HomeMy WebLinkAboutAUGUSTA PROFESSIONAL BASEBALL LLC THIRD AMENDMENT TO LEASE STATE OF GEORGIA )
COUNTY OF RICHMOND )
Third Amendment to Lease
This Third Amendment to Lease (the "Amendment "), effective this day of
, 2010 between Augusta Georgia, successor by consolidation of Board of
Commissioners of Richmond County, Georgia and The City Council of Augusta, Georgia, as Lessor
and Augusta Professional Baseball LLC, a Georgia limited liability company, as Lessee.
Witnesseth:
WHEREAS, on April 12, 2004, HWS Baseball, LLC, as Lessee, and Lessor, entered into an
Amendment to Public Facilities Lease Agreement, (Exhibit A), to a Public Facility Lease Agreement
dated May 9, 1994, (Exhibit B), and a Second Amendment dated April 18, 2006 to provide for
improvements to the facility, with a right to operate certain property owned by Lessor through
September 30, 2014 (the Public Facility Lease Agreement, as amended, being hereinafter referred to
as the "Lease "). This Lease was assigned to Augusta Professional Baseball LLC as Lessee on
October 26, 2005.
WHEREAS, the parties now desire to amend the Lease as to provide for improvements of the
leased property, the parties hereby amend the Lease by adding the following new provisions thereto:
1. Lessee contemplates making some or all of the capital improvements to the leased
premises in accordance with a list of said improvements as attached as Exhibit C, subject
to any revisions as may be approved by Lessor. The total estimated cost of
improvements is $1,000,000. Lessor contributed $400,000 of its own funds toward the
cost of the improvements using SPLOST Phase V funds in 2006. Lessor shall
contribute $100,000 using SPLOST VI funds on April 15` 2011 after completion of
improvements in that amount as verified through invoices and inspection related to
work in Exhibit D. Lessor and Lessee shall acknowledge that Lessee shall make such
improvements solely from funds provided by Lessor and which have been allocated by
Lessor for such capital improvements.
2. Lessee shall arrange to commence construction of the improvements, at its own expense,
at any time after execution of this Amendment and be reimbursed for the same under
the conditions as outlined in Section 1 of this Amendment.
3. Upon completion of the improvements, the operation, use and maintenance of same
shall be governed by the terms and conditions of the may 9, 1994 Public Facilities Lease
agreement; provided that Lessee's obligations for maintenance and repair shall not
exceed $25,000 per lease year.
4. Upon completion of the improvements, the new facility shall become a permanent
fixture and improvement on the property owned by Lessor and Lessee shall have no
ownership interest in same or other interest except for the right to use and operate the
improvements as provided in the Lease.
5. Sections 3 and 4 of the April 12, 2004 Amendment are hereby deleted and the following
is inserted in lieu thereof:
A. The Lessor shall use its best efforts to contribute an additional $500,000 of its
own funds toward the cost of the improvements. Until such time as Lessor has
contributed an aggregate of $1,000,000 toward the cost of the improvements,
provided such funds are contributed by December 31, 2011, the additional rent
described in subsection B below shall not be applicable.
B. Lessee agrees to pay, as additional rent, the following amounts, provided that the
condition set forth in subsection A above have been met:
(i) 25% of gross ticket revenue from private hospitality sales
(skybox and luxury sales); provided however, that payments under this clause (i) shall
terminate once the Lessor has received payments under this clause (i), in the aggregate, equal
to the amount of the funds contributed by the Lessor which is allocable to the construction
of the improvements for skybox and luxury seats. Within 90 days after the contribution of
the $1,000,000, the Lessor and Lessee shall meet to discuss in good faith the portion of the
$1,000, 000, the Lessor and Lessee shall meet to discuss in good faith the portion of the
$1,000,000 allocable to the improvements for skybox and luxury seats.
(ii) 25% of the ticket sales price for ticket sales in excess of 175,000
For each baseball season (April through September of a calendar year); provided however,
that payments under this clause (ii) shall terminate once the Lessor has received payments
under this clause (ii) and under clause (i) aggregating $1,000,000.
6. Except as amended herein, the terms and provisions of the May 9, 1994 lease agreement
remain in full force and effect as between Lessor and Lessee.
IN WITNESS WHEREOF, Lessor and Lessee have executed, signed, sealed and
delivered this Second Amendment to Lease in duplicate effective the day and year first
written above.
Signed, sealed and delivered in the Augusta, Georgia
Presence of:
I All'A -
Deke Copen aver, Mayor
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Notary ! /'
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My CommiO � �, i = r Attest 4,..,...,.
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l Z * 4.0 O % Clerk of ,: minission
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Signed, seale�4 v �r+ ` Augusta Professional Baseball LLC
presence of: 4 44 4 04 f 4 " GO
jJ c. v mor -. By ;.A ■ _
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Notary Public /
My Commission Expires: l0 Jul l0