By Jeff Balke
By Aaron Reiss
By Angelica Leicht
By Dianna Wray
By Aaron Reiss
By Camilo Smith
By Craig Malisow
By Jeff Balke
You might think with the unveiling of a high-priced scale model of the new baseball stadium, the beginning of construction on the real thing and the constantly upbeat assessments by officials of the Harris County-Houston Sports Authority, that everything's in place for the Ballpark at Union Station.
You'd be wrong.
Even though officials have consistently stressed their tight deadlines and need to get things done as quickly as possible to meet their deadline of Opening Day in the year 2000, negotiations between the Authority and two key players have yet to be resolved.
There is still no formal agreement between the Authority and Astros owner Drayton McLane or between the Authority and Enron Chairman Ken Lay's group of downtown establishment-types that is supposed to give up to $39 million to the project.
Letters of agreement between the parties were signed last year, and officials strove to give the impression that all that remained was connecting a few dots to formalize the deals. Authority chairman Jack Rains posed happily before TV cameras in November when he signed a further pact with McLane -- a "memorandum of agreement" -- and indicated a huge obstacle had been removed.
Five months later, however, there is no contract with the Astros, just a stream of information-free updates to board members from their secretive colleagues Billy Burge and Michael Stevens, who are taking the lead in negotiating the various deals.
"I feel very comfortable on how we're doing," Burge told board members March 24. "The lease agreement (with the Astros) should be consummated fairly quickly and I hope we can say the same about the land deal (with Lay's group)."
That wasn't enough for board member Al Luna, who is emerging as one of the more aggressive questioners on the board and one who rarely passes up a chance to get in a dig at Burge, the former Metro chairman.
"I don't know ... what's going on with all this," he said. "We've been getting the same report for at least the last two months, that negotiations are just going on. We need more information about ... what the issues are that need resolving."
Chairman Rains, whose record on conducting the Authority's business openly has been spotty (the state A.G.'s office now assigns a lawyer to ensure that the board no longer skirts the open meetings law), was predictably expansive at the public session. He told Luna to meet privately with the board members negotiating the deals to get a more detailed update.
After the meeting, Luna remained unimpressed. "I don't think there's been enough information coming to the board from the other board members involved," he said.
Rains, for his part, gave terse answers to a Press reporter whom he all but sprinted away from to avoid. "No," he said, he had no concern about the pace of the negotiations, and any time a board member expresses concerns about getting enough information, he will look into it.
Former city attorney Gene Locke, newly installed as the Authority's general counsel, told the board he was determined to speed up talks. "I have literally pulled all the lawyers together and all the documents and established a time frame, and over the next three weeks I think you'll see some fairly intensive work," he said. "If it's all not final by the end of April, we'll at least have something so close that it will be very near final."
None of the parties leading the negotiations are being very forthcoming. The Astros are tangling with Stevens, former mayor Lanier's right-hand man for development issues, and Burge and Rains are handling the Lay group.
Lay's company, of course, lost a bitter battle in February for the lucrative contract to cool the stadium; whether he's enjoying letting the Authority stew a little in return isn't known.
But several legal issues may be hindering the effort to finalize the vague agreement between the Authority and Lay's group, called Sports Facilities, L.P. (SFLP, in Authority shorthand).
In a letter of intent signed by the county, city, SFLP and McLane in September 1996 (and modified slightly four months later), SFLP would purchase land necessary to build the stadium and provide other financing. Current plans call for the partnership to raise $39 million for the project.
In return, businesses that donated to SFLP would get first crack at naming rights, concessions, seats and luxury suites.
Perhaps more troubling from a legal standpoint is another provision in the letter of intent, which gives SFLP an option to purchase the land provided for the stadium at any time "from the date of acquisition of the land ... (up to) five years after the estimated useful life of the facility." (The "useful life" is generally thought to be 30 years, for negotiation purposes.)
At least one of the families whose land was condemned to make way for the stadium is objecting to that clause. "In condemning the property which HSFP could not purchase, the Sports Authority is merely acting as an agent for HSFP to accumulate prime downtown real estate for the benefit of HSFP," says a lawsuit filed by the family, which uses a slightly different acronym for Lay's group. "HSFP, through its use of the Sports Authority, has created an ingenious method for the taking of private property for its own use."