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HomeMy WebLinkAboutSA Reso 2018-002 Stadium Interim Management Agreement Fifth AmendmentRESOLUTION NO. 2018-002 A RESOLUTION OF THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING THE FIFTH AMENDMENT 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 Successor Agency of the Redevelopment Agency of the City of Lake Elsinore (Successor Agency) has been established 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, 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, in 2016, the Successor Agency and the Oversight Board approved the Fourth Amendment to Stadium Interim Management Agreement dated January 1, 2017 by and between the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore and the Lake Elsinore Storm LP (Fourth 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, Resolution No. 2018-002 Page 2of3 Whereas, the Interim Agreement and the First, Second, Third and Fourth 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 June 30, 2018; 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 in accordance with the proposed Fifth Amendment to the Interim Agreement; and, Whereas, pursuant to Health and Safety Code Section 34177(0)(1) 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 period commencing July 1, 2018 — June 30, 2019 (ROPS 18-19) which lists, 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 Fifth Amendment) has been prepared for approval by the Successor Agency and the Oversight Board and subsequent ROPS will be similarly prepared throughout the term of the Stadium Operations Contracts and the proposed Fifth Amendment. , NOW, THEREFORE, THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE, CALIFORNIA, DOES HEREBY RESOLVE 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 Successor Agency finds (i) that the proposed Fifth Amendment 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 18-19 include funds necessary to meet the Successor Agency's enforceable obligations with respect to the Stadium, including the first year of the term of the proposed Fifth Amendment to the Interim Agreement, and (iii) that the Fifth Amendment to the Interim Agreement is in the best interests of the taxing entities. Based on the above findings, the Successor Agency approves the Fifth Amendment 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 Successor Agency Counsel and submitted to and approved by the Oversight Board and DOF. 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 Successor Agency hereby declares that Resolution No. 2018-002 Page 3 of 3 it would have adopted this Resolution irrespective of the invalidity of any particular portion thereof. Section 4. This Resolution shall take effect from and after the date of its passage and adoption in accordance with, and subject to, all applicable requirements of the Health & Safety Code. Passed and Adopted by the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore, California, this 23rd day of January 2018. Attest: - r Susan M. Domen, MMC Clerk STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE )ss' CITY OF LAKE ELSINORE ) I, Susan M. Domen, MMC, Secretary of the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore, California, hereby certify that Resolution No. 2018-002 was adopted by the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore at a Regular meeting held on the 23rd day of January 2018 by the following vote: AYES: Members Hickman, Tisdale and Magee; Vice -Chair Manos and Chair Johnson NOES: None ABSTAIN: None ABSENT: None Susan M. Domen, MMC, Clerk Il u