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HomeMy WebLinkAbout07.C- City Manager 7.0 DOC ID: 4722 CITY OF SAN BERNARDINO — REQUEST FOR COUNCIL ACTION Agreement/Contract Amendment From: Mark Scott M/CC Meeting Date: 11/07/2016 Prepared by: Tanya Romo, (909) 384- 5122 Dept: City Manager Ward(s): 1 Subject: Resolution of the Mayor and Common Council of the City of San Bernardino Approving a Lease Agreement with the Inland Empire 66Ers Baseball Club of San Bernardino, Inc. for the Property Located at 280 South "E" Street, San Bernardino, California and Approving Certain Related Actions. (#4722) Current Business Registration Certificate: Yes Financial Impact: Financial impact identified in the staff report. Motion: Adopt the Resolution. Background: Effective June 18, 1996, the City and the Inland Empire 66ers Baseball Club of San Bernardino, Inc. (formerly known as the San Bernardino Stampede, Inc.) entered into an up to 20-year lease (the "1996 Lease") for the City's baseball stadium property. The baseball stadium property consists of an approximately 1,184,832 square-foot baseball stadium and related improvements, which are municipal facilities, on a 27.20-acre parcel of land designated as Assessor's Parcel Number 0136-111-23 and located at 280 South "E" Street, San Bernardino California (the "Property"). The term of the 1996 Lease expires on December 31, 2016. The 66ers have requested a new lease with the City for the Property for a term of up to 10 years to be effective on or after January 1, 2017 (the "2017 Lease"). The proposed 2017 Lease also includes provisions for funding of up to $2 million-worth of replacement or reconfiguration of certain improvements, as well as regular maintenance costs that are needed at the Property. A copy of the 2017 Lease is included as Exhibit "A" to the attached Resolution. The Property is currently owned by the City of San Bernardino as Successor Agency to the former Redevelopment Agency of the City of San Bernardino (the "Successor Agency"), a separate legal entity from City established by § 34173 of the California Health and Safety Code (the "HSC"). The City is the sponsoring entity of the Successor Agency as defined in HSC § 34171(n) and certain actions of the Successor Agency are subject to the approval of its Oversight Board (the "Oversight Board") established by HSC § 34179. Pursuant to HSC § 34191.5(b), the Successor Agency prepared and submitted to the California Department of Finance (the "DOF") a long-range property management plan Updated: 11/3/2016 by Tanya Romo Packet Pg.941 7.0 4722 ("LRPMP") that was approved by DOF on December 31, 2015. The LRPMP governs the Successor Agency's disposition of its real property assets, including the Property. As a part of its approval of the LRPMP, DOF has required that the Property be sold, and has advised the Successor Agency that the Property can be sold to a third party or to a public entity, which could include City. The LRPMP requires that the Successor Agency obtain Oversight Board and DOF approval of property sales. The Successor Agency is proposing to sell the Property to the City at its fair market value consistent with the provisions of the LRPMP and DOF's guidance for the sale of the Property. In that regard, the Successor Agency has hired an appraiser to appraise the Property. The Oversight Board's and DOF's approval of the conveyance of the Property by the Successor Agency to City at a sales price acceptable to City in its sole discretion are conditions precedent to the effectiveness of the 2017 Lease. Consistent with the foregoing, the City should seek to purchase the Property from the Successor Agency and then lease an interest therein, as more particularly provided within the 2017 Lease to the 66ers conditioned upon the City obtaining fee simple ownership of the Property. The determination with respect to the acquisition of the Property will be made a later date once the appraisal has been completed. Certain of the capital improvements located at the Property are in need of replacement or reconfiguration and require regular maintenance. The Successor Agency lacks funds to pay for these items and does not expect to have moneys applicable for such purpose in the future. Further, the City is a municipal bankruptcy debtor in the matter of In re City of San Bernardino, California, Case No. 6:12-bk-28006-MJ in the United States Bankruptcy Court for the Central District of California, Riverside Division. In connection with its plan for the adjustment of its debts in order to achieve solvency, on September 30, 2016 the City submitted to the bankruptcy court the City of San Bernardino Long- Range Financial Model (the "Financial Model"). However, the Financial Model does not include funding for the acquisition of the Property or any of the replacement or reconfiguration of certain improvements, as well as regular maintenance costs that are needed at the Property. Therefore, the City may not use any of its General Fund money to acquire the Property or to pay any expense contemplated by the 2017 Lease. However, pursuant to HSC § 34191.4(c), proceeds from the 2010A and 2010B Tax Allocation Bonds issued by the San Bernardino Joint Powers Financing Authority on behalf of the former Redevelopment Agency of the City of San Bernardino (the "2010 Bond Proceeds") may be used to fund municipal improvements within the corporate limits of the City of San Bernardino. On March 21, 2016, the Successor Agency and the City entered into a Bond Expenditure Agreement (the "BEA") for the purpose of transferring responsibility for the management of the use of the 2010 Bond Proceeds to City. The BEA was subsequently approved by the Oversight Board and DOF and it therefore fully effective. Because of the foregoing, the City has approximately $6.2 million of 2010 Bond Proceeds that it may use for selected municipal facilities. Consistent with the foregoing, the City would use a portion of the 2010 Bond Proceeds for the acquisition of the Property and up to $2 million for certain of the replacement or reconfiguration, as well as regular maintenance costs that are needed at the Property subject to the provisions therefor described in the 2017 Lease. Updated: 11/3/2016 by Tanya Romo Packet Pg.942 4722 In addition, the attached Resolution has been reviewed with respect to applicability of the California Environmental Quality Act (the "CEQA"), the State CEQA Guidelines (California Code of Regulations, Title 14, §§ 15000 et seq., hereafter the "Guidelines"), and the City's environmental guidelines. Therefore, the attached Resolution is not a "project" for purposes of CEQA, as that term is defined by CEQA Guidelines § 15378, because this Resolution constitutes general policy and procedure making and organizational or administrative activity that will not result in a direct or indirect physical change in the environment, per § 15378 (b) (5) of the CEQA Guidelines. Fiscal Impact: The City has approximately $6.2 million of 2010 Bond Proceeds that it may use for selected municipal facilities. Subject to the effectiveness of the 2017 Lease, the City would use up to $2 million of 2010 Bond Proceeds for certain of the replacement or reconfiguration, as well as regular maintenance costs that are needed at the Property. In addition, subject to a later consideration of the possibility of acquiring the Property from the Successor Agency, an additional amount of 2010 Bond Proceeds could be used to fund acquisition costs. The specific amount will be determined later. In any event the City will not be required to purchase the Property. However, if the City does not purchase the Property, the 2017 Lease will not become effective. Recommendation: It is recommended that the Mayor and Common Council adopt a Resolution approving a Lease Agreement with the Inland Empire 66ers Baseball Club of San Bernardino, Inc. v for the ro ert located at 280 South "E" Street, San Bernardino, California and p p Y approving certain related actions. Supporting Documents: MCC Resolution Approving Baseball Lease 11-7-16 (DOC) agrmt. 4722 (PDF) Updated: 11/3/2016 by Tanya Romo Packet Pg. 943 1 RESOLUTION NO. 2016- 2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO APPROVING A LEASE AGREEMENT WITH THE INLAND 3 EMPIRE 66ERS BASEBALL CLUB OF SAN BERNARDINO, INC. FOR THE PROPERTY 4 LOCATED AT 280 SOUTH "E" STREET, SAN BERNARDINO, CALIFORNIA AND APPROVING CERTAIN RELATED ACTIONS 5 WHEREAS, the City of San Bernardino (the "City") is a charter city in the County of San 6 Bernardino, State of California; and 7 J WHEREAS, the Inland Empire 66ers Baseball Club of San Bernardino, Inc. (the "66ers") E 8 2 is a corporation organized under California law and operates a Class A-Advanced minor league 9 baseball team which is a member of the California League(the "League"); and 10 WHEREAS, pursuant to the certain lease dated June 18, 1996 by and between the City and m 11 •• 12 the 66ers (the "1996 Lease"), the 66ers currently occupy an approximately 1,184,832 square-foot N baseball stadium and related improvements, which are municipal facilities, on a 27.20-acre parcel of 13 ti land designated as Assessor's Parcel Number 0136-111-23 and located at 280 South "E" Street, San 14 15 Bernardino California(the "Property"); and CU J WHEREAS, the term of the 1996 Lease expires on December 31, 2016; and 16 WHEREAS, the 66ers have requested to enter into a new lease with the City for the 17 m Property for a term of up to ten (10) years to be effective, subject to the City's fee ownership of the 18 > Property as further described herein on or after January 1 2017 the "2017 Lease" ° p y y ( ), a copy of � 19 which is included as Exhibit"A"to this Resolution; and 20 WHEREAS, the proposed 2017 Lease also includes provisions for funding of up to $2 21 million-worth of replacement or reconfiguration of certain improvements, as well as regular 22 U maintenance costs that are needed at the Property; and 23 WHEREAS, the Property is currently owned by the City of San Bernardino as Successor 24 Agency to the former Redevelopment Agency of the City of San Bernardino (the "Successor y 25 a Agency"), a separate legal entity from the City established by § 34173 of the California Health and 26 Safety Code (the"HSC"); and 27 28 1 Packet Pg.944 7.C.a 1 WHEREAS, the City is the sponsoring entity of the Successor Agency as defined in HSC § 2 34171(n) and certain actions of the Successor Agency are subject to the approval of its Oversight 3 Board(the"Oversight Board") established by HSC § 34179; and 4 WHEREAS, pursuant to HSC § 34191.5(b), the Successor Agency prepared and submitted 5 to the California Department of Finance (the "DOF") a long-range property management plan 6 ("LRPMP")that was approved by DOF on December 31, 2015; and 7 WHEREAS, the LRPMP governs the Successor Agency's disposition of its real property E 8 assets, including the Property; and 9 WHEREAS, as a part of its approval of the LRPMP, DOF has required that the Property be Cn 10 sold, and has advised the Successor Agency that the Property can be sold to a third party or to a N m 11 public entity, which could include the City; and N N 12 WHEREAS, the LRPMP requires that the Successor Agency obtain Oversight Board and 13 DOF approval of property sales; and ti 14 WHEREAS, the Successor Agency is proposing to sell the Property to the City at its fair r N 15 market value consistent with the provisions of the LRPMP and DOF's guidance for the sale of the 0 16 Property; and -0 17 WHEREAS, the Oversight Board's and DOF's approval of the conveyance of the Property m 18 by the Successor Agency to the City at a sales price acceptable to the City in its sole discretion are o 19 conditions precedent to the effectiveness of the 2017 Lease; and a a 20 WHEREAS, consistent with the foregoing, the City intends to seek to purchase the ° 21 Property from the Successor Agency and then lease an interest therein, as more particularly o: 22 provided within the 2017 Lease, a copy of which is included as Exhibit "A" to this Resolution, to U 23 the 66ers conditioned upon the City obtaining fee simple ownership of the Property; and a� 24 WHEREAS, certain of the capital improvements located at the Property require 25 replacement or reconfiguration, as well as regular maintenance costs and the Successor Agency a 26 lacks funds to pay for these items and does not expect to have moneys applicable for such purpose 27 in the future; and 28 2 Packet Pg. 945 7.C.a 1 WHEREAS, the City is a municipal bankruptcy debtor in the matter of In re City of San 2 Bernardino, California, Case No. 6:12-bk-28006-MJ in the United States Bankruptcy Court for the 3 Central District of California, Riverside Division; and 4 WHEREAS, in connection with its plan for the adjustment of its debts in order to achieve 5 solvency, on September 30, 2016 the City submitted to the bankruptcy court the City of San 6 Bernardino Long-Range Financial Model (the "Financial Model"); and N 7 WHEREAS, the Financial Model does not include funding for the acquisition of the � E 8 Property or any of the replacement or reconfiguration of certain improvements, as well as regular cc 9 maintenance costs required at the Property and, therefore, the City shall not be required to use any 10 of its General Fund money to acquire the Property or to pay any expense contemplated by the 2017 N 11 Lease; and m N N 12 WHEREAS, pursuant to HSC § 34191.4(c),proceeds from the 2010A and 2010B Tax Allocation 13 Bonds issued by the San Bernardino Joint Powers Financing Authority on behalf of the former 14 Redevelopment Agency of the City of San Bernardino (the"2010 Bond Proceeds")may be used to r N 15 fund municipal improvements within the corporate limits of the City of San Bernardino; and 16 WHEREAS, on March 21, 2016, the Successor Agency and the City entered into a Bond 0 17 Expenditure Agreement (the "BEA") for the purpose of transferring responsibility for the m 18 management of the use of the 2010 Bond Proceeds to the City; and o a 19 WHEREAS, the BEA was subsequently approved by the Oversight Board and DOF and is Q c 20 therefore fully effective; and 21 WHEREAS, because of the foregoing, the City has approximately $6.2 million of 2010 22 Bond Proceeds that it may use for selected municipal facilities; and U 23 WHEREAS, consistent with the foregoing, the City would use a portion of the 2010 Bond a� 24 Proceeds for the acquisition of the Property and up to $2 million for replacement or reconfiguration U M 25 of certain improvements, as well as regular maintenance costs that are needed at the Property subject a 26 to the provisions therefor described in the 2017 Lease; and 27 WHEREAS, this Resolution has been reviewed with respect to applicability of the ® 28 California ornia Qua li ty A ct ( C E A"), the Sta t e CE QA Guidelines (California Code of 3 Packet Pg. 946 7.C.a 1 Regulations, Title 14, § 15000 et seq., hereafter the "CEQA Guidelines"), and the City's 2 environmental guidelines; and 3 WHEREAS, this Resolution does not constitute a"project" for purposes of CEQA, as that 4 term is defined by CEQA Guidelines § 15378, because this Resolution constitutes continuing 5 administrative or maintenance activities, general policy and procedure making, and organizational 6 or administrative activity that will not result in a direct or indirect physical change in the 7 environment, per § 15378 (b) (2) and(5) of the CEQA Guidelines; and E 8 WHEREAS, all of the prerequisites with respect to the approval of this Resolution have co 9 been met. 10 NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON N d �a m 11 COUNCIL OF THE CITY OF SAN BERNARDINO,AS FOLLOWS: N N 12 Section 1. The foregoing recitals are true and correct and are a substantive part of this 13 Resolution. 14 Section 2. The 2017 Lease, a copy of which is included as Exhibit "A" to this a� 15 Resolution, is approved. J 16 Section 3. The City Manager or his designee is hereby authorized and directed, for and 0 N 17 in the name of and on behalf of the City, to execute, acknowledge and deliver the 2017 Lease in m c 18 substantially said form, with such non-material revisions as said officers, with the approval of the o L Q 19 City Attorney, may require or approve, such approval to be conclusively evidenced by the a 20 execution and delivery of said Lease, and to take such further actions and execute such other 21 documents as are necessary to effectuate the intent of this Resolution. 22 Section 4. This Resolution is not a "project" for purposes of CEQA, as that U 23 term is defined by CEQA Guidelines § 15378, because this Resolution constitutes continuing aD 24 administrative or maintenance activities, general policy and procedure making, and organizational U R 25 or administrative activity that will not result in a direct or indirect physical change in the a 26 environment,per§ 15378 (b) (2) and(5) of the CEQA Guidelines. 27 Section 5. This resolution shall take effect upon its adoption and execution in the 28 manner as required by the City Charter. 4 Packet Pg. 947 7.C.a 1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO APPROVING A LEASE AGREEMENT WITH THE INLAND EMPIRE 2 66ERS BASEBALL CLUB OF SAN BERNARDINO, INC. FOR THE PROPERTY 3 LOCATED AT 280 SOUTH "E" STREET, SAN BERNARDINO, CALIFORNIA AND APPROVING CERTAIN RELATED ACTIONS 4 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and 3 5 Common Council of the City of San Bernardino, at a meeting thereof, held on the 7th day of a 6 W November, 2016, by the following vote,to wit: 7 J E 8 Council Members Ayes Nays Abstain Absent 9 MARQUEZ 10 BARRIOS 11 VALDIVIA m N 12 SHORETT C14 NICKEL 13 RICHARD 14 tar r MULVIHILL U) 15 `� J 16 17 Georgeann Hanna, City Clerk C 18 > The foregoing Resolution is hereby approved this day of November 2016. °Q L 19 a c 20 0 21 R. Carey Davis, Mayor Y � 22 U 23 Approved as to Form: 24 Gary D. Saenz, City Attorney U c4 25 q By: 26 27 28 5 Packet Pg. 948 I' 1 EXHIBIT "A" 2 3 LEASE AGREEMENT WITH THE INLAND EMPIRE 66ERS BASEBALL CLUB 4 OF SAN BERNARDINO, INC. FOR THE PROPERTY LOCATED AT 5 280 SOUTH "E" STREET, SAN BERNARDINO, CALIFORNIA 6 7 (See Attachment) J a� E 8 �a 9 N 10 N cC 11 Co N N 12 13 ti 14 a� N 15 J 16 cn a� 17 m c 18 > 0 L a 19 Q r- 20 21 (n 22 U 23 24 U t4 25 Q 26 27 28 6 Packet Pg. 949 k� LEASE AGREEMENT CITY OF SAN BERNARDINO and INLAND EMPIRE 66ers BASEBALL CLUB OF SAN BERNARDINO, INC. LESSOR: CITY OF SAN BERNARDINO 300 North "D" Street San Bernardino, CA 92418 LESSEE: INLAND EMPIRE 66ers BASEBALL CLUB OF SAN BERNARDINO, INC. PARTY: Each of Lessor and Lessee 3 PREMISES: 280 South E Street San Bernardino, CA 92401 Assessor's Parcel No. 0136-111-23 n m TERM: From commencement until December 31,2026 J E COMMENCEMENT DATE: The later of: the date of Lessor's acquisition of fee simple title to 0 the leasehold premises,or January 1, 2017 co DATE OF LEASE: _,2016 y �a m N N ti 7 N N ti mot' E L i+ _ E V V Q Packet Pg. 950 i Z.C.b RECITALS A. The City of San Bernardino ("Lessor") is a charter city in the County of San Bernardino, State of California. B. The Inland Empire 66ers Baseball Club of San Bernardino, Inc. ("Lessee") is a corporation organized under California law. Lessee operates a Class A-Advanced minor league baseball team which is a member of the California League (the "League"). Lessor and Lessee may be individually referred to in this Lease as a"Party," and collectively as the "Parties." C. Lessee occupies an approximately 1,184,832 square-foot baseball stadium ("Stadium") and related facilities on a 27.20-acre parcel of land designated as Assessor's Parcel Number 0136-111-23 and located at 280 South E Street in the City of San Bernardino (the "Property"). A lease concerning certain rights of use as to the Property was executed by Lessor and Lessee on June 18, 1996, and expires on December 31, 2016. The leasehold interest is as to rights to use the Property and improvements thereon,all as provided under such lease. D. The Property is owned by the City of San Bernardino as Successor Agency ("Successor Agency") to the former Redevelopment Agency of the City of San Bernardino ("former "RDA"), a separate legal entity from Lessor established by Section 341.73 of the California Health E and Safety Code ("HSC"), Lessor is the sponsoring entity of the Successor Agency as defined in HSC Section 34171(n). Certain actions of the Successor Agency are subject to the approval of its 2 Cn Oversight Board ("Oversight Board")established by HSC Section 34179. — E. Improvements located at the Property are in need of certain repairs and a� improvements, as well as regular maintenance. The Successor Agency lacks funds to pay for these M items and does not expect to have moneys applicable for such purpose in the future. N �t F. Pursuant to HSC Section 34191.5(b), the Successor Agency prepared and submitted N to the California Department of Finance ("DOF") a long-range property management plan N ("LRPMP") which was approved by DOF on December 31, 2015. The LRPMP governs the Successor Agency's disposition of its real property assets, including the Property. As a part of its E approval of the LRPMP, DOF has required that the Property be sold, and has advised the Successor M Agency that the Property can be sold to a third party or to a public entity, which could include Lessor. The LRPMP requires that the Successor Agency obtain Oversight Board and DOF approval of property sales, and requires that properties be listed for sale at or above appraised fair market value or another amount approved by the Oversight Board. Oversight Board and DOF approval of r the conveyance of the Property by the Successor Agency to Lessor at a sales price acceptable to Lessor in its sole discretion are conditions precedent to the effectiveness of this Lease. G. Consistent with the foregoing, Lessor intends to seek to purchase the Property from the Successor Agency and then lease an interest therein, as more particularly provided herein (which leasehold interest is as to land and improvements thereto; namely the "Premises")to Lessee pursuant to this Lease Agreement ("Lease"). Therefore, the effectiveness of this Lease is conditioned upon Lessor obtaining fee simple ownership of the Property consistent with the provisions previously described. H. Lessor is a municipal bankruptcy debtor in the matter of In re City of San Bernardino, California, Case No. 6:12-bk-28006-MJ in the United States Bankruptcy Court for the Packet Pg.951 Central District of California, Riverside Division. In connection with its plan for the adjustment of achieve solvency, submitted to the bankruptcy court on September 30, its debts �n order to ac y, p Y p 2016 the City of San Bernardino Long-Range Financial Plan (Financial Model). The Financial Model does not include funding for the repairs and capital improvements or the maintenance that are needed at the Property. Further, Lessor shall not be required to use any of Lessor's General Fund money to pay any expense contemplated by this Lease. I. Pursuant to HSC Section 34191.4(c), proceeds from the 2010A and 2010B Tax Allocation Bonds issued by the San Bernardino Joint Powers Financing Authority on behalf of the former RDA (2010 Bond Proceeds) may be used to fund municipal improvements within the corporate limits of the City of San Bernardino. On March 21, 2016, the Successor Agency and Lessor entered into a Bond Expenditure Agreement (BEA) for the purpose of transferring responsibility for the management of the use of the 2010 Bond Proceeds to Lessor. The BEA was approved by the Oversight Board and DOF. Lessor therefore proposes that a portion of the 2410 3 Bond Proceeds be used for the repairs and improvements and maintenance that are needed at the Premises consistent with the provisions described in this Lease. a� AGREEMENT Q J 1. INCORPORATION OF RECITALS E The foregoing Recitals are true and are incorporated here and made a part of this Lease. 2 2. COMMENCEMENT AND CONDITIONS TO EFFECTIVENESS a� M Upon the later to occur of: (i)the Commencement Date; or (ii)the satisfaction of those m conditions set forth in part (a) of this Section (the "Conditions Precedent"), Lessor leases the N Premises to Lessee for the term set forth herein on the terms and conditions set forth herein. N (a) Conditions Precedent. The obligation of Lessor to deliver possession of the Premises N pursuant to this Lease and the obligations of the Parties hereto are subject to the prior satisfaction of `r each of the following: rn (1) Lessor shall have acquired fee simple title to the Property in condition acceptable to Lessor; E (2) Lessee shall have provided evidence reasonably satisfactory to Lessor that Lessee is a corporation in good standing, that the individual or individuals signing this Lease on behalf of Lessee are authorized to, and by executing this Lease do, bind the Lessee, and that Lessee has obtained all necessary authorizations for Lessee to continue to operate the Inland Empire 66ers Baseball Club(the "Team") as a team in the California League, which Team must be classified Class A -- Advanced or better (or such equivalent designation as Major League Baseball ("MLB") may designate in the future); (3) Lessee shall have provided evidence reasonably satisfactory to Lessor that Lessee has obtained all insurance required to be procured by Lessee pursuant to this Lease (including without limitation Section 24 hereof),including endorsements as set forth in Section 24 hereof, (4) No administrative action or litigation shall, to the best knowledge of either of the Parties hereto have been commenced which is inconsistent with this Lease being effective; 2 Packet Pg. 952 (5) Lessee shall have provided to Lessor a plan for the provision of security at the Premises, as more particularly described in Section 7(d) hereof, which plan shall have been approved by Lessor(the "Security Plan); and (6) Lessee shall have identified key personnel more fully described in Section 7(e)hereof. Items (1) to(6), inclusive,together constitute the Conditions Precedent. (b) Lessor shall have secured fee simple title to the Property. The effectiveness of this Lease is expressly conditioned on Lessor acquiring fee simple title to the Property on terms acceptable to Lessor; and governmental approvals necessary for the transfer of the Property to Lessor. Lessee agrees and acknowledges that concerns regarding the provision of security are particularly acute in connection with sporting events, particularly where alcoholic beverages are served. Lessor agrees to reasonably evaluate within a reasonable time following receipt thereof, a W detailed security plan as shall be submitted by Lessee; such a plan, once approved by Lessee, shall cn constitute the "Security Plan." The Security Plan shall be updated semiannually, with Lessor's approval required as to each update (subject to reasonable review by Lessor). E zs 3. EXPIRATION This Lease shall expire on December 31, 2026, unless earlier terminated under provisions contained elsewhere in this Lease. M m 4. OPTIONAL EARLY TERMINATION N Either Party may terminate this Lease for any reason or for no reason effective December 31, 2022, by giving written notice to the other Party on or before March 15,2021, or effective December i 31,2024, by giving written notice to the other Party on or before March 15, 2023. E I 5. BASE RENT (a) So long as the Base Operating Conditions (as defined in Section 7(a)) remain satisfied, Lessee shall pay Lessor one dollar ($1.00) as Base Rent per year, due on January 1 of each Re nt Due Date"}. year during which this Lease is in effect("Base Re y Y Q (b) During any time one or more of the Base Operating Conditions is not satisfied, the Base Rent shall be deemed to be equal to the fair market rent of the Premises in its current condition as determined in good faith by Lessor from time to time. If Lessee does not agree with Lessor's determination of fair market rent, Lessee shall have the option to contest Lessor's determination by obtaining an appraisal from a qualified certified appraiser (i.e., a qualified certified appraiser/firm must demonstrate that the person in charge of appraising the property is licensed by the California Bureau of Real Estate Appraisers at not less than a Certified General Appraiser level and is a Member of the Appraisal Institute ["MAI"]), at Lessee's cost, and shall provide Lessor a copy of the appraisal report. If Lessor does not agree to adopt the fair market rental value detennined by Lessee's appraisal report then Lessor shall have the option to obtain its own appraisal report from a qualified certified appraiser (i.e., a qualified certified appraiser/firm must demonstrate that the person in charge of appraising the property is licensed by the California Bureau of Real Estate Appraisers at 3 Packet Pg.953 7.C.b not less than a Certified General Appraiser level and is a Member of the Appraisal Institute ["MAF)), at Lessor's cost, and the average rental value of the two appraisal reports shall be deemed the fair market rent for the Premises. Base Operating Conditions will only be deemed unsatisfied under this section after the default and cure provisions of section 26 below are followed. (c) Base Rent shall be paid within five (5) business days from the Base Rent Due Date. Payment shall be made at Lessor's address for purposes of notice, set forth elsewhere in this Lease. Lessee shall be permitted to pay the first six years of Base Rent due under Section 5(a) above in a single lump sum payment upon execution of this Lease, but such payment shall not preclude the termination of this Lease before the expiration of six years if otherwise permitted under the terms of this Lease. (d) Base Rent shall bear interest from the period due date until satisfied in full at the lesser of (i) seven percent (7%) simple interest per annum or (ii)the highest non-usurious rate of interest that may lawfully be charged by a charter city. 3 a� c CD 6. ADDITIONAL RENT W CD (a) As Additional Rent, Lessee shall pay Lessor one dollar ($1.00) for each regular CD season baseball game paid attendee at the Premises, after attendance at Lessee's regular season E baseball games at the Premises reaches two-hundred and twenty-five thousand (225,000) paid .'a attendees in any baseball season, inclusive of playoff games, if any. Attendance shall be determined N using the Attendance Report of the California League as the official record of attendance. Additional — Rent is payable on September 30 of each year during which this Lease is in effect, or as soon thereafter as regular season attendance can be determined. Payment shall be made at Lessor's address for purposes of notice, set forth elsewhere in this Lease. 00 N (b) In addition, in the event Lessee fails to provide insurance, indemnify against losses, and/or provide security in conformity with the Security Plan, Lessor may, but shall not be obligated N to,defray the cost to address the lack of insurance,the occurrence of any unindemnified losses,or the failure to fully implement the Security Plan. Any such costs so incurred by Lessor shall be deemed to be advances, and Lessee shall be obligated to repay Lessee for all such costs so incurred,as further E Additional Rent. Payment of Additional Rent that becomes due under this Section 6(b) shall be due and payable as of the thirtieth(30th) day following presentment by Lessor. d (c) Additional Rent shall bear interest from the period due date until satisfied in full at E the lesser of(i) seven percent (7%) simple interest per annum or (ii)the highest non-usurious rate of interest that may lawfully be charged by a charter city. a 7. USE OF PREMISES (a) Lessor's agreement to accept nominal Base Rent as set forth in Section 5 is expressly conditioned on and given in consideration of(i) Lessee's use of the Premises for the operation of the Team within the League, which shall be not lower than Class A — Advanced (or such other equivalent designation that may be created by MLB); (ii)the Team playing a full season schedule of games in accordance with the usual operations of the League; and (iii) Lessee not being in default under any provisions of this Lease. Operation of a minor league baseball team shall be deemed to require, without limitation, that Lessee provide food, beverage, and souvenir concessions meeting 4 Packet Pg. 954 7.C.b standards of health, cleanliness, and attractiveness required under applicable city codes and regulations(collectively,the"Base Operating Conditions"). (b) While, and only while,Lessee continues to use the Premises as stated in Section 7(a), including the Base Operating Conditions, Lessee may use the Premises for other lawful purposes provided such other uses do not damage the Premises or interfere with the use of the Premises for minor league baseball. if Lessee ceases operation of the Team during the term of this Lease or if the Team is no longer a member of the League, or the level of the League is below Class A -Advanced, Lessor may at its option terminate this Lease. (c) Lessee shall operate and hold open to the public the Premises continuously throughout the term of this Lease, except as may reasonably be required to perform the improvements, maintenance, and upgrades described in Sections 9 and 10, and except to the extent the Premises may become unusable due to natural disaster or other cause not attributable to the conduct of Lessee. 3 as _ aD (d) Lessee shall at its sole expense provide parking, security, and janitorial personnel at all events open to the public as needed to ensure the safety and convenience of attendees. The provision of security by Lessee at the Premises is a material provision of this Lease, but for which Lessor would not have entered into this Lease. Lessee shall submit to Lessor a detailed plan for the E provision of security services at the Premises,which shall apply at all times this Lease is in effect but :a with particular emphasis on those days and times when there is active use of the Premises. The plan N shall include service levels, including number of personnel, hours, and a discussion of qualifications of personnel, chain of command, and a location of key personnel of Lessee in charge of providing or overseeing the provision of security services. Lessee agrees and acknowledges that concerns m regarding the provision of security are particularly acute in connection with sporting events, especially where alcoholic beverages are served. Lessor agrees to reasonably evaluate within a N reasonable time following receipt thereof, a detailed security plan as shall be submitted by Lessee; v such a plan, once approved by Lessee, shall constitute the "Security Plan." The Security Plan shall N be updated semiannually, with Lessor's approval required as to each update (subject to reasonable review by Lessor). L (e) Lessee shall identify in writing upon the commencement of this Lease the key a personnel of Lessee who will be responsible for the operation of the Premises, including without a limitation the General Manager of the baseball team. E (f) Lessor may use the Premises for non-baseball events on dates agreed to by the Q Parties. Lessee shall not unreasonably withhold its agreement to Lessor's use of the Premises when requested by Lessor. Lessee shall provide parking services, security, janitorial services, and concessions for such events at the same level of service as for events conducted by Lessee and in conformity with the Security Plan. Lessor shall reimburse Lessee for the costs of materials and labor incurred by Lessee due to Lessor's use of the Premises. Ticket sales revenues from non-baseball events conducted by Lessor shall be paid to Lessor after deducting reasonable and customary costs of sale incurred by Lessee; such costs shall in no event exceed thirty percent (30%) of such event revenues. Twenty percent(20%) of the gross revenues from concessions during non-baseball events conducted by Lessor shall be paid to Lessor (gross revenue shall not include any sales taxes that are collected from concession sales). Except as provided for in this section 7(f), Lessee shall be entitled to all revenues generated from the Premises. 5 Packet Pg. 955 7.C.b (g) Lessee shall use diligent efforts to identify additional sources of revenue that may be derived from the Premises for special events. (h) Lessor shall have the use of one luxury box at the Stadium for not fewer than 18 games per season. Lessor shall select the dates for the 18 games prior to the beginning of each baseball season. Such selection is anticipated to occur during the Liaison Committee meeting held prior to the beginning of each season, as described in Section 48. Lessor shall have full discretion in the use of the luxury box, include the rights to designate the guests who may use the box and to sell or transfer the rights to use the box. $. TEAM NAME Throughout the term of this Lease, the name of the Team shall be "Inland Empire 66ers of San Bernardino' (the "Team Name"). The Team shall be referred to by the full Team Name in all publications, announcements, and marketing, advertising, or promotional materials disseminated by or on behalf of Lessee or any of its affiliates during the term of this Lease. Upon the commencement CD of this Lease, Lessee shall request of the League and. all other professional and business organizations with which Lessee or the Team is affiliated that they henceforth refer to the Team by the Team Name in all of their publications, announcements, and marketing, advertising, or J promotional materials. To the extent that a previous name of the Team is used on signage already in E existence as of the commencement of this Lease, the Team Name shall be incorporated into the signage when it is replaced. CO 9. INITIAL CAPITAL IMPROVEMENTS; FUNDING CD N (a) Following the effectiveness of this Lease as provided under Section 2(a), Lessor shall m make available to Lessee funding of up to one million dollars ($1,000,000) solely from the 2010 N Bond Proceeds,to be used exclusively for initial capital improvements to the Premises, consisting of the replacement/reconfiguration of seats throughout the Stadium,joint sealing as most needed and/or N stucco crack sealing and painting of superstructures(the"Initial Capital Improvements"). In addition. N Improvements may also include an non-maintenance related Capital Im rove Initial Ca Y to the foregoing, the I p p Y replacement or reconfiguration of any of the items described in Section 10(a) ( through i1) thh (5) of this E .II � Lease. Lessor shall not be required to use any funds from Lessor's General Fund to pay for t he Initial Capital Improvements. If. completion of the Initial Capital Improvements in a manner `i satisfactory to Lessor requires the expenditure of more than one million dollars ($1,000,000), the additional amount required shall be provided solely by Lessee. (b) To access the funding for the Initial Capital Improvements, Lessee shall submit to a Lessor a proposed budget itemizing the work to be performed to accomplish the Initial Capital Improvements,the cost for each item of work,and the persons or entities who will perform the work. At its option, Lessee may submit multiple budgets covering different items of work involved in the construction of the Initial Capital Improvements. In preparing budgets,Lessee shall obtain proposals from duly qualified and licensed contractors for the construction of the Initial Capital Improvements. (c) In obtaining proposals, and in contracting for and performing work, Lessee and its contractors and subcontractors shall comply with all federal, state, and local ordinances, regulations, and laws concerning the expenditure of public funds, including without limitation those sections of the San Bernardino Municipal Code related to purchasing goods and services, and those sections of the California Labor Code (the "Labor Code") related to prevailing wages, hours of labor and 6 Packet Pg. 956 7.c.b employment preferences, and all other requirements pertaining to "public works," as defined in Section 1720(a) of the Labor Code. Without limitation, any construction or improvements at the Premises ("Improvements") shall be performed in compliance with all applicable provisions of(i) Labor Code Section 1720, et seq., and its implementing regulations regarding the payment of prevailing wages (the "State Prevailing Wage Law") and (ii) federal prevailing wage law ("Federal Prevailing Wage Law"and,together with State Prevailing Wage Law,the "Prevailing Wage Laws"). Lessee shall be solely responsible for determining applicability of, and complying with, the Prevailing Wage Laws. Lessor makes no representation as to the applicability or non-applicability of the Prevailing Wage Laws to Improvements,or any part thereof. (d) Without limiting Section 23 of this Agreement, Lessee hereby releases from liability, and agrees to indemnify, defend, assume all responsibility for and hold Lessor and its respective elected officials, officers, employees, contractors, agents and representatives, harmless from any and all claims, demands, actions, suits, proceedings, fines, penalties, damages, expenses and/or "increased costs," including reasonable attorney fees, court and litigation costs, and fees of expert CD witnesses, resulting from, arising out of, or based upon Lessee's acts or omissions pertaining to the development, construction, and/or operation of Improvements, including, without limitation, any and CD all public works as defined by applicable law. "Increased costs," as used in this Section 9(d), shall have the meaning ascribed to it in Labor Code Section 1781, as the same may be amended from time _J to time. This obligation of Lessee applies to,without limitation,the following: E (1) noncompliance by Lessee with any applicable local, state and/or federal law, 2 CO including, without limitation, federal and/or state labor laws and any applicable requirement to pay state prevailing wages and/or federal prevailing wages; s m (2) the implementation of Section 1781. of the Labor Code, as the same may be CO amended from time to time, or any other similar law; and/or N ti �r (3) failure by Lessee to provide any required disclosure or identification required by Labor Code Section 1781, as the same may be amended from time to time, or any other similar law. L (e) It is agreed by the Parties that, in connection with the development of Improvements, including, without limitation, any and all public works as defined by applicable law, Lessee shall bear all risks of payment or non-payment of prevailing wages under California law and/or the implementation.of Labor Code Section 1781, as the same may be amended from time to time, and/or any other similar law. The foregoing indemnity shall survive termination of this .Lease and shall continue after completion of the construction and development of Improvements by Lessee. a (f) Within 45 days after receipt of a budget Lessor shall approve, disapprove, or request further information on, each budget item. Upon final approval of a budget,and provided there are no uncured defaults of Lessee under this Lease, Lessor shall provide Lessee with the funding amounts allocated to the budget items subject to the requirements set forth above. (g) Lessee shall require performance and payment bonds from all contractors and subcontractors engaged to perform work under this Section 9. Lessee shall keep the Premises free and clear of, and hold Lessor harmless against, any stop notices, liens, or other encumbrances or claims asserted by such contractors or subcontractors. 7 Packet Pg. 957 7.C.b i (h) On or before each December 31, Lessee shall submit to Lessor an accounting showing the use of the funding provided for the budgeted items for the preceding 12 months, if any, prepared at Lessee's expense by a certified public accountant acceptable to Lessor. 10. REGULAR MAINTENANCE AND UPGRADES; FUNDING (a) Lessee is responsible, at its sole expense except as provided in Sections 9(a) and 10(b) of this Lease,for furnishing all labor and materials necessary for the regular maintenance of the Premises, including without limitation: (1) Structural parts of buildings and other improvements, including foundations, bearing and exterior wails including glass and doors, subflooring,and roof. (2) Electrical,plumbing,and sewage systems contained within the Premises. -- 3 (3) Window frames, gutters, and downspouts. (4) Heating, ventilation and air conditioning systems servicing the Premises, N including changing heating and air conditioning filters every four(4) months. (5) Grounds, including parking areas, outside lighting, grass, field surfaces, turf, E trees, shrubbery and other vegetation. 11 (6) Janitorial services sufficient to keep the interior of the Premises in a clean and orderly condition. m (7) Monthly or more frequent inspection of the Premises to identify needed N maintenance. ti �t (b) In addition to the Initial Capital Improvements funding described in Section 9, for N each of the first five calendar years this Lease is in effect,Lessor shall contribute $200,000 each year r- solely from the 2010 Bond Proceeds for the maintenance described in Section 10(a). Lessee shall provide Lessor an accounting of its use of these funds each year, prepared at Lessee's expense by a r certified public accountant acceptable to Lessor. To the extent all of the funds received during a year are not used during that year, the remaining funds will be carried over into successive years. If upon m the expiration or other termination of this Lease there remains an unused balance of these funds, such = remaining balance shall be returned to Lessor. Lessor shall not be required to use any funds from m Lessor's General Fund to pay for said maintenance. The funds provided may also be used for a upgrades or improvements to the Premises at the option of Lessee, provided regular maintenance is not compromised thereby. The budgeting and accounting procedure set forth in Section 9(b) and (f) shall apply to the use of funds pursuant to this Section. Unused amounts may be carried forward to the next year. If the performance of the maintenance described in Section 10(a) in a manner satisfactory to Lessor requires the expenditure of more than the maximum amount to be provided by Lessor pursuant to this Section 10(b), the additional amount required shall be provided solely by Lessee. ll. SOURCE OF FUNDS Funding for the Initial Capital Improvements described in Section 9 and the regular maintenance and upgrades or improvements described in Section 10 shall come solely from the 2010 8 Packet Pg.958 7.C.b Bond Proceeds referenced in Recital 1. Lessor shall not be required to use its General Fund money l for these purposes. 12. ALCOHOLIC BEVERAGE SALES Provided that Lessee shall have obtained, at its cost, all necessary permits and approvals for the sale of alcoholic beverages, Lessee may sell alcoholic beverages at the Premises in compliance with all applicable regulations and licensing requirements of the California Department of Alcoholic Beverage Control and any other governmental agency, including Lessor, having jurisdiction over such sale. 13. SIGNS Lessee shall secure Lessor's approval of all permanent signs that are placed on the Premises. Lessee also shall secure Lessor's approval of all permanent signs that are placed by Lessee in other 3 locations and that refer to the Premises. "Permanent signs"are signs that are attached to buildings or other structures,or to the ground in a manner that prevents them from being readily moved. w 14. NAME OF STADIUM J The current name of the Stadium is "San Manuel Stadium" pursuant to the terms of a 2 sponsorship agreement("Sponsor Agreement")between Lessee and the San Manuel Band of Mission M Indians ("San Manuel"). Lessee shall be permitted to enter into future Sponsor Agreements with San U) Manuel or other entities with Lessor's consent and shall be allowed to change the name of the Stadium (at Lessee's cost) as may be required by such future Sponsor Agreements. Lessor's consent N to such future Sponsor Agreements shall not be unreasonably withheld but may be conditioned upon on an equitable and mutually agreeable allocation between the Parties of revenue from such future N Sponsor Agreements. Lessee shall throughout the term of this Lease provide Lessor with current updated copies of all Sponsor Agreements entered into by Lessee that are in effect during any part of N the term of this Lease. 15. RETURN OF PREMISES E L �Q Upon the expiration or termination of this Lease, Lessee shall return the Premises in as good condition and repair as the Premises are in at the commencement of this Lease, reasonable wear and tear excepted. 16. HOLDING OVER a Lessee shall not hold over and continue to occupy the Premises after the expiration of this Lease without the written consent of Lessor, which may be given or withheld in the sole discretion of Lessor. In the event Lessee holds over with Lessor's consent, the tenancy shall be deemed to be a tenancy from month to month upon the same terms and conditions as are set forth in this Lease. 17. TAXES (a) Lessor shall pay when due all real property taxes and general and special assessments levied and assessed against the Premises. (b) Lessee shall pay when due all sales taxes on taxable items sold at the Premises. 9 Packet Pg.959 7.C.b i (c) Lessee acknowledges that this Lease may create a possessory interest subject to property taxation pursuant to California Revenue and Taxation Code Section 107, and that Lessee may be subject to the payment of property taxes levied on the interest. Lessee shall pay any such taxes when due. Lessee acknowledges that the levy of such taxes is determined by the County Assessor and the property value used in such a determination may bear no relationship to the stated rent under this Lease. 18. REMOVAL; WASTE; DISCHARGE OF SUBSTANCES Lessee shall not cut timber, conduct mining operations, remove sand, gravel, or similar substances from the ground, or commit waste of any kind on the Premises, or in any manner substantially change the contour or condition of the Premises, except as may be authorized under this Lease. Lessee shall not cause or allow the discharge of any substances from the Premises which will contaminate streams or other bodies of water or otherwise become a public nuisance. Lessee shall -- °I comply with all federal, state, and local laws, regulations, ordinances, conditions, or directives relating to the discharge of substances into streams or other bodies of water. a) a) o: 19. HEALTH,SAFETY,AND FIRE PROTECTION a� J Lessee shall, at its sole expense except as provided in Sections 9 and 10, ensure that the Premises comply with all statutes, regulations, ordinances, and governmental directives pertaining to public health, safety, and fire protection, including without limitation all applicable building codes 2 Cn and the applicable requirements of the Americans with Disabilities Act and related state laws. I � 20. ALTERATIONS M Lessee shall not modify buildings or other structures or facilities on the Premises without Lessor's prior written consent which shall not be unreasonably conditioned or withheld. If Lessee wishes to make any modifications, Lessee shall submit a written application to Lessor for such purpose. If Lessor approves any such modifications,then the cost of any such modifications shall be N the sole responsibility of Lessee. E L 21. FIXTURES M Lessee may install shelving and fixtures, and may remove the same provided that Lessee restores the Premises to their condition at the commencement of this Lease, reasonable wear and tear excepted. r a 22. UTILITIES Lessee shall pay when due all utilities provided to the Premises, including without limitation t electric, gas, water, sewer, trash, fire alarm service, security, telephone, cable, and internet services. If Lessee fails to make any utility payment when due, Lessor may (but shall not be required to) pay the unpaid amount(s), in which event Lessee shall reimburse Lessor for such amount(s), plus interest at the legal rate from the date of payment until paid in full. 23. INDEMNITY Lessee shall indemnify and hold Lessor, its elected officials, employees, agents, and representatives harmless from all claims, actions, damages and liabilities for bodily injury, death, or 10 Packet Pg. 960 property damage caused by any act or omission of Lessee, its employees, agents, or subcontractors and arising out of Lessee's use and occupation of the Premises under this Lease, including without limitation the granting by Lessee of any concessions, licenses or other permissions for the use of the Premises. Lessee shall defend said indemnified parties against any legal actions based upon any such act or omission. Lessee waives all rights of express or implied indemnity against Lessor, its elected officials, employees, agents or representatives, with respect to third party claims against Lessee arising out of or in any way connected with this Lease. 24. INSURANCE (a) Lessee shall maintain during the term of this Lease the following insurance and shall provide evidence thereof to Lessor, including certificates of insurance: (1) Comprehensive general liability, including premises liability and operations, products and completed operations, broad form property damage, blanket contractual liability, and personal injury with a policy limit of not less than Two Million Dollars ($2,000,000.00) per c occurrence. Said insurance shall include, or Lessee shall obtain additional coverage to include, 0� liability from the sale of merchandise, food and beverages, including alcohol, and from advertising and broadcasting in the event Lessee engages or subcontracts any advertising or broadcasting. E (2) Automobile liability for owned,hired,and non-owned vehicles,with a policy 2 limit of not less than One Million Dollars($1,000,000.00) per occurrence. 2 rn (3) Worker's compensation insurance as required by the State of California. a� (b) The policy or policies described in Sections 24(a)(1) and (2) shall contain or be m endorsed to contain provisions to the following effect: N ti (1) Lessor and its elected and appointed boards, officers, agents, and employees ! are additional insureds with respect to liability arising out of this Lease or Lessee's use of the h Premises, and the insurance shall be considered to be separate insurance as to each named and each d additional insured. E L (2) The policy shall not be terminated or cancelled, or the coverage reduced, without at least thirty(30) days' written notice to Lessor. (3) Coverage as provided by Lessee shall be primary (insurance, if any, maintained by Lessor shall be excess and not contributing with respect to the insurance to be a provided by Lessee). (4) All policies described in Section 24(a)shall provide or be endorsed to provide that the insurer waives subrogation against Lessor and its elected and appointed boards, officers, agents,and employees. (5) Lessee shall provide Lessor with certificates of insurance showing the coverages and endorsements described above, in a form and content approved by Lessor, prior to conducting any operations pursuant to this Lease. (6) Nothing in this section shall limit in any way Lessee's indemnity and defense obligations set forth in Section 23. 11 Packet Pg. 961 r 7.C.b 25. DESTRUCTION OF PREMISES (a) If any portion of the Premises becomes unusable for the purpose intended while this Lease is in effect due to causes not attributable to any act or omission of Lessee,Lessee shall restore the Premises to usable condition as promptly as reasonably possible using the funds provided pursuant to Section 10. If said funds,together with any insurance proceeds, are insufficient to restore the Premises, Lessee may make up the difference from its own funds at its option. Should Lessee decline to do so, Lessor may at its option terminate this Lease on 30 days' written notice to Lessee, or may restore the Premises at its own expense and maintain this Lease in effect. (b) If any portion of the Premises becomes unusable for the purpose intended while this Lease is in effect due to any act or omission of Lessee, Lessee shall restore the Premises to usable condition as promptly as reasonably possible at its sole expense. 26. DEFAULT AND CURE 3 as Failure by either Party to perform any obligation under this Lease shall constitute a default unless said Party performs said obligation within thirty (30) days following receipt of written notice from the other Party. If performance of the obligation cannot reasonably be completed within thirty J (30) days of said notice,the nonperformance shall not constitute a default if the nonperforming party E commences performance within said period and completes performance as soon as reasonably possible,but in no event to exceed ninety(90)days. N 27. REMEDIES ON DEFAULT; TERMINATION Default by either Party as described in Section 26 shall entitle the other Party at its option to m terminate this Lease immediately upon written notice to the Party in default. With or without N terminating the Lease, the Party not in default may pursue any remedies legally available to it, except that said Party shall not commence formal legal action without first pursuing arbitration pursuant to N Section 28 unless immediate legal action is necessary to prevent irreparable injury to persons or N rl- Ir property. 4 E Notwithstanding the foregoing portion of this Section 27, in the event a Party fails to perform an obligation under this Lease,the other Party may give notice of default. If the default is not cured within the period set forth therefor in Section 26, the Party giving notice may terminate this Lease E upon giving written notice to the other Party so stating without the necessity of engaging in arbitration under Section 28. a 28. ARBITRATION (a) Except as provided in Section 27, neither Party shall pursue legal action against the other on account of any dispute arising out of this Lease without first demanding arbitration pursuant to this section. Within ten (10) days of receiving a demand for arbitration, the Party receiving the demand shall notify the other Party of its agreement to arbitrate and the Parties shall thereafter pursue arbitration as described in this section. If the Party receiving a demand for arbitration does not notify the other Party of its agreement to arbitrate within said ten (10) day period, the other Party may commence legal action for the sole purpose of compelling arbitration. 12 Packet Pg. 962 7.C.b (b) Arbitration pursuant to this section shall be conducted according to the provisions of Title 9 of Part 3 of the California Code of Civil Procedure, with the exception of Chapter 4 of said Title. Alternatively, at the Parties' election, arbitration may be conducted through IVAMS Arbitration and Mediation Services pursuant to the IVAMS Administrative and Arbitration Rules as amended January 28, 2013 or thereafter. (c) Arbitration pursuant to this section shall be nonbinding. A Party dissatisfied with the outcome of any arbitration may pursue any and all remedies legally available to it. (d) Costs of arbitration shall be borne equally by the Parties. Each Party shall bear its own attorney fees associated with arbitration. (e) Applicable statutes of limitations on any claims pursued through arbitration shall be tolled from the sending of a demand for arbitration until thirty (30) days following the final �o arbitration decision. d C a) 29. LESSOR'S ACCESS TO PREMISES W (D 0) Lessor and its authorized representatives shall have the right to enter the Premises at all l reasonable times upon at least twenty-four (24) hours' notice to Lessee for purposes of inspection, E repair or maintenance, display of the Premises to prospective brokers, agents, buyers, tenants, or lenders, or any other purpose reasonably related to Lessor's ownership of, and investment in, the N Premises. Lessor shall exercise its right of access in a manner that minimizes any inconvenience to — 1 Lessee. m �a 30. NOTICES m N 1 (a) Any notices required under this Lease shall be given by personal delivery, private delivery service, or United States Mail. Notices are effective on receipt, which shall be rebuttably presumed to be the day of delivery as established by written evidence thereof. Notices shall be valid C4 if delivered to the following addresses: E L TO LESSOR: TO LESSEE: City of San Bernardino Inland Empire 66ers Baseball t: ATTN: City Manager Club of San Bernardino, Inc. 300 N. "D" Street, 6ch Floor ATTN: General Manager San Bernardino, CA 92418 280 South E Street ;g San Bernardino, CA 92401 b Either Party may change its address for delivery of notices by notifying the other Party in conformity with this section. 31. ASSIGNMENT Lessee shall not voluntarily or by operation of law assign, transfer, sublet or encumber Lessee's interest in the Premises in whole or in part without Lessor's prior written consent to be given or withheld in Lessor's sole discretion. Any attempted assignment, transfer, subletting, or encumbrance made without such consent shall be void and shall constitute a breach of this Lease and cause for the termination of this Lease. Regardless of Lessor's consent, no subletting or assignment 13 Packet Pg.963 7.C.b shall release Lessee of its obligation to perform all of its obligations hereunder for the term of this Lease. Lessee may license the use of the Premises to its concessionaires or other third parties with Lessor's prior written consent,which shall not be unreasonably withheld. 32. ENTIRE AGREEMENT This Lease constitutes the Parties' entire agreement and understanding with respect to the subject matter addressed herein and supersedes any prior or contemporaneous agreements and understandings relating to said subject matter. 33. REMEDIES AND WAIVER All remedies available to either Party for breach of this Lease by the other Party are cumulative and may be exercised separately or concurrently without waiver of any other remedy. The delay or failure of either Party to require performance by the other of any of its obligations under � this Lease shall not be deemed a waiver of the right to require such performance. No waiver of any c provision of this Lease shall be effective unless it is made in writing and signed by a duly authorized representative of the Party against whom it is sought to be enforced. The waiver of any right or o, remedy with respect to any occurrence or event shall not be deemed a waiver of such right or remedy J with respect to any future occurrences or events and shall not be deemed a continuing waiver. E 34. AMENDMENT No amendment to this Lease shall be effective unless it is in writing and signed by both Parties and, in the case of Lessor, approved by the Mayor and Common Council of the City of San Bernardino. °° N N 35. SUCCESSORS AND ASSIGNS This Lease shall be binding on and inure to the benefit of the Parties' successors and assigns. N 36. COVENANTS AND CONDITIONS rn The obligations of the Parties under this Lease shall be deemed to be both covenants and c conditions. E 37. CHOICE OF LAW This Lease shall be governed by and construed under the laws of the State of California a without giving effect to that body of laws pertaining to conflict of laws. 38. VENUE Venue for any legal action or proceeding arising out of this Lease shall be the Superior Court of the State of California for the County of San Bernardino or the United States District Court for the Central District of California, Riverside Division. This choice of venue is intended to be mandatory and not permissive. 14 Packet Pg. 964 7.C.b i 39. PUBLIC RECORDS ACT DISCLOSURE Lessee acknowledges that all information received by Lessor concerning this Lease, including the Lease itself, may be treated as public information subject to disclosure under the California Public Records Act, Government Code Section 6250 et seq. 40. CONDEMNATION If any legally constituted authority condemns all or part of the Premises for a public use through the exercise of the power of eminent domain, and said condemnation results in a taking of property that renders the Premises unsuitable for the purposes of this Lease, this Lease shall terminate when the public authority takes possession of such property. 41. INTERPRETATION 3 This Lease was jointly negotiated and drafted by both Parties and shall not be construed in favor of or against either Party on account of authorship of any of its provisions. a� U) 42. COUNTERPARTS E This Lease may be executed in counterparts, each of which shall be deemed to be an original, but all of which,taken together,shall constitute one and the same agreement. 43. FORCE MAJEURE s f17 A Party shall not be liable for any failure or delay in the performance of this Lease for the m period that such failure or delay is due to causes beyond its reasonable control, including but not N limited to earthquakes or other natural disasters, acts of war, strikes or labor disputes, embargoes, v governmental orders or any other force majeure event. N ,i 44. COMPLIANCE WITH LAW Lessee agrees to abide by all federal, state, and local laws, ordinances and regulations. E, 45. NON-DISCRIMINATION E In the performance of this Lease,the use of the Premises, and in the hiring and recruitment of U employees, Lessee shall not engage in, or pen-nit its officers, employees or agents to engage discrimination against any person because of his or her race, religion, color, national origin, ancestry, age, mental or physical disability, medical condition, marital status, sexual gender or sexual orientation,or any other status protected by law. 46. REGULATORY AUTHORITY Lessee acknowledges and agrees that Lessor in its capacity as a municipality and a charter city has certain governmental regulatory authority over the Premises. Lessee agrees that nothing in this Lease shall require Lessor to exercise that authority in any particular manner. Lessee agrees in its use and operation of the Premises to comply with all requirements imposed by Lessor in its capacity as a governmental regulatory body. Lessee agrees that all costs of such compliance are the sole responsibility of Lessee. 15 Packet Pg.965 7.C.b 47. RELATIONSHIP OF PARTIES The Parties are separate and independent entities. Execution and performance of this Lease shall not make Lessee or its officers, agents, employees, or contractors the agents or employees of Lessor. 48. LIAISON COMMITTEE Each Party shall each appoint an appropriate number of representatives to a joint committee to communicate on a continual basis. The committee shall conduct at least two (2) in-person meetings annually to tour the Premises and discuss the financial condition of the Parties and the physical condition of the Premises. Further, at least one of the Liaison Committee meetings shall occur before the baseball season begins. IN WITNESS WHEREOF, Lessor and Lessee have caused this Lease Agreement to be 3 `I executed by their duly authorized respective officers, effective as of the day and year as set forth w above. a� �a CITY OF SAN BERNARDINO: � E By: Date: Title: d INLAND EMPIRE 66ers BASEBALL CLUB OF SAN BERNARDINO, INC. N N h mt V Date: N By. ti �r 1' Title: E APPROVED AS TO FORM: c GARY D. SAENZ, City Attorney E U '� a By: � a-- 16 Packet Pg.966 Northwest Redevelopment Project Area Comrruttee 1505 Highland Avenue,Suite#15 San Bemardino CA 92407 Telephone:(909)913-0831•Fax:(909)823-6018 Email.• rn�c_..chu huluniil.cr:n� November 7, 2016 John Valdivia Mayor Pro Tern/ Councilman Re: Agenda item 7c Mr. Mayor: In regards to tonight's agenda item to vote on the 66er's stadium we are asking that this vote be tabled so that we may have an opportunity to review the original intent of the use of these bonds We would also like an audit of the funds that has already been dispersed. We also ask that you share this communication with the City Attorney, and all of the Council Members. Sincerely, Northwest Project Area Community Charlene Dixon-Roberts President Enter Into Rec. at MCC Mtg. %l 7 by: Agenda Itern C by: c- City Clerk City of San Bernardino