City Council
MEETING DATE: 8/12/2015
TITLE:
Title
Ground Lease Extension and License Agreement with Big League Dreams Sports Park
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FROM:
Tami E. Scott, Administrative Services Director
RECOMMENDATION:
Recommendation
Authorize the City Manager to execute a First Amendment to the existing Ground Lease and Agreement to Develop and a License Agreement with Big League Dreams Sports LLC that would extend the Ground Lease by 30 years, modify the Minimum Annual Rent, Amend the Promissory Note and provide for the use and maintenance of additional parking lot space and grant additional options to extend sublease agreement with STC One Communications in a final form mutually agreeable to Big League Dreams, the City and each parties' Legal representation.
Body
BACKGROUND:
The City of Cathedral City and Big League Dreams executed a Ground Lease and Agreement to Develop for the development and operation of a privately owned and privately constructed sports park and the development and maintenance of a municipally owned passive park on approximately 24.8 acres located within the City of Cathedral City at the intersection of Date Palm Drive and Dinah Shore Drive in September of 1996. Big League Dreams developed and constructed the Sports Park and has operated it since 1998 and has also maintained the Passive Park since that time.
To provide financing for the construction and development of the Sports Park, the City participated in a Certificate of Participation and Lease Revenue Bond, securitized by City Hall. The obligation under the financing mechanism has been paid for by Big League Dreams in the form of an executed Promissory Note dated July 30, 1998 by which Big League Dreams promised to pay the City the principal sum of $4,350,230.00 on or before September 30, 2027. Big League Dreams has made all installment payments to the City required of it pursuant to the terms of the Promissory Note to date.
In addition, Big League Dre...
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