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Home My WebLink About10-02-2014 Council Agenda Item Barrett letterBARREI I SPORTS GROUP, LLC September 9, 2014 Bruce Rudd City Manager City of Fresno 2600 Fresno Street Fresno, CA 93721 Dear Mr. Rudd: Barrett Sports Group, LLC (BSG) is pleased to submit this engagement letter to continue to provide ongoing consulting services to the City of Fresno ("City"). It is our understanding that the City is interested in retaining an independent, objective consultant to provide ongoing negotiation support and strategic advisory services in connection with the Fresno Grizzlies ("Grizzlies") and Chuckchansi Park ("Chuckchansi"). The Effective Date of this engagement letter is July 31, 2014. SCOPE OF SERVICES The following scope of services below summarizes some of the potential areas that may be addressed during the course of our engagement. We would expect to work closely with you to refine the scope of services to best meet your needs in the most efficient and cost effective manner. Below is a list of potential areas that we could assist you with. 1) Assist in Developing Overall Negotiation Strategy a. Financial Considerations b. Political Considerations c. Timing Considerations 2) Provide Support Services a. General Strategic Support b. Deal Structure Advisory c. Participate in Negotiations d. Identify Issues and Concerns e. Evaluate Financial Impacts of Key Negotiating Terms f. Consideration of Alternative Approaches 3) Provide Document Support Services (if needed) a. Letter of Intent/Memorandum of Understanding b. Definitive Agreements c. Other BUSINESS ARRANGEMENTS 1219 Morningside Drive, Suite 101 I Manhattan Beach, CA 90266 I (310) 802-8775 T I (310) 802-8777 F Mr. Bruce Rudd September 9, 2014 Page 2 Our professional fees shall be billed at our standard hourly rates, plus reimbursement of expenses incurred including travel and subsistence of our staff, telephone, internet, copies, postage, publications, supplies, subcontractors, specialized reports, maps, and econometric models. For consulting services such as these, our current standard rates are as follows: Barrett Sports Group, LLC Personnel Rates Daniel S. Barrett $450 Joshua C. Cohen $250 Brett Rasmussen $150 Administrative $50 In addition to the payment of BSG's professional fees as described above, if BSG identifies or is the procuring force of a purchaser of the Grizzlies, or, in the reasonable judgment of the City Manager, is otherwise demonstrably instrumental in causing a sale of the equity interests in or assets comprising the Grizzlies (e.g. by acting as an intermediary between seller and purchaser of by structuring and negotiating a transaction acceptable to seller, purchaser, the City, the Pacific Coast League, MiLB and MLB), the City shall pay to BSG, within ten (10) days after the closing of any such transaction on or before October 1, 2015, or at a later date as mutually agreed to by the parties if a transaction is in process at that date, without offset or deduction of any kind, a "Finder's Fee" in an amount equal to 3.5% of the gross transaction amount as evidenced by the documents implementing such purchase and sale transaction. BSG understands that the City will include in its agreement(s) with the Grizzlies and its owners a provision requiring the Grizzlies and its owners, as a condition to performance of the City's obligations in connection with any sale of the equity interests in or assets comprising the Grizzlies, including but not limited to an amended stadium sublease agreement for the Grizzlies, to pay BSG's Finder's Fee. Our statements will be rendered monthly and payment in full will be due within thirty (30) days after receipt of each such statement. Amounts not paid within thirty (30) days accrue an interest charge of one percent (1%) per month. We greatly appreciate the opportunity to be of service and assistance to you in this very exciting project. If you have any questions or comments, please contact Daniel S. Barrett at (310) 802- 8775. Sincerely, Barrett Sports Group, LLC BY: Danief S. Barrett, Member Daniel S. Barrett TITLE: Principal Mr. Bruce Rudd September 9, 2014 Page 3 DATE: September 9, 2014 CONFIRMED AND ACCEPTED: City of Fresno BY: Mr. Bruce Rudd TITLE: DATE: