South Bend Redevelopment Authority to Sell $41.7 Million in Bonds for Major Stadium Renovations

Key Takeaway

• South Bend Redevelopment Authority to sell $41.7 million in bonds for major renovations at Four Winds Field, increasing capacity from 5,000 to 7,500.
• Bonds rated AA by S&P Global Ratings; debt serviced using tax revenue from the Professional Sports and Convention Development Area.
• Renovations include a second seating level and new event spaces, with completion expected by April 2026.

South Bend Bonds for Stadium Renovation

The South Bend Redevelopment Authority is set to sell $41.7 million in lease rental bonds to fund significant renovations at Four Winds Field at Coveleski Stadium, home to the South Bend Cubs, the High-A affiliate of the Chicago Cubs. The bond issue, expected to price on May 21, will finance the addition of a second level of seating, a 20,000 square foot four-story club, an event space building, and updated retail and concession areas. The stadium's seating capacity will increase from 5,000 to 7,500.

The bonds are backed by taxes levied on all property within the South Bend Redevelopment District and have been rated AA with a stable outlook by S&P Global Ratings. The city plans to service the debt using tax revenue generated by the Professional Sports and Convention Development Area, which was reinstated by the state in 2021. Andrew Berlin, owner of the South Bend Cubs, described the reinstatement as "a creative solution to fund major stadium improvements by working with legislators locally and in the state capital."

Attendance and Affordability

The South Bend Cubs ranked 39th in attendance among the nation's 120 minor league teams last year, drawing 314,583 fans, according to Lou Pierce, public relations spokesperson for the team. This attendance success is notable given the disruptions caused by the COVID-19 pandemic, which led to the cancellation of the 2020 season and capacity restrictions in 2021.

Eric Kazatsky of Bloomberg Intelligence highlighted the affordability of minor league baseball as a key factor in its appeal. "With the rise in mega stadiums and ticket surcharges, the affordability factor of taking a family of four to a ball game has become a game of haves and have nots," Kazatsky wrote in an email. "The affordable family entertainment niche is one that is ripe to be expanded and minor league baseball can lead that effort." For instance, ticket prices at Four Winds Field range from $13 to $15, compared to $19 to $829 at Wrigley Field, home of the Chicago Cubs.

Funding and Legislative Support

The Professional Sports and Convention Development Area, created in 1997 to pay debt service on the College Football Hall of Fame, plays a crucial role in funding the stadium renovations. The bulk of the tax revenue generated by this area will be used to improve the stadium, with the balance available for other city amenities such as the Morris Center for Performing Arts and main convention facilities.

Bobby Otter, a director at S&P, noted that several Indiana municipalities have used these development areas to support debt service on various projects. The legislative approval required for these areas underscores the collaborative effort between local and state governments to support community development initiatives.

Construction Timeline

Construction on Four Winds Field will commence after the current season concludes, with the stadium expected to be ready for Opening Day in 2025. Further work outside the stadium will resume after the 2025 season, with the entire renovation, including the addition of a second deck and 2,500 more seats, slated for completion by April 2026. "The stadium will be completely redone with a second deck and 2,500 more seats by Opening Day in April of 2026," said team spokesperson Pierce.

Street Views

• Eric Kazatsky, Bloomberg Intelligence (Neutral on minor league baseball):

  "With the rise in mega stadiums and ticket surcharges, the affordability factor of taking a family of four to a ball game has become a game of haves and have nots. The affordable family entertainment niche is one that is ripe to be expanded and minor league baseball can lead that effort."

Management Quotes

• Lou Pierce, Public Relations Spokesperson for the South Bend Cubs:

  "The South Bend Cubs may not outdraw Notre Dame’s Fighting Irish, but they did rank 39th in attendance among the nation’s 120 minor league teams... Last year, that amounted to 314,583 fans."

• Andrew Berlin, Owner of the South Bend Cubs:

  "Getting the Development Area reinstated was a creative solution to fund major stadium improvements by working with legislators locally and in the state capital. This collective work, in effect, captures state income and sales taxes which would otherwise go to the general fund downstate." "The bulk of the tax revenue will be used to improve the stadium while the balance can be used by the city to invest in other worthwhile amenities such as the 100-year-old Morris Center for Performing Arts and our main convention facilities."

• Lou Pierce, Public Relations Spokesperson for South Bend Cubs:

  "The stadium will be completely redone with a second deck and 2,500 more seats by Opening Day in April of 2026."