01/22/19794'��3
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SP�CTIIL 1VORK SiSSTON
.lanuary 22� I979
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The City Cammission of the City of C].o�rwa�er met in
special work session a� tlie City I-i�l]., hSonday, January 22,
1979, a� 9 a.m., wi.th the foilowing members present:
Ch�r].es F. LeCher
KArleen F�. Ue�laker
1Villiam Nunamaker
Richard �. Ter�ney
A1so present were:
Anthony Shoemaker
Thomas A. Bustin
LuciI1�E Wa.�.].iams
hiayor/Cammissioner
V�.c�-Afayor/Commissioner
Commi.ssi.arier
Commissianer
Ci�Cv Manager
City �Ittflrney
City C1erk
The City Tfanager called the mee�ing to ordex and repor�ed
the special work session was �iezng held at the request o� the
PACT Commititee.� �
A1 Hot�man reported tl�e documen�s had Ueen tinalized and
Tim Johnson rev�ewed each of the five docuinents with the Com-
mission. He reported tliese unique documen�s are bet�veen 1)
City, who owns the �and and wi�.l 3,ease a.t; 2) a non-pro�it
corporation, PACT, Fnc., who will maintain the tacility; and
3) a limited pax�nershzp o£ investars, who will raise the
money for �he facility. �itlier PACT ox the Zimi�ed par�ner-
ship cou].d run the �acilitiy.
The agr�ements i.nvfllved lacre: 1] a Ground Lease, 2} a
Sublease, 3) Pianagement Agreement, 4) �acility �vailaUility
Agreemen�i, and 5) Curative Agreetnent. In the gro�nd lease,
the City wi11 iease 25 acres af th� property £ar construction
o� the £acility tagether with �arkin� and access anci.11ary there�
to. The partion o� the property no� Used may be deveZoped by
the Ci�y far park purgoses whi.ch slza].]. be ancillary to and
supportive o� the opera�.ion of the facility. The initial term
of the �ease wi11 s�art January 1, 1974, and end December 31,
].993, tor a period of 15 years. At the end o� each cal�ndaT
year during �he term, the initial 15-year term of the leas�
shali be automaticaZ�y exL•ended for one addi�iona] year un-
less the City noti�ieG PACT, in writin�, it wi11 not con-
tiinue the automatic ex�ension. The initial term of tHe'].ease
plus ali automa��c extensions shall not exceed 50 years.
PACT will assume the resPonsiUility for procuring �inan-
cing for the construction and operatian ot the �acility. The
Property shall be used for a pertorming axts thea�re, and will.
include a s].oped floor auditorium �or permanent seatin� o.f not
less than 2,000 nor more �han 2,500 persons, appropriate stage
and support space, and appropriate site impxovements includin�;
parking, access and landscaping. Financ�.ng will be over a
15-year period. In the event ot default by PACT, the limi.ted
partnership waUld have the option of taking over. Tl�e 5ubl.ease
�a reem����n� a.s be�twec:n PACT and the limiteci partnexship. �'Te sub-
ea�- se fallows the sam� form as the ground lease and runs concur-
rently �ar 15 years and also may be auto�natically extended one
additional yaar. The sublessee, �he limited partners��ip, agrees
to construct �he �acil.a.ty on that portion of the nra�erty
designa�ed by �he ground �eas�.
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The rfnna em�nt ,'� reement is betwc�en the limited p�rtner-
shi.p and ic ima.tc pt�r�nershxp is the oivncr, PACT is
tho manuger. �The limited part.nership a�rees to undertake con-
struction of � performi.n� arts ha11 and PACT, inc. agrces xo
mattage the £acility �,f�ex i.� a.s cans�Crucxed. The terms o�
this Agreement are the same as t��e sttiblease. PACT wi11 be
responsible far ��� complete management and aper�tion of the
fr�cxlity, includin� payment of a11 debt service (both principal
a�►d interest incident to the faci.].ity) , booking and promotion
of perfarming Arts perfarmances at the facili�.y, leasing o£
snace far such performances, and the ful£illmen� of a7.1 conrrac-
tu�I, obl.i.gata.ons incident �o the £ac�lity. PACT will recei,ve 40$
of the aperating surpius. Of thE remaining 60ro,the City will.
receive two-thirds and the limited Partnexsliip, one-third. The
PACT officers are elected Uy the membership and a�rofessional
manager wi11 be hired. �
racilit Avai.labilit A reement -'Tliis agreemen� a.s Uet�reen
�he Cit� an, CT, Inc, an e�nes the rights and obliga�Cions
o� each pt�x�y regarda.ng operation and use at the �acili�y.
PACT will make availab].e �o community �roups designated by the
City, dates for production by such groups, af a ma�nimum �t 20D
events annual�y. The City will establish the f.ee to be charged
ta such community graups for each event. The Ci�y will pay
PAGT aftex cons�ruction is complete and tlie �acility open for
opera�ian, �he sum of $25Q,000 annualiy, or $20,833.33 per mon�h.
�' �uring tI�e �irst 10 years of the Ground Leasc� the City
has the optiQn of cancell.ing the automatic extensi.an pxovision,
but, in additian to the payment d�sc'rib�d abave, the City wouid
pay to PACT within ten days, one Iump sum cash payment in an
amount equa� to the �ota�. amaunt paid by purchasers o� limixed
partn�rship interests p�us S� simple interest compu�ed from the
da�e o� i.nvestment by each such inv�stor.
The Curative A�reement is between PACT, Inc. and the limited
p�rtnership and pro�ects the Ienders and in�estors i.i PACT de-
faults or the �ity �erminates tihe agreeinent. A brief presenLa-
�ion of �he agreetnents wa.l.l be made at the re�ular Comm.ission
meeting of rebruary 1, 1979.
The maeting adjaurned at 10:15 a.m.
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