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Home My WebLink AboutLEASE EXTENSION WITH THE AUGUSTA GREEN JACKETS Augusta Richmond GA DOCUMENT NAME: Le.l)~G ~ e..e.l'Y"I e-n t: DOCUMENT TYPE: ~e..e.i^l' €-n-G YEAR: 0 .:2 BOX NUMBER: \--; FILE NUMBER: l. ~ 3 o"(s . .- NUMBER OF PAGES: 6 .. ~: . m d) ~ tfjz..Jaz-- r ; AP?~OVED I I AGENDA 1TEM:' .~ -' ! I (AUGUSTA-RICHMQND COU COMMISSION) j EDITION:~~ . ~._- / - DATE: September 24, 2002 TO: The Honorable Bob Young, Mayor Members of the Commission / .'. /i~:" ~ SEP 2002 's Office MministtatOt ; J l {: ~ THROUGH: George R. Kolb, Administrator i; I'. FROM: James B. Wall .'.~' / . .... .', r' , . / SUBJECT: Lake Olmstead Stadium. ....... . ~.. . , ..../ '_'hO....r'" CAPTION: Receive as information exercise of option by H.W.S. Baseball, LLC d/b/a Augusta Green Jackets Baseball Club to exercise the lease extension option. BACKGROUND: Under Section 3 of the Public Facilities Lease Agreement between the Board of Commissioners of Richmond County, Georgia and the City Council of Augusta, Georgia, as Lessors and Scripps Baseball Group, Inc., as Lessee, and subsequently assumed by H.W.S. Baseball, LLC, the Lessee has the option to extend the agreement for a ten (10) year period to commence on October 1,2004, and end at 11:59 p.m. on September 30,2014. This option to extend must be exercised by given written notice to extend the lease no later than two (2) years (by September 30, 2002) before the end of the current lease term. The current rental is $50,000 per year, which during the first year of the renewal term (October 1, 2004-September 30, 2005) shall be $55,000 per year. For each succeeding year, the rental shall be adjusted based upon a CPI formula set forth in the lease. ANALYSIS: The Team has given the required notice, and this should be placed in the City's records. ;;"t : ~ FINANCIAL IMP ACT: None until the year 2004. ALTERNATIVES: None. RECOMMENDATION: Receive as information. REQUESTED AGENDA DATE: October 3, 2002~ DEPARTMENT DIRECTOR: .1.. FUNDS ARE AVAILABLE IN THE FOLLOWING ACCOUNTS: FINANCE: .'; AUGUSTA GREENJACKETS BASEBALL CLUB LAKE OLMSTEAD STADIUM . 78 MILLEDGE ROAD P O. BOX 3746 HILL STATION . AUGUSTA, GEORGIA 30904 (706) 736-7889 · FAX (706) 736-1122 www.greenjackets;net September 5, 2002 City of Augusta City-County Municipal Building. 530 Greene Street - Room 801 Augusta, GA 30911 Dear Mayor Young, H.W.S. Baseball, LLC d/b/a Augusta GreenJackets Baseball Club would like to exercise the lease extension option and respectfully submit our letter of intentas requested by Section 3 of the Lake Olmstead Stadium public facility lease agreement. H. W.S. Baseball, LLC does reserve the right to negotiate in good faith during the remainder of this current lease agreement any terms, requirements, or addendums to the lease extension agreement. Thank you in advance foryour time and consideration. We look forward to partnering again with the City of Augusta and providing affordable, quality family ente11ainment for the citizens of this community. ~:%L Chris M. Scheuer Executive Vice President cc: Mr. George Kolb, City Admi!Jistrator Mr. Jim Wall, City Attorney Mr. Tom Beck, Recreation & Parks Director <Qd SOUTH ATLANTIC LEAGUE CHAMPIONS '89; '95, '99 ~. \.- ~ ;.-,,~ .'~. /~. '" ,. ~ o' of' PUBLIC FACILITY LEASE AGREEMENT BETWEEN THE BOARD OF COl\1MlSSIONERS OF RICHl\10ND COUNTY, GEORGIA AND THE CITY COUNCIL OF AUGUSTA, GEORGIA AS LESSORS AND SCRIPPS BASEBALL GROUP, INC. AS LESSEE #9 3/04/94 ,"" '. t . . · f 22. "Commission" shall mean the Augusta-Richmond County Stadium Commission established by joint resolution of the City and County for the operation and supervision of the Facility. 1. TERM OF LEASE. LESSOR agrees to lease, demise and permit TEAM to use and TEAM agrees to lease and use, for the period stated herein, and upon the terms and conditions stated herein, certain property with improvements' therein situate in the City, and sometimes referred to herein as the "Facility", and described on Exhibits 1 and 3, attached hereto. Subject to the compliance by LESSOR with its agreements hereunder with TEAM, and subject to the compliance by TEAM with its agreements hereunder with LESSOR, TEAM agrees that the Augusta GreenJackets shall engage in the business of professional baseball and shall play its Home Games at the Facility for a period of ten (10) Lease Years commencing on April 1, 1995, and ending at 11:59 P.M., September 30, 2004. 2. LEASE PAYMENTS. As further consideration for this Agreement and as payment due to LESSOR for LESSOR'S agreement to permit TEAM to use the Facility and for TEAM'S use of the Facility, TEAM agrees for each Lease Year during the entire term of this Agreement other than the first Lease Year, TEAM shall pay to LESSOR the sum of Fifty Thousand Dollars ($50,000.00). with respect to the first Lease Year only, TEAM shall pay to LESSOR the sum of Twenty-Five Thousand Dollars ($25,000.00). For each Lease Year during the term of this Agreement other than the first Lease Year, TEAM shall pay such ANNUAL RENTAL to LESSOR in the following manner: On the first day of each and every month of each of such Lease Years during the entire term of this Agreement, TEAM shall pay to LESSOR the sum of Four Thousand One Hundred Sixty-Six Dollars and 67/100 ($4,166.67). with respect to the first Lease Year only, TEAM shall pay such ANNUAL RENTAL to LESSOR in the following manner: On the first day of April, on the first day of May, on the first day of June, on the first day of July, on the first day of August, and on the first day of September, TEAM shall pay to LESSOR the sum of Four Thousand One Hundred Sixty-Six Dollars and 67/100 ($4,166.67). It is specifically provided by and between the Parties that TEAM shall pay fifty percent (50%) of all of these such payments required by this Section 2 to. the CITY and the remaining fifty percent (50%) of all of such payments required by this Section 2 to . the COUNTY and LESSOR specifically agrees with TEAM that TEAM,shall have no obligation to determine the application of the proceeds. 3. OPTION FOR EXTENSION~ extend this Agreement for a ten TEAM shall have the option to (10) year period, which shall -"'- 5 .> ~ '. 'i . " commence on October 1, 2004, and end at 11:59 P.M., September 30, 2014. The terms of this Agreement during SU9h extension shall be exactly those in effect at the time of the expiration of the ini tial period, except that rental payments during the option period shall be as follows: The fixed rental of Fifty Thousand and NO/100 ($50,000) Dollars per year which TEAM shall pay as provided in Section 2 shall increase every year during the renewal te,rm as provided below. For the first year of the renewal term (i.e. October 1, 2004 - September 30, 2005), the rental shall be Fifty-five Thousand and NO/100 Dollars ($55,000.00) per year. As promptly as practicable after the end of each year of the renewal term of this lease the required increase in rent shall be based upon the Consumer Price Index, All Items ("CPI") published by the Bureau of Labor statistics of the united States Department of Labor. The parties intend to provide for increased rent every year and agree that if the following formula shall otherwise provide for a decrease in rent there shall be no such decrease and the rent shall remain the same as during the prior term: (i) The CPI for the month of July, 2004, shall be the "Base Index Number". The "Current Index Number" for any Lease Year shall be the CPI for the July immediately preceding the beginning of such Lease Year. (ii) The Current Index Number shall be divided by the Base Index Number. The quotient thereof shall be multiplied by Fifty-five Thousand and NO/lOO Dollars ($55,000.00) to determine the increased rental amount. This option for extension provided for in this Section 3, shall be exercised by TEAM, if at all, by TEAM mailing written notice of intent to extend. to LESSOR by Certified Mail, Return Receipt Requested no later than two (2) years (by September 30, 2002') before the end of the Lease term. 4. USE OF FACILITY. For the purpose of conducting Team Professional Baseball Games, or Other Professional Baseball Games, TEAM shall be the preferred user of the Facility during each Lease Year and shall have first priority of dates over all other activities and events at the Facility. It is specifically.provided that should LESSOR permit the use of the Facility for any Non-Professional Baseball Uses that LESSOR shall restore the Facility to the Professional Baseball Configuration at least ten 6