For Further Information:
Brian Hannigan
Virginia Baseball Stadium Authority
703-478-7201

Friday, August 9, 2002

VIRGINIA BASEBALL STADIUM AUTHORITY AND VIRGINIA BASEBALL CLUB FORM NEW COOPERATIVE AGREEMENT

Successful Public-Private Partnership to Bring Major League Baseball to Northern Virginia Extended as League Nears Relocation Decision

The Virginia Baseball Stadium Authority and the Virginia Baseball Club, LLC, today announced the completion of a new agreement to continue working together to bring Major League Baseball to Northern Virginia. Under the terms of the new agreement, the Virginia Baseball Club (VBC), headed by telecommunications executive William L. Collins, III, will continue to fund the Authority's operations. In return, the Stadium Authority grants to VBC the exclusive right to negotiate a lease to play its games in the Authority's new ballpark.

The new agreement will run for a maximum term of five years, with a base year through May 2003 and four one-year extensions at VBC's option. This agreement succeeds two previous agreements that began in 1996. The current agreement was extended past its original May 31, 2002 expiration date while the two parties worked to conclude the new agreement.

"I am pleased that the relationship between the Commonwealth and the Virginia Baseball Club will continue," said Governor Mark R. Warner. "I strongly support bringing Major League Baseball to Virginia. Working with VBC is an important step in our program to make this a reality and should send a clear signal to Baseball that we in Virginia are seriously committed to bring baseball here."

Michael R. Frey, Chairman of the Virginia Baseball Stadium Authority said "We are confident that by working together with VBC, Virginia will win the contest to become the next new home for baseball. Bill Collins has worked steadily and effectively since 1994 to pave the way for baseball's return to the National Capital Area, and he deserves the chance to close the deal."

"The Virginia Baseball Club is a broad-based group of local investors committed to bringing our nation's pastime to Northern Virginia," said Collins, the VBC Chairman.

"We are delighted to have the opportunity to continue working in partnership with the Authority and the Commonwealth of Virginia to make Virginia baseball a reality."

In recent months, Commissioner of Baseball Allan H. "Bud" Selig has said that the Greater Washington area is the "prime candidate" for one of several struggling franchises to relocate, and baseball's chief operating officer has said that such a relocation is "inevitable."

"Increasingly, it appears that baseball's return to the National Capital area is not a matter of 'if,' but only 'when,'" said Michael Frey. "Whether that day arrives later in 2002, next year or the year after, Virginia will be ready to move ahead to make an outstanding new home for baseball in the Commonwealth."

The Authority is currently in the final stages of selecting an architectural and design team to complete the site selection process and design the new Northern Virginia ballpark. The Authority is also working with Virginia's Secretary of Commerce and Trade, Michael J. Schewel, and legislative leaders to update a ballpark financing plan first proposed in 1996 by a Virginia General Assembly subcommittee.

"Virginia deserves a Major League team and the Virginia Baseball Club is in the position of being able to deliver that team as soon as the Commissioner and the Major League owners decide the time is right," said Bill Collins. "This new agreement makes it possible for us to work hand-in-hand with the Commonwealth to get the job done."

Under the terms of the new agreement, the Authority agrees to negotiate exclusively with VBC for a lease to be the stadium's sole tenant to play Major League Baseball.

VBC agrees to provide the Authority with annual payments of $1 million, of which $375,000 is a non-refundable negotiation fee and $625,000 is an interest-free loan. The Authority's obligation to repay all loans is contingent upon the issuance of bonds or the obtaining of other financing to build a ballpark.

Since 1996, the Virginia Baseball Club has provided the Virginia Baseball Stadium Authority with annual payments totaling $3.6 million - $1.36 million in non-refundable fees and $2.24 million in contingent interest-free loans.

Back