By Andy M. Drury, The Macon Telegraph, Ga. Knight Ridder/Tribune Business News
May 15--A skeptical City Council committee put a proposed basketball contract on indefinite hold Monday, leaving only a small window of time for Macon to strike a deal to bring a development league here.
In a 5-2 vote, a joint session of the Appropriations and the Public Properties committees tabled the basketball contract, citing too many unanswered questions. The move likely kills the deal with the National Basketball Development League because Mayor Jack Ellis said the deadline for the city to approve the contract is today.
'If it's not going to be voted on by this body this month, it's an effort in futility,' Ellis said.
Tonight's meeting is the last scheduled City Council meeting this month.
'It's over as far as I'm concerned,' Ellis said to City Attorney Pope Langstaff after the vote. Ellis hastily left the council's conference room and refused to comment on the committee's decision.
Public Properties Chairman Dick Dickey said he believes tabling the contract signaled its death knell.
'I guess it's dead,' he said. 'That's what the mayor indicated.'
Despite the committee decision, the issue could still surface tonight. According to council rules, if 10 members of the council vote to suspend the rules, the council could call for a vote on the contract.
Dickey said that is an unlikely scenario. 'I think it's over with,' he said.
During Monday's meeting, council members picked apart terms of the contract. Much of the discussion centered on a section that would give Arena Ventures, the company that has partnered the basketball league with entertainment promoter SFX Entertainment, the right to approve any pre-existing contract at the Macon Centreplex.
Assistant City Attorney Nancy Terrill said similar language 'is not in any other contract we have at the Centreplex.'
Ellis attempted to downplay the wording of the contract, but City Attorney Pope Langstaff said 'if it requires mutual agreement ... obviously it takes their consent.'
'At the end of the day, we won't do anything to ignore what we have there,' Ellis said.
Critics say a basketball team would hurt existing sports teams that use the Coliseum -- the Macon Whoopee hockey club and Macon Knights arena football 2 team -- as well as stymie any growth for convention business.
'I don't think we're giving away the store to the NBDL,' Ellis said. 'In the long run, I'm convinced it will affect our bottom line and put money into our general fund.'
So far, at least five Southern cities have signed deals to bring the NBDL to their arenas: Fayetteville, N.C.; Huntsville and Mobile, Ala.; North Charleston, S.C.; and Roanoke, Va.
When the Macon City Council first received a copy of the contract a month ago, members raised questions, specifically about a $250,000 franchise fee paid by the city, and a minimum 4,500 attendance to prevent Arena Ventures from breaking the five-year deal after the first three years.
Ellis and the NBDL renegotiated the terms of the contract, presented to the joint council committee last week. Instead of a $250,000 franchise fee divided over five years, the expense would depend on how much Macon profits from the agreement each year, up to $50,000.
For example, if Macon earned $30,000 the first year of the contract, the city would only pay that amount, not the entire $50,000.
'If we don't make any money, they don't get any money,' Ellis said. Later he added, 'We're not taking one dime out of the recreation department ... and not one less gallon of gas will be bought for police cruisers.'
Ellis also renegotiated the 4,500 minimum attendance to 3,500.
But last week, the joint committee failed to make a decision, deadlocking in a 3-3 tie.
On Monday, the committee came no closer to a consensus.
'There's no way under the sun I can vote for this,' Councilman Jim Lee said. 'If approved, it will hurt and do injury to af2 football and most certainly the Whoopee.'
Councilwoman Elaine Lucas said she thought she could support the contract, but has since questioned her decision. 'I want to support basketball,' she said, 'but I'm not willing to do it at any cost. I was sure the other day, and now I'm not sure.'
Councilman Charles Dudley, who raised concerns of illegal drug use at a recent Widespread Panic concert promoted by SFX, said Macon can't afford to sign the deal.
'We're steady working on a plan to give away more money when we don't have the money,' Dudley said. 'I love sports, but the (Atlanta) Hawks aren't doing good, and how are we going to do so good? ... I don't think that this particular time we can afford to risk it.'
The deal does not make sound financial sense, some council members said.
An Elton John concert last fall netted the city $43,897, but under the Arena Ventures agreement, the city would make only $4,444 for that same concert, according to Centreplex estimates presented at Monday's meeting.
Critics said the numbers speak for themselves, but proponents of the contract said there would be far more concert dates, which would make up revenue differences.
In his pitch to city officials, Ellis said the deal would help put Macon in the spotlight.
'We spend an awful lot of money trying to promote this city,' he said, pointing out that some of the games would be aired on ESPN.
'The return on our investment is far greater than the investment,' Ellis said.
If council does not breathe new life into the proposed contract tonight, Ellis said the city will continue to try to find ways to market the Coliseum and increase revenues for Macon.
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(c) 2001, The Macon Telegraph, Ga. Distributed by Knight Ridder/Tribune Business News.
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