The developer of the proposed Waveyard water park in Mesa will no longer get a roughly $30 million incentive package that Mesa voters overwhelmingly approved in 2007.
The city offered the incentive only if the 125-acre project included a water park, 200,000 square feet of shops and a 400-room, four-star resort.
But with Waveyard's recent decision to only build the water park, the incentives are off, City Manager Chris Brady told the Tribune.
The city and Waveyard plan to meet this week to discuss the new concept, Brady said, but that discussion won't include even a scaled-back version of incentives.
"There is no anticipating that there would be any incentives as part of the deal," Brady said. "I don't think anybody's anxious to have a second election for Waveyard."
Waveyard was to span 125 acres that are now a golf course and ballfields at Riverview Park in northwest Mesa. But when the Chicago Cubs identified that site as their top choice for a new spring training complex, Waveyard agreed to build just the water park to free land for the Cubs.
Mesa's incentive package included a $20 million sales tax rebate plus interest, and $1.5 million worth of road improvements. The city would sell the land to Waveyard at market rate.
In return, the city would get more sales tax from shops and the park, which was estimated to cost at least $250 and be Arizona's top tourist draw after the Grand Canyon. The water park would feature a wave pool, wake boarding, kayaking, scuba, white water rafting and more.
The incentives would only happen if the project is built - and the economy has taken a toll on efforts to raise financing.
Waveyard originally had a January 2010 deadline to prove it had money to complete the project while also lining up a hotel operator and a partner to operate the park. But the city extended that to July of 2011 after Waveyard partners Richard Mladick and Jerry Hug asked for more time because of the recession.
Hug told the Tribune there's no way Waveyard can meet the deadline now. He's couldn't give a new target date because so much is in flux.
"I have no idea because I don't know what we're ultimately talking about," Hug said.
The Cubs and Mesa are still determining how much land the spring training facility will need, and what land would remain for Waveyard. Hug said he needs about 25 acres. He'll need to know what specific property is available for Waveyard before he can try to secure financing.
"Until we understand how much land we have to work with and what the programming is on that land, we have not been able to determine actual cost estimates or financing," Hug said. "This is very much a process, and we kind of have to work backwards."
The initial site work for the spring training facility has left 15-20 acres for Waveyard, Brady said, but that could change. The two projects could share some parking to use land more efficiently, Brady said. Mesa and Waveyard will draft a new agreement in the next few weeks, Brady said.
Mesa Councilman Dennis Kavanaugh has been a Waveyard critic, saying he opposed giving up park land for something as speculative as the hotel and retail use. He also had doubts that Mladick and Hug could pull off the project because they've never done anything this large before.
But Waveyard has a better shot at financing if it just includes the water park, Kavanaugh said. The Cubs would develop a hotel and shopping district that will help Waveyard sell itself to investors, he said.
"I think it's still viable," Kavanaugh said. "I think the development, with the Cubs stadium (nearby), would at least cause investors to give a good, hard look because the more speculative aspect has been removed."
forkedlift1 posted at 10:46 am on Tue, Oct 12, 2010.
MakePlaces,
Waveyard doesn't have the financing for its grandiose proposition -- didn't have it lined up 3 years ago, doesn't have it now. That's despite the fact that lots of local big timers made money off THEM to sell their speculative project to Mesa voters. Looks to me like Brady is over his head with his "ideas" that neither Waveyard nor the Cubs were prepared for.
Brady should focus his efforts on serving Mesa residents and boosting existing services that have been cut instead of trying to be a pseudo-developer.
I think Waveyard should cut their losses --- unless of course they win a $500 million lottery before their extended deadline dates --and kiss Mesa good-bye.
Make Places posted at 12:03 pm on Mon, Oct 11, 2010.
Make places that will last, not projects.
Make Places posted at 12:03 pm on Mon, Oct 11, 2010.
Mesa, lets be smart about this. The idea to force Waveyard to 15-20 acres is a bad idea. So we want a new Sun Splash? This is a joke. That means the majority of this site is going to be practice fields. Plus, in the agreement between the city and cubs is to recruit a new team to Hohokam. That means the city will have to upgrade the practice facilities at Fitch Park. So, the true cost is going to be upwards to $130-150 million! Why isn’t the city talking about this? Why not use the land we have at Fitch, expand it to accommodate two teams at this site? The city owns a ton of land in that area and can build it there. Plus, 4 fields are built, so that saves us tax payers and our city money!
Be creative for once Mesa. Combine both the cubs stadium/Wrigley field concept as one for max usage year around. Keep the white river, wave pool, scuba and other extreme water sports…….because that is what we voted for. I could care less about the hotel and retail. Brady, work with them to make both succeed, not dictate who gets what.
renew21 posted at 11:53 am on Mon, Oct 11, 2010.
Do not like the sound of this at all. So the cubs now get the site. They are holding us tax payers hostage in forcing us to spend 100 million on their dream facility. Two months of the year, this site is going to be empty.....even if they call it their potty training home. It is poor leadership for this council and manager to push Waveyard to such a small site. What a waste of valuable land to place up to 8 practice fields at an economic mine such as this site.
Poorman posted at 8:03 am on Mon, Oct 11, 2010.
Don't really care what they build,we indpendent,voters and taxpayers will for sure keep an eye on it.
snipes posted at 9:05 pm on Sun, Oct 10, 2010.
The City Council really needs to fire Brady.
How is it that Brady is allowed to completely gut and revise the Waveyard deal all on his own? That's not what voters approved, and voters won't get to vote again on whatever abomination he comes up with.
Will the City Council even get to approve the deal? Or does the City Council take orders from Brady now?
Rich posted at 5:49 pm on Sun, Oct 10, 2010.
Yet another win-win situation for Mesa. Can Mesa afford to keep winning? A few more and the whole place will be a slum.
votenomesa posted at 5:48 pm on Sun, Oct 10, 2010.
After November 2nd, $99 million will be off the table.
forkedlift1 posted at 3:59 pm on Sun, Oct 10, 2010.
MarkYarbrough, you didn't say whether the City would be leasing or selling the now public LAND to the Cubs. Will some of it be sold and the rest of it leased? Do you know? Do they know?
Reason I ask is if these other-than-baseball private profit ventures of a hotel and a retail complex is allowed and encouraged to be built on the site, will these commercial endeavors be exempt from paying any property taxes, which go towards funding education in this state?
Currently, the non-binding MOU between the City and the Cubs states:
(i)
the City is responsible for any ad valorem real property (including without limitation any lease tax) or equivalent taxes and assessments payable in respect of the Project site, Stadium, Ancillary Stadium Facilities and Other Facilities;
(ii)
Cubs are responsible to pay all federal, state and county taxes (other than real property and lease taxes) applicable to the Stadium, Ancillary Facilities and Other Facilities to the extent related to revenue retained by Cubs, provided however City will reimburse Cubs for any such imposition impacting solely Cubs.
What does this all mean with respect to a hotel and retail complex on the Riverview Golf Course & Riverview Park site?
consumerman posted at 3:06 pm on Sun, Oct 10, 2010.
Waveyard in Virginia had a great impact on the economy. The olympic kayak team even practices at this facility. If they can stay close to the original design and incorporate the Cubs too, this is a win win situation for everyone. This is a much needed attraction that will keep more money in our state, rather than Mexico and California for beach goers. I just hope they build a big enough beach to handle the huge crowds that will want to enjoy the site.
MarkYarbrough posted at 3:03 pm on Sun, Oct 10, 2010.
The goal is absolutely to keep the Cubs in Mesa. The hotel and retail complex is something the Cubs are doing seperately as they are looking into using the new facility year round for training.
The ballot measure wouldn't have anything to do with the Hotel or retail complex, they would both be financed privately..
The only purchase the city is making is for the stadium construction and infastructure (both capital improvements / assets that the city would retain ownership of) which is what prop 420 is about.
forkedlift1 posted at 2:28 pm on Sun, Oct 10, 2010.
According to Dennis Kavanaugh, "The Cubs would develop a hotel and shopping district that will help Waveyard sell itself to investors."
I thought the City would be leasing the land -- and the stadium -- to the Cubs. Won't the Cubs be having enough with which to concern themselves with the new stadium, practice fields, medical and workout facilities, etc. -- and of course players, team management, coaching, etc. to get the best possible team?
The Cubs business is baseball. Is the City trying to push the Cubs into something -- development of a hotel -- simply because the owners MIGHT be able to afford it? Also, the ballot measure calls only for Cactus League facilities.
The stated goal by Mesa for the Cubs is to keep the Cubs in Mesa, and the Cubs do have a credible track record here that has been economically beneficial for Mesa.
Conversely, Mesa has a lousy track record in the last few years, encouraging the development of outrageously incentivized untried projects. Geez, Mesa, don't mess things up with the Cubs.