County defends SportsQuest deal

Construction continues on 17 synthetic turf fields at the SportsQuest campus. Page Dowdy/Chesterfield Observer With 17 synthetic turf fields now under construction, SportsQuest will instantly become Chesterfield’s biggest soccer facility. That has independent, nonprofit associations worried that SportsQuest is trying to dominate league play, tournaments and soccer instruction and drain away their players and financial bases.

One way to slow down Sports- Quest’s momentum was to derail a proposed $4.3 million infusion of county money approved last May by the Chesterfield Board of Supervisors. But last week, County Administrator Jay Stegmaier signed off on the deal. That has the Midlothian Youth Soccer League (MYSL), FC Richmond, Central Virginia Soccer Association, Chesterfield United/UFC and the Richmond Kickers Youth Soccer Club concerned about their futures.

The $4.3 million jumpstart for the 250-acre, $250 million sports and mixed-use SportsQuest campus at Route 288 and Powhite Parkway has the endorsement of Stegmaier and the departments of economic development, county attorney and parks and recreation. Stegmaier points out that the funding comes from the capital improvements (CIP) budget and not the operational budget. CIP monies can’t be used to rehire teachers or other employees recently laid off.

“The money is being used as it was intended,” he said, “…for fields, gyms and a senior center.”

The finalized agreement gives the county the use of eight fields for 20 years, Mondays through Thursdays, and for one weekend tournament annually. Who will run the tournament and how the money is to be split has yet to be determined.

By 2013, SportsQuest has to spend at least $80 million and create 400 jobs or the county could foreclose on the eastern campus off Genito Road where the soccer fields are being built. Stegmaier pledged the county is going to monitor those commitments but indicated that in the case of default, legal action won’t be likely even though Chesterfield holds the first position on the property lien.

“There will be junior creditors more invested in the project,” he explained. “They may pay off [any shortfall] and take control of the property...to protect their interest, but Chesterfield is very well protected.”

Even if the worst happens, Chesterfield still gets use of the fields. Stegmaier estimates that value at three to four times what the county has invested. “The county has gotten a very good deal for the taxpayer,” he said.

But the soccer associations are worried. They generally recruit by geographical region, and that means SportsQuest, if it sets up a league, will be primarily competing for players with MYSL.

Given the economy and competition from some church programs, the number of kids playing MYSL soccer in season has dwindled from more than 1,500 to 1,200-1,300. And MYSL is still paying off a debt for field improvements and parking at its Hensley Complex.

“In our first conversation with SportsQuest they said we need to partner with them and provide revenue or they were going to start their own league and come after our membership,” said MYSL President Tom Leahy. “To me, that was a veiled threat.”

“We don’t need their clinics for their high-powered training because we already have a relationship with the Richmond Kickers,” continued Leahy. “These smaller sponsored activities can’t survive if membership gravitates to SportsQuest, which becomes a monopoly. The cost would then go up, and some families won’t be able to afford to have their kids play soccer. Recreational sports in the county could disappear.”

“I have never offered anything in the form of a threat and am quite disappointed that our current offers would be mischaracterized as such,” responded Steve Burton, SportsQuest’s owner/CEO. “Tim O’Sullivan, the executive director of SportsQuest Soccer, and I continue to welcome the opportunity to meet and discuss how we can work closely together with MYSL leadership.”

Burton was particularly upset by the allegation since he served for four years as a volunteer MYSL coach. He pointed out that SportsQuest is first focusing on adult soccer programs this fall “in the hope that we could form partnerships with the youth clubs prior to any launch of a youth program.”

Earlier this month, this newspaper offered the soccer nonprofits and Dan Gecker, chairman of the board of supervisors, space in this issue to discuss the SportsQuest deal (see their commentaries on page 17). Though six of the user groups signed on, it may be that all the groups don’t have the support of their memberships. One member – agreeing to speak to this newspaper if his name and his association are not used – said his governing body did not authorize an op-ed position and is divided on the SportsQuest deal.

Stegmaier believes the SportsQuest fields will reduce play on existing county fields and improve the playing surfaces, permitting grass to grow on some fields that now are dirt. SportsQuest is also projected to generate $6 million in county tax revenue annually when completed.

The business community seems generally to support the SportsQuest deal. A statement issued by the Chesterfield Business Council (CBC) last Friday read, “The CBC supports and encourages Chesterfield’s entry into this agreement with SportsQuest.” The Chesterfield County Chamber of Commerce “has adopted no official position” yet.

Several business leaders who support the agreement believe the supervisors should have held more public discussions on the issue. One called it “a PR blunder.”

But some business leaders have expressed differences because taxpayers’ money is partially bankrolling a private business. They want to know how much of his own money Burton has invested.

Asked by e-mail, Burton wrote, “I have contributed substantial personal capital to SportsQuest. I am the second largest equity holder in SportsQuest, and our equity investments have ranged from the $100,000 level to multi-million dollar equity contributions per investor.”