The Baylor Waco Stadium Authority, formed a decade ago to facilitate non-university events at McLane Stadium, passed a resolution Thursday to dissolve the board at Baylor University’s request after years of financial losses.
In attendance for the meeting and voting unanimously for the dissolution were three of five board members, including Chair Jim Sartain, a Waco businessman; Glenn Robinson, former Baylor Scott & White Hillcrest Medical Center president; and former Waco Mayor Virginia DuPuy.
Board Chair Jim Sartain, from left, and members Virginia DuPuy and Glenn Robinson voted Thursday to dissolve the Baylor Waco Stadium Authority.
The stadium authority was formed just over 10 years ago in November 2013 by the Waco City Council with the mission to lease McLane Stadium for non-university events and to be a community voice in the stadium’s uses through a tripartite agreement between the authority, Baylor and the city. Its current five members were appointed then by the city council and have remained on the board since.
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Waco agreed to grant $35 million in downtown Tax Increment Financing zone funding to build and maintain the stadium in 2012. The $266 million McLane Stadium was finished in 2014, welcoming guests for its first game on Aug. 31, 2014.
A three-party operating agreement bound Waco, the stadium authority and the university, with the authority serving as the governing body over the stadium’s functions. Baylor, the true owner of the stadium, has leased McLane to the stadium authority, with a sublease agreement in place for the Baylor Club operated by Invited, formerly known as ClubCorp.
“All these agreements were wrapped together to where if the stadium lease terminated, then all these agreements would pull together and Baylor University would assume the liability of the Baylor Waco Stadium Authority’s role in these agreements,” said Karl “Rock” McNair, Baylor’s associate vice president of real estate operations.
Baylor called for the board’s dissolution due to a yearly expense of $400,000 for the board operating independent of the university, McNair said. A majority of the savings would come form insurance costs, as the university is not able to add the stadium authority, a public entity, to its insurance policy, he said.
He said the terms of the 2012 TIF agreement have been fulfilled and expired.
It is possible the university could look to establish a for-profit entity to handle events at the stadium currently hosted by the stadium authority, McNair said.
“In our mind it would be business as usual,” he said. “Community events, concerts and things like that would continue to stay here at McLane and Touchdown Alley.”
One reason for forming a stadium authority was to be able to sell alcohol at non-Baylor events on stadium grounds. The Baylor Club is now poised to assume responsibility for alcohol sales as part of its lease and liquor license, McNair said.
McNair said the process to dissolve the board began over the summer in conversations with the city manager’s and city attorney’s office, then with the city Boards and Commissions Committee.
The Waco City Council on Dec. 5 voted to approve the board’s dissolution, as well as a 10-year agreement with the Baylor Club to continue the city’s use of Touchdown Alley for its Fourth on the Brazos Independence Day events.
People gather near Touchdown Alley next to Baylor’s McLane Stadium for concerts at this year’s Fourth on the Brazos. When the city approved the Baylor Waco Stadium Authority’s dissolution earlier this month, it also approved a 10-year deal with the Baylor Club to continue hosting the city’s Fourth of July celebration outside McLane.
Dan Pleitz, attorney for the board, said the resolution approved Thursday terminates the tri-party agreement and all service agreements the stadium authority held, including its agreement with Invited. Baylor will assume all of the board’s liabilities, including accounts payable, and assets, effective Dec. 31.
“Baylor’s not our client,” Pleitz said. “We all love Baylor. That’s why we did all this. It was for Baylor. But we have to represent this corporation, and this corporation needs to cut a clean line and be gone.”
The stadium board’s obligations will not disappear with its dissolution, but loose ends and liabilities will become the responsibility of the university. Baylor will have to sign its own agreements accepting the board’s responsibilities, he said.
After passing the resolution, the three board members expressed their gratitude for their involvement in the stadium.
“Thank you for the privilege of serving on the BWSA board,” Chair Sartain said. “I’ve been here from the beginning. Of course I’m so proud of the stadium.”
Former Mayor DuPuy echoed Sartain.
“I also very much appreciate both Baylor and I’ve been honored to represent Waco,” DuPuy said. “Even though I haven’t been involved directly on the council for some time, I still think it’s a very, very good thing for Baylor and Waco to continue to work together in every way that we can.”
Former President Robinson thanked the Baylor Club and various Baylor staff members who attended the meeting for their leadership over the years.
