HomeMy WebLinkAbout0005_2_OB Reso Approving Fifth Amendment Stadium Interim Mgmt Agt 012918RESOLUTION NO. OB-2018-___
A RESOLUTION OF THE OVERSIGHT BOARD TO 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 Oversight Board to the Successor Agency of the Redevelopment
Agency of the City of Lake Elsinore (the “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 (the “Agency”) 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 (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, 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 (the “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 (the “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 (the “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 (the “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. OB-2018-_____
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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(o)(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 (the “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 (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 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 OVERSIGHT BOARD TO 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 Oversight Board 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 Oversight Board 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 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
Resolution No. OB-2018-_____
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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.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, APPROVED AND ADOPTED by the Oversight Board to the Successor
Agency of the Redevelopment Agency of the City of Lake Elsinore, California, this 29th day of
January, 2018.
Genie Kelley, Chair
ATTEST:
Susan M. Domen, MMC
Oversight Board Secretary
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF LAKE ELSINORE )
I, Susan M. Domen, MMC, Secretary of the Oversight Board to the Successor Agency of the
Redevelopment Agency of the City of Lake Elsinore, California, hereby certify that Resolution
No. OB-2018- was adopted by the Oversight Board to the Successor Agency of the
Redevelopment Agency of the City of Lake Elsinore at a Regular meeting held on the 29th day
of January, 2018 by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Susan M. Domen, MMC,
Oversight Board Secretary