Loading...
HomeMy WebLinkAboutAUGUSTA PROFESSIONAL BASEBALL LLC HWS STATE OF GEORGIA ) ) COUNTY OF RICHMOND ) Second Amendment to Lease /\ This Second Amendment to Lease (the "Amendment"), effective this / If day of 0jQ~ ' 2006 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), 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 shall contribute $400,000 of its own funds toward the cost of the improvements using SPLOST Phase V funds. Lessor's $400,000 contribution shall be paid in two installments - $100,000 on October 1, 2006 after completion of improvements in that amount as verified through invoices and inspection related to work in Exhibit C; and $300,000 on March 1, 2007 after completion of improvements in that amount as verified through invoices and inspection related to work in Exhibit C: Lessor and Lessee 1 c:\documents and settings\jeffimy documents\2006 season\augusta\second amendment to lease agreement #5.doc acknowledge that Lessee shall make such capital 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 $600,000 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 allocable to the improvements for skybox and luxury seats. 2 c:\documents and settings\jemmy documents\2006 season\augusta\second amendment to lease agreement #5.doc (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 presence of: Augusta, Georgia ~47 '0 'Lfl7 _ ~~Ic) 'mt>>aa,d..; Notary P lic My Commission Expires: Notary Publl Georgia My Comm' C" Columbia county~ 2006 ISS/on Expires Aug. ~. Signed, sealed and delivered in the presence of: cJ -L Cf (tJ D7Jo ...--,. Deke Copenhaver, Mayor Augusta Professional Baseball LLC ~~t~~ N tary lic y C ission Expires:c1' /1/0 9 , / 3 c:\documents and settings\jeffimy documents\2006 season\augusta\second amendment to lease agreement #5.doc '0 EXHIBIT C List of Approved Uses of SPLOST Funds for Lessee PROJECTS: . Party Pavilion . Batting Cages . Concession Cooking Building . Stadium Painting . New Infield . New Marquee Sign . New Sign on Stadium . Upgrade Press Box . Upgrade Team Store . Pavement Work . Irrigation Upgrades . New PA System . Industrial Fans . Upgrade Locker Rooms . New Padding . New Home Plate Net . New POS System . Windscreening . Improvements to team administrative offices . New Video Board . Video Board Equipment . Upgrade and Repair Seating . Fountain . Upgrade Kids Zone . Left Field Deck . Vent Concession Stands . Turf in Group Area . Putting Green . Box Office Improvements . Clubhouse Improvements . Upgrade Restrooms . Landscaping . New Concession Areas . Stadium Entrance Upgrades . Outfield Repairs . Outfield Wall Repairs/Upgrades . Warning Track Upgrades SPLOST funds will only be applied and recognized for items on this list This "Project" list does not constitute projects that will be started or completed by Lessee. This list is intended to show projects that SPLOST funds can be applied to. 4 c:\documents and settings\jeffimy documents\2006 season\augusta\second amendment to lease agreement #5.doc