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Home My WebLink AboutOB Reso No 2016-009 Approving the Fourth Amendment (2017-2018)RESOLUTION NO. 2016 -009 A RESOLUTION OF THE OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING THE FOURTH AMENDMENT (2017 -2018) TO THE STADIUM INTERIM MANAGEMENT AGREEMENT BETWEEN THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE AND THE LAKE ELSINORE STORM LP Whereas, the Oversight Board (Oversight Board) to the Successor Agency to the Redevelopment Agency of the City of Lake Elsinore (Successor Agency) has been established to oversee the wind down of the affairs of the former Redevelopment Agency of the City of Lake Elsinore (Agency) in accordance with the California Health & Safety Code Section 34179; and, Whereas, in 2012 the Successor Agency and 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 (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, in 2013 the Successor Agency and 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 (First Amendment) 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, in 2014 the Successor Agency and 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 (Second Amendment) 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, in 2015 the Successor Agency and the Oversight Board approved the Third Amendment to Stadium Interim Management Agreement dated January 1, 2016, by and between the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore and the Lake Elsinore Storm LP (Third Amendment) 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, the Interim Agreement and the First, Second and Third Amendments have been successfully implemented to provide for efficient and cost effective management, maintenance and operation of the Diamond Stadium but, absent a Fourth Amendment, the Interim Agreement will expire on December 31, 2016; 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 OB Reso No. 2016 -009 Page 2 of 3 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 2017, the first six (6) months of 2018, in accordance with the proposed Fourth Amendment (2017 -2018) to the Interim Agreement; and, Whereas, pursuant to Health and Safety Code Section 34177(o)(1)(E), once per a "Recognized Obligation Payment Schedule" (ROPS) period, a Successor Agency may submit one amendment to the ROPS that lists any changes to the obligations of the former Redevelopment Agency that are enforceable within the meaning of subdivision (d) of Section 34167 for the six month period January 2017 — June 2017 (ROPS 16 -17B) including, among other things, as enforceable obligations of the Successor Agency, the following obligations related to the Lake Elsinore Diamond Stadium (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 Fourth Amendment (2017- 2018)) has been prepared and approved by the Successor Agency at its September 27, 2016, meeting and presented for approval by the Oversight Board on September 29, 2016. 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 report and testimony received, the Oversight Board finds (i) that the proposed Fourth Amendment (2017 -2018) 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 Amended ROPS 16 -17B include funds necessary to meet the Successor Agency's enforceable obligations with respect to the Stadium, including the proposed Fourth Amendment (2017 -2018) to the Interim Agreement, and (iii) that the Fourth Amendment (2017 -2018) to the Interim Agreement is in the best interests of the taxing entities. Based on the above findings, the Oversight Board approves the Fourth Amendment (2017 -2018) 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 in substantially the form attached and in such final form as approved by the Successor Agency. Section 3. 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 4. Pursuant to Health and Safety Code Section 34179(h), this Resolution shall be effective five (5) business days after proper notification hereof is given to the California Department of Finance unless the California Department of Finance requests a review of the actions taken in this Resolution, in which case this Resolution will be effective upon approval by the California Department of Finance. OB Reso No. 2016 -009 Page 3 of 3 PASSED AND ADOPTED at a Special meeting of the Oversight Board to the Successor Agency of the Redevelopment Agency this 29th day of September, 2016. ATTEST: 4 usari M. Domen, MMC Oversight Board Secretary STATE OF CALIFORNIA } COUNTY OF RIVERSIDE } ss, CITY OF LAKE ELSINORE ) F0V'-'—Jnie Kelley, ► I, Susan M. Domen, MMC, Secretary of the Oversight Board to the Successor Agency of the Redevelopment Agency, do hereby certify that Resolution No. 2016 -009 was adopted by the Oversight Board to the Successor Agency of the Redevelopment Agency at a Special meeting held on the 29th day of September, 2016, by the following vote: AYES: Board Members Jeffries, Lassey, M. Williams and P Williams; and Chair Kelley NOES: None ABSTAIN: None - ABSENT: Board Member Tisdale Susan M. Domen, MMC, Oversight Board Secretary