REPORT TO THE CITY COUNCIL
April 9, 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 First Amendment to Amended and Restated Stadium Sublease Agreement
Body
RECOMMENDATION
The Administration recommends that the City Council approve the First Amendment to Amended and Restated Stadium Sublease Agreement ("Agreement").
EXECUTIVE SUMMARY
The Fresno Baseball Club, LLC ("Tenant") is currently attempting to sell the Franchise and has 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.
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 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. The Tenant is currently attempting to sell the Franchise and is seeking more favorable lease terms to attract investors and to provide financial relief during the transaction process. The amended terms are highlighted as follows:
Potential Purchaser:
* Fixed Rent will be reduced from $1,500,000 to $750,000 annually to be paid $150,000 per month from April - August each year. The provisions related to Reimbursable Expenses (up to $500,000/year) and Capital Expenditures ($100,000 less $50,000 scoreboard loan) credits will be eliminated.
* APES fees will remain in place. APES fees for the new buyer will be ...
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