Mobile Register

Group pitches sports mecca near I-10 in Mobile County

Sunday, February 15, 2009

By Brendan Kirby

A nonprofit group in Mobile wants to build what could be the most extensive network of sports facilities in the country for a price tag that could reach $1 billion.

The idea for more than 1,000 acres near Interstate 10 and McDonald Road has drawn enthusiasm in some quarters but sparked skepticism as well because of its sheer size and because of the current recession.

The C.P. Newdome Foundation, named for the man who ran the Ladd-Peebles Stadium clock for 50 years and helped establish the Junior Olympics locally, has been working on its plans for more than five years.

The organization began serious discussions with Mobile County school board members several months ago to gain use of the site, largely owned by the school system.

"The vision's huge," said Steve Hanley, who is on the foundation's board of directors and chairs its development committee. "We're very excited about it, needless to say."

School board to discuss proposal School board members plan to discuss the proposal at an agenda-setting meeting on Tuesday and could vote on a nonbinding letter of intent as early as Thursday. The letter essentially would promise to negotiate a long-term lease for the property, provided the foundation acquires financing.

Any one of the components of the so-called Sports Complex of the Americas would be enough to turn heads.

But Hanley said his foundation is deadly serious about putting together the array of athletic facilities, hotel, convention and retail space that would cover 1,000 to 1,500 acres.

Football, basketball and more Facilities would include a football stadium, a basketball arena, a water park, a shooting range and sports fields. The group — whose motto is "keep kids in sports, not in courts" — would aim to attract a wide range of events, from high school sports to international competitions.

Hanley, a first vice president and portfolio manager at Wachovia Securities, said the school system would get a cut of the profits and students could use the facilities for free.

"If we don't build it, somebody else is going to," he said.

School board member Bill Meredith said he likes the concept but expressed skepticism over whether the C.P. Newdome Foundation can pull it off.

"They're going to have to sell a lot of bonds to raise that much money, and they don't have any collateral," he said.

School system concerns Meredith said he is inclined to give the group an opportunity, but he said he's concerned that the system might lose out on a more realistic development offer for its land, which he called the most valuable undeveloped property along I-10 between Jacksonville, Fla., and Houston.

"It's such a big dream that I'd like to see them have a chance," he said. "But if they don't make progress in the next two years, it's dead."

School board President Ken Megginson said he will take a cautious approach. "I'd like to see who else they have support from," he said. "There's a lot to fall into place before we support this."

Hanley, 53, acknowledged the difficulties of putting together such a large investment during a recession and a troubled credit market that has made it harder for even established businesses to borrow money.

But, he said, he remains confident it can be done. He said that as a nonprofit organization, the foundation would not have to generate profit like a private developer.

Hanley said the group has been working with a commercial retail developer from Baton Rouge, La., a lead architect from Mobile, a bonding agent and a general and sports architect from Denver.

Special tax district? Hanley said there are a few different financing options, including the creation of a special tax district encompassing the development to generate money to pay off the debt.
That would be similar to the way Spanish Fort and private developers financed the construction of the Eastern Shore Centre and the development that includes Bass Pro Shops.

The district would impose a 4 percent sales tax within the zone, bringing the total rate there to 9.5 percent.

Mobile County Commission President Mike Dean said he would favor creating such a district.

"Sure. Why not?" he said. "There's absolutely no risk to the county."

Economic requirements Pfilip Hunt Jr., president of Gardnyr Michael Capital, said he had discussions with the C.P. Newdome Foundation about a year ago and wishes the group well.

But he cautioned that a strong financial commitment from private investors was essential even before the current financial crisis struck.

Wall Street investors require even more upfont money now, he said.

"You're not going to be able to get a deal done without substantial private equity," said Hunt, whose company helped refinance debt on the Eastern Shore Centre.

If Hanley's dream does become reality, University of South Alabama economist Semoon Chang said the benefits would be staggering.

"The economic impact will be so huge. I put that almost in the same category as ThyssenKrupp," said Chang, whom the foundation hired to prepare an economic impact analysis.

Educational facilities Amid the arenas and sports fields, the Newdome foundation hopes to build a career technical high school and a facility for Bishop State Community College.

The president of Bishop State, James Lowe, recently gave the group a nonbinding letter of intent supporting the project. He said it is modeled after a partnership in Virginia, where a community college and technical high school share facilities.

"If it materializes," Lowe said, "it would be a great opportunity for Bishop State."