Less than two weeks ago, the Hillsboro Hops leadership took to social media and the TV news to let us all know they need $20,000,000 to be given to them, or they may leave town. The threat was not subtle but direct from management. This, of course, is money they want on top of the 18,000,000 dollars that leaders in the City of Hillsboro have already promised them in writing. Add to that another $20,000,000 to 30,000,000 Million that taxpayers are expected to pay for fields their new stadium will destroy. Then we must consider the 9-plus acres we as a city are giving them for no monetary value and we have a $50,000,000 commitment not coming from the Team.
Let that sink in a minute.
This is a baseball team that, up until now, has only paid the City via lease agreement about $190,000 a year. That lease payment would not pay the interest on a 3 Million dollar loan. There are no final figures on this new stadium, but numbers in the $120,000,000 to $150,000,000 range are considered as accurate as possible. The Portland Timbers spent 50 Million dollars of their own money in 2017, with the City of Portland just chipping in $3 Million. The Timbers pay 2 Million dollars plus for their lease annually and have sold out tens of thousands of seats for years, sending waves of fans into the City for food and lodging every outing. https://soccerstadiumdigest.com/2017/12/portland-approves-providence-park-expansion-agreement/ Now that is a deal we could all benefit from. But we are not talking about the Timbers.
What Is Happening Inside City Hall?
The money in this Hops deal is foolish and makes no sense. This is not about baseball, but more about helping the ownership find a profitable path forward by adding rock concerts and events 30-plus times a year. Citizens should not be required to subsidize a financially weak enterprise with commitments of this magnitude when we can not even house people or manage our own crime and transportation issues.
All of that pandering for money and PR is a sideshow, however. The real story is what we are not being told. The Herald has followed this story for over a year and requested copies of documents and contracts. While they are not easy to obtain, we have been able to obtain of some of them. There is no agreement, at last check, between the City of Hillsboro and the Hillsboro Hops for leasing this new stadium to the organization. That is preposterous. How can we commit $50,000,000 when we have no financial agreement in place? There are so many questions and so much happening in private sessions- the citizenry’s trust in this deal is all but gone.
Below is a screenshot from the Second Amendment to the Design-Build Agreement signed on 3/10/2023.
This is an agreement between the Owner of the new Stadium, the City of Hillsboro, and the Design/Builder, the M.A. Mortenson Company. For those unaware, the City Council decided early in 2023 not to put this new Stadium out to bid or seek a low bid. They did not even desire a competitive bid, which is the norm. This happened about the same time they decided in an Executive Session not to consult the Hillsboro Parks and Recreation Commission about changing course from a remodel plan of the Ron Tonkin, but rather build the team a new stadium.
Now look closely at Section 1.1. The folks at Mortenson confidently stated they would develop a Guaranteed Maximum Price (GMP) by August 15, 2023. We are almost 45 days later, and the City has confirmed that Mortenson has not provided the GMP and that there are no amendments to this contract. This means we are floating with no agreement as a community with the contractor or the Hops. And yet Hops head man KL Wombacher has been in Salem this week lobbying for $20 Million and telling the media and everyone that September 30th is a deadline to satisfy Major League Baseball. That is tomorrow.
Read the Entire Signed Agreement here: Hillsboro_Hops_Ballpark_65%_Design_Amendment_March_2023
Now look at that second arrow. That says that the City of Hillsboro (our people) will spend up to $15,943,218 dollars to get us to the 65% Guaranteed Maximum Price. Mortenson, who was handed this $120-$160 Million Dollar stadium with no bid and no competition, is being paid to tell all of us how much the new Stadium will be? What?? When was the last time you paid a contractor to tell you how much he/she/they would charge you? Absurd. But here we are.
Why don’t we have the GMP or an extended agreement with Mortenson?
“We have had a delay in the project and it has moved the delivery date out. No other agreements in place beyond what currently exists.” City of Hillsboro project staff- 9/25/23
Side Note 1: Why did the City Of Hillsboro Council agree to let M.A. Mortenson to have the Design-Build deal? Who else was looked at? Were they told that according to news reports out of Colorado, Mortenson and Trammel Crow (who the city also works with) settled a bid-rigging scandal over the Colorado Convention Center in 2021? The two firms, according to Construction Dive, agreed to pay $9 Million dollars in fines and penalties. https://www.constructiondive.com/news/mortensons-13m-bid-rigging-settlement-with-colorado-ag-includes-covid-19/576058/
I would like to know if the City Council was fully apprised of this situation before voting. I sure hope not.
If there is no agreement, we all need to ask the Council to pull back and put this project out to bid. I assume if they did we would all find out the remodel of th Ron Tonkin would be less than this disastrous new stadium path we are on. There is still time to course correct.
Side Note 2: It appears the Hillsboro Hops KL Wombacher and Trent Rehfeldt of Mortenson serve on the Board of Directors together of Sport Oregon – Hmmm – Have a look for yourself. https://www.sportoregon.org/board-of-directors
But there certainly can not be any conflict of interest connected here, just because the President and General Manager of a Minor League Baseball Team (KL Wombacher) and a key executive of the Contractor selected by the City Council of Hillsboro (Mortenson) might know each other and serve on the Board of a very powerful Sports non-profit? Right? No, I am sure it is fine. It’s not like any of the City Council have season tickets or anything- Gosh, what was I thinking?
https://www.mortenson.com/offices/portland/team
Ok- lest I break into other new factoids and real NEWS, which no one else is covering or asking anyone, I will rest for the evening. In closing, we have no final land use approval; we have a now unenforceable/design-build agreement, and a team without the money to build the new stadium, which has no budget or approvals. We need someone to write a check for 20 to 50 Million. Senator Sollman is leading that one up it appears. I hope she succeeds.
READ ALL THE UPDATES AT THE CITY PROJECT PAGE
https://www.hillsboro-oregon.gov/our-city/hillsboro-major-projects/hillsboro-hops-ballpark-project
In this fine article it’s stipulated that the “citizenry’s trust in this deal is all but gone.
In the prior article, “Mayor Steve Callaway Sounds Off On Urban Growth Boundary Expansions And Housing”, it is stated that “One of the most influential people in Oregon, especially Hillsboro, which is the economic engine of the State, is Mayor Steve Callaway.”
A common metaphor used is that “a fish rots from the head down”.
As for the “Initials Man”, I’ve never met a baseball executive more pompous and arrogant.
I qualify this having worked with the San Francisco Giants under the ownership of Mr. Bob Lurie, President and General Manager and AL MVP, Al Rosen, and Manager Roger “Hum Baby” Craig. This was a Class act.
Thanks for being on top of this whole fiasco, Dirk. The lack of full transparency from City Hall means there are nefarious things going on behind the scenes. Please keep after them, Dirk.
Sam,
I am not after them – I am after any process that is not transparent, has room for bad decisions, and or that is inequitable. That is the situation we fid ourselves in today! Thank you for reading and caring about our town and people!
Dirk
This is unbelievable! And, these folks are our City “Leaders?” God help us.
not Hops related but!
I do not know who to give this to so I ask you to take note and pass on please if needed.
Passing the old Trojan nuclear plant just off highway 30 there is a big sign that says CONSTRUCTION!! I drove back in there but could not see any signs of construction. Have not heard anything in any news broadcast. thanks for your help
Sam,
I agree completely with you!!!!
“The lack of full transparency from City Hall means there are nefarious things going on behind the scenes.”
Until the folks at City Hall are totally exposed and legally fought, they will continue to perpetrate their FRAUD upon us.
If this site does not “go after” the fraudulent people at City Hall, it’s all BS!!!
This is absolutely unacceptable for our city! Keep up the good work on exposing this! 👏🏻👏🏻👏🏻
This just in, 30,000 seat music venue in the Metro area: Providence Park Will Host Concerts Following a Nearly 20-Year Absence of Live Music
https://www.wweek.com/music/2023/10/02/providence-park-will-host-concerts-following-a-nearly-20-year-absence-of-live-music/
And the Timbers organiztion footed the bill for $130 Million dollars – this is how it is supposed to work. The Public has something, the private sector shares it, and when something more is desired, the private sector pays for it and everyone reaps the benefits! Thanks for following, Brian!
Dirk
Gee whiz, Dirk. This smacks of graft and corruption. This is Oregon and not New Jersey, right?
I want to be shocked, but, sadly, this comes as no surprise. Callaway, from California, born in Texas, “selected a Californian artist” to design the lackluster Art Fence on the Brookwood overpass as the “gateway to Hillsboro.” Oh, hey, isn’t his wife an artist, from California?
Cliff Garten’s “original design” looks nearly identical to his Baldwin Hills gateway, only turned 90 degrees. I mean, there’s nothing significantly or intimately “Oregon” about it. It’s merely a topographical map design. Nothing innovative or creative. The design alone cost $500,000.
To add insult to injury, the “sculpture” was fabricated in Utah. I guess that’s because we don’t have any experience of designing and building intricately complex “metal things” such as over 100 years of train cars designed and manufactured in Portland. But, say, isn’t the city manager from Utah by way of Texas, too? That’s right, Robby Hammond. And I have to wonder if Robby is perhaps related to a senior attorney in the BEH law firm the City uses for legal representation, retired Brigadier General Jack Hammond? Also an avid baseball fans, the Boston Red Sox.
The fancy fence final cost is over $1.8 million, other than installation, the bulk of it going to people from California and Utah. The original estimate from 2019 was around $150,000.
Denise, Great info! BTW, “The Gateway to Hillsboro” begins around 185th, No?
Would you like to know about Callaway’s “AUSPICIOUS entry into Politics”?
Denise, Great info! BTW, “The Gateway to Hillsboro” begins around 185th, No?
Would you like to know about Callaway’s “AUSPICIOUS entry into Politics”?
Please, don’t allow fields to be eliminated (for youth mainly and also adults)…more are in demand already; less are not good for the community. Make your voice heard: email Rep.LisaReynolds@OregonLegislature.gov and Sen.ElizabethSteiner@OregonLegislature.gov
People are paying attention. Here’s Tax Fairness Oregon’s Jody Wiser laying out the argument against public stadium funding for the Hops in a Portland Tribune op-ed:
https://www.portlandtribune.com/opinion/guest_opinion/my-view-taxpayer-money-for-hops-ballpark-would-only-widen-wealth-gap/article_15e72b7c-563d-11ee-b39f-2f1310bba1d5.html
Here she is linking to THIS VERY PAGE in a piece for the Cedar Mill News:
https://cedarmillnews.com/article/1023-should-oregon-taxpayers-subsidize-the-hops-hillsboro-stadium/
Here’s Beaverton’s Hilary Hutchinson agreeing with the points above in another Pamplin publication:
https://www.valleytimes.news/opinion/guest_opinion/opinion-hops-should-pay-for-their-own-stadium/article_36fe4d16-6477-11ee-82aa-ffc61649099c.html
Yep! Jody interviewed me. Let’s see what happens now that I have appealed the approval that the PZHB granted. Now we will have a hearing before the City Council.