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HomeMy WebLinkAboutRES 02-243 RESOLUTION NO. 1 -0-2-243 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Council hereby authorizes the City Manager to execute a lease agreement with Louisiana Management Group, LLC for the rental of Civic Center Facilities for the purpose of conducting indoor professional football. The agreement is substantially in the form attached hereto as Exhibit "A." PASSED BY THE CITY COUNCIL of the City of Beaumont this the 15th day of October, 2002. - Mayor - STATE OF TEXAS § COUNTY OF JEFFERSON § LEASE AGREEMENT The City of Beaumont, Texas, a public body, acting by and through its duly authorized City Manager, hereinafter known as the "City," hereby grants the right to use and occupy, under the following terms and conditions as hereinafter set out and in consideration of the covenants and agreements herein expressed,and of the faithful performance by Lessee and all such covenants and agreements,unto Louisiana Management Group,L.L.C. or permitted assigns,hereinafter known as "Lessee," the Beaumont Civic Center and practice facility space at the Fair Park Coliseum, hereinafter known as the"Premises,"for the purpose of conducting Indoor Professional Football in accordance with the terms and provisions of this Lease Agreement. ARTICLE 1 TERM 1.1 The initial term of this Lease shall be for one (1)year beginning 2002, and ending on C67rV6M_ 14- ,2003, unless sooner terminated as provided in this Lease Agreement. If no event of default on the part of the Lessee exists,Lessee shall have the option to renew and extend this Lease Agreement for two(2)additional one(1)year periods under the same terms and conditions. An extension notice must be in writing and received by the City at least sixty (60) days prior to the end of the primary term or any annual extension thereof. ARTICLE 2 RENT AND FEES 2.1 Lessee agrees to and shall pay the City, as rent for the Premises Three Thousand Dollars ($3,000.00)per game. Payment shall be made and received by City a minimum of five(5) days in advance of the scheduled game day. 2.2 In addition to the rental set out in Article 2.1 above,Lessee agrees to and shall pay the City Three Percent (3.0%) of gross ticket sales sold through City's ticket office, TicketMaster outlets,phone sales, and on-line sales. Lessee shall be responsible for all applicable credit card fees for tickets sold with credit cards at City's ticket office, phone sales and on-line sales. Season tickets shall not be included in calculating the 3.0%box office services fee, provided such tickets are sold twelve (12) days prior to the first regularly scheduled home game. Handling of season ticket sales by the Civic Center Box Office shall be for an additional fee as agreed upon by the Lessee and City in writing, prior to such sale. Page 1 of 12 2.3 Lessee shall pay the City's contracted cost for ticket takers, ushers,sound technicians,light technicians, stage hands and security personnel and sworn police officers. Such personnel shall be hired by City. 2.4 Lessee shall hire and pay for game personnel and game officials including,but not limited to,referees,timekeepers,scorekeepers,andpublic address system announcer. Saidpersonnel will be maintained in sufficient number, in professional attire and properly trained for efficient service. 2.5 Lessee shall hire and pay for any medical equipment,services and attendants they may deem necessary, including, but not limited to, physicians, physician assistants, trainers, paramedics, emergency medical technicians and ambulance attendants. 2.6 All special requirement fees, amounts due to City for additional services and accommodations to Lessee are due to City immediately following each event. City will retain all single ticket monies until the settlement time as specified in Article 9. All building expenses and fees will be deducted from ticket proceeds prior to the release of any funds to Lessee. Should monies related to single ticket purchases be inadequate to pay the amounts due the City,Lessee is responsible to pay City such amounts on the next business day after the event. Failure to make such payment may be considered by City to be an act of default. 2.7 All revenues,fees or commissions received by City for parking services and concession sales shall be retained One Hundred Percent(100%)by City. 2.8 Lessee shall provide at no cost and for the sole use of City, a reasonable amount of complimentary tickets to each game, which amount shall be agreed upon by both parties. ARTICLE 3 IMPROVEMENTS 3.1 Lessee will provide all equipment including padded,league approved,indoor football carpet and dasher boards,acceptable to the City,for use by the Lessee for all indoor football games. The football carpet and dasher boards will remain the property of Lessee. Maintenance of all equipment provided by Lessee is the responsibility of Lessee. 3.2 Storage of football carpet and dasher boards shall be the responsibility of the City. 3.3 Lessee shall not make any alterations, additions, or improvements to the Premises without the prior written consent of Lessor. 3.4 Lessee shall be responsible for providing and installing scoreboard and game timing devices within the Premises. So long as there is no structural elements and so long as work can be done with existing City equipment and City employees have necessary capabilities,the City Page 2 of 12 will assist in the installation of scoreboard and timing devices. Scoreboards shall remain the property of Lessee upon the termination of this agreement. Electrical connections shall be provided by City at current voltages. 3.5 Lessee shall be responsible for an initial installation of the football flooring and dasher boards to be done at a time agreed to by City. City employees shall be present at such initial installation and shall be trained in the means of and method of installation by those chosen by Lessee to make the initial installation. Additionally, Lessee hereby agrees to provide sleeves and caps which have been fabricated to fit within the holes in the floor which have been drilled for the initial installation of the dasher boards. Thereafter, City shall be responsible for installation of the floor and dasher boards. Lessee shall inspect each such installation prior to its use and Lessee shall be solely liable for any claim, damage, suit, judgement or costs which may arise from a cause by such football carpet,padding, flooring or dasher boards whether installed properly by City or not. Should Lessee's inspection reveal any deficiencies,Lessee should immediately bring such deficiencies to the attention of City so that it can be remedied. Lessee shall not be responsible for claims resulting from deficiencies within the City's control,brought to the attention of the City in writing five(5) hours prior to the event. ARTICLE 4 USE OF PREMISES 4.1 City grants Lessee the right to promote and perform Indoor Professional Football on the premises. City shall ensure that Lessee may peaceably and quietly have and enjoy the use of premises herein above specifically described for the purpose and for the term aforesaid, including corridors necessary to accommodate patrons, and rest room conveniences customarily open to the general public. 4.2 Lessee must schedule its use of the Premises as far in advance as possible so the game dates or any other desired dates can be reserved for Lessee. Game dates are subject to availability. During the initial term of this agreement, the City shall make the premises available on the dates set forth in"Exhibit B." 4.3 Subject to availability, Lessee may rent the Premises for any additional days for uses not involving the sale of tickets or team practices, as the Civic Center schedule permits. However,the City and Lessee must mutually agree in writing upon the rental rate,if any,to be charged. 4.4 Without additional cost to Lessee,Lessee shall have the exclusive use of all dressing rooms on game days. Dressing rooms must be totally vacated by 12:00 a. m. at the end of each game date. Any damages to dressing rooms occurring during Lessee's occupancy of the Premises shall be repaired by City, and such costs for repairs paid by Lessee. Failure to make timely payment may be declared by City to be an act of default. Page 3 of 12 4.5 Lessee shall have exclusive peaceful and quiet possession of the practice facility space at the Fair Park Coliseum("Exhibit A")and use of a designated grassy area at Fair Park during the entire term of this agreement and any extensions thereof. Lessee is solely responsible for providing security of practice facility space during team practices and ensuring facility and accessible gates are properly secured when not in use. Additionally,if available,Lessee may be allowed to use the space designated"non-exclusive use"on"Exhibit A"as office space. 4.6 If the City is unable to deliver possession of the Premises on the dates set forth in Exhibit "B" during the initial term, except as a result of an event of Force Majeure, as defined in Section 16.3, City shall be liable for any damages equal to the prorated rental paid for such date or dates and this agreement shall be void or violable at Lessee's sole option. The term of this agreement shall not be extended by any such delay. ARTICLE 5 OTHER PERMISSIBLE SPACE USE 5.1 Seven(7) days prior to season tickets going on sale, City shall include Lessee advertising message to the daily marquee sequence. Duration of ad message and frequency are subject to change. Message shall have prior approval of the Convention Facilities Manager or assigned designee. 5.2 Team members and staff may have access and use of, during normal business hours, the athletic facilities at the Sterling Pruitt Activity Center located at 2930 Gulf St. at no charge. Use of facilities is nonexclusive and subject to all rules and regulations of the Center. ARTICLE 6 LIMITATIONS OF LESSEE IN PREMISES 6.1 Lessee shall not assign or sublet this Lease, in whole, or in part, without the prior written consent of the City and the National Indoor Football League, Inc. Notwithstanding the foregoing, Lessee may assign this agreement to an affiliate or subsidiary of Lessee, which may be formed in connection when Lessee transfers it's operations to Texas. However, all obligors on the original Lease shall remain liable for all obligations contained therein. City shall not unreasonably withhold its consent to assign or sublet this Lease. 6.2 Lessee shall not have the right to encumber the Premises leased herein without the prior consent of the City Council of the City of Beaumont; however, this provision shall not prohibit Lessee from encumbering its leasehold interest in this lease,personal property and equipment. 6.3 At all times during the term of the Lease, City or its agents shall have the right to enter said Premises during reasonable hours for the purpose of examining and inspecting the same and determining whether Lessee is in compliance with all of its obligations hereunder in respect Page 4 of 12 to all the terms and conditions of this Lease. The entire building, including the Premises covered by this Lease Agreement, shall at all times be under the charge and control of the Convention Facilities Manager or the assigned designee. 6.4 Any alterations, additions or improvements to the Premises, which are in addition to those specified in this Lease, shall be made only with the prior written consent of the Convention Facilities Manager or the assigned designee. 6.5 Lessee agrees that in conducting its operation hereunder it will not unlawfully discriminate against any employee, applicant for employment, customer or patron due to age, sex, race, color, disability, religion, or national origin. 6.6 Lessee assumes all responsibility for any of its goods or materials which may be left or stored on the Premises before, during or after event except loss caused by the intentional or grossly negligent acts of the City or its agents or employees. 6.7 Lessee shall not bring or permit anyone to bring into said buildings or Premises or keep therein anything that will increase fire hazard or the rate of insurance of the building or any property therein. Lessee shall not bring or permit any person to bring into said buildings or Premises any animals except service animals used by people with special needs,or any other property of any kind without the consent of the Convention Facilities Manager. City reserves the right at any time to require Lessee to remove from Premises, any animals, furniture, fixtures, wiring, exhibits, or other things placed therein without the consent of Lessee. 6.8 City reserves the right after the termination of the time for which the said Premises are rented by this agreement to remove from the building all effects remaining therein and to store the same wherever it sees fit in its name, or at its option, in the name of Lessee but at the cost, expense and risk of Lessee, and City shall not be liable in any way to Lessee on account of so removing and storing any such effects. 6.9 City reserves the sole and exclusive right to sell on,in or about the Premises covered by this agreement any soft drinks,beer, alcoholic beverages, and food. No free beverages or food samples shall be given away by Lessee without the written consent of City. Lessee may prepare and provide food and non alcoholic beverages to patrons in the Neches Room exclusively,but only after the conclusion of the game. The services of an outside catering company to provide such food shall not be allowed and all alcoholic beverages must be provided by the City's contracted catering company. ARTICLE 7 CONDITION OF PREMISES 7.1 City agrees to provide j anitorial and maintenance services at the Civic Center site and agrees Page 5 of 12 to keep and maintain all areas in a reasonably good and tenantable condition and appearance, and further agrees to keep the Premises in a reasonably neat,clean,and respectable condition by prompt removal of all trash,litter,debris and junk, and will keep the Premises cleared of all objectionable matter. 7.2 Lessee shall maintain the Practice Facility Space in a neat,clean, and respectable condition by prompt removal of all trash, litter, debris and junk, and will keep the area cleared of all objectionable matter. ARTICLE 8 DEBTS RELATED TO PREMISES 8.1 Lessee shall pay and discharge all taxes,general and special assessments,and other charges of every description which during the term of this Lease may be levied on or assessed against the leasehold estate and other personal property, furniture or fixtures placed by Lessee in or on the Premises. 8.2 Lessee shall pay all such taxes, charges and assessments to the public officer charged with the collection thereofnot less than fifteen(15)days before the same shall become delinquent. 8.3 Lessee shall pay all taxes on season ticket sales and other items sold or used in connection with the performance,exhibition or entertainment on the Premises. Taxes on tickets sold by City shall be paid by City. 8.4 Lessee shall pay or cause to be paid all incidental charges, such as permit fees, incurred in connection with its operations and use of the Premises. 8.5 City shall pay or cause to be paid all costs related to the supply of and all charges for the utilization of gas, electricity, water, sewer and rubbish removal used on the Premises throughout the term of this Lease. 8.6 Lessee is responsible for all royalties which may be assessed for music used by Lessee on the Premises. ARTICLE 9 TICKETING 9.1 City shall have the right and the Lessee is required to use the services of the in-house box office services or,with written approval from City, an authorized ticket agency for any and all commercial ticket selling functions. Fees for services in connection with such ticket sales shall be in accordance with Section 2.2. Lessee shall have the right to use it's own internal sales personnel for any and all season ticket selling functions. Page 6 of 12 9.2 The Civic Center Box Office will not be allowed to collect from ticket purchases any extra fees above printed ticket prices. The City shall sell tickets for their stated face amount. All ticket orders placed by Lessee to bonded ticket printers must not exceed the stated seating capacity. A certified manifest must be provide to the Convention Facilities Manager. Printing of complimentary tickets will be allowed in coordination with the Convention Facilities Manager. A reasonable number of tickets must be available at the Civic Center Box Office for sale to the public for the duration of the event,unless such event is sold out. 9.3 Ticket audits, settlement reports, and ticket drop will be available to Lessee at the time of settlement. All proceeds due Lessee from the sale of tickets, after building expenses have been satisfied,less any cash advance,will be payable by City of Beaumont check on the first business day following the game date. 9.4 Lessee shall not admit to the Premises a greater number of persons than the seating capacity (approximately 4,293 seats) will accommodate without prior written approval of the Convention Facilities Manager or assigned designee. 9.5 Lessee and the City shall jointly agree on any combined ticket and concession package deemed beneficial to both parties. ARTICLE 10 ADVERTISING 10.1 Lessee shall be entitled to all advertising revenue generated within the Premises on game days,or programs or merchandise. The cost of creating,installing and changing advertising signs generating advertising revenue to be received by Lessee will be paid by Lessee. The cost of utilities for operating,creating,installing and changing advertising signs generating advertising revenue to be received by Lessee shall be paid by Lessee. No permanent advertising will be permitted. ARTICLE 11 SOUVENIR COMMISSIONS AND ALCOHOLIC BEVERAGES 11.1 Lessee shall have the right to sell non-food merchandise and non-beverage merchandise on the Premises and retain One Hundred Percent (100%) of any fees received. 11.2 Lessee shall not sell or allow beer, wine, or any liquors of alcoholic content to be sold or given away upon said Premises without the prior written consent of the Convention Facilities Manager and then only in accordance with the rules and regulations promulgated by City or its Convention Facilities Manager and in compliance with the laws of the State of Texas regulating the sale and use of alcoholic beverages. Page 7 of 12 ARTICLE 12 BROADCASTING 12.1 Lessee shall have the rights to broadcast or cablecast home Hundred Percent(100%)of any fees received for such rights. Les ee shal ay retain One incurred for broadcasting and/or cablecasting, pay for all costs ARTICLE 13 INDEMNIFICATION AND INSURANCE 13.1 Lessee further agrees to indemnify,save,hold harmless and defend t he City,its officers, agents and employees from and against any and all claims,demands,suits,judgments, costs and expenses asserted by any person or persons, including agents or em 1 of Lessee or the City, by reason of death or injury to persons, or loss or p °gees property, in any way resulting from use of the Premises by the Lessee, its em loye s,to volunteers, guests, customers, and invitees. Specifically including: claims p gees, suits,judgements, costs or expenses caused by negligence of City. demands, 13.2 Lessee shall obtain and maintain continuously in effect at all times duri ng minimum comprehensive general liability insurance in the amounts of at least hterm hereof, following: General Liability $1,000,000 per occurrence Bodily Injury $5,000,000 aggregate $ 500,000 per person $1,000,000 per accident Property Damage $5,000,000 This insurance policy shall be issued by a company licensed to do business in Texas and protect the City against liability,which may accrue against the City b he State of Lessee's wrongful conduct incident to the use of the Prem y reason of ises,resulting or event occurring on or about the Premises. g from any accident 13.3 Lessee shall also obtain and maintain continuously in effect at all ti hereof,casualty insurance upon any improvements to the premises owned b L mes during the term amounts as to insure the repair of replacement thereof in the event of casualtyessee in such 13.4 All insurance policies required herein shall be drawn in the name of L and its officers and employees named as additional insured. essee, with the City 13.5 Lessee shall furnish the City with certificates of insurance as evidence t hat all of the Policies required herein are in full force and effect and provide the required covera e and limits of insurance. The certificates shall provide that any company issuing an insurance Provide not less than 30 days' advance notice in writing to the City and pLess shall Lessee of Page 8 of 12 cancellation, non-renewal or material change in the policy of insurance to the City and Lessee. In addition,Lessee shall immediately provide written notice to the City upon receipt of notice of cancellation of an insurance policy, or of a decision to terminate or alter any insurance policy. 13.6 The provisions of Section 13 herein shall survive the termination of this Lease Agreement. ARTICLE 14 DEFAULT/ABANDONMENT OF PREMISES 14.1 In the event Lessee shall (1) abandon the premises, or(2) default in performance of any of the covenants or conditions required herein to be kept and performed by Lessee and such default continues for a period of thirty(30) days, City shall have the right to terminate this Lease. 14.2 City shall give Lessee thirty(30)days written notice of its intention to terminate the Lease, and Lessee shall have such thirty (30) days within which to cure such default and thereby avoid termination. 14.3 In the event the League does not approve the terms and conditions of this Lease, this lease shall terminate upon league notice of non-approval. 14.4 Time is of the essence of this agreement. ARTICLE 15 SURRENDER OF PREMISES: ABANDONED PROPERTY 15.1 The Premises and any buildings and improvements including, but not limited to, those constructed by Lessee and any fixtures including, but not limited to, those installed by Lessee, shall become and remain the property of the City and shall be retained by the City in good condition(reasonable wear and tear,Acts of God,or casualties associated with civil disorders or military activities excepted). Notwithstanding the foregoing, the scoreboard, time keeping devise, equipment, carpet, and dasher boards shall at all times remain the property of Lessee. 15.2 Lessee agrees to promptly and peacefully deliver possession of the Premises and all buildings,improvements and fixtures to the City upon termination of this Lease. All items ofpersonal property,including furniture,machinery,equipment and trade fixtures remainin in or on the Premises after the expiration of sixty(60)days following the termination of this Lease, shall be deemed abandoned by Lessee and shall become the property of the City. Page 9 of 12 ARTICLE 16 MISCELLANEOUS 16.1 If any clause or provisions of this Lease is illegal,invalid or unenforceable under present or future laws effective during the term of this Lease, then and in that event, it is the intent of the parties that the remainder of this Lease shall not be affected. 16.2 City and Lessee and their authorized representatives may examine the records of each other that are necessary to fulfill either party's obligations under this lease during the regular business hours upon prior notice. 16.3 Neither party hereto shall be liable to the other for any failure, delay, or interruption in the performance of any of the terms,covenants or conditions of this Lease due to Force Maj eure, which is causes beyond the control of that party including, without limitations, strikes, boycotts, labor disputes, embargoes, shortage of material, Acts of God, acts of the public enemy,acts of superior governmental authority,weather conditions,floods,riots,rebellion, sabotage,or any other circumstances for which such party is not responsible or which is not in its power of control. 16.4 The parties agree that they will use and continue to use their best effort to remove,change, correct,repair,etc.the condition of Force Maj eure preventing performances in order to make performance under this Lease once again possible. 16.5 Should the condition of Force Maj eure render the fulfillment of this Lease Agreement by either party impossible,then the term of this Agreement shall end and Lessee shall be liable to pay rent only up to the time of such termination. 16.6 Any notice or demand that either party desires or is required to be given by this Lease Agreement shall be in writing and shall be deemed sufficient if sent by United States Certified Mail, Return Receipt Requested, Postage Prepaid, to the following: If to the City: City of Beaumont ATTN: Convention Facilities Manager 701 Main Street P. O. Box 3827 Beaumont, TX 77704 If to Lessee: Louisiana Management Group, L.L.C. P. O. Box 12096 Alexandria, LA 71315 Page 10 of 12 16.7 No modification of this Lease shall be binding unless it be in writing and executed in due form by all of the parties hereto. 16.8 The relationship between the City and Lessee at all times shall remain solely that ofLandlord and Tenant and shall not be deemed a partnership or joint venture. Lessee, in the performance of its functions,duties and obligations herein,shall at all times be and act as an independent contractor. Nothing in this Lease Agreement shall be construed as Lessee being an agent or employee of the City in any manner whatsoever. No part of this Agreement may be construed as giving Lessee any authority to bind the City in any manner whatsoever. 16.9 Lessee shall comply with all laws of the United States, and of the State of Texas, all ordinances of the City of Beaumont, and all rules and requirements of the City's Police and Fire Departments, or other authorities having jurisdiction. 16.10 Lessee shall comply with City Ordinance 33.20.1 which states, It shall be unlawful for any person to place or cause to be placed upon any public street or sidewalk,any poster,placard, handbill or sign. This does not apply to licensed billboard locations. 16.11 Lessee will not cause or permit any nails or other things to be driven into any portion of the buildings,nor any signs to be affixed either to the exterior thereof,nor cause or permit any change,alterations,repairs,painting or staining of any par ofthe thereof. Lessee shall pay the cost of repairing any and all jury andddamage which may be hi done to the building or any of the fixtures, furniture or furnishings thereof by any act of Lessee or any of Lessee's employees or agents or any one visiting the building upon the invitation of Lessee including the patrons of the attraction or function for which Lessee is hereby renting the premises hereinabove described. It is expressly agreed that the Convention Facilities Manager shall determine whether any such damage has been done,the amount thereof and the reasonable cost or repairing the same,and whether it is one for which under the terms of this agreement, Lessee is to be held responsible. The decision of the Convention Facilities Manager shall be final. 16.12 The paragraph headings contained herein are for convenience and reference and are not intended to define, extend or limit the scope of any provisions of this Lease Agreement. 16.13 This Agreement shall be construed in accordance with the laws of the State and of the City, and all obligations of the parties created hereunder are performable in City. 16.14 This Lease Agreement constitutes the entire Agreement between the parties hereto. 16.15 Any matter not herein expressly provided for shall rest solely within the discretion of the City Manager and the City's Convention Facilities Manager. Page 11 of 12 Executed in duplicate originals on this 15-W day of�a2= 92002. 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Y CD d LL , I om Fm MKOAX , NEB 09 7 FLOOR PLAN • N A-3 EXHIBIT "B" 2003 GAME DATES MARCH 15, 2003 MARCH 22, 2003 APRIL 12, 2003 APRIL 19, 2003 MAY 17, 2003 JUNE 14, 2003 JULY 5, 2003