Depew-Lancaster Baseball League president Paul Cumbo announced at the town board work session that the League requested the meeting to update the board on the progress made to ensure the board that their financials were in order to move forward and ease any concerns of the risk involved in their meeting their obligations to the town.

David Mansell, League director of travel, presented a detailed PowerPoint update on the Town of Lancaster practice facility at Westwood Park:

Building Layout

The project will be owned by the Town of Lancaster, but operated and paid for by Lancaster-Depew Baseball (LDB) as per a legal contract negotiated b/w LDB and the Town of Lancaster.

The building will be located on the south side of the park just in from the Pavement Road entrance to the park (southwest of the pond). No wetlands will be impacted. Total square footage approximately 16,000 – playing area 11,500 sq. ft. and 2,100 sq. ft. for the upper-level mezzanine.

There will be turf field 120’ x 100’ in size with a 24’ high net ceiling. There will be twelve retractable batting cages; field can be configured to be wide open, half field with six cages or any combination in between. There will be two bathrooms, a conference room, a storage facility and an upper-level mezzanine for parent viewing or waiting to make pick up.

LDB has an average of over 850 players including 65 house teams and 15 travel teams. The current space is the minimum required to provide each team 2 hours of cage time and ½ hour of field time per week. LDB currently has almost 200 L/D players playing baseball year round. Most players/teams pay $300 - $400 annual membership fees at facilities outside Lancaster for fewer hours and lesser facilities than what LDB will have.

The building will also be made available for other activities and for Town of Lancaster resident use.

Estimated Project Cost

Mansell declared that the building cost is higher than what was initially projected because the building has increased in size to accommodate minimum needs. He presented two sets of numbers, one reflecting low end to high end costs:

Building: from $990,000 to $1,240,000

Parking and site work: from $150,000 to $200,000

Cages/Turfs/Equipment: from $70,000 to $85,000

Legal fees: from $15,000 to $20,000

A&E costs: from $50,000 to $55,000

Total costs: from $1.25 million to $1.6 million

Current Assets

LDB has $110,000 in pledged donations (contracts signed). At this time, the donors wish to not have their donation amounts listed. They include Joe Basil, Brown Chiari, Russ Salvatore and Intense Milk. The League will not be using their fund balance reserves to pay off the debt. Other businesses have contacted LDB on becoming donors.

Annual Payment to Lancaster

Even when considering the high end project cost of $1.6 million, after subtracting the $100,000 league deposit, and leaving a balance of $1.5 million, and with an anticipated 3% loan interest rate, the annual repayment to the town over 15 years would be $124,800.

How LDB intends to met loan obligation

$30,000 – Travel and House players with membership; 200 players @ $150/player for full year access (much lower than other like facilities). A year round membership entitles every house team and travel team a minimum of 2 hours of cages time (2 cages per team) per week and ½ hour field time each week during the highest use time. If the $150 annual membership fee is too difficult for a family to manage, there are viable options such as fundraisers to help pay off the costs.

$25,000 – Secured sponsorships – Annual Revenue/$$ from “Donor Wall of Fame”

$20,000 – Change in fundraiser from selling 45 chocolate bars to selling three “coupon booklets” through Funding Zone Co. Profits increase from 50% to 90% with no added costs (based on 800 players)

$11,250 – Additional year round membership to non travel players or non LDB player (additional 75 memberships @ $150 for members and $250 for non LDB members

$8,000 - $10 per player for building use fee (based on $800 players)

$10,000 – Current revenue spent on indoor space; average over past three years

$10,000 – Annual league social fundraiser profit (average over past three years

$5,000 – Concession sales/vending machine profit (anticipated based on Coke and Intense Milk contracts) – low estimate

$2,000 – Savings on current rental fee spent by LDB for storage space on Walden Avenue

$26,000 – Building income: rentals to non LDB players, instruction lessons, clinics and camp income

$146,250 – Total Anticipated Annual Revenue to Support Facility

According to Mansell, the above generated revenue numbers are low estimates and should not be considered risk.

Costs vs. Revenues

Building costs will be separate from the LDB baseline costs. LDB will not be using any of its current assets ($90,000) to pay off the building. The $146,250 in revenues is locked in. Another $10,000 in anticipated additional revenue is under-estimated. Cost of additional insurance and maintenance = $10,000.

$146,250 - Anticipated annual revenue to support facility (low ball)

$126,800 – Annual repayment to Town of Lancaster

$19,450 – Anticipated annual profit (could be used to prepay Town)

Succession Plan

According to Mansell, the following is the plan to ensure payment to the town is guaranteed for the next 15 years:
• 100% of the annual revenue is guaranteed with usage fees, annual sponsors (e.g. Mr. Salvatore), fundraisers, and rental agreements under long term contracts.
• A savings account with over $100,000 to cover unexpected expenses or drop in revenue.
• Prepayment to the town to have the bond paid for in ten years total is not an unrealistic goal.
• Six board positions specifically designated to proper running of the building.

Questions for the LDB reps at the work session

Councilman Mark Aquino voiced concern should the membership enrollment drop in the league as it has with the school district. Mansell replied that the non-profit organization has no boundaries and can fill open space with players and teams from other municipality. “We are already projecting our revenue numbers down from the 850 kids we have to 800 to be conservative,” said Mansell.

Aquino also requested someone from the town look at the financial numbers as presented especially since the projected costs have risen significantly. “We just want to make sure your numbers are there, because obviously if your numbers go from $1.2 million to $1.8 million that is going to impact your organization in having to raise more money. I want to make sure we have solid numbers before we make a commitment.

Town Engineer Robert Harris interjected that LDB does not have detailed drawings available at present. LDB replied that they have had several bids on the project and are comfortable the numbers are credible. “If the $1.2 million or $1.4 million numbers are incorrect we will have to make some tough decisions and possibly downsize the project.”

Supervisor Dino Fudoli expressed he had serious initial concerns about director succession and whether futher directors would be as commited to making the project successful. His concerns were eased by the detailed presentation.

Town Obligation
  • Land donation
  • An estimated $40,000 to $60,000 for water and electricity hook ups that comes out of the Parks & Recreation fees and not out of the budget – no cost to taxpayer.
  • The town will provide utility costs as it does for the Ponytails League.