HomeMy WebLinkAboutFresno Diamond Group 05091995 2nd Amdt. to Disposition and Development AgmtiIC ,/
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SECOND AMENDMENT
TO
DISPOSITION AND DEVELOPMENT AGREEMENT
DOWNTOWN SPORTS/ENTERTAINMENT STADIUM
The Second Amendment (hereinafter,'Amendment'1 tothat certain Disposition
and Development Agreement dated April 26, 1994 (hereinafter, the "Agreement') Is
made as of the 9 day of May, 1995 by and among the Redevelopment Agency of the
City of Fresno, a public body, corporate and politic, (hereinafter, the 'Agency') the
City of Fresno, a municipal corporation (hereinafter, the 'City'1 and Fresno Diamond
Group, a California corporation, or Its nominee (hereinafter, the "Developer").
RECITALS
A. Developer, the Agency and the City are parties to the Agreement.
B. The Agreement provides for the Agency and the City to acquire and sell
to the Developer a specified site in downtown Fresno on which the Developer is to
construct a Downtown Sports/entertainment Stadium (the'Stadium').
C. The time allotted for the Developer to arrange necessary financing
(Section 2 of Agreement) and purchase the subject property had proven to be
inadequate, and the parties had agreed to a time extension by First Amendment to
Agreement dated October 31, 1994.
D. The time allotted for the Developer to arrange necessary financing and
purchase the subject property has once again proven to be inadequate. In
consideration of Developer's agreement to complete the purchase of a Triple -A Pacific
Coast League baseball team, the parties have agreed to a further time extension.
NOW, WHEREFORE, in consideration of the promises and the mutual covenants
and agrreEeDmeerntts set fgnh herein, the patties mutually agree that the Agreement be and
PRESENTED TO IAPMENT
Data Yxt r /995
Disposition
hereby is amended as follows:
1. Section 31g) of the Agreement is amended to read:
'(e) Closing Date. The Closing Date Is the date on which the Purchase Price
shell be paid to the Agency and the Property will be conveyed to the Developer
through the escrow established under this Agreement for that purpose. The Closing
Date shall ba October 31, 1995, unless extended by City. Agency and Developer. If
the escrow is not in a condition to close by the Closing Date, or any extension
thereof, this Agreement shall be Immediately and automatically terminated; no notice
to any party shall be required in order to affect the termination of this Agreement.
City or Agency may extend the Closing Date by notice to Developer, which
shall set forth the reason for the extension and the new Closing Date, but the City or
Agency may not extend the Closing Date except for reasons beyond the reasonable
control of City or Agency.
2. In the event of any conflict or inconsistency between the provisions of
this Amendment and the Agreement, the provisions of this Amendment shall control
in all respects.
//
2
The Agreement, as hereby amended, remains in full force and effect.
ATTEST: FRESNO DIAMOND GROUP, e
California corporation
JACQUELINE L. RYLE,
Ex -Officio Clerk for the
Redevelopment Agency of the City of
Fresno
Deputy
APPROVED AS TO FORM:
HILDA CANTO MONTOY,
Ex -Officio Acting Attorney for the
Redevelopment Agency of the City of
Fresno
By:
By:
n L. Carbra ; resident
/ O
REDEVELOPMENT AGENCY OF THE
CITY OF FRESNO
By: 1tyu"(3,
Michael A. Bierman
Ex -Officio Executive
Director of the
Redevelopment
Agency of the City of Fresno
CITY OF FRESNO
By: a,)s w:,,_
Michael A. Bierman
City Manager
N(� REPORT TO THE CITY COUNCIL
May 5, 1995
FROM: MICHAEL A. BIERMAN
City Manager
SUBJECT: CONSIDERATION OF REQUEST FOR E
OF CONTRACT WITH THE FRESNO OI
On April 27. 1995, a tray memorandum was
the stadium project. The Fresno Diamond
letter dated April 21 (attached), the i
agreement with the City to October 31, 1
t0 extend the date for an additional yea
within the first six-month extension per
purchase of a Triple A Pacific Coast Lea
memorandum also gave the Council backgro
agreement and the number of extensions g
has been scheduled for discussion at the
One of the major problems throughout the
setting Of artificial deadlines. If a
baseball in Fresno, it is my opinion the
developers/Owners could accelerate the a
deadlines will became market driven, not
agreement.
Therefore, after reviewing the. letter a
Diamond Group, it 1s my recommendation t
We, of course, will continue to work wit
Triple A baseball, but will also disease
that has an interest in bringing profess
In an effort to be able to evaluate any
basis, we will continue to work within t
as structured in the current agreements.
assembly in the downtown and do various
developer/owner will provide a Triple A
finance the stadium. City funds will no
If the Council determines that the City
and constructing a stadium, or that Sing
baseball is an option, the Fresno Diamoni
opportunity to structure a proposal bassi
\�ti\F,I �la�l MR1
AGENDA ITEM NO.
COUNCILMEETING as
venrwu
XTENSION "M
MOND GROUP
sent to the Council concerning
Group (FDG) requested, in a
ght to extend their exclusive
995, with FDG having the right
r to October 31, 1996, if
iod they have completed the
gue baseball team. The
and information on the
Ivan to this point. The issue
May 9 Council meeting.
Public discussion has been the
3rket exists for professional
t competition among
r
oval of a team. The
some artificial Cate see in an
1 documents of the Fresno
r Dot extend their agreement.
i them in their quest for
and work with any other group
tonal baseball to Fresno.
and all proposals on anequal
is policy direction of Council
The City will provide site
aublic improvements. The
:e seball team and privately
be used to build the stadium.
Should be involved in financing
Le A Or Double A professional
3 Group should be given a
I On the new policy direction.
-2-
COCLUSIONS AND
1. Should the Council extend the agreement with the Fresno Diamond
Group? The City Manager's recommendation is, 'No.'
2. Should the City continue to discuss professional baseball with the
Fresno Diamond Group? The City Manager's recommendation is, 'Yea.'
3. Should the City open discussions with other interested parties on
an equal basis? The City Manager's recommendation is, 'Yes.'
4. Does the Council want to change policy direction on Triple A
baseball or City participation in the construction of astadium?
5. If policy changes are
made, should the Fresno Diamond Group be
allowed to submit aproposal based on that new direction? The
City Manager's recommendation is, 'Yes.'-
Attachment
Yes."
Attachment
T= hzsn DD�iaND GROUP
April 21, 1995
Mr. Michael A. Bierman
City Manager
City of Fresno
2500 Fresno St.
Fresno. CA 93721
RE Request for Extension of
Disposition and Development Agreement
Dear Mr. Bierman:
The Fresno Diamond Group (FDG) requests that fine Disposition and Development
Agreement (D&DA) be amended to allow FDG a reasonable amount of additional time
within which to complete the pre -development activities that are required before the
dose of escrow for the purchase of fine stadium site.
The present date for fine close of escrow under the D&CA is April 30, 1995. We
request that the date for the dose of escrow be extended until October 31, with FDG
having the right to extend the date for an WtlPoonal year--unfil October 31. 1995—if
within the first six-month extension period FDG has completed the purchase of a
Triple -A, Pacific Coast League baseball team and has furnished evidence of the
purchase to the City and the Agency.
You are aware that I cannot publicly disclose the details of FOG's negotiations for
fine purchase of a Team. However, I have kept you informed of FOG's progress, and
you are aware that we are justifiably confident in our ability to complete the purchase
by October 31. 1995.
You are also well aware of the linkage between the purchase of the team and the
feasibility of financing the construction of the stadium. We need a reasonable period
of time after the team purchase Is complete and unconditional before we can complete
financing arrangements for the stadium.
The financing of the stadium is a large and complex financing matter by any test.
The fad that Interest rates have soared from the time when the D&DA was negotiated
until now makes the financing all the more difficult. Under the circumstances, the
extension that is being requested is very reasonable.
1231 n STREET • FEEsrva. CA 93721 • (209) "2.1994 - FAX: Mel 264 0795
Mr. Michael Bierman/FDG page 2
•4/21/95
Factors that should concern all parties'
1. If the Agreement is allowed to lapse we would have to begin the process again.
To allow 3 years of our time and expense, City staff time, and negotiations with
financial investors to come as far as we have only to become void would be
wasteful.
Were the City to begin again with some other group the CUP, findings, tests,
hearings, stadium renderings, etc. would be nullified and would all need to be
redone. I believe this would take a good years worth of time.
2. Of most importance, our exclusive negotiating position In Its present nate would
be damaged grievously. Not only would the Fresno Diamond Group be subject to
the loss of this opportunity but the entire Fresno community would not be allowed
the success it deserves.
3. It Is possible that the California League will attempt to put a Single -A baseball
team in Fresno, which would be up Me territory and Fresno would be relegated
to Visalia, Stockton. Modesto, Bakersfield and Adelanto type cities as visiting
teams.
This would greatly damage the possibility of Triple -A baseball coming to Fresno
as Me -temtory' would have to be drafted. The last Single -A territory drafted was
Salt Lake City and it con the owner of the Triple -A team in excess of $3 Million to
put Triple -A baseball in a Single -A controlled territory.
4. The fans of baseball, concerts, soccer and high school football, who have
supported the Fresno Diamond Group and the Fresno Stadium with their depdsas,
letters; and encouragement warrant the return support of City leadership.
5. This project has earned the right to succeed and it Is a golden Opportunity to
show that the City of Fresno, working with private enterprise, can be suwessful
in completing a difficult job.
fi. The Fresno Diamond Group has not asked the City of Fresno for any financial
commitMent and, in two years time, is on the verge of a success that will have
a major Impact on the future of Fresno.
We would appreciate this extension being recommended by the City Manager.
Thank you.
BBeatBeatregards,
Car ray
President cc: Cad Motschiedler
JLC/ss