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Home My WebLink AboutSA 2022-005 Amendment No. 1 to the Eighth Amendment to the Stadium Interim Management AgreementRESOLUTION NO. SA 2022-5 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, 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 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 DocuSign Envelope ID: 71508690-7894-4924-80E7-EA449D410E8E Reso No. SA 2022-5 Page 2 of 4 by the Lake Elsinore Oversight Board and the Successor Agency, the Second Amendment was submitted to and approved by the 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, 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 DocuSign Envelope ID: 71508690-7894-4924-80E7-EA449D410E8E Reso No. SA 2022-5 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. DocuSign Envelope ID: 71508690-7894-4924-80E7-EA449D410E8E Reso No. SA 2022-5 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 and Adopted on this 13th day of September 2022. Timothy J. Sheridan, 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 2022-5 was adopted by the Successor Agency of the City of Lake Elsinore, California, at the Regular meeting of September 13, 2022, and that the same was adopted by the following vote: AYES: Agency Members Magee, Tisdale, and Manos; Vice-Chair Johnson; and Chair Sheridan NOES: None ABSENT: None ABSTAIN: None Candice Alvarez, MMC, Secretary DocuSign Envelope ID: 71508690-7894-4924-80E7-EA449D410E8E