Agenda Item Wording:
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Consent to Assign and Assume Lease of Stadium - Authorization for the City Manager to sign the City of Visalia’s consent to the Assignment and Assumption of Lease of the City owned stadium between the current owner to the potential new owner for the Rawhide baseball team.
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Prepared by: Leslie B. Caviglia, City Manager, 559-713-4332, Leslie.caviglia@visalia.gov; Alex Peltzer, Assistant City Attorney
Department Recommendation: It is recommended that the Visalia City Council authorize the City Manager to sign the City of Visalia’s consent to the Assignment and Assumption of Lease of the City owned stadium for the current owner of the Rawhide Baseball Team, First Pitch Entertainment, LLC., to the potential new owner, Around the Herd Holdings, LLC., contingent upon successful conclusion of the purchase of the team by the new owner.
The lease includes a provision for assignment of the lease, with the City Council’s consent which cannot be unduly withheld. Major League Baseball approved the sale during their winter meeting earlier this month, and City Staff knows of no reason the Council should not agree to this assignment, as it maintains the same terms and conditions, with a new party that has at least the same financial strength as the present tenant. In addition to the Lease Assignment Agreement, the seller is also assigning the rights and obligations of the settlement agreement between First Pitch and the City, relating to the improvement projects currently under way. That agreement modifies some of the rent and maintenance cost-share obligations under the lease, so it is important that it be assigned to the purchaser. The City is not a party to that assignment, as it does not need to be “accepted” by the City. Finally, the City is also being asked to disclose the status of all pending project contracts related to the MLB-required upgrades that were agreed to in the settlement agreement, which the City is prepared to do.
Summary:
The City has a 10-year lease with First Pitch Entertainment, LLC., the current owners of Visalia Rawhide professional baseball team that runs through 2029. The Segal family, owners of First Pitch Entertainment, have informed the City of their intent to sell the team to Around the Herd Holdings, LLC.
Around the Herd is owned by OnDeck partners, led by CEO Mike Carney, which will own the Visalia Rawhide and the Montgomery Biscuits. The mission of the company is to transform ballparks into vibrant community hubs. The company is part of the Avenue Sports Fun, which has made numerous investments across sports leagues and franchises in North America and Europe. More information on the company can be found at www.ondeckpartners.com </..//../Users/pamela.davilalopez/AppData/Local/Microsoft/Windows/INetCache/Content.Outlook/NXBD2YCX/www.ondeckpartners.com>.
Fiscal Impact: Around the Herd will be responsible for paying the agreed upon rent and fees noted in the settlement agreement between the City of Visalia and First Pitch Entertainment.
Alternatives: N/A
Recommended Motion (and Alternative Motions if expected):
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I move to authorize the City Manager to sign the City’s consent to the Assignment and Assumption of Lease of the City owned stadium from First Pitch Entertainment, LLC. to Around the Herd, LLC. contingent upon the successful completion of the sale of the Rawhide baseball team.
Environmental Assessment Status: N/A
CEQA Review: N/A
Deadline for Action: 12/15/2025
Attachments: FPE - Assignment and Assumption of Lease; FPE - Assignment and Assumption (Settlement Agreement and Release)