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HomeMy WebLinkAboutSA 2026-002 Extension to the Eleventh Amendment to the Stadium Interim Management AgreementRESOLUTION NO. SA 2026-2 A RESOLUTION OF THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING AN EXTENSION TO THE ELEVENTH AMENDMENT TO THE STADIUM INTERIM MANAGEMENT AGREEMENT BETWEEN THE SUCCESSOR AGENCY AND THE LAKE ELSINORE STORM, LP, AND A STADIUM OPERATION AND MAINTENANCE AGREEMENT BETWEEN THE SUCCESSOR AGENCY AND THE CITY OF LAKE ELSINORE 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”) 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 Docusign Envelope ID: 3F20A0E3-A477-4124-8438-069EF5B3A2CD Reso No. SA 2026-2 Page 2 of 5 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 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 Docusign Envelope ID: 3F20A0E3-A477-4124-8438-069EF5B3A2CD Reso No. SA 2026-2 Page 3 of 5 by the Riverside County Oversight Board and the Successor Agency, the Ninth Amendment was submitted to and approved by the DOF; and Whereas, in 2024, the Successor Agency and the Riverside County Oversight Board approved the Tenth Amendment to Stadium Interim Management Agreement dated January 18, 2024 by and between the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore and the Lake Elsinore Storm LP (the “Tenth Amendment”) and following such approval by the Riverside County Oversight Board and the Successor Agency, the Tenth Amendment was submitted to and approved by the DOF; and Whereas, in 2025, the Successor Agency and the Riverside County Oversight Board approved the Eleventh Amendment to Stadium Interim Management Agreement dated January 14, 2025 by and between the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore and the Lake Elsinore Storm LP (the “Eleventh Amendment”) and following such approval by the Riverside County Oversight Board and the Successor Agency, the Eleventh Amendment was submitted to and approved by the DOF; and Whereas, the Interim Agreement and the First, Second, Third, Fourth, Fifth, Sixth, Seventh, Eighth, Ninth, Tenth, and Eleventh Amendments have been successfully implemented to provide for efficient and cost effective management, maintenance and operation of the Diamond Stadium in furtherance of the Successor Agency’s obligations under the Offer to Donate and the Stadium Operations Contracts; and Whereas, the Eleventh Amendment will expire on September 30, 2026, three months prior to the December 31, 2026 expiration of the Stadium Operations Contracts and in order to avoid uncertainty, disruption and potential financial liabilities, the Successor Agency desires to extend the term of the Eleventh Amendment to December 31, 2026; and Whereas, the Stadium Operations Contracts and the proposed Extension to the Eleventh Amendment to the Interim Agreement will expire December 31, 2026, but 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 in order to comply with its obligations under to the Offer to Donate and avoid uncertainty, disruption and potential financial liabilities, the Successor Agency desires to retain the City to perform the operational and maintenance services pursuant to a Stadium Operation and Maintenance Agreement; 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 through the December 31, 2026 expiration of the Stadium Operations Contracts in accordance with the proposed Extension to the Eleventh Amendment to Stadium Interim Management Agreement (“Extension”); 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 Docusign Envelope ID: 3F20A0E3-A477-4124-8438-069EF5B3A2CD Reso No. SA 2026-2 Page 4 of 5 the continued, efficient and cost effective management, maintenance and operation of the Stadium and to retain the City of Lake Elsinore to carry out such continuing obligations following the December 31, 2026 expiration of the Stadium Operations Contracts in accordance with the proposed Stadium Operation and Maintenance Agreement; 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, 2026 – June 30, 2027 (the “ROPS 26-27”) 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 approved by the Successor Agency and will prepared for approval by the Oversight Board throughout the term of the Stadium Operations Contracts and the continuing obligations under the Offer to Donate; and Whereas, the accompanying staff report and attachments incorporated herein by this reference provide the supporting information upon which the actions set forth in this Resolution are based. 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 Extension to the Eleventh Amendment to the Stadium Interim Management Agreement and the Stadium Operation and Maintenance Agreement are reasonable and necessary to satisfy the Successor Agency’s enforceable obligations under the Stadium Operations Contracts and Offer to Donate and to protect and maintain the assets of the former Redevelopment Agency and conform to state law and regulations, (ii) that Real Property Tax Trust Fund (RPTTF) revenues requested by the Successor Agency in the ROPS 26-27 includes funds necessary to meet the Successor Agency’s enforceable obligations, and (iii) that the Extension to the Eleventh Amendment to the Stadium Interim Management Agreement and the Stadium Operation and Maintenance Agreement are in the best interests of the taxing entities because the Storm and the City 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 (i) the Extension to the Eleventh 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 and (2) the Stadium Operation and Maintenance Agreement by and between the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore and the City of Lake Elsinore in substantially the forms attached and authorizes and directs the Executive Director to execute the Extension to the Eleventh Amendment and the Stadium Operation and Maintenance Agreement in such final form as approved by Successor Agency Counsel and submitted to and approved by the Riverside Countywide Oversight Board. The Docusign Envelope ID: 3F20A0E3-A477-4124-8438-069EF5B3A2CD Reso No. SA 2026-2 Page 5 of 5 Executive Director is further authorized to execute such other documents as necessary to implement the Extension to the Eleventh Amendment and the Stadium Operation and Maintenance Agreement as approved as approved by Successor Agency Counsel and submitted to and approved by the Riverside Countywide Oversight Board. 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 Redevelopment Agency of the City of Lake Elsinore, California, this 13th day of January 2026. Robert E. Magee Chair Attest: Candice Alvarez, MMC Secretary STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF LAKE ELSINORE ) I, Candice Alvarez, MMC, Secretary of the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore, California, do hereby certify that Resolution No. SA 2026-2 was adopted by the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore, California, at the Regular meeting of January 13, 2026 and that the same was adopted by the following vote: AYES: Agency Members Tisdale, Manos, and Carroll; Vice Chair Sheridan; and Chair Magee NOES: None ABSENT: None ABSTAIN: None Candice Alvarez, MMC Secretary Docusign Envelope ID: 3F20A0E3-A477-4124-8438-069EF5B3A2CD