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10/30/1989 CITY COMMISSION SPECIAL MEETING October 30, 1989 The City Commission of the City of Clearwater met in special session at City Hall, October, 30, 1989, at 9:30 a.m., with the following members present: Rita Garvey Mayor/Commissioner Don Winner Vice-Mayor/Commissioner Lee Regulski Commissioner William Nunamaker Commissioner Richard Fitzgerald Commissioner Also present: Ron Rabun City Manager M.A. Galbraith, Jr. City Attorney Michael Wright Assistant City Manager Cynthia E. Goudeau City Clerk The Mayor called the meeting to order. The purpose of the meeting was to discuss the proposed amendment to the agreements with the Philadelphia Phillies. The City of Clearwater had reached an agreement with the Philadelphia Phillies regarding improvements to Jack Russell Stadium and an extension of the Phillies contract to hold their spring training in Clearwater. The agreement had required that the City of Clearwater make $800,000.00 worth of improvements to the Stadium and that any expenses over that amount would be paid by the Phillies or the project scaled back. Bids have come in for the additional bleachers and other improvements at the Stadium and are over the $800,000.00 amount. The Phillies have requested the agreement be amended to provide these improvements be made, up to an amount of $1,156,000.00. The Commission had expressed concerns regarding these requests and the proposed amendment to the agreement has been modified to address their concerns. Commissioner Fitzgerald expressed concerns that the agreement is not specific enough as to the time frame in which the Phillies have to decide whether or not to scale back improvements or pay the difference should the bids come in over the $1,156,000.00. It was also requested that a time be set for the Phillies to pay any shortfall. A question was raised regarding whether or not this was a legal loan and the City Attorney responded that it is not a loan. As we are the owners of the property, this is a lease payment. A question was then raised regarding whether or not the lease payment would be subject to sales tax. Discussion ensued on how to amend the agreement in order to assure that sales tax due to the lease payment would be paid by the Phillies. The meeting recessed from 9:44 a.m. to 10:04 a.m. The City Attorney recommended amending the agreement to add a sentence to paragraph number four which would state, "Such payments shall be deemed additional rental payment and subject to the Florida Sales Tax which shall be paid by the Philadelphia Phillies". A question was raised regarding whether or not any of the payment was reimbursement for equipment and it was stated the entire payment is rental payment. The Assistant City Manager indicated that Jack Russell Stadium is located within the enterprise zone and that the Phillies would be eligible to take advantage of any benefits available to them. Commissioner Winner moved to approve the third amendment to the lease agreement relating to Jack Russell Stadium as amended in paragraph three to change the last sentence to read, "If, however, the improvements can not be effected within the $1,156,000.00 limit then the City will so advise the Phillies as soon as it so determines, the Phillies shall, within ten working days, direct which improvements will be foregone or scaled back to effect the needed savings and/or the Phillies will agree to pay, by February 1, 1990, the shortfall beyond the City's $1,156,000.00 commitment" and to add a sentence to paragraph four to read as follows, "Such payments shall be deemed additional rental subject to the Florida Sales Tax which shall be paid by the Philadelphia Phillies". The motion was duly seconded and carried unanimously. The meeting adjourned at 10:06 a.m.