HomeMy WebLinkAboutSA Reso 2018-007 Approving Restated Fifth Amendment to Stadium Interim Management Agreement 05-08-2018RESOLUTION NO. 2018-007
A RESOLUTION OF THE SUCCESSOR AGENCY OF THE REDEVELOPMENT
AGENCY OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING THE
RESTATED 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,
SA Resolution No. 2018-007
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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 Restated 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 Restated Fifth Amendment) has been approved by the Successor
Agency and the Oversight Board and subsequent ROPS will be similarly prepared throughout the
term of the Stadium Operations Contracts.
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 Restated Fifth Amendment to the Interim Agreement
is reasonable and necessary to satisfy the Successor Agency's contractual obligations under the
Stadium Operations Contracts and to protect and maintain the assets of the former
Redevelopment Agency, (ii) that Real Property Tax Trust Fund (RPTTF) revenues requested by
the Successor Agency in the ROPS 18-19 includes funds necessary to meet the Successor
Agency's enforceable obligations, and (iii) that the Restated Fifth Amendment to the Interim
Agreement is in the best interests of the taxing entities because the Storm's skills, knowledge and
resources will provide continued, efficient and cost effective management, maintenance and
operation of the Diamond Stadium which will protect the public's investment in the Stadium,
minimize costs and mitigate against potential breach of contract and related damages. Based on
the above findings, the Successor Agency approves the Restated 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
SA Resolution No. 2018-007
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the provisions of this resolution are severable. The Successor Agency 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 Successor Agency of the Redevelopment Agency of the
City of Lake Elsinore, California, this 8th day of May 2018.
1
ATTEST:
Susan M. Domen, MMC
Agency Secretary
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. SA -2018-007 was adopted
by the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore at a Regular
meeting held on the 8th day of May 2018 by the following vote:
AYES:
Member Tisdale; Vice -Chair Manos and Chair Johnson
NOES:
None
ABSTAIN:
Member Magee
ABSENT:
Member Hickman
Susan M. Domen, MMC,
Agency Secretary