Approving Waiver of Payments Due to the County from Omaha Storm
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AGENDA ITEM REQUEST 20-632 Board Meetings - Jan 12 2021 Resolution ITEM DESCRIPTION Approving waiver of payments due to the County from Omaha Storm Chasers/Union Omaha as a result of COVID-19 economic hardships and apply the funding received by the County through the Event Centers and Sports Arena Stabilization Program for the purpose of compensating for those losses. SUMMARY AND BACKGROUND In response to the Covid-19 Pandemic, the State of Nebraska restricted the number of people allowed to gather for outdoor sporting events. This caused widespread and unprecedented economic losses in the sports community. Despite making significant budget and staff cuts, the Storm Chasers experienced severe economic losses as well. Sarpy County applied for funding from the Event Centers and Sports Arena Stabilization Program (SASP) to help compensate for the economic losses. Sarpy County was notified that it received funding in the amount of $500,000 from the SASP. Sarpy County intends to apply the vast majority of that funding to benefit the Storm Chasers, as follows: •Waive the semi-annual rental payment that was due December 1, 2020 in the amount of $238,230. •Waive the semi-annual rental payment that will be due June 1, 2021 in the estimated amount of $255,000. Note, this increase in the base rental amount (from $238,230 semi- annually now) will be determined based on CPI factors that are not yet available. STAFF RECOMMENDATION Staff recommends approval FISCAL IMPACT Fiscal Year 2021 Total County cost of project: 0 Is Item in current year budget? ☒ Yes ☐ No Does this item commit the County to future expenses beyond this amount? ☐ Yes ☒ No Email Address(s): [email protected]; [email protected]; [email protected]; [email protected] ATTACHMENTS Resolution 2021-026 - Waive Payment Due Omaha Storm Chasers Dec 20 and Jun 21 20 ~ Loss Funding Event Centers and Sports Area Stabilization Program SASP Correspondence to Martie Cordaro Omaha Storm Chasers Chairman Don Kelly Submitted by: Lisa Haire, Administration Coordinator Resolution 2021-026 BOARD OF COMMISSIONERS SARPY COUNTY, NEBRASKA Approving Waiver of Payments Due to the County from Omaha Storm Chasers/Union Omaha as a Result of COVID-19 Economic Hardships and Apply the Funding Received by the County Through the Event Centers and Sports Arena Stabilization Program for the Purpose of Compensating for those Losses. Whereas, pursuant to Neb. Rev. Stat. §23-104(6), the County has the power to do all acts in relation to the concerns of the County necessary to the exercise of its corporate powers; and, Whereas, pursuant to Neb. Rev. Stat. §23-103, the powers of the County as a body are exercised by the County Board; and, Whereas, the County previously entered into a Rental Agreement for use of the Werner Park Stadium with the Omaha Storm Chasers/Union Omaha; and, Whereas, under the Agreement, a semi-annual rent payment was due December 1, 2020 in the amount of Two Hundred Thirty-Eight Thousand, Two Hundred and Thirty Dollars and No Cents ($238,230.00); and, Whereas, under the Agreement, a semi-annual rent payment will be due June 1, 2021 in the amount of Two Hundred Fifty-Five Dollars and No Cents ($255,000); and, Whereas, in response to the Covid-19 Pandemic, the State of Nebraska restricted the number of people allowed to gather for outdoor sporting events which resulted in widespread and unprecedented economic losses in the sports community; and, Whereas, funding has been awarded to the County in the amount of Five Hundred Thousand Dollars and No Cents ($500,000.00) for the Event Centers and Sports Arena Stabilization Program; and, Whereas, the County desires to apply this funding to the semi-annual rent payments due December 1, 2020 and June 1, 2021in lieu of payment by the Omaha Storm Chasers/Union Omaha. NOW, THEREFORE, BE IT RESOLVED by the Sarpy County Board of Commissioners that the rental payments for December 1, 2020 and June 1, 2021 due by the Omaha Storm Chasers/Union Omaha are hereby waived. BE IT FURTHER RESOLVED that the funding received by the County from the Event Centers and Sports Arena Stabilization Program shall be utilized for the purposes of compensating for those losses. BE IT FINALLY RESOLVED that the Chairman of this Board, in conjunction with the County Clerk, is hereby authorized to sign the notification letter to the Omaha Storm Chasers/Union Omaha, a copy of which is attached hereto, and any related documents necessary to effect the intent of this resolution, the same being approved by this Board. The above Resolution was approved by a vote of the Sarpy County Board of Commissioners at a public meeting duly held in accordance with the applicable law on the 12 day of January 2021 Attest: SEAL ____________________________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________________________ Sarpy County Chairman Sarpy County Clerk/Register of Deeds Resolution 2021-026 - Waive Payment Due Omaha Storm Chasers Dec 20 and Jun 21 Sarpy County Board of Commissioners 1210 GOLDEN GATE DRIVE #1250 COMMISSIONERS PAPILLION, NE 68046-2895 Don Kelly District 1 593-4155 David Klug District 2 www.sarpy.com Angi Burmeister District 3 ADMINISTRATOR Dan Hoins Gary Mixan District 4 DEPUTY ADMINISTRATOR Scott Bovick Jim Warren District 5 CHIEF FINANCIAL OFFICER Bill Conley Tuesday, January 12, 2021 Martie Cordaro President, Omaha Storm Chasers / Union Omaha Via email: [email protected] RE: Event Centers and Sports Arena Stabilization Program Dear Mr. Cordaro, In response to the Covid-19 Pandemic, the State of Nebraska restricted the number of people allowed to gather for outdoor sporting events. This caused widespread and unprecedented economic losses in the sports community. Despite making significant budget and staff cuts, your organization experienced severe economic losses as well. Therefore, Sarpy County applied for funding from the Event Centers and Sports Arena Stabilization Program (SASP) to help compensate for the economic losses. Sarpy County was notified that it received funding in the amount of $500,000 from the SASP. In spite of Sarpy County sustaining considerable losses in revenues from lack of surcharges on baseball ticket, concessions, and merchandise sales, Sarpy County intends to apply the vast majority of that funding to directly benefit the Storm Chasers, as follows: • Waive the semi-annual rental payment that was due December 1, 2020 in the amount of $238,230. • Waive the semi-annual rental payment that will be due June 1, 2021 in the estimated amount of $255,000. Note, this increase in the base rental amount (from $238,230 semi-annually now) will be determined based on CPI factors that are not yet available. The waiver of payments due December 1, 2020 and June 1, 2021 based on compensation from the SASP does not constitute a waiver of any other future payments due under the Stadium Lease and Use Agreement as amended (hereafter “Agreement”). Regarding payments due in 2021 specifically, the following will continue to be due pursuant to the Agreement: • Scoreboard payment in the amount of $40,000. • Naming Rights in the amount of $2,500. Mr. Cordaro Page 2 January 12, 2021 • Rent increase for soccer modifications in the amount of $27,396 (one-half is due June 1, 2021 and the other half is due December 1, 2021). • Soccer improvements overage payment in the amount of $11,000. • Surcharges on all baseball and soccer ticket, merchandise, and concessions revenue. • Base rent payment for December 1, 2021 in the estimated amount of $255,000. Thank you for your continued partnership. We are looking forward to the 2021 Season. Sincerely, Don Kelly, Chairman Sarpy County Board of Commissioners .