HomeMy WebLinkAboutSA Reso 2018-009 Second Restated Fifth Amendment to Stadium Interim Management AgreementRESOLUTION NO. 2018-009
A RESOLUTION OF THE SUCCESSOR AGENCY OF THE REDEVELOPMENT
AGENCY OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING THE
SECOND 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 Reso No. 2018-009
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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 Fifth Amendment, the Interim
Agreement will expire on June 30, 2018; and,
Whereas, on May 8, 2018, the Successor Agency approved the Restated Fifth Amendment to
the Interim Agreement (Restated Fifth Amendment) which was approved by the Oversight Board
and submitted to the State Department of Finance; and,
Whereas, the Successor Agency is awaiting determination by the State Department of Finance
regarding the Restated Fifth Amendment which, if rejected, will expire June 30, 2018 in the middle
of the 2018 baseball season causing significant disruption, uncertainty and potential financial
liabilities; and,
Whereas, consistent with the legislative authorization contained in AB 1484 and SB 107 allowing
successor agencies to enter into enforceable obligations for the purpose of maintaining the assets
of the former redevelopment agency and implementing underlying contracts and agreements, the
Successor Agency seeks 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 through December 31, 2018 in accordance with the proposed
Second Restated Fifth Amendment to the Interim Agreement.
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 Second Restated 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 requested by the Successor Agency in the
ROPS 18-19 included funds necessary to meet the Successor Agency's enforceable obligations
and the amended ROPS 18-19 will request the shortfall in RPTTF, and (iii) that the Second
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, avoid the significant uncertainty, disruption
and potential financial liabilities that would result from the expiration of the Interim Agreement in
the middle of the 2018 baseball season and mitigate against potential breach of contract and
related damages. Based on the above findings, the Successor Agency approves the Second
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.
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
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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 26th day of June 2018.
1
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Nat sha Johns n
Chair
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. 2018-009 was adopted by
the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore at a Regular
meeting held on the 26th day of June 2018 by the following vote:
AYES: Members Magee and Tisdale;
NOES: None
ABSTAIN: None
ABSENT: Member Hickman
Vice -Chair Manos and Chair Johnson
Susan M. Domen, MMC
Clerk