HomeMy WebLinkAboutItem No. 27 - Stadium Interim Management AgreementCity Council Agenda Report
City of Lake Elsinore 130 South Main Street
Lake Elsinore, CA 92530
www.lake-elsinore.org
File Number: ID# 22-364
Agenda Date: 9/13/2022 Status: Approval FinalVersion: 1
File Type: Successor Consent
Calendar
In Control: City Council / Successor Agency
Agenda Number: 27)
Amendment No. 1 to the Eight Amendment to the Stadium Interim Management Agreement
Adopt A RESOLUTION OF THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF
THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING AMENDMENT NO. 1 TO THE
EIGHTH 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
Page 1 City of Lake Elsinore Printed on 9/8/2022
REPORT TO SUCCESSOR AGENCY
To: Honorable Chair and Members of the Agency
From: Jason Simpson, Executive Director
Prepared By: Barbara Leibold, Successor Agency Counsel
Date: September 13, 2022
Subject: Amendment No. 1 to Eighth Amendment to Stadium Interim
Management Agreement
Recommendation
Adopt A RESOLUTION OF THE SUCCESSOR AGENCY OF THE REDEVELOPMENT
AGENCY OF THE CITY OF LAKE ELSINORE APPROVING AMENDMENT NO. 1 TO
THE EIGHTH 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.
Background
In 1994, the former Redevelopment Agency of the City of Lake Elsinore (the "RDA")
completed the Lake Elsinore Diamond Stadium ("Diamond Stadium") on property
donated for purposes of developing a minor league professional baseball stadium. The
Diamond Stadium was intended to stimulate economic development and redevelopment
within the Rancho Laguna Redevelopment Project Area 3, consistent with and in
furtherance of the Redevelopment Plan. As required by 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 dated
August 5, 1993, the RDA operated, managed and maintained the Diamond Stadium
pursuant to various agreements.
In 2001 and 2002, the RDA entered into certain agreements involving the operation and
maintenance of the Diamond Stadium, including a License Agreement, a Stadium Field
and Maintenance Agreement, and a Concession License Agreement (collectively, the
"Stadium Operations Contracts"). Pursuant to the Stadium Operations Contracts, the
Storm licensed and maintained the Stadium for baseball games and other Storm events.
An affiliate of the Storm, Golden State Concessions and Catering, Inc. ("Golden State"),
operated the concessions at the Stadium. Under the Stadium Operations Contracts, the
RDA's management, operation, and maintenance costs were significant, and the
Stadium operated at a loss.
In 2005, the RDA commenced negotiations with Diamond Stadium Group (DSG) to
undertake all Stadium operations, maintenance and management responsibilities. Storm
Amendment No. 1 to Eighth Amendment to Interim Stadium Management Agreement
September 13, 2022
Page 2 of 4
LP, Golden State, and DSG share common controlling ownership. Negotiations between
the RDA and DSG resulted in June 2007 amendments to the Stadium Operations
Contracts and a new Stadium License, Lease, and Management Agreement (the "2007
Management Agreement").
DSG fulfilled all aspects of the 2007 Management Agreement, reducing the RDA's
Stadium-related costs. However, in June 2011, DSG elected to exercise its right to
terminate the 2007 Management Agreement effective December 31, 2012, citing annual
losses under the 2007 Management Agreement. Upon termination of the 2007
Management Agreement, the rights, and responsibilities for Stadium management,
operations and maintenance were again divided in accordance with the Stadium
Operations Contracts; however, at that time, the RDA had been dissolved, and the
Successor Agency did not have the resources to perform its obligations satisfactorily.
On December 11, 2012, the Successor Agency approved the Stadium Interim
Management Agreement ("Interim Agreement") to provide for the Stadium's efficient and
cost effective management, maintenance, and operation by the Storm through 2013. A
First Amendment to the Interim Agreement was approved in September 2013. A Second
Amendment to the Interim Agreement was approved in September 2014. A Third
Amendment was approved in September 2015. A Fourth Amendment was approved in
September 2016. A Restated Fifth Amendment and Extension (collectively, "Fifth
Amendment") was approved in May and June 2018. A Sixth Amendment was approved
on January 8, 2019. A Seventh Amendment and an Amended and Restated Seventh
Amendment (collectively "Seventh Amendment") were approved on January 14, 2020,
and January 12, 2021, respectively, and the Eighth Amendment was approved in
January 2022.
The State Department of Finance has approved the allocation of Real Property Tax
Trust Funds for Stadium obligations in accordance with the Successor Agency
Recognized Obligations Payment Schedules (ROPS). The Interim Agreement and the
First, Second, Third, Fourth, Fifth, Sixth and Seventh, and Eighth Amendments have
been successfully implemented to provide efficient and cost-effective management,
maintenance, and operation of the Diamond Stadium.
Discussion
The Interim Stadium Management Agreement, as amended by the Eighth Amendment,
incorporates the obligations under the Stadium Operations Contracts and provides for a
Capital Improvement Schedule. The budget assumptions underlying the Eighth
Amendment projected the costs of maintaining, managing, and operating Diamond
Stadium under (i) the Stadium Operations Contracts, (ii) the impacts of COVID-19, and
(iii) the new operational and capital requirements and facilities standards established by
Major League Baseball's Player Development License resulting from MLB's sweeping
restructuring in the 2020 off-season. However, the continuing impacts of COVID-19,
mandates by the MLB, increases in the minimum wage, and the unanticipated
inflationary pressures impacting the costs of materials and supplies have resulted in
additional expenses.
Amendment No. 1 to Eighth Amendment to Interim Stadium Management Agreement
September 13, 2022
Page 3 of 4
To address these impacts and provide certainty to the Successor Agency and the Storm
for the continued efficient and cost-effective management, maintenance, and operation
of the Diamond Stadium through the 2023 baseball season, staff is recommending
approval of Amendment No. 1 to the Eighth Amendment to the cover the following
increased costs:
Field Supplies $ 32,468
Covid mandated cleaning $ 58,061
Management Fee to 9.1% increase $ 29,612
Maintenance Fee to 4% $ 3,769
MLB mandated internet/computer $ 18,100
Total $142,010
The Successor Agency continues to be responsible for all Capital Repairs and
alterations consistent with the Stadium Operations Contracts and the Capital
Improvement Schedule set forth in the Eighth Amendment. Amendment No. 1 to the
Eighth Amendment proposes no changes to the Capital Improvement Schedule.
Amendment No. 1 to the Eighth Amendment is subject to the approval of the Riverside
Countywide Oversight Board and the Department of Finance (DOF).
Fiscal Impact
The proposed Amendment No. 1 to the Eighth Amendment provides a high level of
certainty regarding the costs of Stadium operations and maintenance under the Stadium
Operations Contracts. The Successor Agency Amended ROPS 22-23B includes a
request for additional Real Property Tax Trust Funds for $142,010 to cover the
Successor Agency obligations from January 1, 2023, through June 30, 2023.
Exhibits
A - Resolution Approving Amendment No. 1 to the Eighth Amendment to Stadium Interim
Management Agreement
B - Amendment No. 1 to Eighth Amendment to Stadium Interim Management Agreement
C - Eighth Amendment to Stadium Interim Management Agreement
RESOLUTION NO. SA-2022-0
A RESOLUTION OF THE SUCCESSOR AGENCY OF THE
REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE
APPROVING AMENDMENT NO. 1 TO THE EIGHTH 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, in furtherance 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, t he 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 RDA in accordance with the California Health and Safety Code; and
Whereas, in 2012, the Successor Agency and 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 Board and 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 Board and the Successor Agency, the
First Amendment was submitted to and approved by the DOF; and,
Whereas, in 2014, the Successor Agency and the Lake Elsinore 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
Lake Elsinore Oversight Board and the Successor Agency, the Second Amendment was
submitted to and approved by the DOF; and,
Reso No. SA-2022-0
Page 2 of 4
Whereas, in 2015, the Successor Agency and the Lake Elsinore 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 Lake
Elsinore Oversight Board and the Successor Agency, the Third Amendment was submitted to
and approved by the DOF; and,
Whereas, in 2016, the Successor Agency and the Lake Elsinore 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 Lake
Elsinore Oversight Board and the Successor Agency, the Fourth Amendment was submitted to
and approved by the DOF; and,
Whereas, in 2018, the Successor Agency and the Lake Elsinore Oversight Board approved the
Restated Fifth Amendment to Stadium Interim Management Agreement dated May 8, 2018 by
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 “Fifth Amendment”) and following such approvals by the Lake
Elsinore Oversight Board and the Successor Agency, the Fifth Amendment was submitted to
and approved by the 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, 2019 by
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 Board and the Successor Agency, the Sixth Amendment was
submitted to and approved by the DOF; and
Whereas, in 2020 and 2021, the Successor Agency and the Riverside County Oversight Board
approved the Seventh Amendment to Stadium Interim Management Agreement dated January
14, 2020 and the Amended and Restated Seventh Amendment dated January 12, 2021 by and
between the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore and
the Lake Elsinore Storm LP (collectively, the “Seventh Amendment”) and following such
approval by the Riverside County Oversight Board and the Successor Agency, the Amendments
were submitted to and approved by the DOF; and
Whereas, in 2022, the Successor Agency and the Riverside County Oversight Board approved
the Eighth Amendment to Stadium Interim Management Agreement dated January 11, 2022 by
and between the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore
and the Lake Elsinore Storm LP (the “Eighth Amendment”) and following such approval by the
Riverside County Oversight Board and the Successor Agency, the Eighth Amendment was
submitted to and approved by the DOF; and
Whereas, the Interim Agreement and the First, Second, Third, Fourth, Fifth, Sixth, and Seventh
Amendments have been successfully implemented and the Eighth Amendment was approved to
provide for efficient and cost effective management, maintenance and operation of the Diamond
Stadium; and
Reso No. SA-2022-0
Page 3 of 4
Whereas, the continuing impacts of COVID-19, mandates by Major League Baseball, increases
in minimum wage, and the unanticipated inflationary pressures impacting the costs of materials,
supplies and personnel have resulted in additional expenses that require an Amendment No. 1
to the Eighth Amendment to adjust the compensation to cover these additional expenses; 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 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
Stadium and to retain the Storm to carry out such continuing obligations on an interim basis for
in accordance with the proposed Amendment No. 1 to the Eighth Amendment; and,
Whereas, pursuant to Section 34177 and 34180(g) of the Health and Safety Code, the
Amended ROPS FY 22-23B approved by the Successor Agency has been submitted to the
Countywide Oversight Board for approval to include an adjustment to Line 33 (Stadium Interim
Management Agreement) for an allocation of an additional $142,010 of RPTTF to provide for
the Successor Agency’s enforceable obligations relating to the management, maintenance and
operation of the Diamond Stadium for the period commencing January 1, 2023 – June 30, 2023.
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 Amendment No. 1 to the Eighth 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 Amended ROPS 22-23B includes funds
necessary to meet the Successor Agency’s enforceable obligations, and (iii) that Amendment
No. 1 to the Eighth 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.
Section 3. Based on the above findings, the Successor Agency approves Amendment No. 1
to the Eighth 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 authorizes and directs the Executive
Director to execute Amendment No. 1 to the Eighth Amendment in such final form as approved
by Successor Agency Counsel and submitted to and approved by the Riverside Countywide
Oversight Board. The Executive Director is further authorized to execute such other documents
as necessary to implement Amendment No. 1 to the Eighth Amendment thereto as approved by
Agency Counsel.
Reso No. SA-2022-0
Page 4 of 4
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.
Section 5. 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 13th day of September, 2022.
Timothy J. Sheridan
Chair
ATTEST:
Candice Alvarez, MMC
Agency Secretary
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF LAKE ELSINORE )
I, Candice Alvarez, Secretary of the Successor Agency of the Redevelopment Agency of the
City of Lake Elsinore, California, hereby certify that Resolution No. SA-2022- 0 was adopted
by the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore at a
Regular meeting held on the 13th day of September, 2022 by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Candice Alvarez, MMC
Agency Secretary
@BCL@BC0E7483 1
AMENDMENT NO. 1 TO THE EIGHTH AMENDMENT
TO STADIUM INTERIM MANAGEMENT AGREEMENT
This Amendment No. 1 to the Eighth Amendment to Stadium Interim Management
Agreement (“Amendment No. 1”) is made and entered into as of September 13, 2022 by
and between the Successor Agency of the Redevelopment Agency of the City of Lake
Elsinore (“Successor Agency”), and the Lake Elsinore Storm LP, a California limited
partnership (“Storm”).
RECITALS
A. The Successor Agency and the Storm entered into that certain Eighth
Amendment to Stadium Interim Management Agreement dated as of January 11, 2022 (the
“Eighth Amendment”). Except as otherwise defined herein, all capitalized terms used herein
shall have the meanings set forth for such terms in the Eighth Amendment.
B. The Eighth Amendment provides for the efficient and cost effective
management, maintenance and operation of the Stadium by the Storm for the period
commencing October 1, 2022 through September 30, 2023, including the 2023 baseball
season.
C. The budget assumptions underlying the Eighth Amendment projected the
costs of maintaining, managing and operating Diamond Stadium under (i) the Stadium
Operations Contracts, (ii) the impacts of COVID-19, and (iii) the new operational and capital
requirements and facilities standards established by Major League Baseball’s Player
Development License resulting from MLB’s sweeping restructuring in the 2020 off-season.
However, the continuing impacts of COVID-19, mandates by MLB, increases in minimum
wage, and the unanticipated inflationary pressures impacting the costs of materials,
supplies and personnel have resulted in additional expenses
D. In order to address these impacts and provide certainty to the Successor
Agency and the Storm for the continued efficient and cost effective management,
maintenance and operation of the Diamond Stadium through the 2023 baseball season, the
parties desire to enter into this Amendment No. 1 to the Eighth Amendment to increase
compensation to the Storm in the amount of One Hundred Forty-Two Thousand Ten Dollars
($142,010) cover additional expenses, including increased costs of field materials, COVID
mandated cleaning services and supplies, increased labor and personnel expenses, and
MLB mandated internet/computer services.
NOW, THEREFORE, incorporating the foregoing recitals herein, and in
consideration of the mutual covenants and conditions set forth herein and in the Eighth
Amendment, Successor Agency and the Storm agree as follows:
1. The first two paragraphs of Section 7.2 (d) of the Eighth Amendment are
hereby amended and restated in their entirety as follows:
(d) Payment of Additional Interim Management Fee.
Successor Agency shall pay to Storm an “Additional Interim Management Fee” in
the amount of $642,014 for the period commencing October 1, 2022 through
September 30, 2023, which shall be payable in equal monthly installments.
@BCL@BC0E7483 2
The Annual Maintenance Fee together with the Additional
Interim Management Fee will result in total cash payment from the Successor
Agency to the Storm of $911,248 for the period commencing October 1, 2022
through September 30, 2023 as consideration for services provided under the
Stadium Operations Contracts and this Interim Agreement, which aggregate amount
shall be payable in equal monthly installments of $75,937 for the period commencing
October 1, 2022 through September 30, 2023.
2. Except for the changes specifically set forth herein, all other terms and
conditions of the Eighth Amendment shall remain in full force and effect.
IN WITNESS WHEREOF, the parties have executed this Amendment No. 1 to the
Eighth Amendment to Stadium Interim Management Agreement on the respective dates set
forth below.
“SUCCESSOR AGENCY”
SUCCESSOR AGENCY OF THE
REDEVELOPMENT AGENCY OF
THE CITY OF LAKE ELSINORE
Dated: By:
Jason Simpson, Executive Director
ATTEST:
SUCCESSOR AGENCY SECRETARY
By:
Candice Alvarez, MMC
APPROVED AS TO FORM:
LEIBOLD McCLENDON & MANN, P.C.
Successor Agency Counsel
By:
Barbara Leibold
“STORM”
LAKE ELSINORE STORM LP, a
California limited partnership
By: GJJ STORM MANAGEMENT,
LLC, a California limited
liability company
Its: General Partner
Dated: By:
Gary E. Jacobs, Manager
Eighth Amendment.010522.doc
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EIGHTH AMENDMENT TO STADIUM
INTERIM MANAGEMENT AGREEMENT
THIS EIGHTH AMENDMENT TO STADIUM INTERIM MANAGEMENT
AGREEMENT (“Eighth Amendment”), dated for identification as of January 11, 2022, is made
by and between the SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF
THE CITY OF LAKE ELSINORE (“Successor Agency”), and the LAKE ELSINORE
STORM LP, a California limited partnership (“Storm”).
RECITALS
The following recitals are a substantive part of this Eighth Amendment:
A. The City Council of the City of Lake Elsinore adopted a redevelopment plan (the
Redevelopment Plan”) for an area within the City known as the Rancho Laguna Redevelopment
Project Area 3 (the “Project Area”) by way of its approval of Ordinance No. 815 on September
8, 1987, as thereafter amended by Ordinance No. 987 adopted on November 22, 1994.
B. In furtherance of the 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 acquired certain real property for
redevelopment purposes and thereafter, in 1994, completed the “Lake Elsinore Diamond
Stadium” on property donated for purposes of developing a minor league professional baseball
stadium.
C. 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 former
Redevelopment Agency operated, managed and maintained the Lake Elsinore Diamond Stadium
and the property (collectively, the Premises”) pursuant to various agreements, including the
Stadium Operations Contracts.
D. Following the dissolution of the former Redevelopment Agency, the Successor
Agency entered into that certain Stadium Interim Management Agreement dated January 1, 2013
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 Premises. Capitalized terms used herein which are not
otherwise defined herein shall have the meaning ascribed to them in the Interim Agreement.
E. The Interim Agreement was successfully implemented during calendar year 2013
to provide for efficient and cost effective management, maintenance and operation of the
Premises.
F. In order to provide for continued efficient and cost effective management,
maintenance and operation of the Premises for calendar year 2014, the Successor Agency and the
Storm entered into that certain First Amendment (2014) to Stadium Interim Management
Agreement dated September 24, 2013 (the “First Amendment”).
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G. In order to provide for continued efficient and cost effective management,
maintenance and operation of the Premises for calendar year 2015, the Successor Agency and the
Storm entered into that certain Second Amendment (2015) to Stadium Interim Management
Agreement dated September 23, 2014 (the “Second Amendment”).
H. In order to provide for continued efficient and cost effective management,
maintenance and operation of the Premises for calendar year 2016, the Successor Agency and the
Storm entered into that certain Third Amendment (2016) to Stadium Interim Management
Agreement dated September 22, 2015 (the “Third Amendment”).
I. In order to provide for continued efficient and cost effective management,
maintenance and operation of the Premises for January 1 2017 – June 30, 2018, the Successor
Agency and the Storm entered into that certain Fourth Amendment (2017-2018) to Stadium
Interim Management Agreement dated September 27, 2016 (the “Fourth Amendment”).
J. In order to provide for continued efficient and cost effective management,
maintenance and operation of the Premises for July 1, 2018 – June 30, 2019, the Successor
Agency and the Storm entered into that certain Restated Fifth Amendment (2018-2019) to
Stadium Interim Management Agreement dated May 8, 2018 (the “Fifth Amendment”).
K. In order to avoid significant uncertainty, disruption and potential financial
liabilities caused by the expiration of the Fifth Amendment in the middle of the 2019 baseball
season, the Successor Agency and Storm entered into that certain Extension to Restated Fifth
Amendment to Stadium Interim Management Agreement (“Extension”) dated June 26, 2018
which extended the term of the Fifth Amendment to September 30, 2019.
L. In order to provide for continued efficient and cost effective management,
maintenance and operation of the Premises for October 1, 2019 to September 30, 2020, the
Successor Agency and the Storm entered into that certain Sixth Amendment to Stadium Interim
Management Agreement dated January 8, 2019 (the “Sixth Amendment”).
M. In order to provide for continued efficient and cost effective management,
maintenance and operation of the Premises for October 1, 2020 to September 30, 2022, the
Successor Agency and the Storm entered into that certain Seventh Amendment to Stadium
Interim Management Agreement dated January 14, 2020 and the Amended and Restated Seventh
Amendment to Stadium Interim Management Agreement dated January 12, 2021 (collectively
the “Seventh Amendment”).
N. The obligations set forth in the Interim Agreement, First Amendment, Second
Amendment, Third Amendment, Fourth Amendment, Fifth Amendment, Sixth Amendment and
Seventh Amendment have been included in prior Recognized Obligation Payment Schedules
ROPS) approved by the Successor Agency, the Oversight Board of the Successor Agency, the
Countywide Oversight Board for Riverside County (“Oversight Board”) and the Department of
Finance (“DOF”).
O. The 2020 and 2021 baseball seasons suffered tremendous challenges due to the
COVID-19 pandemic. The Minor League baseball 2020 season was cancelled, the 2021 season
modified and Stadium operations overall were significantly restricted. Major League Baseball
MLB) engaged in a sweeping overhaul of the player development structure during the 2020 off-
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Eighth Amendment.010522.doc
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season, eliminating the National Association of Professional Baseball Leagues (NAPBL) as the
governing structure and cutting approximately twenty-five percent (25%) of minor league
affiliates. Remaining affiliates, including the Storm, now contract directly with MLB under a
new Player Development License agreement aimed at modernizing facilities and improving
player training and logistics. In this restructure the Storm has been designated as a “Class A.”.
P. The impacts of COVID-19 on the 2020 and 2021 baseball seasons and Major
League Baseball’s restructuring in 2020 impacted the Storm’s operations and the budget
assumptions and projections underlying the Seventh Amendment. While future potential impacts
of COVID-19 remain uncertain, the budgetary impacts of the 2020 and the 2021 baseball seasons
and the revised operational and capital requirements and facilities standards established by MLB
in the Player Development License must be addressed for the continued efficient and cost
effective management, maintenance and operation of the Premises in accordance with the
Stadium Operations Contracts and the Interim Agreement. In order to provide certainty to the
Successor Agency and the Storm through the 2023 baseball season, the parties desire to enter
into this Eighth Amendment.
Q. The Stadium Operations Contracts and the covenants, conditions, restrictions and
reservations set forth in the Offer to Donate remain enforceable obligations within the meaning
of Health and Safety Code (“HSC”) Section 34171(d)(1)(E) and the Successor Agency seeks to
1) provide for the continued efficient and cost effective management, maintenance and
operation of the Premises, and (2) retain the Storm, which possesses the experience and
qualifications to continue to carry out such obligations. Engagement of the Storm is necessary
and consistent with the legislative authorization contained in HSC Section 34171(d)(1)(F)
allowing successor agencies to enter into enforceable obligations for the purpose of maintaining
the assets of the former Redevelopment Agency and to ensure that the “Lake Elsinore Storm,”
owned by Storm LP, continues to play its home baseball games at the Stadium in accordance
with the Stadium Operations Contracts.
R. Capital repairs for the period commencing October 1, 2022 through September
30, 2023 necessary to address increased costs, scheduling delays, emergency repairs, new MLB
requirements for minor league audit and facilities standards as necessary to protect the structural
components and operational systems of the twenty-eight (28) year old Stadium and to protect the
safety of the players and the spectators consistent with applicable laws and MLB standards are
set forth in Exhibit “C” to this Eighth Amendment.
S. In accordance with HSC Section 34177(o)(1), the Successor Agency adopted and
submitted to DOF a Recognized Obligation Payment Schedule (“ROPS”) for the period from
July 1, 2022 through June 30, 2023 which includes the Successor Agency obligations set forth in
this Eighth Amendment and lists, among other things, as enforceable obligations of the
Successor Agency, the following obligations related to the Premises as more fully described and
referenced therein:
i) Concession License Agreement, as amended (“Concession Agreement”);
ii) License Agreement, as amended (“License Agreement”);
iii) Stadium Field and Maintenance Agreement, as amended (“Maintenance
Agreement”);
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iv) Stadium operations and maintenance obligations; and
v) the Interim Agreement.
T. In furtherance of the purpose and intentions of the parties with respect to the
Interim Agreement, the parties hereto agree to amend the Interim Agreement as provided herein.
AGREEMENT
NOW THEREFORE, in consideration of the foregoing Recitals and the terms contained
herein, and for other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties do hereby agree as follows:
1. Business Plan. Not later than March 1 of each year during the Term, the Storm
shall submit to the Executive Director of the Successor Agency (“Executive Director”) a
Business Plan detailing the Storm’s operational and financial objectives for the Lake Elsinore
Diamond Stadium during the Term of this Interim Agreement, as amended, including the 2022
and 2023 baseball seasons. The Business Plan shall include (a) management and labor
requirements, (b) marketing and promotional objectives, including special events, advertising
and cross-marketing efforts, (c) a COVID-19 Readiness Plan and proposals to improve general
maintenance and efficiencies which may include updated and revised Maintenance Schedules for
all areas of the Premises, including the concourse, snack bar and concession areas, outdoor
landscaping and trash enclosures, (d) license, permit or other approval applications or renewals,
if any, and (e) other relevant data or information relating to the performance by the Storm of its
obligations under the Interim Agreement as amended.
2. Maintenance. Section 2.1 of the Interim Agreement, entitled “Maintenance” is
hereby amended and restated in its entirety as follows:
2.1 Maintenance
The Storm shall be solely responsible for complying with the Maintenance
Standards (Exhibit “B”) and shall comply with all applicable MLB maintenance
standards and protocols as set forth in the Player Development License and all
applicable federal, state and local requirements (including guidelines issued by
the Center for Disease Control and the Riverside County Public Health
Department) relating to COVID-19 or other public health concern. Subject to the
Successor Agency’s obligations herein with respect to Capital Repairs, throughout
the Term and subject to the terms and conditions of the Stadium Operations
Contracts, the Storm shall take all additional necessary actions to maintain the
Premises and all components thereof, of whatever kind or nature, to keep the
Premises in a first class condition and a good state of appearance and repair,
ordinary wear and tear excepted.
3. Review Meetings. Section 2.4 of the Interim Agreement, entitled “Review
Meetings” is hereby amended and restated in its entirety as follows:
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2.4 Review Meetings/Facilities Inspections.
a) Quarterly Meetings. As often as necessary, but in no event less
than one time per quarter during the Term, the General Manager, or designee, and
the Executive Director, or designee, shall meet at a mutually agreed upon time
and place in order to discuss the condition of the Stadium and the performance of
the Storm hereunder and any other applicable issues.
b) Periodic Inspections. As often as necessary, but in no event less
than one time during the Term, the Successor Agency shall engage a third party
inspector to inspect the Premises and evaluate the condition of the capital
facilities as well as the general maintenance of the Premises. The Executive
Director shall provide the General Manager not less than fifteen (15) days prior
notice of the third-party inspection(s). Capital facility repair needs identified by
the third party inspector shall be incorporated into the Schedule of Capital Repairs
pursuant to Section 2.4(c). Maintenance deficiencies identified by the third party
inspector shall be remedied by the Storm as necessary to keep the Premises in a
first class condition and a good state of appearance and repair consistent with the
Maintenance Standards and as required by this Interim Agreement. Failure by the
Storm to remedy maintenance deficiencies identified by the third party inspector
shall be a Default pursuant to Section 19.1 of this Interim Agreement.
c) Annual Facilities Inspections. Not later than September of each
year during the Term, the General Manager, or designee, and the Executive
Director, or designee, shall (i) inspect the Stadium and conduct a facilities review
to assess the condition of the Stadium and capital repair needs, and (ii) review the
annual revenues and operating expenses for the prior July 1 – June 30 period to
assess operational efficiencies. Prior to December 31, 2022, the General Manager,
or designee, and the Executive Director, or designee, shall complete an Annual
Operating Budget and Schedule of Capital Repairs, including estimated costs, for
the period commencing October 1, 2023 – September 30, 2024.
4. Utilities. Section 5 of the Interim Agreement, entitled “Utilities” is hereby
amended and restated in its entirety as follows:
5. Utilities. Notwithstanding any contrary provision contained in the
Stadium Operations Contracts, the Storm shall be responsible for the payment of
all Utilities regardless of whether the utility account is in the name of the Storm,
the Successor Agency or City of Lake Elsinore. The Storm agrees to cooperate
with the Successor Agency to explore ways to incorporate the use of or replace
existing systems with alternative clean energy and to improve energy efficiency,
including electrical utility savings by way of power purchase agreements through
the Southwest Riverside County Energy Authority. An energy assessment will be
conducted during the Annual Inspection/Facilities Review pursuant to Section
2.4(c) and an amount equal to any savings accounted for from the prior fiscal year
shall be subtracted from the Additional Interim Management Fee to be paid for
the following fiscal year pursuant to Section 7.2(d).
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5. Term of Agreement; Termination. Section 6 of the Interim Agreement, entitled
Term of Agreement; Termination,” is hereby deleted in its entirety and replaced with the
following:
6. Term of Agreement; Termination
6.1. Term. The term of this Interim Agreement (hereinafter the
Term”) shall commence on the Effective Date and shall, unless earlier terminated in
accordance with Sections 6.2, 19, or 20 hereof, shall expire September 30, 2023.
6.2. Rights of Termination.
a) September 30, 2022 Termination. Successor Agency
may terminate this Interim Agreement effective as of September 30, 2022, by giving
written notice thereof to the Storm no later than June 30, 2022.
b) Default. The Successor Agency and Storm shall have the
right to terminate this Interim Agreement as a result of an uncured Default hereunder.
Any such termination shall be made in accordance with Sections 19 or 20.
c) Party’s Property and Offset. Upon termination of this
Interim Agreement under this Section 6.2, all materials and equipment purchased by
either party hereunder in connection with this Interim Agreement shall remain that
party’s property. In addition, the Storm shall be entitled to payment for all of the Storm=s
services rendered hereunder through the effective date of any such termination.
d) Effect of Termination. Notwithstanding the termination
of this Interim Agreement pursuant to this Section 6.2, the provisions of Stadium
Operations Contracts shall remain in full force and effect.
6. Stadium Use. Section 4.3 of the Interim Agreement, entitled “Stadium Use,” is
hereby deleted in its entirety and replaced with the following:
4.3. Stadium Use.
a) Storm Games. During the Term, the Storm shall play its
home baseball games at the Stadium, including pre-season, regular season and play-off
games as scheduled by the MLB and shall have the right to use the Stadium for baseball
practices and workouts. Upon receipt from the MLB, each year during the Term, the
Storm will provide the Executive Director with the written, proposed schedule for all
professional baseball games involving the Storm for the coming baseball season
including all pre-season games, a reasonable number of dates to be held for playoff
games, as required by the MLB, and practices and workouts (collectively, the “Storm
Games”).
b) Other Storm Events. In addition to the use of the Stadium
for the Storm Games, the Storm shall have the right to use the Stadium for non-baseball
related exhibitions, ceremonies or events (the “Other Storm Events”) on dates which the
Stadium is not otherwise in use for Storm Games or other reserved uses, at its sole cost
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and expense, without any additional license fee or charge incurred, except for Storm’s
obligation with respect to maintenance as provided herein and subject to the conditions
set forth below.
i. Lake Elsinore Diamond Stadium. All promotional
and marketing materials for all Other Storm Events shall include the name “Lake
Elsinore Diamond Stadium.”
ii. Special Event Permit. The Storm shall obtain a
Special Event Permit for all Other Storm Events from the City of Lake Elsinore in
accordance with Chapter 5.108 of the Lake Elsinore Municipal Code, as now exists or as
may hereafter be amended, including submittal of an application not less than sixty (60)
days prior to the event and compliance with the Special Event Permit Requirements for
Other Storm Events (Exhibit “D” attached hereto and incorporated by reference herein)
and such additional conditions of approval as may be deemed necessary or appropriate by
the City in connection with the issuance of a Special Event Permit for the Other Storm
Event. Concurrent with the submittal of the special event application package to the City,
the Storm shall notify the Executive Director in writing of the proposed date and title of
the Other Storm Event and a promotional/marketing plan demonstrating the anticipated
attendance.
ii. Governmental Regulations/Permits. The Storm
shall comply with all applicable local, state, and federal laws, ordinances, rules,
regulations and requirements (including without limitation land use and zoning,
environmental, labor and prevailing wage, occupational Health & Safety, building and
fire codes) in connection with the promotion and operation of Other Storm Events and
shall apply for, secure, maintain and comply with all required licenses and/or permits.
The Storm shall use commercially reasonable efforts to cause any users of the Stadium to
report and pay sales taxes as generated within the City in accordance with all applicable
laws.
iii. Quality Standards. The Storm shall conduct Other
Storm Events in accordance with the highest standards for cleanliness and quality and
shall comply with all applicable terms and conditions of this Interim Agreement and the
Stadium Operations Contracts.
c) City/Agency Use. The Successor Agency, for itself and on
behalf of the City of Lake Elsinore, reserves the right to use the Stadium, including
without limitation, the Agency Suite and the Diamond Club for meetings, conferences
and other events provided the Successor Agency notifies the Storm in advance.
Notwithstanding the foregoing, the Storm shall have the right to use the Stadium on the
days set forth in the schedule for the Storm Games and for Other Storm Events approved
in accordance with the provisions of Section 4.3 (b) and the Successor Agency will not
schedule any other events at the Stadium on the day of a Storm Game or other Storm
Event if such event would interfere with the Storm’s use of the Stadium.
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d) Agency Suite. For all Storm Games and Other Storm
Events, free of any charge to Successor Agency, the Storm shall (i) secure and deliver to
the Successor Agency tickets and parking passes for use of the Agency Suite, or (ii)
provide reasonable alternative methods of access to the Agency Suite and Agency
Parking. In the event the Successor Agency elects not to use the Agency Suite for any
Other Storm Event, the Storm, including its representatives and invitees, may use the
Agency Suite. The Storm shall indemnify and hold the Successor Agency and the City
harmless from any loss, cost or expense or damage to Successor Agency property
associated or in connection with use of the Agency Suite by third parties.
7. Compensation. Section 7 of the Interim Agreement, entitled “Compensation,” is
hereby deleted in its entirety and replaced with the following:
7. Compensation
7.1. Stadium Operations Contracts Compensation Recap. Pursuant
to the Stadium Operations Contracts, the Storm and/or the Successor Agency are entitled
to compensation during the Term as follows:
a) License Fee: Under the License Agreement, the Storm is
required to pay to the Successor Agency a License Fee in the amount of $567,712 for the
period commencing October 1, 2022 through September 30, 2023.
b) Percentage of Concessions: Under the Concession
Agreement, the Storm’s affiliate, Golden State, is required to pay Successor Agency a
percentage of the GRCS pursuant to Section 6 thereof (the “GRCS Concession Fee.”).
c) Annual Maintenance Fee: Under the Maintenance
Agreement, Successor Agency is required to pay Storm an Annual Maintenance Fee in
the amount of $269,234 for the period commencing October 1, 2022 through September
30, 2023.
7.2. Storm Compensation. Commencing upon the Commencement
Date (October 1, 2022), and continuing through the expiration of the Term, as
consideration for the performance of the services set forth herein, the Storm shall be
compensated as follows:
a) Assignment of GRCS Concession Fee. Successor Agency
hereby assigns Successor Agency’s right to payment of the GRCS Concession Fee under
the Concession Agreement to the Storm during the Term, estimated at $34,000 annually;
and
b) Waiver of License Fee. Successor Agency hereby waives
Successor Agency’s right to payment of the License Fee under the License Agreement
during the Term as an offset against the payments due by the Successor Agency to the
Storm hereunder; and
c) Payment of Annual Maintenance Fee. Successor Agency
shall continue to pay the Annual Maintenance Fee as identified in Section 7.1(c) (i.e.,
269,234 for the period commencing October 1, 2022 through September 30, 2023.
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d) Payment of Additional Interim Management Fee.
Successor Agency shall pay to Storm an “Additional Interim Management Fee” in the
amount of $500,004 for the period commencing October 1, 2022 through September 30,
2023, which shall be payable in equal monthly installments.
The Annual Maintenance Fee together with the Additional Interim
Management Fee will result in total cash payment from the Successor Agency to the
Storm of $769,238 for the period commencing October 1, 2022 through September 30,
2023 as consideration for services provided under the Stadium Operations Contracts and
this Interim Agreement, which aggregate amount shall be payable in equal monthly
installments of $64,103 for the period commencing October 1, 2022 through September
30, 2023.
The Storm acknowledges and agrees that in no event will the
Successor Agency be required to provide the Storm with any other form of payment for
performance of the services as provided in this Interim Agreement. The parties
acknowledge that the historic operating costs of the Stadium equal or exceed the
compensation due to Storm hereunder and that it is in each of the party’s best interests to
enter into this Interim Agreement for the efficient use and operation of the Stadium.
8. Capital Repairs. Section 8 of the Interim Agreement, entitled “Capital Repairs,”
is hereby deleted in its entirety and replaced with the following:
8. Capital Repairs.
Capital Repairs shall be governed by the applicable provisions of the Stadium
Operations Contracts and as set forth herein. As defined in the Maintenance
Agreement, “Capital Repairs” means all activities, and the provision of all labor
and materials which are reasonably required to improve, repair, refurbish, modify,
restore and/or replace, when reasonably necessary, the Stadium, or portions or
components thereof, and the costs and expenses of which equal or exceed Five
Hundred Dollars ($500.00). Notwithstanding the foregoing, the term Capital
Repairs as used herein does not include the Storm’s responsibility for
maintenance and upkeep as set forth in Section 2 of this Interim Agreement and
the Maintenance Standards (Exhibit “B”).
A Capital Repair Schedule with estimated costs for the period commencing
October 1, 2022 through September 30, 2023 is set forth in Exhibit “C” attached
hereto and incorporated by reference herein. The Capital Repair Schedule is
intended to assist the Successor Agency in budgeting for Capital Repairs during
the Term, but does not limit the Successor Agency’s responsibilities under the
Stadium Operations Contracts. Upon receipt of real property tax trust funds for
Capital Repairs, the Executive Director shall, to the extent permitted by
applicable legal requirements, deposit those funds into a Capital Repair trust
account to be expended by the Successor Agency solely for purposes of satisfying
its Capital Repair obligations consistent with the Stadium Operations Contracts
and this Interim Agreement.
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The Executive Director or designee will designate certain Capital Projects that
shall be subject to the Department of Public Works’ direct administration of the
bid process and award of contract consistent with the applicable legal
requirements. The Storm will undertake and complete such other Capital Repairs
as set forth in Exhibit “C” as are mutually agreed. To the extent that the Storm
undertakes such other Capital Repairs not undertaken by the Successor Agency,
the Storm shall obtain not less than three (3) bids from qualified contractors
unless otherwise excused by the Executive Director. Without limiting the
Executive Director’s discretion, the bidding requirement herein may be excused
in situations involving emergencies and sole source contractors. In addition, the
Storm acknowledges the general requirement that certain Capital Repairs are
subject to the requirements of California Labor Code Section 1720, et seq., and
1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et
seq., (“Prevailing Wage Laws”), which require the payment of prevailing wage
rates with respect to certain capital improvements, repairs and maintenance work
paid for in whole or in part out of public funds. Accordingly, the Storm agrees to,
in the administrative of the bidding and contractor selection process, inform
prospective bidders of the requirement to comply with the Prevailing Wage
Laws. The Storm may confer with the Executive Director and seek direction with
respect to whether or not a certain Capital Repair is subject to the Prevailing
Wage Law.
Prior to the Storm awarding a contract for a Capital Repair to a qualified
contractor, the Executive Director shall: (i) confirm that the Storm has followed
the proper bidding procedures for selection of a contractor; and (ii) approve the
selection of the contractor and the form of any agreement between the Storm and
the contractor.
Upon completion of the Capital Repair (or a component thereof supporting a
deposit or in-progress reimbursement), the Storm shall deliver to the Executive
Director a written reimbursement request and supporting documentation (such as
third party invoices, lien releases and cancelled checks). To the extent that the
reimbursement request is for a completed Capital Repair, the Storm shall, if
applicable, submit as-built drawings or similar plans and specifications for the
items to be reimbursed.
9. Insurance. Section 10 of the Interim Agreement, entitled “Insurance” is hereby
amended and restated in its entirety as follows:
10. Insurance. The Storm shall maintain insurance as set forth in Section 13
of the License Agreement at all times during the term of this Interim Agreement.
In addition, the Storm shall maintain liquor liability coverage in an amount not
less than $5 million at all times during the term of this Interim Agreement. The
liquor liability coverage required pursuant to this Section 10 shall be separate
from the coverage that may be required by the City of Lake Elsinore as a
condition of approval to a Special Event Permit obtained in accordance with
Section 4.3(b) herein.
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8. City Manager/Executive Director. The City Manager of the City of Lake
Elsinore serves in the capacity as Executive Director of the Successor Agency and all references
to “City Manager” in the Interim Agreement shall be synonymous with “Executive Director” as
used in this Eighth Amendment and vice versa.
9. Accuracy of Recitals. The Parties acknowledge the accuracy of the foregoing
Recitals, which are incorporated herein by this reference.
10. Authority; Priority of Amendment. This Eighth Amendment is executed by the
Parties’ authorized representatives. Except as expressly modified herein, all of the terms of the
Interim Agreement shall remain unchanged and in full force and effect, and the Parties shall
continue to fulfill their respective obligations under the Interim Agreement as amended by this
Eighth Amendment. To the extent of any conflict between the terms of the Interim Agreement
and the terms of this Eighth Amendment, the terms of this Eighth Amendment shall control.
11. Captions. The captions appearing in this Eighth Amendment are for convenience
only and are not a part of this Eighth Amendment and do not in any way limit, amplify, define,
construe, or describe the scope or intent of the terms or provisions of this Eighth Amendment.
12. Counterparts. This Eighth Amendment may be executed in counterparts, each
of which shall be deemed an original, and all of which together shall constitute but one and the
same document.
13. Commencement Date. The provisions of this Eighth Amendment shall
commence on October 1, 2022 (the “Commencement Date”).
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IN WITNESS WHEREOF, the parties have executed this EIGHTH AMENDMENT TO
STADIUM INTERIM MANAGEMENT AGREEMENT on the respective dates set forth below.
SUCCESSOR AGENCY”
SUCCESSOR AGENCY OF THE
REDEVELOPMENT AGENCY OF THE
CITY OF LAKE ELSINORE
Dated: By:
Jason Simpson,
Executive Director
ATTEST:
SUCCESSOR AGENCY SECRETARY
By:
Candice Alvarez, MMC,
Agency Secretary
APPROVED AS TO FORM:
LEIBOLD McCLENDON & MANN, P.C.
Successor Agency Counsel
By:
Barbara Leibold
STORM”
LAKE ELSINORE STORM LP, a
California limited partnership
By: GJJ STORM MANAGEMENT,
LLC, a California limited liability
company
Its: General Partner
Dated: By:
Gary E. Jacobs, Manager
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EXHIBIT “C”
EXHIBIT “C”
CAPITAL REPAIR SCHEDULE
DESCRIPTION – SUCCESSOR AGENCY OCTOBER 1, 2022 TO
SEPTEMBER 30, 2023
CAPITAL REPAIRS
VISTING LOCKER ROOM CAPITAL REPAIRS AND
BATHROOMS (REMOVE INTERIOR OFFICES HERE) $750,000
VISITING LOCKER ROOM - NEED 4,000 SQ FT
ADDITIONAL
400,000
UMPIRES LOCKER ROOM - NEED 1,000 SQ FT
ADDITIONAL
100,000
CONCOURSE BATHROOMS - REPAIRS TO MEET
HEALTH CODE
175,000
SAFETY MEASURES FOR CAGES, UMPIRES,
GROUNDS AREA
75,000
DIAMOND CLUB - PLUMBING, FLOORING, HEALTH
DEPT CAPITAL REPAIRS
200,000
UNDERGROUND SEWER AND PLUMBING PIPE
REPAIRS
100,000
EMERGENCY CAPITAL REPAIRS $75,000
MAINTENANCE - EQUIPMENT REPLACEMENT $75,000
1,950,000
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EXHIBIT “D”
EXHIBIT “D”
LAKE ELSINORE DIAMOND STADIUM
SPECIAL EVENT PERMITS REQUIREMENTS
OTHER STORM EVENTS
1. Spectator Parking and Attendants:
a. The location of spectator parking is designated as the Diamond Stadium Parking
lot(s) A, B & C.
b. Appropriate Staffing for parking fees and direction is required.
2. ADA Compliant:
a. Provide ADA Accessible Parking as close as practicable to the tract and admission
area.
b. Provide ADA Restrooms as near as practicable to the track and concession stands.
c. Have personnel ready to assist handicap patrons as needed.
3. Event Access:
a. Event access shall be coordinated with City Public Works Department Staff.
b. No modifications to dirt right of way are permitted (levee, Malaga Rd).
c. During hours of event operation, no vehicles shall be permitted to drive into,
around, inside or leave the Event (base area).
d. Access across private property for the Event Obstacle Course and Parking shall be
secured with notarized right of entry permission.
4. Vendors & Exhibitors:
a. All vendors selling food shall have the appropriate Riverside County Health
Department Permits and submit to the Special Events Coordinator 20 days prior to
event.
b. All vendors selling products/services are required to maintain a City of Lake
Elsinore Business License during the duration of the event (for convenience, the
City offers one-day business licenses).
c. A minimum of an eight-foot aisle way shall be provided between concessions,
waste and sanitation facilities.
d. Food vendors shall provide the equivalent of two 30-gallon trash containers within
ten (10) feet of their concessions.
e. Organizers shall provide one (1) standard booth space free of charge to the City.
5. Removable Fencing
a. All removable fencing (bike or concert) must be secured as on immovable object.
Each section must be secured so it cannot be broken, separated or moved by
patrons. The Fire Marshal and Law Enforcement representative shall inspect the
fencing prior to gates opening for the event.
6. Crowd Control:
a. All security officers must be crowd control trained.
7. Generators:
a. All liquid fuel generators shall have secondary containment and a spill kit located
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EXHIBIT “D”
within 100 feet of the secondary containment.
8. Amplified Sound & Noise Level:
a. Amplified sound, live music and performances are permitted during the event.
b. The Organizers shall not violate the City’s noise ordinance by disturbing the peace.
9. ABC Licensing and Permits:
a. ABC Application to be submitted to the Sheriff’s Department no later than 20 days
prior to the event.
b. Applicant must comply with any and all requirements regulations indicated by the
Department of Alcoholic Beverage Control. The issuance of an ABC letter is
conditional and is subject to revocation for any violation of the Alcohol Beverage
Control Act or other state law. Adequate security measures must be in place to
secure all alcoholic beverages from patrons and to prevent accessibility to minors.
i. Beer-ID checks on all persons 21 years and older wishing to purchase
alcohol AND PUT A WRISTBAND ON EVERY PERSON 21 YEARS OR
OLDER.
ii. Limit of one (1) alcohol beverage per person per sale.
iii. Alcohol sales to cease one (1) hour prior to end of event
10. Event Staffing:
a. Applicant will provide a detailed security plan indicating security staffing levels
and assignments subject to Sheriff’s approval 20 days prior to the event.
11. Law Enforcement: To Be Determined Based on Dates, Times, Location & Anticipated
Attendance
a. Motor Officers -
b. Officers -
c. Sheriff Sgt. -
d. Mileage -
12. Accessibility of Law Enforcement and Emergency Responders:
a. There shall be unobstructed access ways into the event for Law Enforcement and
other emergency responders. There shall be clearly marked, unobstructed exits for
patrons in the case of an emergency or the need for evacuation arises.
13. The Fire Safety requirements of the Lake Elsinore Fire Protection Planning are hereby
referenced as a separate attachment and incorporated herein as part of the City’s conditions
of approval.
14. Traffic Control:
a. Traffic Control implementation and operation shall be according to the California
Manual of Uniform Traffic Control Devices (CAMUTCD) or another City
approved plan.
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EXHIBIT “D”
b. Signal timing coordination may be required at the discretion of the City Traffic
Engineer.
c. Provide diagram in support of sufficient parking (i.e approx. 3,500 spaces
for attendance of 10,000) – to be adjusted based on anticipated attendance.
15. Portable Toilets and Wash Stations:
a. All portable toilets and rinse stations shall be placed on level ground, be
anchored and have secondary containment.
b. Provide sufficient # of portable toilets (regular and ADA accessible) for
anticipated event turnout. Contact your rental source for guidance.
16. Trash and Clean-Up:
a. CR&R has an exclusive franchise for trash service in the City. They shall be used
for trash containers for recycled and non-recycled trash/waste and for trash
disposal.
b. Regular and recyclable trash containers shall be placed throughout the Vendor
Village (aka Lot B) and parking lots (aka Lots A, C and D).
c. Clean-up of Lot B, Vendor Village shall be accomplished using dry clean-up
methods; in the event wet clean-up is warranted, catch basins shall be protected
and at no time shall runoff be directed to the Levee/Lake area.
d. Best Management Practices shall be implemented during clean-up; no discharge
into the Lake or City storm drain system is allowed.
e. Organizers are responsible for same day clean-up of any tracking from the Event
onto City streets (Diamond Circle, Malaga Road, Pete Lehr Drive, etc.)
17. Environmental:
a. Organizers are responsible for ensuring that pollutants from the event do not
enter the lake. City Municipal Code 14.08 defines "Pollutant" as:
Pollutant” means anything which causes the deterioration of water quality such
that it impairs subsequent and/or competing uses of the water. Pollutants may
include but are not limited to paints, oil and other automotive fluids, soil, rubbish,
trash, garbage, debris, refuse, waste, hazardous waste, chemicals, animal waste,
offensive matter of any kind.
b. If event dirt is imported from outside the back basin area, it shall be removed
from the back basin area after the event.
i. A haul route is required for all import.
ii. Hauling from a site in within the City limits requires a grading permit on
the export site.
iii. For import of more than 5,000 cubic yards, City Council Approval is
required.
c. If event dirt is secured from within the back basin area, it may be returned to the
source. All disturbed areas shall be returned to the pre-disturbance condition as
closely as possible.
d. Catch basins in the field maintenance area shall be protected from event related
discharge.
e. If a rain event is forecast (10% chance or better) or occurring during a scheduled
event, off site catch basins at Pete Lehr and Malaga Road shall be protected.
DocuSign Envelope ID: 6B9C4B46-CA66-40F7-9331-B70CD785D79E
Eighth Amendment.010522.doc
EXHIBIT “D”
18. Insurance:
a. The Organizer(s) shall provide the City with a certificate(s) of insurance in the
following amounts (subject to change based upon review of Special Event
Permit Application):
General Aggregate Per Event: $5,000,000
Auto Liability: $1,000,000
Workers Comp: $1,000,000
Alcohol: $5,000,000
b. The Organizer’s shall use the following additionally insured statement:
City of Lake Elsinore its officers, elected and appointed officials, officers, agents,
and employees are named as additional insured per attached ISO form CG20 10 11
85.
19. Promotion/Marketing Plan:
a. The Organizer(s) shall provide the City with a promotional/marketing plan
demonstrating the anticipated attendance.
b. All promotional/marketing materials shall include the name “Lake Elsinore
Diamond Stadium.”
20. The City assumes no responsibility for event related damage or repairs to the Stadium.
21. Summary of Fees:
City Permit Application Processing Fee: Prevailing Rate as of Application Date
City Refundable Security Deposit Fee: “
City Department Inspection Fee: “
Sheriffs Law Enforcement Fees (Paid to RSO): “
22. The Special Event Permit may be revoked summarily by the City for non-compliance
with any of these conditions as set forth above.
Required information/documentation due no later than twenty (20) days prior to the event to
the City of Lake Elsinore Special Event Coordinator:
Conditions of Approval (2 copies with wet signatures and initials)
Payment of Event Fees
Security Deposit (on-file)
Vendor List
Business License(s)
Health Department Permit
Insurance Documentation
Fire Safety Plan
Traffic Control Plan
DocuSign Envelope ID: 6B9C4B46-CA66-40F7-9331-B70CD785D79E