HomeMy WebLinkAboutSA Reso 2021-01 Restated Seventh Amendment
RESOLUTION NO. SA2021-1
A RESOLUTION OF THE SUCCESSOR AGENCY OFTHE REDEVELOPMENT
AGENCY OF THE CITY OF LAKE ELSINORE, CALIFORNIA,APPROVING
THE AMENDED AND RESTATED SEVENTHAMENDMENT 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,infurtherance of the Redevelopment Plan for the Rancho Laguna
Redevelopment Project Area 3 (“Redevelopment Plan”) and that certain First Amendment to
Amended and Restated Option Agreement Under Threat of Condemnation and Irrevocable
Offer To Donate Stadium Site and Stadium Access Parcel and Unconditional Acceptance
Subject To Covenants, Conditions, Restrictions and Reservations (“Offer to Donate”) dated
August 5, 1993, the former Redevelopment Agency of the City of Lake Elsinore (the “RDA”)
acquired certain real property for redevelopment purposes and thereafter, in 1994, completed
the Lake Elsinore Diamond Stadium (“Diamond Stadium”) on property donated for purposes of
developing a minor league professional baseball stadium; and
Whereas, in furtherance of the Redevelopment Plan and the covenants, conditions,
restrictions and reservations set forth in the Offer to Donate restricting the use of the property as
a minor league professional baseball stadium for a minimum of fifty (50) years, the RDA
operated, managed and maintained the Diamond Stadium pursuant to various agreements,
including a Concession License Agreement, a License Agreement, and a Stadium Field and
Maintenance Agreement (collectively, “Stadium Operations Contracts”); and
Whereas, following the dissolution of the RDA, the Successor Agency of the
Redevelopment Agency of the City of Lake Elsinore (“Successor Agency”) was been
established to wind down the affairs of the RDAin accordance with the California Health and
Safety Code; and
Whereas,in 2012, theSuccessor Agencyand the Oversight Board to the Successor
Agency (“Lake Elsinore Oversight Board”) approved the Stadium Interim Management
Agreement dated January 1, 2013 by and between the Successor Agency and the Lake
Elsinore Storm LP (the “Interim Agreement”) to provide for the performance of the enforceable
obligations under the Stadium Operation Contracts and the Offer to Donate, including
maintenance, management, promotion and operations of the Diamond Stadium and following
such approval by the Lake Elsinore Oversight Boardand the Successor Agency, the Interim
Agreement was submitted to and approved by the State Department of Finance(“DOF”); and,
Whereas,in 2013, the Successor Agency and the Lake Elsinore Oversight Board
approved the First Amendment to Stadium Interim Management Agreement dated January 1,
2014 by and between the Successor Agency and the Lake Elsinore Storm LP (the “First
Amendment”) and following such approval by the Lake Elsinore Oversight Boardand the
Successor Agency, the First Amendmentwas submitted to and approved bythe DOF;and,
Whereas, in 2014, the Successor Agency and the Lake Elsinore Oversight Board
approved the SecondAmendment to Stadium Interim Management Agreement dated January
1, 2015by 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
Reso No.SA-2021-1
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approval by the Lake Elsinore Oversight Boardand the Successor Agency, the Second
Amendment was submitted to and approved bythe DOF; and,
Whereas, in 2015, the Successor Agency and the Lake Elsinore Oversight Board
approved the Third Amendment to Stadium Interim Management Agreement dated January 1,
2016by and between the Successor Agency of the Redevelopment Agency of the City of Lake
Elsinore and the Lake Elsinore Storm LP (the “ThirdAmendment”) and following such approval
by the Lake Elsinore Oversight Boardand the Successor Agency, the Third Amendment was
submitted to and approved bythe DOF; and,
Whereas, in 2016, the Successor Agency and the Lake Elsinore Oversight Board
approved the Fourth Amendment to Stadium Interim Management Agreement dated January1,
2017by and between the Successor Agency of the Redevelopment Agency of the City of Lake
Elsinore and the Lake Elsinore Storm LP (the “FourthAmendment”) and following such approval
by the Lake Elsinore Oversight Boardand the Successor Agency, the Fourth Amendment was
submitted to and approved bythe DOF; and,
Whereas, in 2018, the Successor Agency and the Lake Elsinore Oversight Board
approved the Restated FifthAmendment to Stadium Interim Management Agreement dated
May 8, 2018by and between the Successor Agency of the Redevelopment Agency of the City
of Lake Elsinore and the Lake Elsinore Storm LP and the Extension to Restated Fifth
Amendment dated June 26, 2018 (collectively, the “FifthAmendment”) and following such
approvalsby the Lake Elsinore Oversight Boardand the Successor Agency, the Fifth
Amendmentwas submitted to and approved bythe DOF; and,
Whereas, in 2019, the Successor Agency and the Riverside County Oversight Board
approved the Sixth Amendment to Stadium Interim Management Agreement dated January 8,
2019by and between the Successor Agency of the Redevelopment Agency of the City of Lake
Elsinore and the Lake Elsinore Storm LP (the “Sixth Amendment”) and following such approval
by the Riverside County Oversight Boardand the Successor Agency, the Sixth Amendment was
submitted to and approved bythe DOF; and
Whereas, in 2020, the Successor Agency and the Riverside County Oversight Board
approved the Seventh Amendment to Stadium Interim Management Agreement dated January
14, 2020by andbetween the Successor Agency of the Redevelopment Agency of the City of
Lake Elsinore and the Lake Elsinore Storm LP (the “Seventh Amendment”) and following such
approval by the Riverside County Oversight Boardand the Successor Agency, the Sixth
Amendmentwas submitted to and approved bythe DOF; and
Whereas, the Interim Agreement and the First,Second,Third,Fourth,Fifth,Sixth and
Seventh Amendmentshavebeen successfully implemented to provide for efficient and cost
effective management, maintenance and operation of the Diamond Stadium but, absent an
extension of the SeventhAmendment, the Interim Agreement will expire on September 30,
2021; 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 agencyand implementing enforceable obligations
pursuant to underlying contracts and agreements,the Successor Agency seeks to provide for
the continued, efficient and cost effective management, maintenance and operation of the
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Stadium and to retain the Storm to carry out such continuing obligations on an interim basis for
in accordance with the proposed Amended and Restated SeventhAmendment;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 forthe period
commencing July 1,2021–June 30, 2022(the “ROPS 21-22”) 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) has been prepared for approvalby the Successor
Agency on January 12, 2021and the Oversight Boardon January 21, 2021and 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 RESOLVEAS
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 Amended and Restated Seventh
Amendment to the Interim Agreement is reasonable and necessary to satisfy the Successor
Agency’scontractual 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 intheROPS 21-22includesfunds
necessary to meet the Successor Agency’s enforceable obligations,and (iii) that theAmended
and Restated SeventhAmendment to theInterim Agreement is in the best interests of the taxing
entitiesbecause 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 ofcontract and related damages.
Section 3.Based on the above findings, the Successor Agency approves the
Amended and Restated SeventhAmendment 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 authorizes and
directs the Assistant Executive Director to executethe Amended and Restated Seventh
Amendment in such final form as approved by Successor Agency Counseland submitted to and
approved by the Riverside Countywide OversightBoard. The Assistant Executive Director is
further authorized to execute such other documents as necessary to implement the Amended
and Restated SeventhAmendment as approved by Agency Counsel.
Section 4.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
it would have adopted this Resolution irrespective of the invalidity of any particular portion
thereof.
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Section 5.This Resolution shall take effect from and after the date of its passage
and adoptionin accordance with, and subject to, all applicable requirements of the Health &
Safety Code.
th
Passed andAdoptedon this 12day of January2021.
Robert E. Magee, Chair
Attest:
Candice Alvarez,MMC, Secretary
STATE OF CALIFORNIA)
COUNTY OF RIVERSIDE) ss.
CITY OF LAKE ELSINORE)
I, Candice Alvarez, MMC, Secretary of the Successor Agency to the Redevelopment Agency of
the City of Lake Elsinore, California, do hereby certify that Resolution No. SA 2021-1was
adopted by the Successor Agency of the City of Lake Elsinore, California, at the Regular
meeting of January 12, 2021, and that the same was adopted by the following vote:
AYES:Agency Members Tisdale, Johnson, and Manos; Vice-Chair Sheridan; and
Chair Magee
NOES:None
ABSENT:None
ABSTAIN:None
Candice Alvarez, MMC, Secretary