Agenda Item Wording:
title
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.
body
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....
Click here for full text