The Fresno Grizzlies have one of the highest stadium rents in Triple A baseball and operate in the industry's most economically challenged market, a consultant told the Fresno City Council on Thursday.
But Southern California-based sports industry expert Daniel Barrett gave no hint whether he would recommend that City Hall give the Grizzlies a huge break on the team's rent at city-owned Chukchansi Park.
"The team is losing money," he said. "The lease is above market" averages.
Officials with the Fresno Baseball Club, owners of the Grizzlies, have said the team lost more than $5 million from 2006 through 2008. They want a $1 million cut in their $1.5 million annual stadium rent, saying the break is necessary if the team is to survive.
Barrett was hired by the city in August to dig into the Grizzlies' finances and compare what he finds with the finances of baseball's 29 other Triple A franchises. He, Mayor Ashley Swearengin and Council Member Lee Brand are part of a team negotiating a revised lease with the Grizzlies.
Barrett said Thursday that a proposed lease revision could go to the council in two or three weeks. Both sides agree time is of the essence, since the Grizzlies face a $675,000 balloon rent payment next month.
The city is also hurting for money, and each dollar knocked off the Grizzlies' rent means an additional dollar the city must find to pay bonds used to fund construction of the stadium.
Barrett's presentation came after he met with council members behind closed doors. His public comments contained nothing significant that hasn't been common knowledge for months about the Grizzlies' tough situation.
City officials for weeks have touted Barrett's expertise in the arcane world of pro sports finances, and his detailed report buttressed the decade-old argument of critics who said Fresno was headed for economic trouble if it built a $46 million downtown stadium.
Barrett said only two Triple A teams have higher annual stadium rents than the Grizzlies, and both have deals that are far more complex than Fresno's.
The Grizzlies' occupancy cost -- which includes things such as stadium repairs, revenue-sharing agreements and taxes, as well as rent -- is about $4 million a year, highest among more than 15 Triple A franchises in similar markets, Barrett said.
The council agreed to pay another $50,000 to complete Barrett's research. His original contract was $50,000.
In other action:
The council in a 5-2 vote approved a rate structure when the city adds water meters for single-family residences.
The monthly rate will be 61 cents for each 100 cubic feet of water, which is 748 gallons. Customers in single-family homes now pay a flat rate. Council Members Mike Dages and Henry T. Perea voted no, saying city officials hadn't done an adequate job of informing homeowners about the pending rate change.
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