City Council Agenda
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Memo to: |
Manteca City Council |
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From: |
Toni Lundgren, City Manager; L. David Nefouse, City Attorney |
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Prepared by: |
L. David Nefouse, City Attorney |
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Date: |
January 21, 2025 |
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Subject: |
Approve the Amended and Restated Lease Agreement Between the City of Manteca and Big League Dreams Manteca LLC; and authorize the City Manager to sign and take all necessary steps to effectuate the Amendment and Restatement |
Recommendation:
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Adopt a Resolution approving the Amended and Restated Lease Agreement between the City of Manteca and Big League Dreams Manteca LLC; and authorizing the City Manager to sign and take all necessary steps to effectuate the Amendment and Restatement.
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Background:
On February 3, 2003 and October 21, 2006, respectively, the City of Manteca entered into the Sports Park Structures Lease (dated February 3, 2003, as amended by that certain Amendment No. 1 to the Sports Park Structures Lease Agreement effective as of October 21, 2006 as amended) and the Sports Park Fields/Courts Lease dated February 3, 2003 (collectively, the “Agreements”) with Big League Dreams Manteca LLC. Over the past twenty-two years the purposes, use, and operations of the complex known as “Big League Dreams” (“BLD”) has changed such that the prior Agreements no longer in total reflect the current and/or applicable terms, operations, conditions, and language as set out in the Agreements. In short, a major update to the Agreements has been long overdue.
Accordingly, following good faith negotiations between City staff and a grantee of rights on behalf of Big League Dreams Manteca LLC, the parties have reached an accord on the proposed amended and restated lease. Critically, the amended and restated lease combines the structures lease and fields/courts lease into one document. In addition, the amendment and restated lease strikes obsolete and/or inapplicable provisions (i.e., construction deadlines and term commencement milestones), and reflect the current needs and/or operations of the City and its residents (including, but not limited to, turf replacement, vending/concession services, allowing City insight on capital improvements, the upcoming opening of Loma Brewery, updating the insurance terms, and the option to potentially include new sports); moreover, it notes the tenant agreeing to expend $2,000,000 in capital improvements at BLD within two (2) years following the effective date of the proposed amendment and restatement. The term of the amended and restated lease remains the same as the original Agreements, with an expiration date set for December 31, 2049.
Fiscal Impact:
There is no direct fiscal impact associated with this action; BLD shall receive an additional two (2) million dollars in capital improvements within two (2) years of the effective date of the proposed amendment and restatement.
Documents Attached:
Attachment 1 - Resolution
Attachment 2 - Amended and Restated Lease Agreement