HomeMy WebLinkAboutSA 2024-01 Tenth Amendment to Stadium Interim Management AgreementRESOLUTION NO. SA 2024-1
A RESOLUTION OF THE SUCCESSOR AGENCY OF THE REDEVELOPMENT
AGENCY OF THE CITY OF LAKE ELSINORE APPROVING THE TENTH
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,
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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,
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
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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 and the First Amendment to the Eighth Amendment to Stadium Interim Management
Agreement dated September 13, 2022 by and between the Successor Agency of the
Redevelopment Agency of the City of Lake Elsinore and the Lake Elsinore Storm LP
(collectively, the “Eighth 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 2023, the Successor Agency and the Riverside County Oversight Board
approved the Ninth Amendment to Stadium Interim Management Agreement dated January 10,
2023 by and between the Successor Agency of the Redevelopment Agency of the City of Lake
Elsinore and the Lake Elsinore Storm LP (the “Ninth Amendment”) and following such approval
by the Riverside County Oversight Board and the Successor Agency, the Ninth Amendment
was submitted to and approved by the DOF; and
Whereas, the Interim Agreement and the First, Second, Third, Fourth, Fifth, Sixth,
Seventh, Eighth and Ninth Amendments have been successfully implemented to provide for
efficient and cost effective management, maintenance and operation of the Diamond Stadium
but, absent an extension of the Tenth Amendment, the Interim Agreement will expire on
September 30, 2024; 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 Tenth Amendment to Stadium Interim Management
Agreement (“Tenth Amendment”); 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 for the period
commencing July 1, 2024 – June 30, 2025 (the “ROPS 24-25”) 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 approval by the Successor
Agency on January 9, 2024 and the Oversight Board on January 18, 2024 and subsequent
ROPS will be similarly prepared throughout the term of the Stadium Operations Contracts.
NOW, THEREFORE, THE SUCCESSOR AGENCY OF THE REDEVELOPMENT
AGENCY OF THE CITY OF LAKE ELSINORE, CALIFORNIA, DOES HEREBY RESOLVE AS
FOLLOWS:
Section 1. The Recitals set forth above are true and correct and incorporated herein
by reference.
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Section 2. Based on the information presented in the staff report and testimony
received, the Successor Agency finds (i) that the proposed Tenth Amendment to the Interim
Agreement is reasonable and necessary to satisfy the Successor Agency’s contractual
obligations under the Stadium Operations Contracts and to protect and maintain the assets of
the former Redevelopment Agency, (ii) that Real Property Tax Trust Fund (RPTTF) revenues
requested by the Successor Agency in the ROPS 24-25 includes funds necessary to meet the
Successor Agency’s enforceable obligations, and (iii) that the Tenth 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 the Tenth
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 the Tenth 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 the
Tenth Amendment 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.
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 at a regular meeting of the Successor Agency of the City of Lake
Elsinore, California, this 9h day of January 2024.
Steve Manos
Chair
Attest:
Candice Alvarez, MMC
Secretary
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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
City of Lake Elsinore, California, do hereby certify that Resolution No. SA 2024-1 was adopted
by the Successor Agency of the City of Lake Elsinore, California, at the Regular meeting of
January 9, 2024 and that the same was adopted by the following vote:
AYES: Agency Members Johnson, Magee, and Sheridan; Vice Chair Tisdale; and Chair
Manos
NOES: None
ABSENT: None
ABSTAIN: None
Candice Alvarez, MMC
Secretary
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