City, Rhinos reach deal on soccer stadium

The city and Rochester Rhinos reached an agreement on the downtown soccer stadium Thursday requiring that the team owners commit to fielding a team in 2019 or vacate the facility by the end of the year.

The deal is a reprieve, for now. It obligates the Rhinos, who are on a one-year hiatus from playing matches, to take the necessary steps by Sept. 1 for the USL to certify that they will field a team in 2019. Fail to do that, and they're booted by Dec. 31 with the agreement not to raise further challenges to eviction. Anything less than 15 home games in the future also will result in eviction, according to the lease addendum.

What's at stake: City faces possibility of empty stadium

"It's essentially a commitment, and it's got to include a roster," Timothy Curtin, the city's corporation counsel, said, adding: "It's a tough row to hoe, it would seem."

The city later backed off the roster requirement, deferring to the USL. A full roster might be a stretch as the deadline comes midseason, and players would be under contract. Rhinos co-owner David Dworkin was noncommittal Thursday on whether he even would have a coaching staff in place by Sept. 1.

First, he said, ownership must determine, "Is this economically sustainable?"

Owners still want to keep Rhinos here

The storied franchise, which began play in 1996, is the main tenant and current operator of the stadium. City officials were trying to evict the Rhinos, arguing that shutting down the team violated the lease terms. But that could have left the 12-year-old park, now called Capelli Sport Stadium, empty.

"I don't know what the impact of this is going to be," Dworkin said of the lease dispute on efforts to strengthen the Rhinos' finances. "If this mobilizes everyone to get behind us, then that’s great. Unfortunately, we are not going to know until we get closer (to the deadline). But we are still committed to the same thing: to keep the Rhinos here."

Under the amended lease terms, should the Rhinos default, the city has the winter months to put together a deal for the 2019 season, Curtin said. The city has received one or more informal inquiries, including an offer to buy and repurpose the stadium. He declined to go into specifics but said it would be rather easy to disassemble parts of the facility.

Per the new agreement, David and Wendy Dworkin will pay the city $40,000 in addition to their $50,000 rent — the added fee meant as "a measure of cost sharing during the period of the Rhinos' hiatus," according to the lease addendum. The agreement also requires that the Rhinos pay a surcharge on any alcohol brought in and sold at the stadium.

More: Talks between city, Rhinos break down as dispute heads to court

More: Rochester plans to boot Rhinos from stadium. Owners' response: Not so fast

Dworkins must submit schedule of 2018 events

Other provisions in the new agreement state that the Rhinos must immediately submit to the city a list of scheduled events for 2018. The portable, rubberized floor used for concerts can be used by the city. The Section V Football Hall of Fame display adjacent to the ticket booth is to remain.

“Our primary goal has been and continues to be to protect the taxpayers and their $600,000 investment in the stadium,” Mayor Lovely Warren said in a statement, also noting that the Dworkins must pay the city $50,000 if they sell the team prior to the 2019 season.

As per the original lease agreement, the city will pay for all utilities. The city also can draw on a $100,000 letter of credit for any damages, should the Dworkins default, Curtin said.

Read the full agreement below.

The Rhinos announced on Nov. 30 they'd host matches this season featuring other USL teams. Team owners said that would satisfy a key part of the lease, which said they must have "professional soccer" at the stadium. The number of matches or who should play in those was not specified in the lease's language. It is in the addendum along with a "Rhinos team in the USL" playing at the stadium.

Related: Rhinos to take one-year hiatus, host 'several' USL matches

The Dworkins bought the team in early 2016 and had a three-year plan to jump start the sagging franchise. But they lost more money in their first two seasons than anticipated and announced on Nov. 30 they'd need to take a one-year hiatus. That happened after a two-week period when they sought to generate $1.3 million new revenue from season-ticket and sponsorship sales to keep the team on the field. That initiative fell more than halfway short.

More: Owners need $1.3 million or the Rhinos are extinct for 2018

In mid-January, the city ordered the Rhinos to vacate the stadium by Feb. 28, then agreed to extend the deadline. Curtin had said last week that the city was "satisfied with the progress of the negotiations."

But on Monday the Rhinos sought a court order to block the city from terminating their lease and evicting them. The city was asking for additional reimbursement toward utilities, should the Rhinos remain in control of the stadium without generating the level of economic activity seen when the Rhinos were in action, officials said.

Both sides were in court on Wednesday and again on Thursday.

Team owners said hosting at least four non-Rhinos USL soccer matches, amateur matches involving the Rochester Lancers and other events is sufficient for 2018.

More: Talks between city, Rhinos break down as dispute heads to court

Toronto FC II will play in all four of those USL contests, which will see the Pittsburgh Riverhounds (now coached by former Rhinos coach Bob Lilley) visit on May 5, Indy Eleven on June 16, Nashville on July 28 and Bethlehem on Aug. 16. Tickets go on sale next week.

The Rhinos also said in court they've booked other events including the Taste of Rochester and the Italian Festival that would "bring many more people to the Stadium — and thus to the City of Rochester — than numerous Rhinos’ games combined did in 2017."