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STAFF REPORT -~-
J COMMUNITYSERVICES DEPARTb'fENT y Date: October 5, 2011 RANCHO To: Mayor and Members of the City Council C,'UCAMONGA John R. Gillison, City Manager
From: Kevin McArdle, Community Services Director William Wittkopf, Public Works Services Director Subject: APPROVAL OF THE AMENDED AND RESTATED LEASE BETWEEN THE CITY OF RANCHO CUCAMONGA AND RANCHO BASEBALL LLC, FOR USE OF THE EPICENTER FOR QUAKES BASEBALL
RECOMMENDATION
It is recommended that the City Council approve the Amended and Restated Lease Agreement between the City Of Rancho Cucamonga and Rancho Baseball LLC for Quakes baseball activities at the Epicenter Stadium. The proposed agreement is attached as Attachment #1.
BACKGROUND
The Rancho Cucamonga community has enjoyed professional baseball at the Epicenter since 1992 when the City first entered into an agreement with Valley Baseball Club Inc.,and its majority owner Henry E. Stickney, for the lease of the Epicenter stadium for Quakes baseball games. The original agreement was modified on thirteen ( 13) separate occasions over the first seven years. This original agreement was scheduled to terminate on September 30, 2002.
In August, 1999 the City and Valley Baseball Club, Inc. approved an Amended and Restated Lease Agreement which extended the period of the lease through September 30, 2012 and modified some of the terms of the lease. That lease agreement was modified on six ( 6) occasions.
On July 15, 2009 the City Council approved an Assignment and Assumption of Lease and Consent to Lease Agreement between Valley Baseball Club Inc.,Rancho Baseball LLC and the City which transferred the current lease agreement to the team's new owners, Rancho Baseball LLC. The principal owner of Rancho Baseball LLC is Robert A. Brett. This lease transfer was necessary following the sale of the Quakes business from Valley Baseball Club Inc. to Rancho Baseball LLC. The current lease agreement for use of the Epicenter Stadium between the City and Rancho Baseball LLC is scheduled to expire on September 30, 2012.
In the hopes of reaching agreement to keep the Quakes playing at the Epicenter into the future, City staff and representatives from Rancho Baseball LLC began meeting back in February, 2011 to discuss and negotiate the potential terms of a lease extension past the current 2012 expiration date. Over the past eight months, representatives from the City and the Quakes have held numerous meetings and shared many various proposals related to a lease extension. Both parties have now agreed to the terms of the Amended and Restated Lease Agreement being presented for consideration at the October 5, 2011 City Council meeting.
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APPROVAL OF THE AMENDED AND RESTATED LEASE BETWEEN THE C]TY OF RANCHO PAGE 3
CUCfIMONGA AIVD RANCHO BASEBALLL.LC OCTOBER 5,2011
to pay $ 66,000 for each year of the initial ten year lease period to fund these improvements, and they maintain the right to prepay this amount to accelerate the improvement schedule. The City is not obligated to provide any funding for these improvements ( Section 12).
The allowable vehicle parking rates which can be charged by the team for games increased from $4 to $6,although the Amended Lease notes that team may decide to not even charge for parking in the future (Section 14).
All of the insurance, indemnification and hold harmless language in the Amended and Restated Lease was updated to reflect current requirements ( Sections 15-18).
In the Amended and Restated Lease, the team shall have the right to obtain a naming rights sponsor for the team and Stadium, subject to designated City approval. The Amended and Restated Lease notes that in the event the team obtains such a naming rights sponsor, all parties will utilize the new Stadium name. The naming rights language will require the team to pay the City 50%of all gross revenues over $132,000 which the team receives from the naming rights partnership during any year of the agreement. It further specifies that the team will be responsible for all team and Stadium related expenses associated with signage, graphics, marketing, etc. for the new naming rights partnership ( Section 23).
The Amended and Restated Lease agreement includes the recently modified language relating to security guard services at the Stadium and the team's funding responsibilities Section 25).
The Amended and Restated Lease also includes some modifications to the required game day Sheriff Department staffing levels and costs. These slight modifications resulted from a review of the Sheriff Deputy staffing levels over the past few seasons. The lease clearly states that the City can increase game day Sheriff staffing should attendance or safety concerns dictate (Section 25).
Included within the proposed Amended and Restated Lease is the negotiated agreement that the team will assume some additional maintenance responsibilities within the Stadium during the season, and particularly on game days. These responsibilities include cleaning of the locker rooms during the season and designated Stadium clean-up duties following each game. This is anticipated to save the City approximately $18,000 in annual staff costs (Section 26).
The Amended and Restated Lease specifically now requires the name of the team to remain the "Rancho Cucamonga Quakes" Section( 33).
While the terms described above highlight the significant changes, the City and team representatives also worked to make many other additional non-substantive changes to the current lease agreement to clarify and streamline the document. P214
APPROVAL OF THE AMENDED AND RESTATED LEASE BETIY~EEN THE CITS'OF RANCHO PAGE4 CUCAd4ONGA AND RANCHO BASERa r .r LLC. OCTOBER 5,2011
CONCLUSION
City staff, along with representatives from Rancho Baseball LLC, are recommending that the City Council approve the attached Amended and Restated Lease. Such approval will provide for many more years of Quakes baseball at the Epicenter.
Respectfully submitted,
Kevin Mc'Ardle Community Serv' es Director
William Wittkopf Public Works Services Director
Attachment:
1 -Proposed Amended and Restated Lease Between the City Of Rancho Cucamonga and Rancho Baseball LLC
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AMENDED AND RESTATED LEASE
THIS AMENDED AND RESTATED LEASE is executed at Rancho Cucamonga, California, this day of 2011 by and between the CITY OF RANCHO CUCAMONGA hereinafter "City")and RANCHO BASEBALL, LLC, a Washington limited liability company hereinafter "Tenant").
A. Recitals.
i) City constructed a baseball field, stadium and ancillary pazking facilities for use by a Class A baseball team ("the Stadium"hereinafter).
ii) Tenant has purchased from a previous lessee of the Stadium and now owns a franchise to operate a Class A professional baseball team as a member of the California League.
iii) City and a previous lessee entered into a Amended and Restated Lease dated August 18, 1999 ( as heretofore amended, hereinafter " Lease")regarding the use of the Stadium, being a portion of a public recreation area (sports complex) owned by the City of Rancho Cucamonga for the purpose of conducting and carrying on a Class A professional baseball franchise thereon and the operation of concession stand activities and other related baseball activities.
iv) The lessee' s interest under the lease was assigned to Tenant pursuant to an Assignment and Assumption of Lease and Consent to Lease Agreement dated August 6, 2009.
v) City and Tenant desire to amend, restate and supersede the Lease and do so by approval of this Amended and Restated Lease as of the date when this Amended and Restated Lease ( the "Amended Lease")is executed on behalf of City.
B. Agreement
NOW, THEREFORE, IT IS MUTUALLY AGREED as follows
1. Stadium
1.1 City, for and in consideration of the covenants, conditions, agreements and stipulations herein set forth, does hereby lease the Stadium to Tenant. The Stadium includes the playing field, seating areas, press box, luxury suites, team offices, concession facilities, ticket box office, restrooms, souvenir store, locker rooms, pazking lots A, B, C, G and F, picnic pavilions and other azeas necessary to play a professional baseball game. The location and extent of the Stadium is described and depicted on Exhibit "A"hereto.
2. Lease Granted.
2.1 This Amended Lease is made for the purpose of granting Tenant the nonexclusive use of the Stadium and the exclusive use of the Team Office Space (as defined in Section 11.3).
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5.2 Manager and Responsible Representative.
Tenant shall select and appoint its manager and inform City thereof. The manager shall be vested with full power and authority with respect to the conduct of the operations of Tenant at the Stadium. Such manager shall be generally available at his office in the Stadium or by telephone during regular business hours.
5.3 Office Hours.
Tenant shall keep its offices at the Stadium open during normal business hours throughout the year.
5.4 Conduct and demeanor of emplovees, guests, patrons, etc.
Tenant shall use reasonable efforts to control the conduct, demeanor and appeazance of its officers, agents, employees, representatives, customers, guests, invitees, have at contractors and others doing business with it upon the Stadium. Tenant shall employees the Stadium capable of communicating instructions to persons occupying the Stadium during events provided for in this Amended Lease to reasonably provide safety to those occupants, including, but not limited to, the direction of an evacuation in the event of an emergency.
6. Nondiscrimination by Tenant.
6.1 Tenant shall not discriminate against any person or groups of persons, on account Code Section 12955 as of any basis listed in subdivision ( a)or (d)of California Government those bases are defined in Sections 12926, 12926.1,subdivision ( m)and pazalrraph ( 1)of subdivision ( p)of Section 12955 and Section 12955.2 of said Government Code.
7. Tenant's Rights and Status.
7.1 Tenant, its agents, contractors, and employees shall beat all times independent contractors and shall not be considered agents or employees of City.
8. Assignment Prohibited.
8.1 The rights and privileges given to Tenant are not assignable in whole or in part or and of no force or by operation of law and any such attempted assignment shall be invalid legal with the written consent of the of the effect. This provision may be waived only express Council City of Rancho Cucamonga, which consent shall not be withheld unreasonably.
9. Subleases. Concessions. Licenses. Contracts.
9.1 The provisions of Paragraph 8 above shall not prohibit Tenant from entering into concessions, licenses or contracts for any portion of its Class A baseball operations conducted on the Stadium. Each concession, license or contract that is entered into by Tenant shall be subject license or contract shall be to the provisions of this Amended Lease. A copy of any concession placed on file with City's City Manager or his designee.
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10. Advertising.
10.1 Tenant shall have the right to sell, display and maintain advertising on the inside of the Stadium, including, but not limited to, the inside of the outfield fence of the Stadium, scoreboard and concession azeas. The advertising of alcoholic beverages shall be permitted under this Amended Lease. In the event that Tenant secures a naming rights sponsor in accordance with the terms of this agreement, City will permit Tenant to install appropriate signage on the outside of the right field scoreboazd and at the main stadium entry gates, subject to City design approval.
11. Access to the Stadium.
11.1 Tenant shall have full and unimpaired access to the Stadium, other than third floor electrical City office azeas and other space used solely by City (e.g.,janitorial storage azeas, the term rooms, etc.)at all times between April 1 and September 30 of each calendaz year during hereof.
11.2 Tenant shall use the Stadium for all of its home games [approximately to be scheduled the seventy (70)]plus any home play-off and championship gan~es during California League Season, commencing in April of each yeaz and ending approximately in mid- for Tenant shall September ofthe same yeaz, plus the necessary days practice ("the Season"). at an Tenant shall famish have the right to play one ( 1)home game each year off-site location. each Season as soon as the City its schedule of play, practice games and practice for playing schedule is established by the California League. City shall forthwith schedule the home games for the and the times and dates set for practice games and practice in the annual schedule Stadium with reserved time for any play-off and championship games.
There shall be no practice or baseball game conducted by Tenant at the Stadium such and Tenant shall on any July 4 during the term hereof. On each July 4, City jointly sponsor shall work a fireworks show at the Stadium. Prior to the July 4 event each year, Tenant and City together to plan and promote the upcoming July 4 activity. Tenant shall promote the event through in-game public address announcements, use of Tenant' s website, email newsletters, etc. all ushers and all For the actual event on July 4 each year, Tenant shall provide required seating shall be staff necessary to effectively and safely manage the parking operations. Pazking and provided to event attendees at no chazge. Tenant shall work closely with City to jointly plan conduct a series of on-field recreational activities for event attendees prior to the fireworks. Tenant will provide staff to assist City with the event set-up and clean-up and to operate the access office on video boazd and camera systems. Tenant shall provide City with to the box July 4 for ticket sales. Tenant shall operate the concession stands during each July 4 event and shall ticket sold to the 4 event each retain all revenues. City shall pay Tenant $.50 for each July year. tickets each-such 4 event for Tenant's and City shall provide Tenant up to 200 to July employees management.
Both parties agree to work together in the scheduling of stadium field use for as baseball clinics and specific pre-game and/or post-game activities such batting practice, youth other promotional activities. In addition, Tenant shall have the right to schedule team related non-public promotional and/or administrative activities in the Stadium throughout the year
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16.1 above must 16.2 Each policy providing coverage as required by subpazagraph have endorsements providing:
16.12. That City, its officers, agents, employees, contractors and invitees aze additional insured as respects the use of the facilities.
16.22. That the insurance provided by the policy shall be primary insurance as insurance which and that other respects any other valid and collectible City may possess any insurance which City does possess will be considered excess only.
16.32. That the policy will act to cover each insured and each additional insured as though a separate policy were written for each.
16.42. Tenant shall provide immediate written notice if 1)( any of the required of the or ( the insurance policies are terminated, 2)( the limits of any required policies reduced, 3) deductible or self insured retention is increased.
of souvenir 16.3 If Tenant engages another party to provide the operation refreshment, also cause that or and/or other concessions, as permitted hereinabove, such other party shall party own and to obtain and to in parties so engaged, at said party's or parties' cost expense, keep force throughout the term of this Amended Lease, a policy or policies of public liability insurance (including products liability coverage) separately providing limits and coverage as aforesaid arising out of each such concessionaire's operations. Before any person other than or other Tenant shall of the Tenant operates any refreshment, souvenir concession, notify City and or certificates as are herein name and business addresses of such concessionaire's policy specified.
17. Workers' Compensafion Insurance Covera8e.
17.1 Tenant, at Tenant's sole cost and expense, shall provide, pay for and maintain insurance with the through the term hereof, a policy providing workers' compensation coverage State of and not statutory limits of liability as set forth by the laws of the California. including less than One Million Dollars ($1,000)000, Employer' s Liability, applicable to employees, agents, and volunteers of Tenant or assignees.
17.2 The policy shall be endorsed to waive the right of subrogation against City. Tenant shall provide immediate written notice if 1)( any of the required insurance policies are or the deductible or self terminated; 2)( the limits of any of the required policies are reduced; (3) insurance retention is increased.
18. Evidence of Coveraee.
Tenant to 18.1 Except as otherwise provided herein, each policy obtained by comply with the provisions of this Amended Lease must have an effective date no later than the be commencing date of this Amended Lease and the named insured on each policy must that the identical to Tenant herein. Tenant agrees to furnish evidence, acceptable to City, to be insurance requirements of this Amended Lease have been fulfilled. Such evidence is Administrative Services. placed on file by the Tenant with City's Director of
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for its Class A baseball Tenant shall also necessary for the operation of the Stadium games. staff of a minimum of one provide at each Class A baseball game medical support consisting Nurse or a Certified Medical person who may be a Medical Doctor, a Registered Emergency Technician (EMT). Further, Tenant shall have the right to staff and operate all concessions when the three softball fields during al] of its Class A baseball games at the Stadium and no alcoholic shall adjacent to the Stadium are simultaneously operating, provided that beverages the Stadium. Tenant that be sold to any person located on the exterior of agrees organized sports
or the of other concessions on or in to said leagues may operate allow operation proximity adjacent fields.
For those occasions when City schedules the Stadium for uses other than Tenant's Class the refusal to its concessions for the A baseball games. Tenant shall have right of first operate event prior to City's authorization of concession sales by other organizations.
25. Safety and Security
25.1 Security Guazd Service
City shall provide security for the Stadium during the following time periods:
to 3:00 a.m. of the A. On every weekday from 8:00 p.m. following day:
7:00 to 3:00 a.m. of the B. On every Saturday and Sunday night from p.m. following day; and
from noon until 6:00 C. On every Saturday afternoon p.m.
when is no In the event of any damage to the facility during times there security have been the of guazd presence, in which such damage might reasonably prevented by presence will meet in faith to discuss the cost an effective security guard, City and Tenant good sharing insurance for repair of the damages which are not covered by the City or Tenant's respective instances to the these coverage. In the case of repeated of damage facility during hours, City shall have the right to re-institute all or a portion of the security guard scheduling requirements these stated in the original lease, and Tenant shall reassume the responsibility for payment of service to services. The parties understand that City may contract with an independent security dischazge its above-stated obligations. City and Tenant shall confer annually in establishing a herein. security management plan to implement the City's obligation to provide security stated on an as-needed basis in In addition, City shall provide a vehicle and radio transmission capacity Tenant providing for the above-described security. In aid of providing security for the Stadium, on or before the first shall pay to City $34,150 each yeaz in ten (10) equal installments, payable incurs day of each successive month commencing in July in each year. In the event that the City services the term of this Amended Lease, any cost modifications for security guard during Tenant will modify the required payment in an amount proportional to the modified cost. Parties hours above will not unless to in agree that the security guazd detailed change, agreed writing by will both parties. In the event City decides to eliminate or reduce security guard services, Tenant of the cost realized increase the rent payment in an amount equal to fifty (50)percent savings by Tenant from the reduced security guazd services.
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26.14. Immediately following each game, Tenant shall cause to be stored and to be in lockers and secured all equipment, laundry items and any and all other materials placed other service azeas.
26.24. Tenant shall maintain in operable condition and clean all equipment of related to the operation of concessions in the Stadium. This includes the regular cleaning which maintenance due to equipment such as grease filters, exhaust hoods, etc. require special use of the concession azeas by Tenant.
26.34. Tenant shall maintain, clean and repair the Team Office Space and the ticket booth.
26.44. Tenant shall maintain in operable condition and clean any and all owns uses this Amended equipment and items of personal property which Tenant and pursuant to Lease.
a in 26.54.Tenant shall replace the field tarp at its expense with tarp equal such to occur when quality to that in use when this Amended Lease is executed, replacement City and Tenant reasonably agree that the same is necessary.
26.64. Tenant shall maintain and clean the home team, visiting team and umpire and maintenance locker rooms during the Tenant's baseball season. Cleaning provided by hereto. Tenant shall conform to the specific standards described in Exhibit "D"attached
26.74. Tenant shall be responsible for specific Stadium cleanup responsibilities exhibition and during and following all games conducted by Tenant, including special games. These responsibilities include, but are not limited to cleaning food and beverage spills, emptying all trash receptacles and depositing waste bags in designated trash bins, picking up and removing refuse from concessions, cleaning of all public restrooms, stocking of restroom supplies, etc. described Cleaning and maintenance provided by Tenant shall conform to the specific standards in Exhibit " E"attached hereto.
26.84. With regazds to Tenant's maintenance responsibilities described in sections 26.64.and 26.74.above, in the event that Tenant does not perform the work in accordance with the required City standards, City reserves the right at its sole discretion to which case the annual Base Rent to Tenant assume responsibility for the work, in paid City by will increase by $18,000 each yeaz.
27. Alterations.
Tenant shall not make 27.1 Except as otherwise specifically provided herein, any the written structural or nonstructural alterations to the Stadium without first obtaining City's consent.
28. Construction Bond Requirements.
28.1 In the event that alterations to the Stadium are made by Tenant in excess of One with the Hundred Thousand Dollars ($100,000) gross cost per alteration, in accordance
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shall prescribed by the Rancho Cucamonga Fire Protection District and City. City and Tenant confer on an annual basis to review costs and services to be provided.
31. Utilities.
31.1 City shall provide, or cause to be provided, all utilities, including water, gas, for and cable refuse and electricity, necessary for all games at the Stadium, except telephone the Team service to the Team Office Space. Tenant shall provide telephone and cable service to Office Space at its sole cost and expense.
32. Scoreboard.
32:1 The previous lessee previously purchased, at its own cost the right field scoreboard, equipped with video display capability, which is installed at the Stadium. Subject to the provisions of paragraph 32.2 below, Tenant shall control, operate and maintain (other than paying electrical costs) the scoreboazd during the term of this Amended Lease. At the conclusion of the term hereof, title to the scoreboard shall vest in City.
to include 32.2 Tenant shall cause the message center on the right field scoreboazd up each Class to five (5)public service messages per game, each ten (] 0)seconds in duration during at to be available to the when at least A baseball game which occurs the Stadium City, requested or his three (3)days in advance of each game, in writing, by City's City Manager designee.
and the Left 32.3 Tenant, at its sole cost and expense, shall maintain, operate repair Field scoreboazd during the term of this Amended Lease. Such maintenance, operation and repair responsibility shall include, but not be limited to, repair of damage caused by wind, cleaning, painting, and bulb replacement. At the conclusion of the term of this Amended Lease, title to the Left Field Scoreboard shall vest in City.
33. Name of Team.
the to 33.1 The name of the Class A baseball team which plays at Stadium pursuant this Amended Lease shall be called the "Rancho Cucamonga Quakes
34. Citv Luxury Box Preferred Parkins Passes, Seats and Community Events.
a Class A In order to involve the community of Rancho Cucamonga in its operation of baseball franchise at the Stadium, Tenant shall provide the following:
34.1 Tenant shall provide to City the exclusive use of the luxury box now being utilized by City (two combined boxes) and two preferred parking passes for each Class A baseball game and other event operated by Tenant hereunder;
34.2 Annually, the City will receive 7,000 tickets for the season, to be used at the and/or City's discretion to recognize achievements by community organizations, businesses, be citizens, to promote interest in the City of Rancho Cucamonga. The tickets shall evenly aze not to include distributed amongst the games played in each season, but they required game 4`h weekend or other dates that are sold dates such as opening day, closing day, July traditionally
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B Exhibit P244
CITY OF RANCHO CUCAMONGA PAYMENT REMITTANCE FORM 2011 ENTITY: RANCHO CUCAMONGA QUAKES
PAYMENT MONTH , 20_
DESCRIPTION ACCOUNT AMOUNT MONTH/YR
2012 BASE RENT ( Lease Section 4.1) ( 4426) $ 15,month000/ Due by 1 st of each month ~ April-August)
ADMISSIONS TAX (Lease Section 4.3) ( 4126) Due by ls`of each month -June-November based on 10%of actual ticket sales from 2 months prior. Minimum of 90,$ 000 per yeaz with balance paid in December)
STADIUM SECURITY REIMBURSEMENT ( 4580) $ 3,month415/ Due by 1 st of each month -June-November)
BASEBALL SECURITY ( 4583) Due 30 days after city billing date)
CAPITAL IMPROVEMENT PLAN ( TBD) Payments due per CIP-Plan)
NAMING RIGHTS REVENUE SHARING ( TBD) If a naming rights partnership is obtained. 50%of gross naming rights revenue above 132,000 per year. Due by ls' of September for previous season)
OTHER (Please specify)
TOTAL PAYMENT
Signature Date
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Team Stadium Clean-Up Responsibilities Exhibit E
GAME TIME CLEANING
of dust and Keep walkways, concourse, restrooms, cafes, bleachers, ledges, countertops free debris
Trash cans to be emptied and relined as needed on cross aisle, walkways, restrooms, concourse and outside main entrance
Wi a down all trash rece tacles Burin and after ame
in Throughout the game check the usage of all trash receptacles and place all full trash bags cit electric cart for dis osal
Patrol and clean u an sills or debris throw hout stadium
Re ort an dama e, incidents or raffiti to the cit staff
Wipe down and check all drinking fountains for proper operation during the game. Report any needed re airs to cit staff
Kee aisles and stairs clear
Monitor Men's and Women's restrooms every 30 minutes (clean and stock as needed). Re ort an needed re airs to cit staff
Monitor and remove em t boxes from concession stands and cafes
END OF GAME CLEANING
bleachers and main Empty all trash cans, sweep up any debris on concourse, cafes, entrance, includin Plaza and Pavilion
all feminine Sweep any trash inside of Women's and Men's restrooms, empty disposal containers, clear and flush all toilets and urinals Exhibit F pp50
ALCOHOL BEVERAGE POLICY
The following policy relates to alcohol beverage (beer and wine only) sales at the stadium concession and cafe facilities located in the sports complex. The policy is to be adhered to by the stadium tenant and concessionaire for all stadium related events.
to a different color and/or Beer is sold in up to 24 oz. cups. The cup is be of containers material so as to be readily distinguishable from all other beverage area and not be removed and cups. Pitchers maybe used in the cafe only may from the cafe area.
2. No patron shall be sold more than two cups of an alcoholic beverage at any one time.
3. Age verification will be required for all patrons at the time of sale.
4. No alcoholic beverage will be served from the concession/cafe areas during the two final innings of any game -after the seventh inning of a regular game a header. In the case anon- or the fifth inning of the second game of double of or to baseball event no alcoholic beverage will be sold 30 minutes less prior the scheduled ending of the event.
5. If City identifies specific concerns resulting from alcohol related promotions, solutions. . Tenant agrees to work with City towards effective
6. No promotional items carrying marks of alcoholic beverage suppliers will be given to fans under 21 years of age.
7. All staff, particularly ushers, concession/cafe sales personnel and security, will be knowledgeable of this alcohol beverage policy.
as staff 8. If a patron is recognized by security staff being intoxicated, security will deny further service to the patron.
9. No alcoholic beverages will be sold from the concession facilities to any of an person located on the exterior of the stadium building. Consumption alcoholic beverage outside of the stadium building is not permitted under section 12.01004.B of the Rancho Cucamonga Municipal Code.
of 1 October 5, 2011 Clty Council Agenda attachments re: Item N.1. PagePapeflo 5
Scott, Kathy
From: McArdle, Kevin Sent: Wednesday, October 05, 2011 7:52 AM To: Gillison, John; Daniels, Linda; McKay, Debra; James' L. Markman' Cc: Scott, Kathy; Nielsen, Nettle; Morales, Melissa Subject: Quakes Lease Agenda Item Tonight Attachments: Exhibit G -Form of Guaranty.doc
As you all know, we have the Quakes lease on the agenda tonight and everything is set to go. Within the lease, Exhibit G is the personal guaranty of Bobby Brett to make the lease payments. In the lease included in the staff report, I had attached a copy of the currently executed guaranty from the existing lease which was previously assigned to the new owners. Bobby Brett has requested that we execute a fresh copy of the guarantee with the signing of this new lease, which includes some minor wording updates referencing the fact that this guaranty is for the Amended and Restated Lease as opposed to the previous Lease Assignment. The modified guaranty also Games that he is responsible for the newly defined "Base Rent" in the new lease, as opposed to the "Minimum Annual Rent and Improvement Rent° from the curcent lease. These are strictly wording changes and do not reflect in any changes to our agreement or negotiations.
Therefore when I give the staff report tonight, I would like to notify the Council that the Exhibit G will be replaced with an updated version when the new lease is executed.
Debra (or Kathy),may I ask that you place a copy of the attached revised Exhibit G on the dais tonight that I can refer to?Thanks.
Kevin McArdle Community Services Director 10500 Civic Center Drive Rancho Cucamonga, CA 91729 Office ( 909) 477-2760 Ext. 2101 Fax ( 909)2761477- E-Mail Kmcardlela~comcityofrc.
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