Memorandum of Understanding (Arena at Seattle Center)
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Att 1 – Memorandum of Understanding with Oak View Group V1 MEMORANDUM OF UNDERSTANDING (ARENA AT SEATTLE CENTER) by and between THE CITY OF SEATTLE, a Washington municipal corporation, and OAK VIEW GROUP, LLC, a Delaware limited liability company Dated: December [●], 2017 TABLE OF CONTENTS Page 1. Purpose and Term of Agreement. ................................................................................... 4 2. Location; Subdivision. .................................................................................................... 4 3. Project Description. ......................................................................................................... 5 4. Cost Reimbursement. ...................................................................................................... 5 5. Project Financing. ........................................................................................................... 6 6. Permitting and Approval Process. ................................................................................... 6 7. SEPA. .............................................................................................................................. 8 8. Reserved. ......................................................................................................................... 8 9. Lease Agreement; Rent; Rent Adjustments. ................................................................... 8 10. Parking Garage Operation. ............................................................................................ 20 11. Development Agreement. ............................................................................................. 20 12. Due Diligence of Premises. ........................................................................................... 22 13. Capital Improvements. .................................................................................................. 25 14. Management, Operations, and Use. .............................................................................. 26 15. Arena Design, Development, and Construction. ........................................................... 27 16. Labor Harmony Agreement. ......................................................................................... 32 17. Transportation. .............................................................................................................. 33 18. Signage. ......................................................................................................................... 33 19. Reserved. ....................................................................................................................... 34 20. Reserved. ....................................................................................................................... 34 21. Seattle Center Integration. ............................................................................................. 34 22. Community Fund. ......................................................................................................... 36 23. Additional Provisions. ................................................................................................... 37 24. City Conditions Precedent. ........................................................................................... 39 25. OVG Conditions Precedent. .......................................................................................... 40 26. No Third-Party Beneficiaries. ....................................................................................... 40 27. Counterparts. ................................................................................................................. 40 28. Reserved. ....................................................................................................................... 41 29. Oral Agreements and Commitments. ............................................................................ 41 30. Time is of the Essence. ................................................................................................. 41 31. Limitation on Damages. ................................................................................................ 41 32. Notice Provisions. ......................................................................................................... 41 33. Representations and Warranties. ................................................................................... 42 34. Estoppel Certificate. ...................................................................................................... 44 35. Governing Law. ............................................................................................................ 44 36. Non-Discrimination. ..................................................................................................... 44 Att 1 – Memorandum of Understanding with Oak View Group V1 EXHIBITS LIST Exhibit A Depiction of Premises (Before Arena Opening) Exhibit B Depiction of Premises and Arena (After Arena Opening) Exhibit C Project Scope Narrative Exhibit D List of Specified Permits and Approvals Exhibit E Anticipated Permits, Design and Construction Schedule Exhibit F Project Budget; Sources/Uses of Funds Exhibit G Mortgagee Protection Provisions Exhibit H Insurance Requirements Exhibit I North Downtown Mobility Action Plan Purposes and Goals Exhibit J Key Topics of Seattle Center Integration Agreement Exhibit K Environmental Reports Exhibit L Rent Adjustment Thresholds Exhibit M Seattle Center Exclusivities 1 Att 1 – Memorandum of Understanding with Oak View Group V1 MEMORANDUM OF UNDERSTANDING (ARENA AT SEATTLE CENTER) This MEMORANDUM OF UNDERSTANDING (ARENA AT SEATTLE CENTER) (“MOU”), dated this [●] day of December, 2017 (“Effective Date”), is entered into by and between THE CITY OF SEATTLE, a Washington municipal corporation (“City”), and OAK VIEW GROUP, LLC, a Delaware limited liability company (“OVG”). The City and OVG are referred to in this MOU individually as a “Party” and jointly as the “Parties”. RECITALS WHEREAS, on January 11, 2017, the City released a Request for Proposal (as amended, the “RFP”) for the redevelopment of KeyArena (the “Arena”) at Seattle Center as a world-class, multi-purpose sports and entertainment facility. The City developed the RFP with input from ten City departments and in consultation with constituencies throughout Seattle. The City’s objectives for the redevelopment of the Arena include each of the following (collectively, the “Arena Objectives”): A. To provide a world-class civic arena to attract and present music, entertainment, and sports events, potentially including National Basketball Association (“NBA”) and National Hockey League (“NHL”) events, to Seattle and the region; B. To provide for Arena design and operations in a manner that integrates with and enhances connections to Uptown and adjoining neighborhoods and aligns with the Urban Design Framework; C. To provide for design, permitting, development, demolition and construction of the Arena with minimal City financial participation; D. To provide for the continuous, successful, and sustainable operation of the Arena as a world-class civic venue with minimal City financial participation; E. To provide for mitigation of transportation impacts due to Arena construction and operations; F. To provide Arena construction and operations in a manner that is equitable for workers and consistent with the City’s Race and Social Justice Initiative; and G. To provide for Arena design and operational integration with Seattle Center, contributing positively to the vibrancy of Seattle Center; and WHEREAS, on February 23, 2017, the City formed an advisory body known as the Arena Community Advisory Panel (the “Advisory Panel”) to provide counsel to the City to consider proposals responding to the RFP, comprised of ten (10) Advisory Panel members chosen based on their various expertise, including, but not limited to, music, sports, transportation, neighborhood interests, and design; and 2 Att 1 – Memorandum of Understanding with Oak View Group V1 WHEREAS, on April 12, 2017, OVG submitted to the City a proposal in response to the RFP entitled “Proposal for the Transformation of the Arena at Seattle Center” (as subsequently amended, the “OVG Response”); and WHEREAS, between April 12, 2017 and June 2, 2017, each of (1) the Advisory Panel, (2) a City executive review team comprised of the Director of the Office of Economic Development, the Director of Seattle Center, and the Director of the City Budget Office (collectively, the “Executive Review Team”), and (3) a team of City staff members in the areas of design/constructability, finance, operations, social equity, and transportation (collectively, the “City Staff Review Team”) carefully evaluated the various proposals in response to the RFP to determine, amongst other things, how the proposals met the Arena Objectives; and WHEREAS, on June 2, 2017, the Advisory Panel submitted its Final Summary Report and Observations to the Mayor of the City and the DRAFTExecutive Review Team regarding the RFP proposals; and WHEREAS, on June 7, 2017, based upon the input of the Advisory Panel, the Executive Review Team, and the City Staff Review Team, the City selected the OVG Response as the preferred proposal for the renovation of the Arena; and WHEREAS, between June 7, 2017 and the Effective Date, OVG and the City have negotiated the terms of this MOU, which the Parties intend to be a binding and enforceable agreement