Collectively, the construction of the Stephen G. Terrell Recreation Center is estimated to cost $54,000,000.  Funding in the form of General Obligation Bonds were approved by the voters in 2016 in the amount of $16,000,000; and $35,000,000 has been proposed and is being considered by the Community Development Corporation; and the Allen Sports Association Board has authorized $3,000,000 for the Stephen G. Terrell Recreation Center.

In 2019, the Mayor appointed a Steering Committee comprised of community stakeholders who would participate in a comprehensive Feasibility Study for the Stephen G. Recreation Center.  The Allen Sports Association, a long-standing community partner of 44 years, had representation on the Steering Committee.  Allen Sports Association expressed interest in pursuing a partnership with the City of Allen which would allow priority use of the Competition Gyms for agreed upon terms. 

In December 2019, the City of Allen and Allen Sports Association executed a Letter of Intent, which established the framework for future Stephen G. Terrell Recreation Center Use Agreement terms between both parties, and a financial contribution by the Allen Sports Association. 

In July 2020, the City of Allen and Allen Sports Association established a mutually beneficial Stephen G. Terrell Recreation Center Use Agreement.  On August 6, 2020, the Allen Sports Association unanimously approved the Stephen G. Terrell Recreation Center Use Agreement.

Terms of the Recreation Center Use Agreement provides that:

• Allen Sports Association shall receive at least 212 court hours of the Competition Gyms use each calendar week, of which 164 hours court hours per calendar week shall constitute "ASA Priority Use". Additionally, at least 48 court hours per calendar week will be made available to ASA.  
• Both Allen Sports Association and the City shall release to the other, any unscheduled Competition Gym time as soon as reasonably known providing the option for use.  
• Allen Sports Association Usage Rights is solely for programs or activities that are directly associated with youth sports programs. ASA may not schedule, or program use of the Field House for any programs or activities that are not directly associated with existing youth programs (including, without limitation extensions of such existing youth programs) and services without City's prior written approval.
• Parties Programming not to Compete clause ensures that neither Party will provide programs or services in their respective program areas that are in direct competition with the other.
• Allen Sports Association may contract with City to use portions of the Recreation Center (outside of the Field House area) for tournaments, activities and other events when not in use by City subject to City's then existing reservation and use policies for the Recreation Center.
• Allen Sports Association will pay a discounted rental fee of $15/hr per court. This hourly rate has an escalator based on CPI (consumer price index.)

Allen Sports Association shall pay the City of Allen in two (2) equal installments of One Million Five Hundred Thousand Dollars ($1,500,000) each. The first installment of the financial contribution shall be paid by Allen Sports Association to the City of Allen not later than five (5) business days after the effective date of the Agreement. The second installment of the financial contribution shall be paid by Allen Sports Association to the City on or before the date of commencement of construction of the Stephen G. Terrell Recreation Center as set forth in written notice by City of Allen to Allen Sports Association, but in no case later than five (5) business days after City of Allen delivers such notice of commencement of construction.

Staff recommends to authorize the City Manager to execute an agreement with Allen Sports Association Inc. to grant non-exclusive use of the Stephen G. Terrell Recreation Center competitive gym space for youth-sports programs for a period of twenty-five (25) years, in exchange for a financial contribution of $3,000,000.

I make a motion to authorize the City Manager to execute an agreement with Allen Sports Association Inc. to grant non-exclusive use of the Stephen G. Terrell Recreation Center competitive gym space for youth-sports programs for a period of twenty-five (25) years, in exchange for a financial contribution of $3,000,000.