Spartanburg Stadium Facilities Corporation

What it reported doing in 2024

In 2024, the corporation issued its 63,820,000 installment purchase revenue bonds, taxable series 2024 (the 2024 bonds). The proceeds of the 2024 bonds were primarily used to defray the cost of design, acquisition, construction, and equipping of a multi-use municipal stadium intended for use principally as a minor league baseball venue (the stadium). The city has ground leased the site of the stadium until april 1, 2059 pursuant to a ground lease agreement between morgan & henry jof esa ii, llc and the city for a base rental amount of 1.00 per year. The corporation and the city entered into a base lease and conveyance agreement, and an installment purchase and use agreement, pursuant to which the city has the right to use the stadium, and will purchase the stadium from the corporation in installments, and the corporation will use the city's installment payments to make debt service payments on the 2024 bonds. The city has subleased the stadium to the team owner. One hundred percent of the activities of the corporation relate to activities on behalf of the city. The activities of the corporation lessen a burden on the city in that the city approved the issuance of the 2024 bonds on the city's behalf and selected city projects to be financed with the proceeds of the 2024 bonds (e.g. An objective manifestation by a governmental unit that it considers the activities of the corporation to be its burden). In addition, the corporation's activities assisted the city in defraying a governmental expense. The corporation's activities lessen the burden on the city because the 2024 bonds are a source of financing that is not subject to the South Carolina constitutional limitations on debt issued by the city. The corporation may issue bonds or arrange other financing in the future to acquire and convey property to the city.

Financial Efficiency

• Mission deployment rate: 88.1%; rating input score 88
• Program expense ratio: 100%; rating input score 100
• Fundraising efficiency: Limited

Transparency & Controls

• Consistency checks: 100%; rating input score 100; 63rd percentile among comparable filings
• Pay-setting controls: 0 of 6 controls in place; rating input score 0
  • Compensation committee: Missing
  • Independent consultant: Missing
  • Other Form 990s reviewed: Missing
  • Written employment contract: Missing
  • Compensation survey or study: Missing
  • Board or committee approval: Missing
• Foreign activity oversight: Limited
• Grant itemization coverage: Limited
• Major donor itemization: Limited
• Related-party transparency: Limited

Accountability

• Independent voting board: 33.3%; rating input score 33; 7th percentile among comparable filings
• Governance controls: 2 of 9 controls in place; rating input score 22
  • Conflict-of-interest policy: Fail
  • Whistleblower policy: Fail
  • Document-retention policy: Fail
  • CEO compensation review process: Fail
  • Other executive compensation review process: Fail
  • Form 990 shared with the board: Fail
  • Board meeting minutes documented: Pass
  • Audit committee oversight: Fail
  • Independent financial-statement audit: Pass

Sustainability

• Operating margin: 8%; rating input score 58; 58th percentile among comparable filings
• Total-asset coverage ratio: 18.76; rating input score 95; 95th percentile among comparable filings
• Liabilities to assets ratio: 1.02; rating input score 5; 5th percentile among comparable filings
• Officer compensation ratio: 2.4%; rating input score 73; 73rd percentile among comparable filings

Growth

• Program expense growth: 88.3% per year; rating input score 100; 99th percentile among comparable filings
• Revenue growth: 197.2% per year; rating input score 100; 100th percentile among comparable filings
• Asset growth: 4.5% per year; rating input score 100; 32nd percentile among comparable filings