REPORT TO THE CITY COUNCIL
December 17, 2015
FROM: BRUCE A. RUDD, City Manager
Mayor & City Manager Department
BY: R. RENENA SMITH, Assistant City Manager
Mayor & City Manager Department
SUBJECT
Title
Approve the Second Amendment to Amended and Restated Stadium Sublease Agreement
Body
RECOMMENDATION
The Administration recommends that the City Council approve the Second Amendment to Amended and Restated Stadium Sublease Agreement ("Agreement").
EXECUTIVE SUMMARY
On April 30, 2015 the City Council approved the First Amendment to the Amended and Restated Stadiums Sublease Agreement. This action was taken because The Fresno Baseball Club, LLC ("Tenant") was attempting to sell the Franchise and asked the City of Fresno ("City") to cooperate in the sale process by assisting in the marketing effort, by modifying the Agreement to provide more favorable lease terms to the purchaser of the Grizzlies and by providing financial relief to the Tenant during the transaction process. There is currently an interested party conducting due diligence on the franchise. However, the transaction is taking longer than initially expected and the Tenant has requested a Second Amendment to the Agreement to extend the lease and APES fee deferral to March 31, 2016.
The Administration believes that the sale of the Franchise is in the best interest of the City. As such, the Administration is recommending that the City Council accommodate the Tenant's requests by approving the Second Amendment to the Agreement to protect the City's investment in the Stadium and to preserve Minor League Baseball in Fresno.
BACKGROUND
The City executed a lease agreement with the Tenant in August 2005. The lease was amended in November 2008 and again in December 2009. On April 30, 2015 the City Council approved the First Amendment to the Amended and Restated Stadiums Sublease Agreement. This action was taken to attract potential buyers. The Tenant is cu...
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