City Beat: Council approves infrastructure funding for sports complex

Richard Ollis: SGF Sports development is good for Springfield's sports tourism.

Craig Hosmer wants council to act quickly on Lake Country sports complex.

Amy Derdall: Two ordinances will reduce effect of gas costs on customers.

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In a unanimous vote on March 8, Springfield City Council approved an infrastructure reimbursement agreement for a planned youth sports complex on the northwest side.

The agreement with developer SGF Sports LLC commits the city to covering up to $2.1 million for public infrastructure improvements at the $13 million, 120-acre development, located west of Deer Lake Golf Course.

SGF Sports is registered to Tulsa, Oklahoma, developer Rob Phillips of Philcrest Properties.

Per the funding agreement, the city will reimburse $2 million spent on public infrastructure, such as off-site road and sidewalk improvements, on- and off-site sanitary, water and gas main extensions, a regional retention basin, and associated design and permitting costs. The city also will reimburse up to $100,000 of interest fees.

No costs will be eligible for reimbursement until the project and public infrastructure is completed, according to city documents. The agreement sets a deadline of March 31, 2024, or the reimbursement plan terminates. According to CJD Engineering LLC, the mechanical, electrical and plumbing engineer on the project, the fields are scheduled to open this summer and the indoor complex is slated for completion in spring 2022.

The city and developer additionally will establish a community improvement district for the area, including a site for future retail and hotel development. A new 1-cent sales tax imposed would reimburse the city for its expenses.

The SGF Sports plan calls for 12 soccer fields, including one turf championship field, outdoor seating and a 90,000-square-foot indoor complex to house two more soccer fields and four basketball courts that can convert into eight volleyball courts.

Councilmember Richard Ollis said he supported the agreement because of the development’s potential to create sports tourism in town.

“More than that, it creates an attractive gateway from our airport, and we’ve been talking about that as well,” Ollis said during the meeting. “Then lastly, what really puts it over the edge, is the commercial development that eventually is likely to come, including the potential of a hotel.”

Councilmember Craig Hosmer said work on the SGF Sports development should spur on another sports complex plan council has supported.

“I think we have to keep in mind that this project doesn’t satisfy everything we need to do for sports tourism in Springfield,” Hosmer said. “I think it’s imperative we move the Lake Country proposal as quickly as possible.”

In December, council unanimously declared its intent to financially assist and fully support a $10 million upgrade to the Lake Country Soccer Inc. complex plan at Cooper Park on the city’s northeast side. A funding agreement for the project has not been finalized, although Springfield-Greene County Park Board Director Bob Belote suggested the city invest $5 million, which would match an amount from private donors.

Planned improvements include eight new turf fields, enhancements to the existing 10 grass fields and new locker rooms, restrooms and meeting areas.

Natural gas fees
City Utilities of Springfield is asking council to consider two ordinances in an effort to reduce costs for natural gas customers due to the extreme weather events in February.

CU spent roughly $40 million on unplanned natural gas purchases due to the high demand and low supply issues, officials said.

The first ordinance would adjust the unauthorized use charge applied to natural gas usage by curtailable customers – 25 high-volume customers who agree to minimize use during a curtailment of natural gas.

Amy Derdall, vice president and chief financial officer for CU, said the company is asking council for a one-time reduction of punitive fees for using unauthorized natural gas in order to reduce the effects on customers. High-use industrial and commercial customers, who typically use about 3,000 dekatherms per month, were asked to limit gas usage during the shortage in February.

“Everybody did an admirable job in working to curtail and stay off the system,” Derdall said. “We did have certain customers that had problems and had to come on intermittently, but they did their part and pulled off when we needed.”

Standard unauthorized use fees are the greater of $15.62 per dekatherm of gas or 10 times the applicable price from the Southern Star Central Gas Pipeline Daily Index. The ordinance would adjust the unauthorized use charge down to 1.5 times the SSCGP daily index for curtailable CU customers, applicable only for February 2021.

In February, the SSCGP index reached prices between $330 and $630 per dekatherm, compared with a previous high of $31.26 per dekatherm in February 2014. Customers also were asked to curtail longer than before – for six days, up from the previous record of four days.

Derdall said a price that high is something CU never expected to see when establishing the unauthorized use fee, and the company is asking council for the one-time fee reduction to minimize the punitive damage to their customers. If not lowered, the unauthorized use fee will cause up to $6 million in fees for curtailable customers.

The 1.5 times fee, which would total roughly $1 million, would cover the cost of the gas supply for CU plus a smaller, punitive damage. No other customers would be affected by the loss of higher penalty fees, Derdall said.

Matt Morrow, president of the Springfield Area Chamber of Commerce, addressed council in favor of the bill on behalf of the business community.

“The penalty is still significant, but the alternative would be catastrophic,” Morrow said. “It would be impossible.”

Council is considering a second request by CU to allow residential and smaller commercial customers to spread the additional costs for natural gas over two years of billing, rather than immediately.

Derdall said if council takes no action, the current recovery period of six months will be in effect with a fee of approximately $1.60 per therm – doubling residential bills. Changing to a period of 24 months allows for a recovery cost of approximately 20 cents per therm, or an increase of about 20% for residential bills.

Derdall said if CU receives a refund from the pipelines or government assistance, that money would go into the pool and reduce the cost on customers. Amounts due for repayment will still be dependent on customer usage.

CU’s Board of Public Utilities approved the policy variances on Feb. 25. Council is set to vote on both bills March 22.

Rezoning on Grand
Council is considering a rezoning of 1.37 acres at 1720 W. Grand St. to general retail from low-density multifamily residential. The site at Grand Street and Kansas Expressway is a former Price Cutter store that is now being used by Jordan Valley Community Health Center as a COVID-19 vaccination clinic.

Jordan Valley purchased the property in December. Springfield Planning and Development Director Mary Lilly Smith said the section of property proposed for rezoning is also owned by Jordan Valley. During its Feb. 22 meeting, council approved a replat of the property to create a one-lot subdivision.

Smith said the lot is being rezoned to allow the entire site to be developed as one unit. Council will vote on the bill during its March 22 meeting.