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Polar Park Now At $157 Million Dollars: Sweetheart Lease for the WRS

We told you do so.   

We are number 1 now for the most money ever spent on a minor league baseball park!!!!!!    Congrats!!!   

Is it just me or did anyone else notice Masslive, Worcester Business Journal and Worcester Telegram all had their stories ready to go before the City Council agenda was even posted?   Almost as if they get all this information in advance before anyone else, with talking points???

We did not get the talking points!!    

Instead we had to look at the loan order and lease ourselves starting at page 38 and here is what we see:


Personal Guarantee

Typically when you have an LLC a bank will not give a loan to the LLC, unless the owners sign a personal guarantee.    The Pawtucket Red Sox Club, LLC D/B/A Worcester Red Sox are the only ones signing this lease, and nobody else.    

Does not appear Larry Lucchino has signed any personal guarantee, nor anyone else for that matter.   If the Worcester Red Sox (WRS) were to go under?????    


Exhibit C Page 157

  • Although the lease start April 1, 2021,  the Worcester Red Sox (WRS) pay very little the first two years, but we have to make payments on the bonds..   
  • The lease has an ascending schedule with a large balloon payment in year 28,  but get this???

3.8 (D)  Although the Parties had intended to amortize the Team’s contributions relating to the Series B Bonds over thirty (30) years concurrent with the Term, due to state law limitations on the maturity of the Series B Bonds, the Series B Bonds were required to be issued with a “balloon” payment at the end of the life of the thirty (30) year bond term, resulting in a mismatch in the amortization. The Parties agree that they will meet no later than the twentieth (20th) year of the Term to cooperatively explore in good faith strategies to mitigate the burden imposed by said balloon payment.
  • What the hell does that mean?????  So the WRS pay very little up front the first two years and their balloon payment at the end; "we need to "explore strategies to mitigate the burden imposed by said balloon payment"???   What about the burden imposed on us taxpayers!!!!
 
 
  1. No personal guarantee
  2. Very little payments the first two years
  3. A balloon payment at the end that can be "mitigated"
 
Great lease for the Pawtucket Red Sox Club, LLC D/B/A Worcester Red Sox...
 





Comments

Anonymous said…
Is the City subsidizing the Woo Sox with the low lease payments ?
How exactly do you lease a $157 million ball park and pay only $31,171.00 in the first year and $177,635.28 in the second year.
Someone needs to check the City's math.

Anonymous said…
Same old tactics that the Worcester officials do every time that the taxpayer is getting screwed. Happened for the Galleria, Med City, Court House, Worcester Market etc. A few people run the city, run the manager, the council, etc.
Anonymous said…
I just watched the City Council meeting and the City Manager explanation to City Councilor Rose why it is not a $157 million project. Summarizing what I thought I heard the stadium, bricks and mortar to build the stadium cost $117 million. Independant of this cost, the City is spending $40 million to acquire the land, relocate the businesses and demolish the buildings (the City Manager stated something else about soil that I did not clearly hear) which the stadium is being built on.

Independant? Where are you building the stadium, on the land you spent $40 million for, so the total stadium costs in total is $157 million.period!

The worst part of watching this explanation was City Councilor Rose sat there and seemed to just nod like a bobble head as if this explanation actually made sense.
Anonymous said…
Continuing highlighting the lunacy and how good the City negotiates, In consideration for issuing more bonds for the WooSox the City got the WooSox to drop five years off a sponsorship guarantee. Why did the City guarantee CORPORATE sponsorship to begin with. The City got back something it should have never agreed to in the first place.