HomeMy WebLinkAboutOB Reso No 2015-006RESOLUTION NO. OB -2015 -006
A RESOLUTION OF THE OVERSIGHT BOARD TO THE
SUCCESSOR AGENCY OF THE REDEVELOPMENT
AGENCY OF THE CITY OF LAKE ELSINORE FINDING THE
THIRD AMENDMENT (2016) TO THE STADIUM INTERIM
MANAGEMENT AGREEMENT IS IN THE BEST INTERESTS
OF THE TAXING ENTITIES AND CONFIRMING APPROVAL
OF THE THIRD AMENDMENT (2016)
WHEREAS, the Oversight Board to the Successor Agency of the Redevelopment
Agency of the City of Lake Elsinore ( "Oversight Board ") has been established to direct
the Successor Agency to take certain actions to wind down the affairs of the former
Redevelopment Agency of the City of Lake Elsinore in accordance with the California
Health and Safety Code; and
WHEREAS, by adoption of its Resolution No. OB 2012 -013 on December 11,
2012, the Oversight Board approved the Stadium Interim Management Agreement
dated January 1, 2013 by and between the Successor Agency of the Redevelopment
Agency of the City of Lake Elsinore and the Lake Elsinore Storm LP (the "Interim
Agreement ") and following such approval by the Oversight Board and the Successor
Agency, the Interim Agreement was submitted to and reviewed by the State Department
of Finance; and
WHEREAS, by adoption of its Resolution No. OB 2013 -007 on September 24,
2013, the Oversight Board approved the First Amendment to Stadium Interim
Management Agreement dated January 1, 2014 by and between the Successor Agency
of the Redevelopment Agency of the City of Lake Elsinore and the Lake Elsinore Storm
LP (the "First Amendment ") and following such approval by the Oversight Board and the
Successor Agency, the First Amendment was submitted to and reviewed by the State
Department of Finance; and
WHEREAS, by adoption of its Resolution No. OB 2014 -005 on September 23,
2014, the Oversight Board approved the Second Amendment to Stadium Interim
Management Agreement dated January 1, 2015 by and between the Successor Agency
of the Redevelopment Agency of the City of Lake Elsinore and the Lake Elsinore Storm
LP (the Second Amendment) and following such approval by the Oversight Board and
the Successor Agency, the Second Amendment was submitted to and reviewed by the
State Department of Finance; and
WHEREAS, by adoption of its Resolution No. OB 2015 -004 on September 22,
2015, the Oversight Board approved the Third Amendment (2016) to the Stadium
Interim Management by and between the Successor Agency of the Redevelopment
Agency of the City of Lake Elsinore and the Lake Elsinore Storm LP (Third Amendment
(2016)) and following such approval by the Oversight Board and the Successor Agency,
the Third Amendment (2016) was submitted to and reviewed by the State Department
of Finance; and
Oversight Board Resolution No. OB 2015 -006
Page 2
WHEREAS, the Department of Finance has returned Oversight Board Resolution
2015 -04 approving the Third Amendment (2016) to the Oversight Board for its
reconsideration; and
WHEREAS, the Oversight Board has reconsidered the Third Amendment (2016),
and given the Successor Agency's pre - dissolution enforceable obligations to operate
and maintain the Stadium as set forth in the Stadium Operations Contracts, given the
Successor Agency's lack of resources to otherwise comply with those obligations, and
given the possibility of litigation were the Successor Agency to fail to meet such
obligations, the Oversight Board finds it to be in the best interest of the Taxing Entities
to approve the entry by the Successor Agency into the Third Amendment (2016); and
WHEREAS, the Interim Agreement and the First and Second Amendments have
been successfully implemented to provide for efficient and cost effective management,
maintenance and operation of the Diamond Stadium but, absent a third amendment, the
Interim Amendment will expire on December 31, 2015; and
WHEREAS, consistent with the legislative authorization contained in AB 1484
allowing successor agencies to enter into enforceable obligations for the purpose of
maintaining the assets of the former redevelopment agency, the Successor Agency of
the Redevelopment Agency of the City of Lake Elsinore seeks to provide for the
continued, efficient and cost effective management, maintenance and operation of the
Stadium and to retain the Storm to carry out such continuing obligations on an interim
basis for calendar year 2016 in accordance with the proposed Third Amendment (2016)
to the Interim Agreement; and
WHEREAS, pursuant to Health and Safety Code Section 34169 a "Recognized
Obligation Payment Schedule" that lists all obligations of the former redevelopment
agency that are enforceable within the meaning of subdivision (d) of Section 34167 for
the six month period January 2016 — June 2016 (the "ROPS 15 -1613") which lists,
among other things, as enforceable obligations of the Successor Agency, the following
obligations related to the Lake Elsinore Diamond Stadium (the "Stadium "): (i) License
Agreement; (ii) Maintenance Agreement; (iii) Concession Agreement; (iv) Stadium
operations and maintenance obligations, and (v) the Interim Agreement (as amended by
the proposed Third Amendment (2016) was approved by the Successor Agency and the
Oversight Board on September 22, 2015.
NOW, THEREFORE, THE OVERSIGHT BOARD TO THE SUCCESSOR
AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE
DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
SECTION 1. The Recitals set forth above are true and correct and incorporated
herein by reference.
SECTION 2. Based on the information presented in the staff reports and
testimony received, the Oversight Board finds (i) that the proposed Third Amendment
Oversight Board Resolution No. OB 2015 -006
Page 3
(2016) to the Interim Agreement is reasonable and necessary to satisfy the Successor
Agency's enforceable obligations and to protect and maintain the assets of the former
Redevelopment Agency, (ii) that Real Property Tax Trust Fund (RPTTF) revenues set
forth in the ROPS 15 -16B include funds necessary to meet the Successor Agency's
enforceable obligations with respect to the Stadium, including the proposed Third
Amendment (2016) to the Interim Agreement, and (iii) that the Third Amendment (2016)
to the Interim Agreement is in the best interests of the taxing entities. Based on the
above findings, the Oversight Board approves the Third Amendment (2016) to the
Stadium Interim Management Agreement by and between the Successor Agency of the
Redevelopment Agency of the City of Lake Elsinore and the Lake Elsinore Storm LP
SECTION 3. The Executive Director is hereby authorized to enter into the Third
Amendment and, if required to comply with any findings of the Department of Finance in
connection with its review of Recognized Obligation Schedule (BOPS) 15 -16B or this
resolution, make such changes as necessary such that the Third Amendment can be
implemented in accordance with the ROPS approved by the Department of Finance.
The Executive Director is further authorized to take such additional actions as he deems
necessary to effectuate the foregoing.
SECTION 4. If any provision of this Resolution or the application thereof to any
person or circumstance is held invalid, such invalidity shall not affect other provisions or
applications of this Resolution which can be given effect without the invalid provision or
application, and to this end the provisions of this resolution are severable. The
Oversight Board hereby declares that it would have adopted this Resolution irrespective
of the invalidity of any particular portion thereof.
SECTION 5. This Resolution shall take effect from and after the date of its
passage and adoption in accordance with applicable law.
PASSED, APPROVED AND ADOPTED at a special meeting of the Oversight
Board to the Successor Agency of the Redevelopment Agency of the City of Lake
Elsinore, held this 15th day of December, 2015 by the following vote:
;en e Kelley, Vice= hairperson
Oversight Board to the Success r
Agency of the Redevelopment Agency
of the City of Lake Elsinore
ATTEST:
Susan M. Domen, MMC
Oversight Board Secretary
STATE OF CALIFORNIA }
COUNTY OF RIVERSIDE } ss.
CITY OF LAKE ELSINORE }
I, Susan M. Domen, Clerk of the Oversight Board of the City of Lake Elsinore,
California, hereby certify that Resolution No. OB- 2015 -006 was adopted by the
Oversight Board to the Successor Agency of the Redevelopment Agency of the City of
Lake Elsinore, California, at a special meeting held on the 15th day of December 2015,
and that the same was adopted by the following vote:
AYES: Board Member Jeffries, Board Member Tisdale, Board Member Landon,
Board Member Lassey, and Vice Chair Kelley
NOES: None
ABSENT: Board Member M. Williams and Board Member P. Williams
ABSTAIN: None
Ply' Susan M. Domen, MMC
Clerk of the Oversight Board