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SECOND AMENDMENT TO CAPITOL THEATRE OPERATING AGREEMENTSECOND AMENDMENT TO CAPITOL THEATRE OPERATING AGREEMENT THIS SECOND AMENDMENT TO CAPITOL THEATRE OPERATING AGREEMENT (the "Agreement"), made and entered into this ` 4` day of Lo2e-e-4-4.10e.-4- , 2013, by and between CITY OF CLEARWATER, a municipal corporation, whose mailing address is: Attn: Rod Irwin, Assistant City Manager, Post Office Box 4748, Clearwater, FL 33758 -4748, hereinafter referred to as "City ", and Ruth Eckerd Hall, Inc., a Florida not - for -profit corporation, whose mailing address is: Attn: Zev Buffman, 1111 McMullen -Booth Road, Clearwater, FL 33759 hereinafter referred to as "REH"; WHEREAS, the City and REH entered into the Capitol Theatre Operating Agreement dated September 20, 2012; and WHEREAS, the City and REH entered into the First Amendment to the Capitol Theatre Operating Agreement dated Auguat 30th, 2013 in which the City agreed to increase the Capitol Theatre Project Budget by $500,000 upon receipt of the State Cultural Facilities Grant funds by the City because the Capitol Theatre Project was experiencing unexpected costs and was anticipated to be $700,000 - $800,000 over budget; and WHEREAS, On October 21,2013 REH request that the City increase the Capitol Theatre Project Budget by an additional $500,000 and transfer the funds held by the City for the Capitol Theatre contingency ; and WHEREAS, in order to provide for timely completion of the Capitol Theatre Project the City has agreed to increase the Project budget ; now, therefore: Section 1. The parties agree to amend the Agreement as follows: 6. Construction, Renovation and Repair of the Capitol Theatre Facility. (e) Cost of Construction. Except as expressly provided otherwise herein, the City will be responsible for and will pay all costs associated with the Capitol Theatre Project and the City Project, not to exceed Eight Million One Hundred Twelve Thousand Two Hundred Nine and 00 /100 Dollars ($8,112,209.00), which includes the $1,000,000 State Cultural Facilities Grant and the Five Hundred Thousand Dollars previously 1 designated by the City as contingency for the Capitol Theatre or REH (the "City Funds "). The City Project is anticipated to cost One Hundred Sixty -eight Thousand Dollars ($168,000.00). Any funds not required to pay the costs of the City Project shall be available to pay costs of the Capitol Theatre Project. As the Capitol Theatre Project is underway, the City Funds shall be used to reimburse REH for costs of the Capitol Theatre Project and disbursed to REH within seven (7) days after receipt of a written request for draw, which shall be in such form as the City may reasonably require. Each such draw request shall include copies of all invoices and bills and payment verification for the persons providing materials, labor and other services in connection with the work covered by such draw request. REH shall provide the City with lien waivers and releases for all such materials, labor and services being reimbursed with the funds covered by the draw request. Further, prior to disbursing any funds with respect to any draw request, the City shall have the right to require a certificate of the architect stating that the work covered by the draw request has been properly completed in accordance with the Plans and the Permits. The City will obtain builder's risk insurance for the Capitol Theatre Project, the costs of which will be paid from City Funds. REH shall be responsible for and shall pay all costs in connection with the Capitol Theatre Project in excess of the amount of the City Funds. If at any time, due to cost overruns or other reasons, the City determines that the costs of completing the Capitol Theatre Project will exceed the amount of the remaining undisbursed City Funds, then the City shall not be required to make any further disbursements until REH has deposited into an escrow account held by the City an amount equal to the amount of such excess costs. Such amount will be added to and become part of the City Funds, and will be disbursed by the City in the same manner as the City Funds. Section 2. This amendment will become effective upon receipt of the $1,000,000 Cultural Facilities Grant from the State and acceptance by the City Council. [Remainder of page left intentionally blank- signature pages to follow) 2 IN WITNESS WHEREOF, the parties hereto have caused these presents to be executed the day and year first above written. Witness - Signature Witness - Print Name Countersigned: — q eor(e qCrC'tJ George N. Cretekos Mayor Approved a to form: Pamela K. Akin City Attorney 3 RUTH ECKERD HALL, INC., a Florida non -profit corporation By Title: s t .A1 / c� ) CITY OF CLEARWATER, FLORIDA By: W aUst ", t g 14,1a 7a-' Wiliam B. Horne II City Manager Attest: Rosemarie Call City Clerk