many of the parks in the nol are way to lavish imo . as for the fl they may be in for some BIG trouble aka contraction

Ken, Steelheads fan
09-27-2010, 01:31 PM
The Jackhammers owe money to LOTS of people. Their reputation in the area is below zero. This last season, they used the ol' print um up and give um away strategy, and then bragged about bogus paid attendance increases. But come accounting time, the money isn't there, and the bills still are.

All of the Illinois Northern League teams are in financial jeopardy. It's just not working anymore. Big changes are going to have to be made with the business model of these teams if they are to be viable businesses and not just government welfare projects. Actually forming the long rumored Chicagoland circuit may be a step in the right direction. Or it may be too little, too late.

What I think is going to happen under any scenareo is the stadium owners, like the Village of Schaumburg and the City of Joliet, are going to have to accept way less in the way of rent than they ever imagined to at least keep someone playing in the parks. Sweetheart deals like the Railcats have will be the norm.
Gary's deal is comparable to every other ball team in the nation that recieved a ballbark built by the taxpayers. The Railcats may have gotten more ballpark for the money, if that's what you mean by sweetheart deal. However, I submit this to you. What good is a restaurant in right field when people are currently too poor to patronize it? What good are pool tables and leather sofas on the suite level when large corporations asked for a bailout a few years ago or asked for union concessions and got it? These same corporations can't now say, "Let's lease a suite at the ballpark and drink beer until we're blind".

BTW, it's not a Chicagoland thing. It's an all over thing.

ca
09-27-2010, 08:24 PM
what fl or mwl team would/could move to joliet ? the real problem maybe where does the nol put team # 8 if joliet doesnt return

J.J. Smith
09-27-2010, 09:15 PM
Gary's deal is comparable to every other ball team in the nation that recieved a ballbark built by the taxpayers. The Railcats may have gotten more ballpark for the money, if that's what you mean by sweetheart deal. However, I submit this to you. What good is a restaurant in right field when people are currently too poor to patronize it? What good are pool tables and leather sofas on the suite level when large corporations asked for a bailout a few years ago or asked for union concessions and got it? These same corporations can't now say, "Let's lease a suite at the ballpark and drink beer until we're blind".

BTW, it's not a Chicagoland thing. It's an all over thing.

The Steel Yard cost twice as much to build and the rent they pay is considerably lower than what the Jackhammers are (supposed to) pay. The percentage of rent paid to cost of construction has got to be among the lowest around.

J.J. Smith
09-27-2010, 09:28 PM
what fl or mwl team would/could move to joliet ? the real problem maybe where does the nol put team # 8 if joliet doesnt return



Lake County does not look like it can build anything at this time. That franchise could be put on ice, and it's back to six like before. Things are not looking up for the Northern League.

Ken, Steelheads fan
09-28-2010, 10:55 AM
The Steel Yard cost twice as much to build and the rent they pay is considerably lower than what the Jackhammers are (supposed to) pay. The percentage of rent paid to cost of construction has got to be among the lowest around.

The publicized numbers that were thrown around at a Joliet city council meeting last year and the amounts the Railcats pay are roughly the same. I'm too lazy to search for articles at the moment because I have other points to make (here and in my next reply).

What does the percentage of rent paid to cost of construction have to do with anything?!? Understand this, ballparks like U.S. Steel Yard and Silver Cross were never ever intended to be profitable. These ballparks were built to stimulate downtown development and generate jobs, whether directly or indirectly.

Ken, Steelheads fan
09-28-2010, 11:07 AM
Lake County does not look like it can build anything at this time. That franchise could be put on ice, and it's back to six like before. Things are not looking up for the Northern League.
With all due respect, your logic is...what?!? Lake County already has a ballpark. It's a temporary ballpark, but it's a ballpark that fans seem to enjoy.

ca
09-28-2010, 07:45 PM
should have all of its chicagoland teams in it - joliet and they may have to get out of their geographical footprint to replace them market wise

J.J. Smith
09-29-2010, 07:26 AM
The publicized numbers that were thrown around at a Joliet city council meeting last year and the amounts the Railcats pay are roughly the same. I'm too lazy to search for articles at the moment because I have other points to make (here and in my next reply).

What does the percentage of rent paid to cost of construction have to do with anything?!? Understand this, ballparks like U.S. Steel Yard and Silver Cross were never ever intended to be profitable. These ballparks were built to stimulate downtown development and generate jobs, whether directly or indirectly.

They aren't "roughly the same" whatever that means. The Railcats pay considerably less and get other perks on top of it. When you regain your ambition, you can post your proof to the contrary.

What does the the cost of a building have to do with the rent one can charge for it? I see you are a bit economically challenged, Ken. But I'm guessing you work for the finance department of the City of Gary, so that would not be a problem for you.

Of course they were not intended to be profitable. They were intended to make money for the contractors, money men, and government parasites. And in that, they were spectacular successes. At a cost of over 50 million for the Steel Yard, everybody got nice and fat on that deal. As for the supposed economic benefits at both Joliet and Gary-it hasn't happened, at least not anything that would justify the extreme cost of those two places.

Take a look on digitalballparks.com at the Frontier League parks. For a small fraction of the money, they have managed to build interesting, comfortable, and economically sane stadiums. Some were even paid for by the owners-imagine that!

J.J. Smith
09-29-2010, 07:43 AM
With all due respect, your logic is...what?!? Lake County already has a ballpark. It's a temporary ballpark, but it's a ballpark that fans seem to enjoy.

If the people of Lake County are happy with the park they threw together last spring, then I've got to give them the Most Tolerant Fans in America award. It sure looks like they are going to have it for season two, so we will see if their tolerance, (and the ownerships finances) hold out for another season.

I don't see how that setup can make anyone money in year two, even if Ehrenreich has the use of it for free (and we all know how he's not big on paying for things), so that's why I can see it taking a break if Joliet is out of the Northern League picture.

Ken, Steelheads fan
09-29-2010, 02:43 PM
They aren't "roughly the same" whatever that means. The Railcats pay considerably less and get other perks on top of it. When you regain your ambition, you can post your proof to the contrary.

What does the the cost of a building have to do with the rent one can charge for it? I see you are a bit economically challenged, Ken. But I'm guessing you work for the finance department of the City of Gary, so that would not be a problem for you.

Of course they were not intended to be profitable. They were intended to make money for the contractors, money men, and government parasites. And in that, they were spectacular successes. At a cost of over 50 million for the Steel Yard, everybody got nice and fat on that deal. As for the supposed economic benefits at both Joliet and Gary-it hasn't happened, at least not anything that would justify the extreme cost of those two places.

Take a look on digitalballparks.com at the Frontier League parks. For a small fraction of the money, they have managed to build interesting, comfortable, and economically sane stadiums. Some were even paid for by the owners-imagine that!

Yes, the Railcats' annual payments are roughly the same as the Jackhammers' payments. Their payments are also roughly the same as the Flyers' payments. Why? These city's (among others with comparable sized ballparks) agreements were used as guidelines. I was a local politician during Gary's entire ballpark conception to completion process. I'm a card-carrying member of the better party, so I sleep well at night knowing I didn't have to be one of those "government parasites" you mentioned. An in-law at the time was on the Gary city council and the city controller at the time later became a business associate, so I know about the deals that brought the ballpark, Railcats, and Northern League to Gary. It's nothing earthshaking though. Here is a public link about the Railcats annual payments to the city:
http://www.nwitimes.com/sports/article_fd12e2d1-7003-54c8-ab5c-8ef45efeddf2.html
Off the field, the RailCats have been successful since they entered the NL as an expansion team in 2002. Tatoian said the club has turned a profit every year, even though it now pays $150,000 annually in rent to the city of Gary.
Mind you, the city charges the Railcats extra when attendance tops a specific level (and that level was set rather low purposely). The Railcats have been topping that attendance level for quite a few years now. At the end of the day, that $150,000 becomes roughly $200,000 (what the Jackhammers are supposed to pay Joliet) or possibly more.

Now this is what I could find about the Jackhammers annual payments to THEIR city:

http://mchenrycountyblog.com/category/minor-league-baseball/

...and this is some of the public consumption stuff.

Am I a bit economically challenged?!? I don't know. Do I work for Gary's Department of Finance? No. I DO know the jury is still out on whether downtown ballparks stimulate surrounding growth. It took decades for downtowns in Joliet and Gary to decay. It's going to take awhile for them to recover, especially when the economy has hit rock bottom like now. Could these cities have built more modest Frontier League type ballparks in their downtowns? Sure. They could have also built high school quality ballparks and saved even more money. Cities are judged on their downtown areas though. That's why the nationwide trend the last few decades has been to build lavish ballparks in or near downtowns. How do you put a value on perception?

Ken, Steelheads fan
09-29-2010, 03:27 PM
If the people of Lake County are happy with the park they threw together last spring, then I've got to give them the Most Tolerant Fans in America award. It sure looks like they are going to have it for season two, so we will see if their tolerance, (and the ownerships finances) hold out for another season.

I don't see how that setup can make anyone money in year two, even if Ehrenreich has the use of it for free (and we all know how he's not big on paying for things), so that's why I can see it taking a break if Joliet is out of the Northern League picture.

The numbers speak for themselves. If the fans were unhappy, then they wouldn't be showing up for games in the thousands like that. That's why I don't understand your logic.

Okay, I give up. Why can't that setup make anyone money in year two...assuming the new permanent seating bowl and suites don't get built? The Fielders sell beer, food, merchandise, rent out their picnic/party areas...and have fans showing up by the thousands. That combination seems to work well for others in the baseball industry.

ca,
Personally, I don't see the Jackhammers going anywhere. Why put another team in Silver Cross that's going to generate even less revenue? They'll work out a deal. The city and Jackhammers are partners.

ca
09-29-2010, 08:33 PM
or another owner in charge of the j/hamers might not be a pleasing set of options . i say this cause i dont know if joliet can bk nol ball anymore and i doubt if theyve ever wanted fl ball . as for the pk in gary (along with joliet and maybe s/burg) its much more lavish than r/ford and costed as much $$$ as the pk in toledo which has twice the seating capacity . so this idea of baby camden yards' dwtn sounds like somewhat of a scam to me and when ya couple that with joliet giving away the farm at the turnstyles its not stunning that they are in trouble

J.J. Smith
10-03-2010, 03:25 PM
The numbers speak for themselves. If the fans were unhappy, then they wouldn't be showing up for games in the thousands like that. That's why I don't understand your logic.

Okay, I give up. Why can't that setup make anyone money in year two...assuming the new permanent seating bowl and suites don't get built? The Fielders sell beer, food, merchandise, rent out their picnic/party areas...and have fans showing up by the thousands. That combination seems to work well for others in the baseball industry.

ca,
Personally, I don't see the Jackhammers going anywhere. Why put another team in Silver Cross that's going to generate even less revenue? They'll work out a deal. The city and Jackhammers are partners.



Despite you unrelenting cheer leading of the Fielders, the facts are they did not actually draw anywhere near the numbers posted, the people they did sell to paid $5 or less, and lots of tickets were simply given away. The people up there now know what they are dealing with in Ehrenreich. All the wonderful jobs promised did not materialize. The City of Zion has probably taken a loss on this. I expect the franchise to simply fold because it is not capable of making a profit under the present circumstances, and there is no funding for a real stadium in the foreseeable future.

As for Joliet, I think the Jackhammers are finished. They never really developed much of a fan base, the team has zero value on the open market, and I think Joliet will try to come up with something different for Silver Cross. What that might be, I don't know, but continuing with the present set up seems doomed, and I think everyone realizes that.

ca
10-03-2010, 09:37 PM
the fielders might have is that they havent spent big bucks on a pk like joliet so the fielders might return . as for the hammers do they generate enough revenue to bk aa indy ball ? when that is i doubt along with joliet doing its shoot yourself in the foot impersonation by playing mr giveaway too much like kzo has done in the fl the nol may need to find another zip code for the hammers

J.J. Smith
10-04-2010, 07:44 AM
Here's an article on the current state of the Hammers...

http://www.wlsam.com/Article.asp?id=1971966&spid=


I got a kick out of this progression...

“We’ve cut our staff,” Kelly Sufka, director of operations, acknowledged Thursday.

But Sufka referred questions to General Manager Jamie Toole, who referred questions to Team President Peter Ferro Jr. Ferro did not return calls Thursday."

For factually challenged Ken...

"Ferro said last week that the city would have to offer some relief on the current debt and lower the existing rent, which is at $232,000 per year, for the team to attract new investors."

smallballfan
10-04-2010, 01:50 PM
the fielders might have is that they havent spent big bucks on a pk like joliet so the fielders might return . as for the hammers do they generate enough revenue to bk aa indy ball ? when that is i doubt along with joliet doing its shoot yourself in the foot impersonation by playing mr giveaway too much like kzo has done in the fl the nol may need to find another zip code for the hammers

Um.... what?

Ken, Steelheads fan
10-05-2010, 02:01 PM
Despite you unrelenting cheer leading of the Fielders, the facts are they did not actually draw anywhere near the numbers posted, the people they did sell to paid $5 or less, and lots of tickets were simply given away. The people up there now know what they are dealing with in Ehrenreich. All the wonderful jobs promised did not materialize. The City of Zion has probably taken a loss on this. I expect the franchise to simply fold because it is not capable of making a profit under the present circumstances, and there is no funding for a real stadium in the foreseeable future.

As for Joliet, I think the Jackhammers are finished. They never really developed much of a fan base, the team has zero value on the open market, and I think Joliet will try to come up with something different for Silver Cross. What that might be, I don't know, but continuing with the present set up seems doomed, and I think everyone realizes that.

The people now know what they are dealing with in Ehrenreich?!? The Fielders will simply fold?!? The JackHammers are finished?!? Says who?!? Any links to support your conclusions?!? Where are you getting this stuff?

The Fielders will be back and so will the JackHammers. As far as me being factually challenged, did you read my link about the JackHammers' lease agreement and what happens when their attendance reaches a certain level? If you read it, then what's the problem? BTW, the Railcats also have a similar clause, but their level is lower.

J.J. Smith
10-06-2010, 08:48 AM
Yes, the Railcats' annual payments are roughly the same as the Jackhammers' payments. Their payments are also roughly the same as the Flyers' payments. Why? These city's (among others with comparable sized ballparks) agreements were used as guidelines. I was a local politician during Gary's entire ballpark conception to completion process. I'm a card-carrying member of the better party, so I sleep well at night knowing I didn't have to be one of those "government parasites" you mentioned. An in-law at the time was on the Gary city council and the city controller at the time later became a business associate, so I know about the deals that brought the ballpark, Railcats, and Northern League to Gary. It's nothing earthshaking though. Here is a public link about the Railcats annual payments to the city:
http://www.nwitimes.com/sports/article_fd12e2d1-7003-54c8-ab5c-8ef45efeddf2.html

Mind you, the city charges the Railcats extra when attendance tops a specific level (and that level was set rather low purposely). The Railcats have been topping that attendance level for quite a few years now. At the end of the day, that $150,000 becomes roughly $200,000 (what the Jackhammers are supposed to pay Joliet) or possibly more.

Now this is what I could find about the Jackhammers annual payments to THEIR city:

http://mchenrycountyblog.com/category/minor-league-baseball/

...and this is some of the public consumption stuff.

Am I a bit economically challenged?!? I don't know. Do I work for Gary's Department of Finance? No. I DO know the jury is still out on whether downtown ballparks stimulate surrounding growth. It took decades for downtowns in Joliet and Gary to decay. It's going to take awhile for them to recover, especially when the economy has hit rock bottom like now. Could these cities have built more modest Frontier League type ballparks in their downtowns? Sure. They could have also built high school quality ballparks and saved even more money. Cities are judged on their downtown areas though. That's why the nationwide trend the last few decades has been to build lavish ballparks in or near downtowns. How do you put a value on perception?

So you were a local politician and now you're in business with your relative who was the city controller and a council member? That explains a lot about your posts. And government parasites come from both parties, but I'm glad you're at least sleeping well.

The link you posted...www.nwitimes.com/sports/article_fd12e2d1-7003-54c8-ab5c-8ef45efeddf2.html was from 2006! And it says nothing about any excess payments over $150,000. Should we just take your word for it? The link also says that the team paid no rent at all for the first two years. Sweet. You also failed to mention the 40% cut of the rent the Railcats get from the restaurant in the Steel Yard.

I brought up this Gary rent deal early on in this thread about Joliet to point out that Joliet may have to fashion something along the lines of the Gary deal to keep a franchise going in their city. I've not heard that the Railcats don't pay their other bills, so that puts them way ahead of certain other local teams. Salvi seems to be runninig a good operation there. Gary is lucky to have anyone willing to do business in their city.


Your link to Cal Skinners blog is an odd one...
http://mchenrycountyblog.com/category/minor-league-baseball
Cal Skinner is completely opposed to the kind of taxpayer ripoff deals such as came about in Gary and Joliet. It also adds no new information. Did you post it by mistake?

The jury is not out on these projects. They have failed, pure and simple. If only it was as easy planting the magic bean of an expensive sports facility to revive a dying downtown. A dubious concept to begin with, but coupled with incompetent, corrupt governments-hopeless.

Ken, Steelheads fan
10-06-2010, 12:14 PM
So you were a local politician and now you're in business with your relative who was the city controller and a council member? That explains a lot about your posts. And government parasites come from both parties, but I'm glad you're at least sleeping well.

The link you posted...www.nwitimes.com/sports/article_fd12e2d1-7003-54c8-ab5c-8ef45efeddf2.html was from 2006! And it says nothing about any excess payments over $150,000. Should we just take your word for it? The link also says that the team paid no rent at all for the first two years. Sweet. You also failed to mention the 40% cut of the rent the Railcats get from the restaurant in the Steel Yard.

I brought up this Gary rent deal early on in this thread about Joliet to point out that Joliet may have to fashion something along the lines of the Gary deal to keep a franchise going in their city. I've not heard that the Railcats don't pay their other bills, so that puts them way ahead of certain other local teams. Salvi seems to be runninig a good operation there. Gary is lucky to have anyone willing to do business in their city.


Your link to Cal Skinners blog is an odd one...
http://mchenrycountyblog.com/category/minor-league-baseball
Cal Skinner is completely opposed to the kind of taxpayer ripoff deals such as came about in Gary and Joliet. It also adds no new information. Did you post it by mistake?

The jury is not out on these projects. They have failed, pure and simple. If only it was as easy planting the magic bean of an expensive sports facility to revive a dying downtown. A dubious concept to begin with, but coupled with incompetent, corrupt governments-hopeless.

Wow! You're getting a lot wrong although the information is in front of you. Please re-read my posts (especially about the city controller, business, in-law, etc.).

$150,000 is the Railcats' basic lease payment. $200,000 is the JackHammers' basic lease payment according to the link I provided. Both amounts may increase considerably when total season attendance exceeds a predetermined level. That may account for the $232,000 you cited in another post. What have the JackHammers' season totals been like? Now re-read the contents of the link I provided...and furthermore, no I did not post the link by mistake. Why should the opinion of the blogger matter to me or YOU for that matter?!? Look at the data...but you have to actually read the article. The article seems to be scanned from a newspaper, otherwise I would provide a quote to help this process along.

Now, on the subject of the Railcats not needing to make payments to the city their first two seasons in the ballpark. Sweet deal, right? WRONG! The ballpark wasn't ready during the Railcats' first year of existence, therefore they had to play as a road team. No chance of revenue. No ticket sales, no beer sales, no merchandise sales, no nothing. It was the city's fault for not finishing the ballpark. No team payments to the city the first two years at the completed ballpark was part of the compensation.

I failed to mention the 40% cut of the restaurant??!!?? First, it was 100% until a little over a year ago. The CITY actually asked the new owner for a cut. The restaurant belongs to the team as long as the team calls U.S. Steel Yard home. It's not the city's restaurant. I mentioned the restaurant, pool tables, and leather sofas in my earliest post. I also mentioned that the Railcats get more ballpark for the money if that's what you meant by a sweet deal, but as far as the cash actually paid to the city it was roughly the same as what Joliet is paying...and yes, roughly means approximately if you're still unsure. I've mentioned this all in previous posts in this same thread but you actually have to READ the posts and not simply react. I'm not trying to be insulting when I keep saying to read. Please read what's being posted and please read the contents of the links.

...and yes, you'll just have to take my word on some things like the Railcats having a similar clause like Joliet in their lease agreement. It's quite time consuming to search for old links to prove a point and quite useless when you're not going to read (or comprehend) the contents of these links.

I agree with you totally on Pat Salvi, Railcats owner. Pat is the best thing to come to Gary in a long time. He's eager to invest money in the area around the ballpark and that's one of the reasons for building downtown ballparks and stadiums. I totally disagree with your opinion on the failure of downtown ballparks and stadiums though. Another reason for building them is to bring people into the downtown areas, which they do by default--but to state that they have failed in their mission is premature to say the least.

J.J. Smith
10-08-2010, 08:07 AM
Wow! You're getting a lot wrong although the information is in front of you. Please re-read my posts (especially about the city controller, business, in-law, etc.).

$150,000 is the Railcats' basic lease payment. $200,000 is the JackHammers' basic lease payment according to the link I provided. Both amounts may increase considerably when total season attendance exceeds a predetermined level. That may account for the $232,000 you cited in another post. What have the JackHammers' season totals been like? Now re-read the contents of the link I provided...and furthermore, no I did not post the link by mistake. Why should the opinion of the blogger matter to me or YOU for that matter?!? Look at the data...but you have to actually read the article. The article seems to be scanned from a newspaper, otherwise I would provide a quote to help this process along.

Now, on the subject of the Railcats not needing to make payments to the city their first two seasons in the ballpark. Sweet deal, right? WRONG! The ballpark wasn't ready during the Railcats' first year of existence, therefore they had to play as a road team. No chance of revenue. No ticket sales, no beer sales, no merchandise sales, no nothing. It was the city's fault for not finishing the ballpark. No team payments to the city the first two years at the completed ballpark was part of the compensation.

I failed to mention the 40% cut of the restaurant??!!?? First, it was 100% until a little over a year ago. The CITY actually asked the new owner for a cut. The restaurant belongs to the team as long as the team calls U.S. Steel Yard home. It's not the city's restaurant. I mentioned the restaurant, pool tables, and leather sofas in my earliest post. I also mentioned that the Railcats get more ballpark for the money if that's what you meant by a sweet deal, but as far as the cash actually paid to the city it was roughly the same as what Joliet is paying...and yes, roughly means approximately if you're still unsure. I've mentioned this all in previous posts in this same thread but you actually have to READ the posts and not simply react. I'm not trying to be insulting when I keep saying to read. Please read what's being posted and please read the contents of the links.

...and yes, you'll just have to take my word on some things like the Railcats having a similar clause like Joliet in their lease agreement. It's quite time consuming to search for old links to prove a point and quite useless when you're not going to read (or comprehend) the contents of these links.

I agree with you totally on Pat Salvi, Railcats owner. Pat is the best thing to come to Gary in a long time. He's eager to invest money in the area around the ballpark and that's one of the reasons for building downtown ballparks and stadiums. I totally disagree with your opinion on the failure of downtown ballparks and stadiums though. Another reason for building them is to bring people into the downtown areas, which they do by default--but to state that they have failed in their mission is premature to say the least.

I did read the acticle in that sloppy link you provided. I read it when it first came out in the Tribune, as a matter of fact.

Here is the relevant information in it, since you were too lazy to bother...

"The Jackhammers have a 15 year lease that includes $200,000 a year in rent, adjusted for inflation. Their contract also includes a clause stipulating that if the team exceed certain attendance levels, it's rent would increase."

Since there has been inflation since 2002 and we have no information as to what the attendance level is or what the rate of increase would be, this liink ads no new information. But I encourage everyone to read the other stories on that blog to see how people try to scam the taxpayers for personal profit.

In addition to not paying any rent for the first two seasons, the City of Gary paid a hefty fine to the Railcats for not having the stadium ready of the initial season. The number I've seen the most is $1 million dollars. SWEET!

The way the Railcats base license fee is structured, $150, 000 is the base. Above 150,000 in attendance is supposed to include a surcharge of $1.25 per ticket for the next 50,000, and $1.50 after that. There is no record of these surcharges ever being paid.

As far as the jury being out...that's a convenient excuse, is it not?

Here's an interesting link on the subject of downtown development and the impact the Steel Yard has had on it.

http://my.nwi.com/post/group/BusINess_Magazine/blog/railcats_owner_says_blight_around_stadium_disappoi nting.html

To quote from the article...

"The U.S. Steel Yard baseball park hasn’t brought the expected revitalization to this area of the city, a situation the Gary SouthShore RailCats franchise owner calls “disappointing.”

"“Everyone is frustrated, confused about what the solution is to this. Should what we do be grand or small-scale? Do we take baby steps or grandiose steps forward?” he said.

Much of the frustration, Salvi said, is knowing if money earmarked for improvements will actually be used properly.

“There are concerns about whether the money would be managed correctly,” he said. “Federal money for demolishing buildings was lost, because (HUD) didn’t believe that money would be managed correctly.

I kind of understand why a lot of people throw their hands up and give up."

Ken, Steelheads fan
10-08-2010, 10:04 AM
I did read the acticle in that sloppy link you provided. I read it when it first came out in the Tribune, as a matter of fact.

Here is the relevant information in it, since you were too lazy to bother...
...

The way the Railcats base license fee is structured, $150, 000 is the base. Above 150,000 in attendance is supposed to include a surcharge of $1.25 per ticket for the next 50,000, and $1.50 after that. There is no record of these surcharges ever being paid.
...


As far as the link being sloppy, you would have to take that up with my Yahoo search engine. I just copied and pasted. As far as me being lazy, I totally agree because I would rather hit Chicago's lakefront to catch some vitamin D. Thanks for reading the contents of the link though.

As far as the Railcats surcharges being paid or not, the city has certainly asked for the money. Do you have reason to believe the money has NOT been paid?

Ken, Steelheads fan
11-12-2010, 10:14 AM
Ironically, the city of Joliet is contemplating the same thing the village of Schaumburg has already done. Joliet is contemplating terminating the JackHammers' lease.

http://heraldnews.suntimes.com/sports/2324144-419/jackhammers-team-league-season-baseball.html
An offer to buy the team was reportedly made last week. But the JackHammers appear to be holding out for more money to cover debt they accumulated by not paying bills in the 2010 season.

Dollars to donuts the same thing happened in Schaumburg and that's why the Flyers also have not been sold. The sellers want more money for their teams.

“If it doesn’t get resolved soon, we know what our next step will be,” Thanas said.

That means the city breaks the lease with the JackHammers, who still owe $216,000 in old rent, and lines up another minor league team for next season. The city has talked about making its own deal for weeks but has held off as the threat of a bankruptcy entanglement became increasingly real.

Joliet wants to cut-out the middle man (in this case the JackHammers) like Schaumburg cut-out the middle man Flyers. The village of Schaumburg hasn't announced (as of this post) that they have brokered a deal with a new franchise, but it seems the logical thing for them to have done in my opinion.