HomeMy WebLinkAboutLake Elsinore Storm Stadium Interim Management Agreement 08th Amendment - Amedment No. 1 09-13-2022 DocuSign Envelope ID: 180FA090-9CD1-4B6A-9E51-85A677349F40
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.
Amendment No. 1 to the Eighth Amendment 1
DocuSign Envelope ID: 180FA090-9CD1-4B6A-9E51-85A677349F40
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
D Sig-4 by:
Dated: 1/26/2023 1 3:46 PM PST By: �
i FsisesceFeaez_.
Jason Simpson, Executive Director
ATTEST:
SUCCESSOR AGENCY SECRETARY
�DocuSignetl by:
By.
Candice Alvarez, MMC
APPROVED AS TO FORM:
LEIBOLD McCLENDON & MANN, P.C.
Successor Agency Counsel
By: �D—Signed by:
BaffiaraI eibold
"STORM"
LAKE ELSINORE STORM LP, a
California limited partnership
By: GJJ STORM MANAGEMENT,
LLC, a California limited
liability company
Its: General Partner
D coSign d by:
Dated: 1/24/2023 1 8:51 AM PST By:
Gary E. Jacobs, Manager
Amendment No. 1 to the Eighth Amendment 2