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HomeMy WebLinkAbout _ 3.1--Terminate Contract with Big League Dreams Redding, LLC � � �' � � � � � � ' � �' � � ' � ` CITY OF REDDING REPORT TO THE CITY COUNCIL MEETING DATE: July 29, 2024 FROM: Travis Menne, Director of ITEIVi NO. 3.1 Community Services ***APPROVED BY*** � ��" �� Nri����� k?�,� _ � �,, a,,.� ���v� � , Tram=is ra�nc�,�' �rt�c r��`�irii�'unit�.�'ae���iccs 7,'3;?t1��8 rS' tp�it�,C�i ��t t� 7,'26,''2{}? tmenne@cityofredding.org btippin@cityofredding.org SUBJECT: 3.1--Consider termination of Contract with Big League Dreams Redding, LLC. Recommendation Authorize the following actions relative to the Sports Park (Park) Lease Agreelnent (C-0458) with Big League Dreams Redding, LLC: (1) Authorize the termination of the Park Lease Agreement (C-0458) with Big League Dreams Redding, LLC in accordance with Section 17 of the Lease Agreement effective immediately; and (2) Direct staff to explore options for the future operations and maintenance of the Park, to include but not be limited to, operating the Park in-house and issuing a Request for Proposals for a third-party operator. FiscaZ Impact In March 2023, Big League Dreams USA (BLD) signed a Letter of Agreement (LOA) agreeing to repay past due lease payments totaling $182,818. Since then, BLD made three monthly payments of $18,000 each per the LOA terms, after which they have not made any other payments toward their LOA debt. BLD also failed to pay lease payments for the second, third and fourth quarters of 2023, as we11 as the first two quarters of 2024. BLD made one payment of $10,000 on May 7, 2024. Since BLD failed to submit the first and second quarter reports to the City of Redding {City), the current total owed in quarterly payments cannot be accurately calculated. Based on recent years' average first and second quarter payments, and the past due lease payments, BLD owes the City approximately $215,182.74. The �scal impact of terminating the lease is unknown at this time. Alte�^native Action City Council (Council) could choose not to terminate the contract. This alternative would allow BLD to continue to operate the Big League Dreams Sports Park (Park). This option may not be available as BLD has ceased operations and has not obtained insurance to continue operations. Report to Redding City Council Ju1y 26,2024 Re: 3.1--Terminate Contract with Big League Dreams Redding, LLC Page 2 Background/flnalysis In 2001, the City and BLD Redding executed a lease agreement (Agreement) for the operation and maintenance of the Park. In 2004, the Park was opened and the start of the 35-year lease term began. The agreement conditions require BLD to pay monthly lease payments equivalent to six percent of gross receipts after the first three years. BLD paid over $950,000 in lease payments through May 2019. At that point, BLD fell behind in its payments compounded by COVID restrictions which closed the Park for almost a year. In August 2022, TC Sports acquired a11 nine BLD facilities and took over operations. On February 21, 2023, Council approved the LOA (C-0458) with BLD U�SA for the payment of past due lease obligations of BLD Redding and a capital improvement plan to address Park repairs, replacements and improvements. On July 20, 2023, the LOA was amended to extend the timeline for many of the projects. The current status of the improvements is noted below: Project Status Notes BLD was required to complete the capital improvements below by August 15, 2023: Batting Cage Repairs Complete New POS System Partially comp�ete ' Paint Buildings Partially complete � In progress Paint Outfield Replica Wa11s "Parti�lly painted Decals'mrssing Parking Lot Lighting Complete Stadium Club Paint Exterior complete Fix All Broken Stadium Seats Incarnplete Pawtucket Grading Repairs in Incornpl�te Outfield Restroom Upgrade 'Incomplete ' Stadium Club Flooring Tncorr�piete BLD was required to complete the capital improvements below by October 1, 2023: Repair Shade Structures - Replica 3 af 5 comp�ete Not installed Fields BLD was required to complete the capital improvements below by March 31, 2024: Turf Installation at I�ome Base Incomplete '���'��� Not started Turf Replacement Infield Incornplete ��� '� Not started Sand in Volleyball Courts Incomplete ' Not started Staff issued a letter to BLD on Apri1 18, 2024, which stipulated that if payment was not made by a certain date, the City would issue official notice to cure pursuant to Section 17 of the Agreement. On June 28, 2024, after receiving only partial payment, the City issued a formal notice to cure under the contract. The notice demanded payment for all past due rents and penalties, plus the performance of the maintenance items and capital improvements listed above. The notice was issued pursuant to Sections 17.a.i (failure to pay rent), 17.a.iv (default under Report to Redding City Council Ju1y 26,2024 Re: 3.1--Terminate Contract with Big League Dreams Redding, LLC Page 3 related agreements) and 17.a.v (other default). The Agreement gives BLD 10 days to cure the failure to pay rent and 30 days to cure most other failures. BLD has since failed to make payment within the 10-day period. With the delinquent payments, substandard maintenance, and failure to perform capital improvements identified in the LOA, BLD is in breach of contract. Section 17.b.ii of the Agreement allows the City to terminate the lease with BLD and take possession of the Park. Should Council decide to exercise this option, BLD wi11 be required to vacate the Park and remove its property. However, in this case, several decisions regarding short- and long-term options must be made. First, the City must act on the operations of the Park. There are many tournaments and leagues scheduled at the Park. Without an operator or budgeted funds with a detailed plan for staff to take over operations, it is likely the Park will need to be shut down, causing the events to be cancelled and impacting the community. As of this writing, it appears BLD has vacated the Park causing a disruption of the aforementioned events. Staff has currently identified the following long-term options Council could choose from: 1. Direct staff to develop and issue a Request for Proposals for a new tenant to lease the Park. 2. Direct staff to develop an operations and maintenance plan to run the Park in house. 3. Direct staff to look into selling the Park to another party. With general direction from Council staff wi11 create plans and develop the strategies needed to ensure the Park can serve the community and work toward restoring it as a quality community asset. Environmental Review This is not a project defined under the California Environmental Quality Act, and no further action is required. Council P�io�ity/City Manager Goals • Government of the 21st Century — `Be relevant and proactive to the opportunities and challenges of today's residents and workforce. Anticipate the future to make better decisions today." Attachmen�s ^Notice of Surrender- BLD Redding 0'7-25-24 C-0458 BLD Lease G0458 BLD Lease Amend 1 C-0458 BLD Lease Amend 2 C-0458 BLD Lease Amend 3 C-0458 Letter of Agreement G0458 -First Amendment- 2023 - Big League Dreams USA s � � � �„.. �7 i:�s§! �. „ , . July 25, 2024 VIA ELECTRONIC AND CERTIFIED MAIL City of Redding City of Redding c/o Travis Menne, Director of Community Services c/o Redding City Attorney 777 Cypress Avenue 777 Cypress Avenue Redding, California 96001 Redding, California 96001 Email: tmenne@cityofredding.org RE: Big League Dreams Redding Sports Park Mr. Menne: Our office serves as outside general counsel for Big League Dreams Redding,LLC ("BLD Redding") and its affiliates. As such, please direct all future legal-related communications to our office. All terms not defined herein shall have the meaning as set forth in the Sports Park Lease between City of Redding (the "City") and BLD Redding. This letter sha11 serve as formal notice of surrender of the Sports Park effective as of July 26, 2024. As previously explained in BLD Redding's correspondence dated J�uly 15, 2024, the Sports Park has operated at a loss for some time. BLD Redding attempted to find an amicable solution that allowed for the smooth transition of the Sports Park, but the City's response made clear it was not aligned with the same belie£ BLD Redding simply does not have the funding to continue to operate at a loss. As such,BLD Redding has made the difficult decision to surrender possession of the Sports Park back to the City for the City's continued use and operation. BLD Redding remains willing to provide a certain level of assistance in the transition of the Sports Park. To that end, you may contact Kevin Flora (I���%i�.fl����e�b����z�ci�e�zn�.caa�n) or Larry Reynolds (larr�a),r� n��a�rts.c«��) to discuss logistics of the transition of the Sports Park. If there are guestions related to the surrender or other legal matters, please direct those questions to our office. I can be contacted at (972) 370-3333 or via email at justin@plunksmith.com. hank you, . � ustin J. D inger�������� l.`.� �� . � _ .._ .�-�:� � �PC�RTS PA�� LEAS� between CTTY (�F REDDING and 8I� I.�EAGUE DREAM� REDI�II�TG, LLC . �,� , - �-v e��... ;��; G���,,r�,►�'c�..�s� �l-'3 .�-v,/ ��� THIS SPORTS PARK LEASE (this "Agreement") is entered into this�day o f May,2 0 0 1,by an d be t ween t he C I T Y O F R E D D I N G,a Municipa l Corpora tion re ferre d to m t h is Agreement as "Landlord", and BIG LEAGUE DREAMS REDDING, LLC, referred to in this Agreement as "Tenant". RECITALS A. Landlord desires to develop and own a multi-purpose sports facility (the "Sports Park") on certain real property (the "Land") owned by or to be acquired by the City. A plot plan of the Land is attached as Exhibit l, and is incorporated herein by this reference. B. Landlord intends to construct the Sports Park in general conformance with the Proj ect Description attached as Exhibit 2,and within the Proj ect Budget attached as E�chibit 3,both of which exhibits are incorporated herein by this reference. C. Landlord desires to lease the completed Sports Park to Tenant and Tenant desires to lease the completed Sports Park from Landlord for the purpose of operating the Sports Park in accordance with the terms of this Agreement. The Land and the Sports Park Improvements to be hereafter constructed thereon are sometimes collectively referred to as the"Premises". The lease of the Premises by Tenant from Landlord shall be in accordance with the terms and conditions set forth in this Agreement. NOW THEREFORE,the parties agree as follows: AGREEMENT 1. Definitions. The following terms used in this Agreement shall have the meanings given unless expressly provided to the contrary: Affiliate means Richard Odekirk,Jeff Odekirk,or any entity other than BLD USA in which Messrs. Odekirk and Odekirk, individually or collectively, or Tenant, owns at least a fifty percent (50%) capital or voting interest of the common stock, partnership units or limited liability company interests, as applicable. A�reement means this Sports Park Lease. Annual Revenues Statement is defined in Section 4(c)(ii). Award, Condemnation, Condemner and Date of Takin� are defined in Section 15. BLD USA Allocations are defined in Section 4(b)(iii). BLD Sponsorships are defined in Section 4(b)(iii). 1 Reddingl,ease4_30.wpd Br"g League Dreams Redding Sports Park Lease BLD USA zneans Big League Dreams USA, LLC, a California lzmited liability company. - C� means the City of Redding, an incorporated municipa.lity within the Couniy of Shasta, State of California. Citv Days are defined in Sectic�n 29(a�. CitX Manager means the City Manager of the Landlard. Cit,�Use Permit shall mean the use permit with respect to the Sports Park to be approved by#be City. Controliin�Percentage means the ownership of,or the right to vote,fifty-ane percent (51%) or more of the total combined voting shares, units ar membership interests of a corporation, partnership or liznited liability company, as applicable. Environmental Im ap ct Report Mitigatian Measures shall mean the mitigation measures assaciated with the environrnental impact repart (a� approved at a meeting of the City Council of the City on March 20, 2001, {b) as to which a notice of determination was filed by the City on March 26, 20Q1,and(c}detezmined by the Gity Council of the City to be applicable ta the Sports Parl� and the Praject on Apri13,2001,which are referenced on the attached E�ibit 4. FF&E shall mearr a11 fiuniture, fiarnishings, trade fixtures, apparatus and equipment required for operatian of the Sports Park. A list of the anticipated FF&E is attached as E�iibit 5 and incorporated herein by this reference. Tenant shall have the right to review and make additions and revisions to the�F&E list set forth in E�rhibit 5 with the approval of the Landlord, which approval shall not be unreasonably withheld.The type,quality and craftsmanship of the FF&E shall be rzo greater or no less than that of the fiuniture, fixtures and equipment to be installed or constructed at the Big League Dreams Sports Park in China Hills, California. The FF&E will be owned and paid for by Landlard and be leased ta Tenant as part af this Agreement. Gross Revenues are defined in Section 4{b)(i}. Hazardaus Materials are defined in Section 30{a). Indemnitees is defined in Section 14(f}. Land is that certain real praperty described in Exhibit 1. � Reddingl.cased_30.wpd Big League Dreams Redding Sporfs Park Lease Landlord means th� City of Redding, a municipal corporatian, and its permitted successors and assigns. Lease Year means the period from January 1 of each calendar year ta December 31 of such calendar year{both dates inclusive)during the Term hereof;except that if the Term �ommencement Date does not fall on a January l, the first Lease Year sha11 be that period from the Terrn Co�r�mencement Date ta the next following December 31,and that if the Term does not end on a December 31,then the last Lease Year shall be the period commencing with the last preceding January 1 and ending at the end of the Term hereaf. The first Lease Year shall be considered a partial Lease Year far a].l purposes afthis Agreement unless the Term Commencement Date is c�n or before March 15 af the Lease Year during which the Term Commenceznent Date accurs. Legal Challenge shall mean any action ar ather legal praceeding{including; withaut limitation, any California Env�ronmentai Quality Act (CEQA) challenge}braught by any third party seeking to block const�ruction af the Sports Park Improvements ar ta contest the validity of thzs Agreement or of any Related Agreement. Marketin�shall mean the Big League Dreatns Redding Marketing Plan attac�ed as Exhibit 6. IVlemorandum ofLease means that certain Memarandurn ofLease executed � concurrently herewith and to be recorded pursuant to Section 31{q). �means either pariy ta this Agreement. The"Parties"shall be all parties to this Agreement. Percenta e� Rent is defined in Sectian 4(a}(ii). Plans and Specifications means all concept drawings,preliminary drawings, landscaping and grading plans,site plans,engineering drawings,reports,final constnzctian drawings, and any other plans or specifications consistent with the Praject Description and required for construction of the Project as prepared by Landlord.at its sole expense and those provided pursuant to the Planning,Design and Construction Consulting Services Agreement between the City and BLD USA to be entered concurrently with this Agreement. Prernises means the Land,#he Sparts Park Impravernents and all easements or rights of way necessary or desirable for access ta the Land and the Sports Park I�nprovements. Project means the developrnent of the Sparts Park on tl�e Premises in accardance with the Project Descriptior�,the Flans and Specifieations, and thzs Agr�errment. � ReddingLease4 30.wpd Big League Dreams Redding Sports Park Leas� Project Descriptian means a preliminary description of the Sports Park containing canceptual artist renderings, a site plan and a list of the buildings, fields, spaces, struetures, elemenis and features ta be included in the Sports Park as described in the attached E�ibit 2. Punch List is defined in Section 9(b). Quarterlv Revenues Statement is defined in Section 4(c){i�. Related A�reements shall mean the Planning, Design and Construction Consulting Services Agreement between BLD USA and the City, and the License Agreement between BLI7 USA and the City,both of which shall be executed approximately concurrently with the execution of this Agreement. Sparts Park means the Sparts Park facility to be designed arzd constructed by the Landlord on the Land as generally depicted in the Proj ect Descriptian attached hereta as E�ibit 2. �orts Park Improvements means all buildings,fields,sm.ictures,advertising displa�s, landscaping, infrastructure, util'zti�s, FF&E (as herein defined), and other improvements constructed or installed ar to be constructed ar installed on the Land by Landlord and leased by Tenant pursuant to this Agreernent. Statutes are defined in Section 8(a). Taxes are defined in Section 6�b). Tenant rneans Big League Dreams Redding , LLC, a California limited liability company, its permitted successors and assigns. The members of Tenant are BLD USA, Richard Odekirk and Jeffrey C,ldekirk. Term is defined in Section 3{a), Term Commencement Date means far purposes of the leasing of the Premises pursuant to this Agreement, the earliest date upon which(a)Tenant shall have accepted in writing the Spc�rts Park Irnprovements, or{b}the City shal�have issued a Certificate of C}ccupancy, or(c} possession of the Premises shall have been delivered to Tenant and (d) all pertnits and licenses required to sell beer, wine and liquor shall have been c�btained by Tenant. 2. Lease of Premises. Effective as af the Term Gom�aaencement Date,Landlord leases the Premises to Tena�r�t, and Tenant leases the Premises from Landlord, for the Term set forth in � Reddin�L,ease4_34.wgd Big League Dreams Redding Sports Park Lease Section 3, subject to and on the terms and conditions set forth in this Agreement. The lease of the Premises shall not be effective until the Term Commencement Date. 3. Term. a. Term. The lease term of this Agreement(the"Term")shall commence on the Term Commencement Date and shall end on the last day of the calendar month that is thirty-five(35) years after the Term Commencement Date, unless sooner terminated by Landlord as otherwise provided for herein. Upon Landlord's request,Tenant will co-sign Landlord's written confirmation of lease commencement and termination dates. b. Minimum Percenta,e�nt. Landlord, in its sole discretion, sha11 have the right to terminate this Agreement and all further rights and obligations of the parties hereunder by giving written notice of such termination(which shall specify a date not less than ninety (90) days thereafter on which such termination shall become effective) to Tenant at any time during the first ninety(90)days of the tenth(l Oth)Lease Year of this Agreement if,but only if,during the seventh (7th), eighth (8th) and ninth (9th) Lease Years of this Agreement, Tenant has paid to Landlord Percentage Rent as provided in Section 4 below averaging less than$75,000.00 per year for such three(3)year period. With respect to the ninth Lease Year,Tenant may,at its option,pay Landlord additional Percentage Rent beyond what is required in Section 4 to meet the Percentage Rent average payment requirement set forth in the previous sentence and thereby avoid termination of this Agreement by Landlord. 4. Rent. Tenant shall pay to Landlord Percentage Rent,without deduction,set-off,prior notice, or demand, as follows: a. Percentage Rent. i. First Partial and First Three Full Lease Years. In the first partial Lease Year (if applicable) and in each of the first three full Lease Years, Tenant shall pay no Percentage Rent (defined below) unless Gross Revenues in any Lease Year shall have exceeded $2,600,000. If Gross Revenues for the first partial or any of the first three full Lease Years exceeds $2,600,000,Tenant shall pay to Landlord as Percentage Rent six percent(6%)of all Gross Revenues earned by Tenant, at the times and in the manner set forth in Section 4(a)(ii)below, for the quarter in which the $2,600,000 annual Gross Revenues threshold is crossed,quarterly for each quarter of the next Lease Year and quarterly for each quarter of each Lease Year thereafter except as otherwise provided in this Section 4.Tenant shall not be obligated to pay any Percentage Rent for the quarters of the Lease Year prior to the quarter during which the$2,600,000 annual Gross Revenues threshold is crossed. As an illustration, assume the final accounting for the fourth quarter of the second full Lease Year shows Gross Revenues exceeded$2,600,000 for the second full Lease Year.As provided above, Tenant would not have been obligated to make any Percentage Rent payments for the first three quarters of that second full Lease Year, and would not be required hereby to do so 5 ReddingL.ease4_30.wpd Big League Dreams Redding Sports Park Lease retroactively. Once the threshold is crossed,Tenant would be required to pay Percentage Rent on a six percent(6%)basis as to Gross Revenues earned during the fourth quarter of the second full Lease Year(payment due by February 14 of the third full Lease Year) and for each quarter of each Lease Year thereafter. ii Fourth and Subsequent Full Lease Year Pavments. Except as otherwise provided in subsections (i) or(iii), commencing with the first quarter of the fourth (4`'') full Lease Year and continuing for every subsequent Lease Year, Tenant shall pay to Landlord, at the times and in the manner specified in this Agreement, Percentage Rent for each Lease Year ("Percenta eg; Rent"). Percentage Rent shall be calculated by multiplying Tenant's Gross Revenues from the Premises for the applicable period by six percent(6%). The Percentage Rent shall be paid quarterly, in arrears, within forty-five (45) days following the end of each calendar quarter during the applicable Lease Year. iii. Fourth and Subsequent Full Lease Year Contin eg nt Pavments. If, as to the fourth full Lease Year or any Lease Year thereafter,Gross Revenues exceed$3,250,000,then Tenant shall pay to Landlord as Percentage Rent eight percent (8%) of all Gross Revenues (rather than six percent(6%))earned by Tenant,at the times and in the manner set forth in Section 4(a)(ii), for the Lease Year in which such$3,250,000 Gross Revenues threshold was crossed, for the next Lease Year and for each Lease Year thereafter. As an illustration, assume the final accounting for the fourth quarter of the seventh full Lease Year shows Gross Revenues exceeded $3,250,000 for that seventh full Lease Year.As provided above,Tenant would already have been obligated to make Percentage Rent payments for the first three quarters of the seventh full Lease Year at the six percent (6%) rate. Once the threshold is crossed, Tenant would be required to pay Percentage Rent on an eight percent (8%)basis as to Gross Revenues earned during the fourth quarter of the seventh full Lease Year(payment due by February 14 of the third full Lease Year). In addition,Tenant shall also be required to pay, by the same February 14 payment date on a retroactive basis, additional Percentage Rent in the amount of two percent(2%), equal to the difference between eight percent (8%)and six percent(6%),multiplied by the Gross Revenues earned during the first three quarters of the seventh full Lease Year. b. Gross Revenues. i. De tnition. "Gross Revenues"are defined as all revenues received by Tenant, or any Affiliate of Tenant relating to or derived from the Premises and the Project, determined on an accrual basis,including the BLD USA Allocations to Tenant(but excluding BLD USA gross revenues not allocated to Tenant as BLD USA Allocations) as set forth in Section 4(b)(iii), minus the exceptions and authorized deductions described in Section 4(b)(ii). Gross Revenues include, without limitation, all cash and credit revenue of Tenant; finance charges to customers,in case of sales on credit,whether or not payment is actually made,at,in,on,or from the Premises;revenues from the sale of gift certificates,when such revenues are received;gross revenues received by Tenant from food,liquor and beverage sales;facility rental or usage charges;admission 6 ReddingL,ease4 30.wpd Big League Dreams Redding Sparfs Park Lease charges; vending machine sales; a11 service fees or ather consideration paid to Tenant as campensatian for Tenant's sale ar distribution af lottery tickets, hu.nting and fishing licenses, or in connectic�n with any c�ther local, state, or federal lottery or licensing program similar to the foregoing; all charges for services, alterations or repairs made at, in,on, or from the Premises;the gross amount received by Tenant for merchandise sold pursuant ta orders received in or from the Prernises,whether such order is fiiled at the Premises or elsewhere;revenues frozn advertising,szgns, and promotions; other cash consideration paid by advertisers; proceeds af business interruptior� insurance received by Tenant; fees and rebates paid by vendors tc� Tenant in consideration for the right to sell such vendors'food,beverage or merchandise from the Premises;lease rent payments or ather eompensation from any sublessee or subtenant of all or part of Tenant's interest in this Agreement ar the Premises, unless the revenues derived by such sublessee's or subtenant's operations from the Premises have already been included in the calculation of Tenant's Gross Revenues,any compensation paid to Tenant by an assignee of all or part of Tenant's in#erest in this Agreement or the Premises,unless Tenant is not relieved of its obligations under this Agreement by such assignment or the assignment is to an entity in which Tenant or its member�have retained a Cantrolling Percentage; and the gross amount received by Tenant from Tenant's subtenants, licensees and cancessionaires frarn al�sources af income derived from the businesses eonducted on the Premises, unless such sources of income have already been included in the calculation of Tenant's Gross Revenues. ii. Exceptions and Deductions fr�am Grass Revenues. All oftlae following shall be excepted from Tenant's Gross Revenues: {A}the amount of all sales tax receipts required to be accounted for by Tenant and paid to any gavernment or ggvernmental agency, but not the amount of any excise t� (except a consumer excise tax) or other gavernmental obligation in the nature o�'a t� on the privilege of doing business; (B}the amount c�f any actual refunds or credits made by Tena�t with respect ta goods, services ar fees, pravided the gaads, serviees ar fees were previausly included by Tenant in Tenant's Gross Revenues;(C)the amount ofany revenues received by any licensee or cancessionaire(unless such licensee or concessionaire is an Aff liate)operating in or fram the Premises which are not paid or required to be paid to Tenant, provided that such revenues are not derived from the sale of faod,beverages or liquor;or from the collection of league ar player fees or field rentals; or from the collection of gate admissions; or from batting cage revenues; {D) the amount af any revenues rece�ved by non-Aff liate special or corporate events promaters,impresarias,outside catering companies,camp/clinic c�gerators, tournament organizers or similar third party independent contractors (including revenues derived from the sale of food, beverages or liquor}involved in the sponsorship,placement,promatian or conduct of sp�cial events, cozporate events, campslclinics or tournaments at the Sports Park,which revenues are nat paid or required to be paid to the Tenant; (E} the amount of sponsorship or advertising or group business revenues generated from the Project which are received by Tenant from sponsors or advertisers or group business custamers but are paid to non-Affiliate advertising agencies,hotel concierge desks, destinatzon management companies, brokers or other referral saurces as commissions;{F)gratuities paid or gzven by customers to food service employees ofthe Sports Park;(C_"T)proceeds af insurance ather than business interruption insurance; (H) loan proceeds; (I) credits or refunds received from � Reddingl,easeQ_30.wpd Big League Dreams Redding Sports Park Lease vendors or other third parties as a result of damage claims made by Tenant with respect to defective goods or services previously purchased; (J) checks or other instruments returned for insufficient funds; and (K) late charges or interest assessed and received on delinquent accounts receivables. iii. BLD USA Allocations. BLD USA owns and organizes tournaments played and camps/clinics held at the various Big League Dreams Sports Parks;contracts with hotels to receive commissions on room nights reserved by participants in tournaments held at the various Big League Dreams Sport Parks;and sells sponsorships to entities interested in having a commercial identification with the various Big League Dreams Sports Parks, and shall have the right to do all of the foregoing with respect to the Sports Park. Except as otherwise provided in the remainder of this subpart (iii) with respect to revenues paid by BLD USA to Tenant (the "BLD USA Allocations"), revenues derived by BLD USA shall not be considered Gross Revenues. All other forms of Gross Revenues(including, specifically,revenues from all league and player registrations with respect to all sports played at the Sports Park;batting cages;food and beverage;group business; special events;gate admissions;merchandising;arcade;and park tournaments)related to the Sports Park are created solely by Tenant and all, subject to Section 4(b)(ii), shall be included in Gross Revenues. As to BLD USA tournaments and camps/clinics, BLD USA shall pay to Tenant, and Tenant shall include in Gross Revenues,a field rental charge not less than the maximum field rental charge made by Tenant to any third party tournament organizer or camps/clinic operator during the applicable Lease Year. BLD USA shall pay to Tenant,and Tenant shall include in Gross Revenues, fifty percent (50%) of all hotel commissions received by BLD USA for room nights reserved by participants in tournaments held at the Sports Park. "BLD Sponsorships"shall mean any agreement entered by BLD USA with any entity by which such entity is given the right to identify commercially with Big League Dreams Sports Parks as a sponsor, preferred company or other designation of similar import and where such commercial identification rights extend to more than one Big League Dreams Sports Park. BLD USA shall pay to Tenant, and Tenant shall include in Gross Revenues, fifty percent (50%) of the cash revenues received from such a BLD Sponsorship divided by the number of Big League Dreams Sports Parks to which the BLD Sponsorship applies. As to any advertising or sponsorship sales made by BLD USA or Tenant which do not constitute BLD Sponsorships, BLD USA shall pay to Tenant, and Tenant shall include in Gross Revenue, eighty percent(80%)of the cash revenues received from such a non-BLD Sponsorship.In the event, however, (A) any entity controlled by BLD USA enters a lease agreement for the construction and operation of a new Big League Dreams Sports Park, and (B) such lease shall contain BLD USA Gross Revenue allocation provisions which,taken as a whole, are more favorable to the new lessor than the BLD USA Gross Revenue allocation provisions set forth above, taken as a whole, are to Landlord, then this Agreement shall ipso facto be deemed amended to make such more favorable provisions,taken as a whole, applicable to Landlord under this Agreement from that time forward. iv. Sales Recording and Records Tenant shall record at the time of sale, in the presence of the customer,receipts from sales or other transactions,whether cash or credit,in a cash register or registers, or a point of sale terminal or terminals, having a tape that accumulates t� ReddingL,ease4_30.wpd �ig League Dreams Redding Sparfs Park Lease and consecutively numbers all transactions. A receipt from any transaction showing the correct amount af purchase shall be offered to the custozner at the time of any transaction, including any cash sa�e, Transactions not ordinarzly recarded in a cash register vr point of sale terminal shall be not�d on and kept in a ledger format. Tenant sha11 keep, and a�] sublessees, concessionaires, franchisees,contractors,and licensees of Tenant shall keep,or,with five(5)days' advance written notice, make availab�e,at the Premises; (1) full and accurate books of accaunt and records in accordance with generally accepted accaunting principles cansistently applied,including,without limitation,a sales journal, generalledger, and a11 bank account statements shawing deposits ofrevenues; (2} a11 cash register or point of sale terminal receipts with regard ta the Gross Revenues, credits, refunds, and ather pertinent transactions made fram or on the Premises (including the revenues af arry sub�essee, franchisee, contractor, licensee, or concessionaire); and (3} detailed original records of any e�clusions ar deductions from Grass Revenues (incZuding any exclusions ar deductions from Gross Revenues af any sublessee, franchisee,cantractor,licensee,or concessioriaire}. These books,receipts,and records shall be kept at the Premises, or at the headquarters of BLD USA, for a period of five (5) years after the end of each Lease Year, and shall be made available for inspection and audit by Landlord and Landlord's representatives at the Premises on five (5)days' advance written notice. In addition,on request af Landlord ar Landlord's represe�.tatives, Tenant agrees to fi�rnish eopies of Tenant"s state and laca� saies and use t� returns. c. Quarterlv and Annual Revenues Statements. i. Quarterly Revenues St�tement. Each payment of Percentage Rent shall be accompanied by a statement,to be certified as correct by Tenant ar the emplc�yee of Tenant autharized so to certify,that sets farth Tenant's Gross Revenues(and any authorized exclusions and deductions thereto}for the quarter j�st cancluded("{�uarterlv Revenues Statement"}. Quarters sha11 be calendar year quarters, ending on March 31, June 30, September 30, and December 31, respectively. ii. Annual Revenues Statement. Within sixty(60)days following the end of each Lease Year,including the last Lease Year of the Term,Tenant shall furnish Landlord with a statement of Tenant's annual Grass Revenues on account of the previaus Lease Irear,or any partial Lease Year, including any authorized deductions {"Annual Revenues Statement"). Such Annual R.evenues Statement shall be certified as correct by an authorized officer af Tenant. iii. Content. Each Quarterly Revenues Statement and Annual Revenues Stateznezat shall set fort� the total Gross Revenues for the preceding quarter or Lease Year, as � ReddingL.ease4_34.wpd Big League Dreams Redding Sparfs Park Lease appiicable, and shall shaw the method of camputing the �'ercentage Rent due for such quarter or Lease Year, as applicabie. d. Audit Ri h�ts. i. Audit Procedures. The acceptance by Landlord of any monies paid to Landlord by Tenant as Percentage Rent for the Premises as shown by any A.nnual or Quarterly Revenues Statement furnished by Tenant shall not be an acceptance by Landlord of the accuracy of the statement, or af the sufficiency of the amount of Percentage Rent payments,but Landlord shall be entitled at anytime and from time to time during the Term,until the date that is five(5)years after the end of the Lease Year for which any of the Percentage Rent payments have been paid, to question the sufficiency of the amaunt paid and the accuracy of any and all statements furnished by Tenant to justify �he amount Tenant shall pay as Percentage Rent, and to canfirm and evaluate Tenant's statement of its Gross Revenues from the Premises. At any time during the Term and within five (5)years after the end of the Term,Landlard may cause an audit of Tenant's boaks and records(and the baoks and records ofBLD USA related ta a calculatian ofGross Revenues subject to the BLD U5A A1locatians, which Tenant shall cause to be made available tc� Landlord} an independent accountant of Landlord's awn selection for any Lease Year. If any Annual Revenues Statement for such Lease Year delivered by Tenant ta Landlord is found to be less than the amount af Tenant's actual Grc�ss Revenues for the periad cavered by the statement,Tenant shall immediately pay to Landlard any additional Percentage Rent shown ta be payable by Tenant.If the audit reveals that the correct a.tnaunt of Gross Revenues is rnore than five percent{5%) greater than the amount shawn on the Annual Revenues Statement previausly delivered by Tenant for the period covered by such statement, Tenant shall immediately pay ta Landlord the cost of the audit and any additianal Percentage Rent shc�wn to be payable by Tenant, tagether with interest on the amount af the underpayment of Percentage Rent fronz the original due date at the default rate specified in Section ]8c,plus additional rent equal to five percent(5°l0} of the Percentage Rent payable for such Lease Year; otherwise, the cost of this audit shall be paid by Landlard. If, ten (1 Q} days after written request therefor specifying Tenant's failure to comply with the reporting obiigations hereunder, Tenant fails ta provide to Landlord any Quarterly Revenues Stat�rnent ar Annual Revenues Statement in the maru�er specified in this Agreeznent,tlzis failure sha11 canstitute a default under this Agreement. In such an event, Landlord shall have the right, in addition to any other rights or remedies it may have under this Agreement,to canduct an audit ta determine these revenues.Tenant shall immediately reimburse Landlord for the cost of such audit Qn written demand by Landlord.If any such Quarterly Revenues Statement ar Annual Revenues Statement reparts Gross Revenues found to be more than ten percent(10°/Q) less than the aznount of actual Tenant's Grass R.evenues shown by this audit,the understatement sha11 be deemed willful and Landlord may terminate this Agreement upon written notice given at any time within one hundred eighty(180}days after receipt of the audit by Landlord. If at any time Tenant causes an audit of Tenant's business at the Premises to be made by an independent accauntant, Tenant shall fi�rn.ish Landloxd with a cc�py af the report of this audit at no cost to Landlord,within ten (10}days after Tenant's receipt of the audit report. ii. Examination of Books. Tenant shall{and shall cause BLD USA to do so as weli as to thase baflks, recards and accounts by which Gross Revenues subject to the BLD 14 x�aa�n��ea_3ff.�a Big League Dreams Redding Sporfs Park Lease USA A1lacations are caiculated),for a period of five(5�years fallowing the delivery of each Annual Revenues Statement, including the f ve (5) year period following the end of the Term, keep and maintain,safe and intact,all of the records,books,and aecounts required under Section 4(b)(iv},and shall from time to time,upon request,make these records available ta Landlord,Landlord's auditar, representative, or agent for examination at any reasonable tirne during this periad. Zandlord shall also have the right to make abstracts from the xecordsa to make capies of any or a11 of the xecords, to examine any ar all contracts, leases,licenses, and concession agree�nents, and to make copies of any ar all contracts, �eases, licenses or concession agreements. e. Operation. Tenant shall operate Tenant`s business fram the Premises as provided in Section'7 with due diligence and efficiency.Tenant wi11 operate the business at Tenant's awn expense and at hours cansistent with other similar businesses operated by Tenant, which do not canflict with the Environmental Impact Repart Mitigation Measures and City Use Permit; pravided, however,that this provision shall not apply if the Premises are closed due to inclement weather or Tenant's business is temporarily shut down dus ta casualty,condemnation,fire,or other causes beyond the reasanable contro� of Tenant. Nothing in this Agreernent shall be deemed ta restrict or lirnit the ability of Tenan�ar BLD USA to sell"naming rights"ta the Sports Park pursuant to a BLD Sponsorship subject to Landlord consent, provided that revenues derived therefram, including BLD USA Allocations ta Tenant(but excluding BLD USA gross revenues not allocated to Tenant as BLD USA Allocations),are included in Gross Revenues.Tenant shall at all times carry a comrnercially reasonable stack of inerchandise,faod and beverages,offered for sale at competitive prices, and shall maintain an adequate number of properly trained and skilled personnel for the efficient service of Tenant's customers, Sports Park participants, and the operation of the Sparts Park. Although Landlord has no awnership interest in Tenant`s business, Landlord is concerned abaut maximizing Grc�ss Revenues {and, consequent�y, the Percentage Rent), and Tenant hereby acknawledges tlaat fact. f. Assignees. '�Vherever Tenant`s business or operations, ar Tenant's Gross Revenues,or Tenant's records,boaks,accounts,and other data are referred to in this Agreement,they shall be deemed to include,but only to the extent neeessary to calculate ar verify Gross Revenues, those af any assignee, sublessee, concessionaire, licensee, vending rnachine operator, or other person,firrn,or corparation selling merchandise ar services on or from the Premises;provided that this subsection shall not be deemed to imply consent to the operations of any other person,firm,or corporation except in accordance with the provisions of Section lb. g. Percentag,e Rent Due in Event ofDefault.Ifthis Agreernent is terminated by Landlord because af Tenant's default,and ifTenant becomes liable for any deficiency in rent by way of damages ar otherwise,or if at any time during the Term,Tenant,in violation af Section 7,ceases to canduct in the Premises the business refened tQ in Section 7,then from and after the time of the breach causing fihzs termination, or fram and after the time of the cessatian of business, the Percentage Rent sha11 be deemed ta be ten percent {10°/a) of that amaunt which is equal to the average of the Grass Revenues during the twenty-four (24) months preceding the termination or �� ReddingL.easc4_30.rvgd Big League Dreams Redding Spar�s Park Lease cessation af business, unless the Termination or cessation accurs within three {3} years of the beginning af the Term, in which event#he Fercentage Rent shall be$200,000 per year. h. Legal Currencv_. All rent payable under this Agreement shall be made in legal cunency of the United States. If any two or more payments made by a check,draft�c�r money order are ret�u�ned to Landlc�rd due to insufficient funds or ot�ierwise,Landlord shall have the right,at any time after the return, upan written notice to Tenant, ta require Tenarit to rnake all subsequent payments in cash,or by cashier's or certified check far aperiod of three{3)Lease Years.Tenant sha11 pay all rental amounts due under this Agreement at Landlord's adc�ress as set forth below,or at such other address as may be designated by Landlord tc►Tenant in writing. 5. Additianal Rent. A11 Taxes and other casts and expenses payable under this Agreement by Tenant and all damages,costs, and expenses that Landlord incurs ar might incur by reason of Tenant's default, shall be deemed additional rent. In the event of Tenant's nonpayment of additzonal rent, Landlord s�all have all the same rights and remedies as Landlord has for the nonpayment ofPercentage Rent.The terna"rental"at�d"rent" as used in this Agreement shall mean Percentage Rent arid such additional rent. b. Taxes. a. Covenant ta Pa,y Taaces. As additianal rent, Tenar�t sha11, throughout the Term, camrnencing effective as of the Term Commencernent I7ate,pay directly ta the appropriate taxing authorities all T�es(as defined in Section 6(b}}. All Taxes shall be paid befc�re delinquency and before any fine,interest or penalty shall become due or be impased by operatian of law for their nanpaym�nt. Tenant shall furnish to Landlord prior to the date when any Taxes wc�uld becc�me delinquent receipts or other appropriate evidence establishing such payment. b. Definition of T�es. The term"T�es" sha11 include all real property t�es, possessory interest taYes,personal property taxes,charges and assessments(including but not limited to street improvement liens) which are levied, assessed upon or imposed by any governmental authority or politica] subdivision thereof during ar with respect to any partion of the Term hereof with respect to the Premises or any improvernents,fxtures,equipment or other property ofTenant, real ar personal,located on the Land ar used in connectian with the operation of the Sports Park,and any t�which shall be levied ar assessed in addition to or in lieu c�f such real or personal property taxes,and any license fees,taxes measured by or imposed upan rents,ox other taxes or charges upon Landlord's leasing of the Land ar the xeceipt of rent hereunder, AlI assessrnents,taxes, fees, levies and charges imposed by governmental agencies far services such as fire protection,street,sidewalk and raad maintenance,refuse removal and other public services generaliy provided without charge to ownezs or occupants prior to the ad�ption of Propasition 13 by the voters of the State af California in fi.�e June 1978 election, also shall be deemed included within the definition of"TaYes" for the pu.r�Poses af this Agreement. �Z ReddingLease4 30.4vpd Big League Dreams Redding Sparfs Park Lease c. Proration of Tenant's Tax Liabilitv. Tenant"s liability to pay Taxes shall be prarateci an the basis of a 365-day year to account for any fractianal portion of a fiscal t� year included in the Term at its commencement or expiration. Any Taxes payable after the Term Commencement Date{but before the expiration af the Term)but applicable,in whole or in part,to periads prior to the Term Commencement Date, sha11 be paid by Tenant. Landlord shall,however, pay ta Tenant its pro rata share of sueh Taxes liability for periods prior to the Term Commencement Date a�least ten (10)days priar to the date such Taxes are due and payable. d. Landlord Cavenant. During the Term, Landlord shall nat levy, assess ar impose an Tenant, ar which burden the Land or the Premises, any taxes, license fees, charges or assessments which are not levied, assessed or imposed generally within the City. '7. Use a. Permitted Uses Tenant agrees to use and accupy the Premises continuously durin:g the Term for the purpose af operating the Sports Park as described in this Agreement and Exhibit 2 of this Agreement and far no other purpose withaut exception. Use of a part of the Sparts Park for a game room,including video games,pool tables and similar entertainment equipment,shall be permitted;provided,however,that any form of gaming,lawful ar otherwise,will not be permitted on the Premises withaut the priar written consent of the Landlard. Subject to obtaining and rnaintaining required ar appropxiate licenses,perrnits or other approvals from the Alcohalic Beverage Control Agency or any ather gavernmental jurisdiction having authority,Tenant may engage in the sale of beer, wine and liquor on the Premises. b. Business Name. During the entire Term,Tenan�shall conduct business in the Premises under tlae name"Big League Drearns Redding Sports Park" in the manner provided herein. c. Permits. Tenant shall at all times during the Term obtain,keep and maintain all licenses and permits required by state and local governmental authorities necessary ta operate the Sports Paxk fxom the Premises,and comply with each and every tern�of each such permit,includzng, but not limited to,the City LTse Permit and Environmental Impact Repart Mitigation Measures. d. Securi . Tenant shall at a11 times provide such security for the operatian of the Premises as sha11 reasonably be fc�reseen by Tenant to be prudent to protect the customers, emplayees, guests, contractoxs and ather invitees of the Preznises, a�zd to pratect the owners and accupants af neighbaring properties from the customers, employees,guests, contraetars and ather invitees of the Premises. e. Local Youth Pro�rams. During the Term, Tenant shall endeavar to accammodate on a preferential basis use of the Premises for lacal arganized yauth programs. As used herein, the term "lacal" shall mean and include organized youth programs as ta which a majority of the participants are residents of the City of Redding. Use of the Premises by Iocal organized youth programs shall be subject to the narmal operating practices and rules of the �� Reddingi.ease4_36.wpd Big League Dreams Redding Sparts Park Lease Premises and of$ig League Dreams Sports Parks generally and available tirnes for league play sha11 be se�ected by Tenant, subject to, if he ar she sa requests, the reasonable approval of the City Manager of the Landlord. $. Com�iance. a. Tenant. Tenant sha11, at Tenant's expense, carnply promptly with alI applicable statutes,ardinances,rules,regulations,arders,covenants,conditions,and restrictions,and require�nents of any governmental authority in effect during the Term, regulating the use or operation by Tenant of the Premises{collectively,the"Statutes"}whether those Statutes are now in farce or are subsequently enacted. Tenant shall keep and maintain in full force and effect, and in gaod standing, all permits and licenses required from state and local governmental authorities far operation of the Premises. The suspension ar termination of any permit or license for a period in excess of thirty (30}days shall be a material breach hereof, but sha11 first be subject to the cure as pravided in Sectian 17(a}(v),If any bureau,department or official of the state or county government or any other governmental autharity{other than the City)having jurisdiction requires or recammends that any non-structura� changes,modifications,replacernents,alterations, or additianal equipment be made or supplied in or to any portion of the Premises by reasc�n of Tenarit's use or operatic�n thereaf, Tenant sha11, at Tenant's cost and expense,make and supply such non-structural changes, madifications,replacements,alteratic�ns oar additianal equipment.Tenant shall not use nar perznit the use of the Prernises in any manner that will tend to create waste or a nuisance. The judgement of any court of competent jurisdiction, or the admission by Tenant in a proceeding brought against Tenant by any government entity, that Tenant has violated any Sta�ute shall be conclusive as between Landlord and Tenant and shall canstitute graunds for termination of this Agreement by Landlord. b. Landlord. Landlord,and Landlord's contractors and agents, shall comply with all applicable Statutes af any governmental authority then in effect while developing the Project and constructing the Sports Park Impraveznents. Landlord reparesents and warrants that,as of the Term Commencement I}ate, the Premises will be in coznpliance with ali applicable Statutes of any governmental authority then in effect. In the event, during the Term, Landlord enacts ar issues any new Statutes which would burden or restrict Tenant in the operatian af the Sports Park beyond restrictions cantained in this Agreement,th�Enviranmental Impact R.eport Mitigation Measures or the City Use Permit,the City and Tenant shall negotiate in good faith modifications to the Percentage Rent farmula or other provisit�ns of this Agreement,the effect of which�nodifications wc�uld place Tenant in a comparable financial position had such Statutes not been enacted or issued. c. Landlord's Use af Parkin�. I�lotwithstand`zng anything to the contrary, City rnaintains the right ta utilize the Sports Park parking lot for its own use sa long as it does not unreasonably interfere with Tenant's activities. l� ReddingLeasc4_30.wpd Big League Dreams Redding Sporfs Park Lease d. Landlord's tJse ofLand and Nan-Com�etztion. Landlord expressly reserves unta itselfthe right to use the rest of the Land for whatever purpose it may chaose so long as such use does not unreasonably interfere with Tenant's use afthe I'remises hereunder. Landlord shall not compete with Tenant by itself arganizing, or by contracting with third parties to azganize, softball or baseball leagues or tournaments either on the Land or elsewhere in the City,provided that a)local non-profit youth baseba�l or youth softball organizatians may contract with Landlord to play local youth baseball or softball games(but not tournaments designed�a attract out af town teams)at other Landlt�rd owned property and b)Landlord may cantinue to offer and organize]acal youth baseball or softball programs currently offered by Landlord as ofthe date ofthis Agreement at other Landlard owned property,but shall not offer or organize any new youth baseball or softball programs during the Term and shall use reasonable efforts to encourage existing youth baseball and softball programs, aver a reasonable transition period,ta utilize the Sports Park. 9. Landlord's Development of the Sports Park. a. Landlord's Construction Obligations. The Sports Park Improvements shall be constructed by Lar�dlord,as set forth in the Project Description and the Plans and Specifications, pramptly and with due diligence. The quality of canstruction and the quality of rnaterials used in the constnzction of the Sports Park Improvements shall be of a first class quality and in accordance with the Proj ect Description and the P1ans and Specifications. Landlord shall prosecute Landlord's canstructzon obligations hereunder ta completion witbout undue intemzption or delay arzd in a gaod, worksnanlike manner. Landlord warrants that it will endeavor to cause the Sports Park Irnprovements to be completed and passessian of the Premises delivered ta Tenant on or before August 1,2002. In the event the Sparts Park Impravements are not completed and possession of the Premise�is not delivered to Tenan#on or before Augus� 1,2002,Tenant shall have no obligation to pay any rent or other payments or perforzn any ather obligations uztder this Agreement until the Term Commencement Date. Landlord shall have no liability to Tenant for failure to camplete the Sports Park Improvements and deliver possession af the Premises on or befare the date hereinbefare described. Tenant shall, however, have the optian to terminate this Agreement, without further obligation or liability hereunder, in the event Landlord is unable to complete the Sports Park �mprovements and deliver possessian of the Premises to Tenant on or before May l, 2003. b. Guarantee of Materials. Landlc�rd shall guarantee all work perfarmed by or for Landlord in the construction of the Sports Park Improvements against defective workmanship and materials for a peri4d of one(1�year from the Term Commencement Date(or such longer periad as may 6e specified in the Plans and Specifications}. Landlord,if permitted,shail assign to Tenant (or enforce for Tenant's benefit) any and all guarantees and/or warranties of workmanship and rnaterials which it may receive or which are required in the Plans and Specificatians with respect to those portions of the Premises required to be maintained and repaired by Tenant hereunder. Within fifteen�15)days after receipt of Landlord's certif cation of substantial completian af the Premises, Tenant shall supply to Landlord a written pw�ch list{the"Punch List")setting forth any additional corrective wark to the Premises which Tenant believes is xequired to be perforrned pursuant to the 15 Reddingi,ease4}b.wpd Big League Dr�ams Redding Sporfs Park Lease Plans and Specifications. In the event that no Punch List is provided by Tenant within such f fteen (15}day period, then Tenant shall be deemed to have accepted�he Premises in its entirety subject to Lar�dlord's guarantee obligations described abave and any repair and maintenance obl'zgatiQns t�f Larzdlord under Section 11(b)below.Landlord sha11 endeavor ta complete or correct the Punch List items promptly and with due diligence. c. Terminatian i�Financin�U�zavailable. Notwithstanding any other provision of this.Agreement,if Landlord is in good faith unable to secure adequate construction financing to enable it to award a construction contract, based upan bid prices received by it, Landlard may terminate this Agreement by giving Tenant thirty {30)days' advance written natice. 1 fl. Utilities and Services. Tenant shall make all arrangements for and pay priar to delinquency all utilities and services furnished to or used by it or its licensees or subtenants, including, withaut limitation, gas, electricifiy, water, telephone service, cammunicatians, cable television, trash callection, sewer, and storm drainage. Landlord shall, as part af its constructian obligations,contract for and pay ali necessary charges to connect the Sports Park,ar�d all necessary locatic�ns within the Sports Park,to,or#o access,gas,electrical,water,telephone,cammunicatians, cable televzsian lines or sources, sewer, and storm drainage. 1 l. Maintenance and Repairs. a. Tenant's Oblz�ations. Except as provided in Section 11(b)belaw,throughout the Term,Tenant shall,at Tenant's sole cost and expense maintain t1�e entire Premises in a safe and first class condition and in good repair{damage by casualty described in Section 13 excepted)and in accgrdance with {i} all applicable Statutes; (ii) the insurance underwriting board or insurance services office having or claiming jurisdiction over the Premises; {iii) all insurance companies insuring all ar any part af the Premises;and(iv)standards consistent with other Big League Dreams Sports Parks. Semi-arm:ual meetings shall be held between BLI}'s Maintenance Supervisor and Landlord's Park Maintenance Foreman to reaffirm that these standards are achieved. b. Landlord's Ob�igations. Far the first five(5)Lease Years,Landlord shall,at Landlord's sole cast and expense make all repairs and replacements required because o�latent defects or latent faulty installation or construction by Landlord or as the result of the act, default, omission,or negligence ofLandlord,its employees,agents,licensees,contractors,or subcantractors. �{�7 ReddingLease4_3Q.wpd Big League Dreams Redding Sports Park Lease c. Furniture, Fixtures & Equipment. Within thirty (30) days of submission of written receipts therefor,the Landlord shall reimburse Tenant for the initial purchase of the FF&E. All FF&E shall be maintained by Tenant pursuant to Section 11(a). 12. Alterations. Tenant shall not make any alterations or additions to the Premises(other than interior, non-structural alterations costing not more than $25,000 in any one instance) after completion of the Sports Park Improvements without the prior written consent of the City Manager, which consent may be withheld in the sole discretion of the Landlord. If Tenant desires to make any alterations to the Premises as provided in this section, the alterations or additions shall not be commenced in any case until twenty (20) days after the City Manager lias received written notice from Tenant stating the date the construction of the alterations or additions is to commence so that the City Manager, on behalf of Landlord, can post and record an appropriate notice of nonresponsibility. Any alterations or additions or changes to the Premises made by Tenant shall be done in accordance with all applicable laws, rules, and regulations, including building codes and prevailing wage requirements if applicable. All such work requiring a building permit shall be performed under the direction and supervision of a competent contractor(s) licensed and in good standing under the laws of the State of California. Tenant shall not permit any mechanic's or materialman's liens to remain against the Premises for work or materials furnished in connection with any such alterations, additions or changes to the Premises. If Tenant shall, in good faith, contest the validity of any such lien, Tenant shall, at its sole expense, defend itself and Landlord against the same and upon Landlord's request,furnish to Landlord a surety bond in an amount equal to one hundred twenty percent (125%) of such contested lien indemnifying Landlord against the liability for same and holding the Premises free from any affect of such lien. All alterations and additions to the Premises shall become the property of Landlord and shall remain on and be surrendered with the Premises at the expiration or sooner termination of this Agreement. 13. Destruction. a. Partial Destruction; Restoration b�Tenant. If the Premises are damaged or destroyed during the Term,the cost of repairing the Premises is less than thirty percent(30%)of the replacement cost of the Sports Park Improvements constituting the Premises and the Term has at least ten(10)years remaining,then Tenant shall,promptly restore the Premises to substantially the same condition as they were in immediately before such damage or destruction,in accordance with the original Plans and Specifications (except for changes as may be required by changed building and safety codes, which Tenant shall make at Tenant's sole cost and expense). Such damage or destruction shall not terminate this Agreement. Tenant shall, use commercially reasonable efforts to complete such repairs within one-hundred eighty (180) days from the date of the casualty. b. Maj or Dama�e or Destruction; Tenant's Ri�ht to Terminate. If the Premises are damaged or destroyed by flood or earthquake (or other casualty not covered by the all risk 1 7 ReddingLease4_30.wpd Big League Dreams Redding Spor�s Park Lease property insurance required to be maintained by Tenant) during the Term and the cost of repairing the Premises is thirty percent {30°l0} or more af the replacement cost af the Sports Park Improvements constituting the Premises,then Tenant shall have the option of either repairing and reconstructing the Premises or of terminating this Agreement. Notwithstanding the faregoing, provided that damage or destruction to the Premises is due to a cause covered by the all risk property insurance required by this Agreement or by insurance c�therwise maintained by Tenant,then Tenant shall restare the Premises to substantially the same condition they were in immediately before such damage or destruction, in accordance with the ariginal Plans and �pecifcatians {except for any changes that may be required by changed building and safety codes, which Tenant shall make at Tenant's sole cost and expense)to the extent of insurance proceeds received;provided,however,that (1)if the cost of the restaration of the Sports Park Improvements shall exceed the insurance proceeds availab�e to Tenant to perform such restaration by an amount in excess of$100,0(l0,or(2)there is damage to ar destructic�n of the Premises and the gaverrr�nnental restrictions then in effect with respect ta the Premises prohibit constructian of economically viable replacement improvements with respect to a use which Tenant has a right ta make under this Agreement, or {3) such destruction occurs during the last five{5}years of the Initial Term or during any extension term of this Agreement,then Tenant shall have the right to terminate this Agreement as hereinafter set forth. Ta exercise the right of termination described in this subsection {b), Tenant must comply with all of the following canditions: i. Give Landloxd notice oftermination within thirty{30)days after the damage or destructian,specifying the date aftermination which sha11 be nat less than sixty(60}days nor more than one hundred twenty {120) days after the date such notice oftermination is given; ii. Priar to the termination date,cure any defaults on Tenant's part under this Agreeznent; iii. Continue to rnake all payments when due{including without limitation the prarated portian afany additional rent,including any rent due under Section 4{g),becoming due after Tenant has given the notice of termination but prior to the date of termination), if any, as required by the provisions of this Agreement until the date o�terminatzon; iv. Prior to the terrnination date,pay in full any outstanding indebtedness incurred by Tenant and secured by an encumbrance or encumbrances on the leasehold, or alternatively,deliver to Landlord the written consent of the holders of all such encumbrances ta the early termination af this Agreement and extinguishment of their Iiens; 1 t� ReddingLease4_30.wpd Big League Dreams Redding Spor�s Park Lease v. Prior to the termination date, cause to be discharged all liens ar�d encumbrances encumbering the Premises or Tenant's leasehald interest resulting frorn any act or omission of Tenant; vi. (Jn ar befor�the termination date,de�iver possession of the Premises to Lar�dlord, quitclaim all right, title and interest in the Premises ta Landlord and cease to do business an the Premises, and vacate the Premises; vii. Priar to the termination date,effective�y relinquish,assign,and deliver to Landlord all insurance proceeds resulting from the casualty. In the event af any such terrninatian, any additional rent paid in advance shall be prorated throug� the date the Agreement is terminated. c. Abatement or Reduction of Rent. In case of any damage ar destruction where this Agreement is not terminated, tl�rere shall be no abatement ar red�zction of Percentage Rent or additional rent; however, during the period of reconstruction, Tenant rnay cantinue to canduct business from the Premises from temporary facilities or temporary structures subject to compliance with 1oca1 building and safety codes or other applicable municipal codes. Tenant shali use cammercially reasonable effarts to complete such reconstructian and re-open the Premises for business within a reasanable tirne,not to exceed ten(10) months in the aggregate. d. Insurance Prc�ceeds. If Tenant is obligated 4r elects ta restore the Premises pursuant to this section, the proceeds of any insurance maintained under this Agreement shail be disbursed pursuant to a customa.ry eonstruction disbursement systezn ar service for payment of casts and expenses of repair. If the insurance praceeds are insufficient to cov�r the cost of repair, and Tenant is nonetheless obligated to repair under Section 13(b),then Tenant shall deposit the amaunt of the deficiency with Landlord, and such funds shall be disbursed first, and the balance of the construction costs sha�l be disbursed from the insurance proceeds by Landlord. 14. Insurance and Indemnitv. a. Liability Insurance. Effective as of the Term Commencement Date,Tenant shall pracure at its sole cost and expense, and thereafter keep in effect at all times until the end of the Term,commercial generalliability insurance which shall include broad form contractual liability insurance coverage insuring all of Tenant's indemnity abligations under this Agreement. Such coverage shall have a rninimum cotnbined single limit of liability of at least $2,000,000. If commercial general liability insura.nce or other form with a generai aggregate limit is used, the general aggregate limit shall be twice the required occurrence limit. Tenant's public liability irzsuranee shall include dram shap liability insurance or liquor Iiability insuxance. All of Tenant`s 1� ReddingLease4_34.wpd Big League Dreams Redding Sports Park Lease public Ziability insurance policies sha11 be written to apply to all bodily injury, property damage, personal injury and other covered loss,however occasianed,occurring during the policy term,ar�d shall be endarsed to provide that such coverage sha�1 be prirnary and that any insurance maintained by Landlard shall be excess insurance only.Tenant may satisfy the requirements of this subsection (a) by having BLD USA obtain a master policy of liabiliiy insurance applicable to multiple Big League Dreams Sparts Parks which sha11,by endorsement, specifica�ly name the Sports Park as an insured and comply with other requirements of this Section 14 applicable to such insurance. b. Workers' Compensation Insurance. Tena��t and Tenant's sublessees and cancessionaires shall maintain workers'compensation insurance in accordance with California law and an employer's liability insurance endorsement with customary limits. c. Propertv Insurance. i. All Risk C'overa�-e. Tenant shall at Tenant's expense obtain and keep in force during the Term of this Agreement (commencing as of the Term Commencement Date)a policy of insurance covering loss or damage to the Premises,all FF&E,and other persanal pzoperty of Tenant and Landlord, in the amount of the full replacement value thereof, as the same may exist from time ta time, against all perils included within the classificatian of fire, extended caverage, vandalism,malicious mischief, and special extended perils ("all risk," as that term is known in the insurance industry).If such insurance coverage has a deductible clause,the deductible amount shal� not exceed$20,000 per occurrence. Tenant shall be liable far such deductible amaunt.Tenant shall abtain such endorsements as are recommended by Landlord's risk manager, including, without limitation, an endorsement far changes in building cades, provided such endarsements may be obtained on commercially reasonable terms. Landlord shall be the loss payee on such poiicy. Landlord shall receive and retain all insurance proceeds to the extent they are not used to rebuild the Premises following an insured casualty. ii. Replacement Value. The "full replacement value" ofthe property to be insured under this section shall be determined by the company issuing the insurance policy at the time the policy is initially obtained. Not more frequently than once every two(2}years,either party shali have the right to nfltify the other party that it elects to have the replacement value redetermined by an ins�arance company.The redeterminatian shall be made pramptly and in accordance with the rules and practices af the insurance company,and each party shail be promptly notified ofthe results by the company. The insurance palicy shall be adjusted according to the redetermination. d. Iz�surance Policies. i. Coverage Re-Evaluatir�n. Not rnore frequently than once every ten (10}years,if in the reasonable opini�n of Landlord the arnount or type of any insurance at that time is not adequate or not provided for herein, Tenani shall either acquire or increase the insurance coverage as required by Landlord pzavided Tenant may obtain such increased coverage Qn ca�simercially reasonable terms. �{�} ReddingLease4_30.wpd Big League Dreams Redding Sports Park Lease ii. Policv and Companv Reguirements. Tenant shall deliver to Landlord copies of policies of such insurance or certificates with attached original endorsements evidencing the existence and amounts of such insurance with loss payable clauses as required by this Section 14. Tenant shall, at least thirty (30) days prior to the expiration of such policies, furnish Landlord with renewals or binders thereof. Insurance is to be placed with insurers with a current A.M.Best's rating of no less than A-:VII and licensed to do business in the State of California. All policies of insurance must(other than the property insurance,which shall name the Landlord as the loss payee) be endorsed to contain the following: (1) The Landlord, its members, council members, officers, employees,volunteers,and any additional parties designated by the Landlord,as additional insureds. The coverage shall contain no special limitations of the scope of protection afforded the Landlord. (2) The insurance coverage shall be primary insurance as respects the Landlord,its members,council members,officers,employees,agents,and any additional parties designated by the Landlord. Any insurance or self-insurance maintained by the Landlord, its members, council members, officers, employees and volunteers, and any additional parties designated by the Landlord shall be excess of the insurance and shall not contribute with it. (3) No such policy shall be cancelable or subject to reduction of coverage or other modification expect after thirty (30) days prior written notice to Landlord. (4) As respects workers'compensation insurance,the policy shall be endorsed with a waiver of subrogation clause for Landlord, its respective members, board members, officers, employees, and volunteers. iii. Pol icv Compl iance. Tenant shall not use the Premises in any manner, even if the use is for the purposes permitted herein, that will result in the cancellation of any insurance required under this Agreement.Tenant further agrees not to keep on the Premises or permit to be kept,used,or sold thereon,anything prohibited by any fire or other insurance policy covering the Premises. iv. Failure to Obtain Insurance. If,after written notice and a fifteen(15) day opportunity to cure, Tenant shall fail to obtain any insurance required under this Agreement, Landlord may,at its election, obtain such insurance and Tenant shall, as additional rent,reimburse Landlord for the cost thereof plus a five percent(5%)handling charge,within five(5)days following demand therefor. If Tenant fails or refuses to maintain insurance as required hereunder, or fails to provide the proof of insurance,Landlord shall, subject to the notice and cure provisions of Section 17(a)(v), have the right to declare this Agreement in default, and Landlord shall be entitled to exercise all legal remedies for breach of this Agreement. v. Relationship to Indemnities. All insurance required to be provided hereunder is in addition to,and not in lieu of,the indemnity provisions of Section 14(�hereof. The 2,1 Reddingl.ease4_30.wpd Big League Dreams Redding Sports Park Lease procuring af such required palicies of insurance shall not be construed to limit Tenant's liability hereunder, nor ta fizlfill the indemnification provisions and requiremen#s of this Agreement. e. �Naiver of Subro ation. Tenant and Landlord each hereby release and relieve each ather, and waive their right of recovery against the othez, for loss or damage arising aut af or incident ta the perils insured against under Section 14(c), which perils occur in, on or about the Premises, whether due to the negligence of Landlord, or Tenant or their agents, ernployees, contractors andlor invitees,but only to the extent af insurance coverage.Tenant sha11,upon obtaining the palicies of insurance required hereunder,give notice to the insurance carrier or carriers that the foregoing mutual waiver of subrogation is cantained in this Agreeznent and abtain the insurance carrier"s written consent thereto. F. Indemnitv. Tenant shall,eommencing with the Term Commencement Date, indemnify, defend, pratect, and hald harmless Landlord, the City and their respective members, employees, agents and contractars �collectively the "Indemnitees"} from and against any and a�l clairns, losses, proceedings, damages, causes of actian, liability, costs and expenses (including reasonable attarneys`fees),arising frc�m or in cannection with,or caused by(i}any act,omission vr negligence of Tenant or any sublessee of Tenant,ar their respective contractors,licensees,invitees, agents,servants or employees,wheresoever the same�nay occur;{ii}any use of the Premises,or any accident, injury, death or damage to any persan ar property occurring in, on or about the Fremises, or any part thereof, or fram the conduct of Tenant"s business or frorn: any activity, wark or thing done, permitted or suffered by Tenant or its sublessees, cantractors, emplayees, or invitees, in or about the Premises, or elsewhere (other than when arising as a result of defective construction or workmanship by Landlard or its contractors or agents,ar gross negligence or intentional misconduct of an Indemnitee);and(iii)any breach or de�ault in the perfarmasice of any obligations on Tenant's part ta be perfarrned under the terms of thzs Agreement, or arising from any negligence of Tenant, or any such claim or any action or proceeding brought thereon;and in case any action or proceeding be brought against an Indemnitee by reason of any such claim, Tenant upon notice from Landlord shall defend the same at Tenant's expense by caunsel reasonably satisfactory to Landiord. Tenant shall have no duty to defend ar indemnify Lar�dlc�rd or any ather Indemnitee from any Legal Challenge. Tenant, as a material part of the consideratian to Landlard, hereby assurnes all risk of darnage to praperty or injury to person in, upon or about the Premises arising from any cause other than defec#ive construction ar workmanship by Landlord or its contractors ar agents, gross negligence or intentional misconduct of an Indemnitee,or Hazardous Materials existing on the Land prior to the Term Commencement Date as provided in Section 30 and Tenant hereby waives a11 claims in respect thereof against Lar�dlord.These proviszons are in additian ta,and not in lieu of,the insurance required under this Sectian 14. 15. Conde�nnation. a. Definitions. �Z ReddingLeaseA_3t3.wpd Big League Dreams Redding Sports Park Lease i. "Condemnation"means(A)the exercise of any governmental power, whether by legal proceedings or otherwise,by a Condemnor and(B)a voluntary sale or transfer by Landlord to any Condemnor, either under threat of condemnation or while legal proceedings for condemnation are pending. ii. "Date of Taking" means the date the Condemnor has the right to possession of the property being condemned. iii. "Award'means all compensation,sums,or anything of value awarded, paid, or received on a total or partial condemnation. iv. "Condemner" means any public or quasi-public authority, or private corporation or individual,having the power of condemnation or eminent domain. b. Ri�hts and Obli�ations Governed b�Lease. If during the Term there is any taking of all or any part of the Premises or any interest in this Agreement by Condemnation, the rights and obligations of the parties shall be determined pursuant to this section. Each party waives the provisions of California Code of Civil Procedure Section 1265.130 allowing either party to petition the Superior Court to terminate this Agreement in the event of a partial taking of the Premises. c. Total Takin�. If the Premises are totally taken by Condemnation, this Agreement shall terminate on the Date of Taking. d. Partial Takin�. If any portion less than all of the Premises is taken by Condemnation,this Agreement shall remain in effect,except that Tenant can elect to terminate this Agreement if,in the reasonable judgment of Tenant,the portion of the Premises not so taken cannot be so repaired or reconstructed, taking into consideration the amount of the award available for repair, so as to be suitable for Tenant's continued use of the Premises for the same use as the Premises are being used immediately prior to the taking and the remaining Premises would not be economically feasibly usable by Tenant.If Tenant elects to terminate this Agreement,Tenant must exercise its right to terminate by giving notice to Landlord within thirty (30)days after the Date of Taking. If Tenant elects to terminate this Agreement, Tenant also shall notify Landlord of the effective date of the termination, which effective date shall not be later than ninety(90) days after Tenant has notified Landlord of its election to terminate. If Tenant does not terminate this Agreement within the ninety(90)day period,this Agreement shall continue in full force and effect. 23 ReddingLease4_30.wpd Big L.eague Dreams Redding Spor�s Park Lease e. Restaration of Premises. If there is a partia�taking of the Premises and this Agreerr�ent remains in fu11 force and effect pursuant to Section 15(d), Tenant sha11 commence a�l necessary restoration as promptiy as reasanably practicable under the circumstanees but in all events within thirty (30} days after receipt of the Award, and shall thereafter diligently pursue such restoration work to completion. f. Temporary Takin�. On any taking of the temporary use af all or any part or parts of the Fremises far a period,or c�f any estate less than a fee,ending on ar before the expiration date of the Term,the Term shall nat be reduced,extended,or affected in any way,and Tenant sha11 be entitled to any Award for the use or estate taken. If a result of tlie temporary taking is tc� necessitate expenditures for changes, repairs, alterations, modifications, or reconstnzction of the Sports Park Impravements, the Award shall be paid to Tenant, and Tenant shall commence a�l necessary changes, repairs, alterations, modifieations ar reconstructian of the Sports Park Improvements as pramptly as reasonably practicable under the circumstances but in a11 events within thirty �30) days after receipt of the Award, and shall thereafter diligently pursue such restoration work to completion, At the completion of the work and the discharge of the Premises from all liens and claims, Tenant shall be entitled to any surplus and shall be liable for any deficit. If any such taking is for a periad extending beyc�nd the expiration date of the Term,the taking shall be treated under the foregoing provisians for total and partial takings,depending upan whether the ternporary taking is of all or only a part of the Premises. g. Application of Award. Na Award for any gartial or entire taking shall be apportioned. Awards for partial or temporary takings, where the Lease is not terminated, shall be applied by Tenant to restoration of the Premises as provided above. Tenant hereby assigns to Landlard any Award for a total taking which may be made,together with any and a11 rights of Tenant now or hereafter arising in or to the same or any part thereof; provided, however, that nothing contained herein sha�l be deemed to give Landlord any interest in or require Tenant to assign ta Landlord any Award made ta Tenant for the uzaamortized value af az�y additions or improvements an the Premises constructed by Tenant in accardance with this Agreerrzent(amartized on a straight line basis over the remainder of the Term of this Agreement from the Date of Taking),the taking of personal property and fixtures belonging to Tenant and removable by Tenant at the expiration of the Term hereof, as pr4vided hereunder, or for the interruption of, damage ta, or loss of Tenant's business and goodwi�l,or far relocation expenses recoverable against the conc�emning authority,or in the event af a partial taking, the cost of restaring the Premises to a usable condition. 1 b. Assi�nment, Sublet�ing and Encumbering. a. Prohibition Against Assignment,Subletting and Encumberin�.Tenant shall have the right ta assign this Agreement to an affiliated entiiy as to which a Cantralling Percen#age is owned by BLD USA. Tenant shall not assign, transfer, or encumber all or ar�y portion of its interest in this Agreement or in the Premises, or sublease all or any part of the Premises, or aliow �� ReddingLease4_3d.wpd Big League Dreams Redding Sports Park Lease any other person or entity (except Tenant's authorized representatives)to occupy or use all or any part of the Premises, without Landlord's prior written consent, which consent shall not be unreasonably withheld, delayed or conditioned. No licensees, concessionaires or sublessees of all or part of the Premises shall,without the prior written approval of Landlord,be Affiliates of Tenant. In the event Landlord approves any assignment or subletting of the Premises, Landlord shall cooperate with Tenant in effectuating the reasonable requirements of prospective assignees or sublessors to complete any such transaction. In no event is Tenant or any subtenant authorized to encumber the Premises or the FF&E provided by Landlord without the advance written approval of Landlord, which approval may be granted or withheld by Landlord in its sole discretion. i. Approval Procedure forAssignments and Subleases. Tenant shall first notify Landlord at least forty-five (45) days prior to the proposed effective date of any assignment or sublease,in writing,of its desire to do so and shall submit in writing to Landlord(1)the name of the proposed subtenant or assignee, (2) the terms and conditions of the proposed sublease or assignment(including a copy of the written agreement for same,)(3)financial statements for the two most recent completed fiscal years of the proposed subtenant or assignee,and(4)a bank reference. Thereafter,Tenant shall furnish such supplemental information as Landlord may reasonably request concerning the proposed subtenant or assignee.At any time within thirty(30)days after Landlord's receipt of the information specified above, Landlord may by written notice to Tenant elect to (1) consent to the sublease or assignment,or(2)disapprove of the sublease or assignment in Landlord's reasonable discretion. Such grounds may include, without limitation, a possible material adverse effect upon the reputation of the Project from the nature of the subtenant or assignee; a reputation for financial reliability on the part of the proposed subtenant or assignee which is unsatisfactory in the sole judgment of Landlord; insufficient experience of the subtenant or assignee to operate the Sports Park; likely adverse impact on the Gross Revenues of the Sports Park; or inexperience in performance of Tenant's other obligations under this Agreement. If Landlord consents to the sublease or assignment(or fails to respond to Tenant's request)within the forty-five(45)day period, Tenant may thereafter enter into such assignment or sublease of the Premises, upon the terms and conditions and as of the effective date set forth in the information furnished by Tenant to Landlord. ii. Executed Document Copv. Notwithstanding Landlord having granted its consent to any assignment or subleasing, prior to the effective date of any assignment or the commencement date of any sublease,Tenant shall furnish Landlord with a copy of the fully executed sublease or assignment agreement. iii. Minimum Term. No sublease of the Premises or portion thereof, or assignment of this Agreement, shall be for a period of less than one(1)year,nor shall any sublease extend beyond the expiration date of the Term of this Agreement. iv. Assum�tion. Each permitted assignee or transferee shall assume and be deemed to have assumed, and each sublessee shall be bound by, this Agreement. In the case of 25 ReddingLease4_30.wpd Big L.eague Dreams Redding Sports Park Lease an assignment of this Agreement where Landlord's approval is rec�uired and Landlc�rd so consents in writing, Landlord shall not release Tenant fram any further abligations arising under this Agreement after the�ate of the assignment unless such assignment specifically provides for such a release.No assignment shall be binding on Landlord unless such assignee or Tenant sha11 deliver to Landlord a counte�part of such assignment which contains a covenant of assumption by the assignee,but the failure or refusal ofthe assignee to ex�cute such instnunent of assumption shall nat release or discharge the assignee fr�m its liability as set forth above. b. Additianal Provisions. No consent by Landlord to any assigr;�ment, encumbrance,or sublease shall constitute a waiver ofthe provisians of this section.Tenant shall not make any modificatians to an approved sublease without Landlord's prior written consent. For the purposes hereof, an "encumbrance" shall mean a mortgage, deed of trust, land sale contract, lease or other financing device. Any attempted assignment, encurnbrance, or Lease, if not appraved by Landlord in advance pursuant to this Sectian 16, shall be voidable by Landlord and, at Landlord's election, shall, subject to the notice and cure provisions of Section 17(a)(v), canstitute a default hereunder. For purposes of this Agreement, the creation of any concession agreement or similar agreement for the aperation of the fc�od and beverage facilities at the Sports Park is also considered a sublease. 1'7. DefauZt. a. Tenant's Default. The occurrence of any of the following shall constitute a default by Tenant: i. Failur�e to Pav 1Zent. Failure to pay rent(whether Percentage Rent, or any other rent due to Landlord}or any other additional payment required to be made by Tenant hereunder as and when due,where such failure continues for ten(14}days after delivery by Landlord ta Tenant of written notice caf such failure. ii. Failure to Pay Taxes. Failure ta�ay�.ny T�es an a timely basis,or the failure to provide any insurance required hereunder,where such failure continues far fifteen{I S) days after delivery by Landlord of written notice o�such failure to Tenant. iii. Surrender. Abatzdonment ar surrender of the Premises or the leasehold estate by Tenant. iv. Default Under Related A�reements, Te�ant's default under any Related Agreement,where such default is not cured by Tenant(or BLD USA,as applicable)wi#hin the cure period applicable ta such default, if any, under such agreements. �� 8eddingl,ease4_36.wpd Big League Dreams Redding Sports Park Lease v. Default Under thisAgreement. Failure to perform any other covenant or provision of this Agreement, if the failure to perform is not cured within thirty (30) days after delivery by Landlord to Tenant of written notice. If the failure to perform cannot reasonably be cured within thirty(30)days,Tenant shall not be in default of this Agreement if Tenant commences to cure the failure to perform within the thirty(30)day period and thereafter diligently and in good faith prosecutes the cure to completion. vi. Attachment. The subjection of any right or interest of Tenant to attachment, execution, or other levy, or to seizure under legal process, if not released within sixty (60) days after written notice from Landlord to Tenant. vii. Insolvencv. An assignment by Tenant for the benefit of creditors or the filing of a voluntary or involuntary petition by or against Tenant under any law for the purpose of adjudicating Tenant a bankrupt;or for extending time for payment,adjustment,or satisfaction of Tenant's liabilities; or for reorganization, dissolution, or arrangement on account of or to prevent bankruptcy or insolvency; unless the assignment or proceeding, and all consequent orders, adjudications, custodies, and supervision are dismissed,vacated, or otherwise permanently stayed or terminated within sixty (60) days after the assignment, filing, or other initial event. viii. Receivership. The appointment of a receiver,unless such receivership is terminated within sixty (60) days after the appointment of the receiver, to take possession of Tenant's interest in the Premises or of Tenant's interest in the leasehold estate or of Tenant's operations on the Premises for any reason,including but not limited to,an assignment for the benefit of creditors or voluntary or involuntary bankruptcy, but not including receivership (A)pursuant to a permitted first leasehold encumbrance,or(B)instituted by Landlord,the event of default being not the appointment of a receiver at Landlord's instance but the event justifying the receivership. b. Landlord's Remedies. i. Cumulative �Vature of Remedies. If any default by Tenant shall continue uncured,following notice of default as required by this Agreement,for the period, if any, applicable to the default under the applicable provision of this Agreement,Landlord shall have the remedies described in this subsection(b)in addition to all other rights and remedies provided by law or equity, to which Landlord may resort cumulatively or in the alternative. ii. Termination. Landlord may at Landlord's election terminate this Agreement by giving Tenant written notice of termination. In the event Landlord terminates this Agreement, Landlord may recover possession of the Premises (which Tenant shall surrender and vacate upon demand)and remove all persons and property therefrom. Landlord shall be entitled to recover as damages all of the following: 27 ReddingLease4_30.wpd Big League Dreams Redding Sporfs Park Lease (1} The worth at the time of the award of any unpaid rent or other charges which have been earned at the time of termination; (2} The warth at the time ofthe award afthe amount by which the unpaid rent and other charges which would have been earned after termination until the time of the award exceeds the amount of the loss of such rental or other charges that Tenant proves could have been reasonably avaided, (3} The worth at the tirne afthe award af the amount by which the unpaid rent and other charges for the balance of the Term after the time of the award exceeds#he amoun#of the loss Qf such rental and other charges that Tenant proves could have been reasonably avoided; and (4} Any ather amount necessary to campensate Landlard for the detriment proxirnately caused by Tenant's failure ta perform its obligations ur�der this Agreement or which in the ordinary course of things would be likely to result therefrom. iii. Worth De,�ned. As used in subsectic�ns{1)and(2�above,the "warth at the time af the award" shall be computed by allowing interest at the rate of ten percent(10%)per annum.As used in subsection(3}above,the"worth at the time of the award"sha1l be computed by discounting such amount at the discount rate of the Federal Reserve Bank of San Francisca at the time of the award. iv. Continuatian of the Lease. Even though Tenant has breached this Agreement and abandoned the Premises,at Landlord's optian this Agreement shali continue in effect for so long as Landlard does not terminate Tenant's right to possession. Landlord may enforce all of its rights and remedies hereunder, including the rzght to recover rent as it comes due un.der this Agreement.In such event,Landlord will perrrait Tenant ta sublet the Premises or to assign its interest in this Agreement, or both, with the consent af Landlord, which consent will nat�nreasanabiy be witl�held provided the proposed assignee or sublessee is reasonably satisfactary to Landlord as to credit and reputation and will oceupy the Premises far the same purposes specified herein, and provided that Tenant shall cure all defaults to Landlard as a condition precedent ta the effectiveness of Landlord's consent. For purposes of this subsectian, the following shall not canstitute �. termination of Tenant's right ta passession: (i)acts of maintenance or preservation or efforts ta relet the Premises; or (ii} the appoint�nent of a receiver under the initiative of Landlord to protect Landlard's interest under this Agreement. v. Use of Tenant's Pers�nal Praperty. Landlord may at Landlord"s election use Tenant's persanal properiy and trade fixtures located on, abaut or appurtenant ta the Prernises or any of such property ar�d fixtures with�ut compensatian and without liability for use or damage,or store them far the account and at the cost of Tenant. The election of one remedy for any �� ReddingL.ease4_3d.wpd Big League Dreams Redding Sporfs Park Lease one item shall not foreclose an election of any other remedy for another item or for the same item at a later time. vi. Assi nment ofSubrents. Tenant assigns to Landlord all subrents and other sums fall.ing due from subtenants, lzcensees, and concessionaires (herein eollectiveiy called "suhtenants") during any period in which Landlord has the right under this Agreement, whether exercised or not,ta reenter the Prernises for Tenant's default. Tenant shall nat have any right to such sums during that periad. This assignment is subject and subordinate to any and all assignments of the same subrents and other sums to the lender under a permitted first leasehold encumbrance. Landlord may at Landlord's electian reenter the Premises with or without process of law, without terminating this Agre�ment, and eiiher ar bath collect these sums or bring action for the recavery ofthe sums directly fram such obligars. Landlord sha11 receive and collect all subrents and proceeds from reletting,applying them:first,ta the payment of reasonable expenses(including attorneys'fees or brokers' commissions or both) paid or incurred by or on behalf of Landlord in recovering possessian, placing the Premises iz� good condition, and preparzng ar altering the Premises for reletting; second,to the reasonable expense of securing new sub�enants; third,to the fulfillrnent of Tenant's cavenants to the end ofthe Term;and fourth,#o Landlord's uses and purposes. Tenant sha11 nevertheless pay to Landlord on the due dates specified in this Agreement the equivalent of all sums required of Tenant under this Agreement,plus Landlord's expenses, less the proceeds of the sums assigned and actually cc�llected under this provision. c. Late Char�e. Tenant hereby acknowledges that late payment by Tenant to Landlord of rent and other charges due under this Agreement will cause Landlord to incur costs na� contemplated by this Agreement,the exact amount of which will be extremely di�cult to ascertain. Such cflsts include,but are not limited to pracessing and accounting charges,and late charges whzch rnay be impased an Landlord by the terms of any mortgage or trust deed cavering the Premises,or bond issues of Landlord. Accordingly,if any delinquent installrnent of rent or any other charge due from Tenant is not received by Landlord or Landlord's designee within ten(10}days after written demand for payment shall have been delivered by Landlard to Tenant,then, at Landlord's election and upon Landlord`s demand,Tenant shall pay ta Landlord a late eharge equal to ten percent(1 Q°lo} of such averdue amount. The parties hereby agree that such late charge represents a fair and reasanable estirnate of the costs Landlord will incur by reasan af the late payment by Tenant. I�To late charge may be imposed more than once for the same late rental payment. Acceptance of such late charge by Landlord shall in na event constitute a waiver of Tenant's default with respect to such overdue amount. If Tenant fails ta pay any two installments of Pexcentage Rent in the time (including applicable notice and cure periads)required by this Agreement,then Landlard alsa shail have the right, for a period of three {3) Lease Years, to require that a11 future Percentage Rent be payable monthly rather than quarterly. Landlord sha11 give Tenant written notice of such election at least five (5) days before the next manthly payment shall be due. d. Landlard's Default. The occurrence afthe faliowing shall constitute a default by Landlord: Landlord's failure to perforrn any covenant or provision of this Agreement or af any Related Agreement, if the failure to perform is not cured within thirty (30) days after delivery by �� Reddingl,ease4_36.wpd Big League Dreams Redding Sports Park Lease Tenant to Landloxd of written notice specifying the specific nature of the alleged default. If the failure ta perfarm cannot reasanably be cured withinthirty(30)days,Landlard shall not be in default of this Agreement or of any Related Agreement if Landlord ca�nmences to cure the failure to perfarm within the thirty {30) day periad and thereafter diligently and in good faith prosecutes the cure to completion. e. Tenant's Remedies. If any default by Landlord shall continue wncured, following notice afdefault as required by this Agreement,for the period specif ed in subsectian{d} above, Tenant may terminate this Agreement andlar pursue any and all other rights and remedies avazlable at law or in equity under the laws of the State of Galifornia. 18. Landiard's Entrv on Premises. Landlord and its autharized representatives s1�all have the right to enter the Premises at all reasonable times, upan giving at least twenty-four {24} hours prior notice, for any of the follawing purpases: a. Verifv Condition To determine whether the Premises are in the candition required by this Agreement and whether Tenant is complying with its obligations under this Agreement; b. Post Notices To serve,post,or keep pasted any notices required or allowed under fhe provisions of this Agreement; c. Show Propertv To show the Premises for any reasonabie purpose at any time during the Term; and d. Business Pu oses To carry out any building or property management business purpase in or about the Premises. Landlord shall notbe liable in any manner far any inconvenience,disturbance, loss af business, n;uisance, ar otber damage arising out of Landlord's entzy on the Premises as prc►vided in this sectian, except damage resulting from the acts or ornissians of Landlord or its authorized representatives. Tenant shall not be entitted to an abatement ar red.uction of rent if Landlord exercises ariy rights reserved in this sectian. Landlord shall conduct its activities on the Premises as allowed in this section in a manner that reasanably attempts ta minimize any inconvenience, az�nt�yance, ar disturbance to Tenant's business operations. 19. Natices. Any notice, demand, request, consent, approval or communication that either party desires or is required to give to the other party shall be in writing and shall be given ta the addresses set forth below, and shall be deemed delivered three {3) days after deposit into the United States mail,postage pxepaid,by registered or eertified mai1,return receipt requested. Unless notice of a different address has been given in accordance with this section,all such notices�hall be addressed as follaws: �� ReddingLeasa4_30.wpd Big League Dreams R$dding Sporfs Park�ease If ta Landlord,to: City af Redding '7'77 Cypress Avenue Redding, Calift�rnia 96001 Attention: Mike Warren, City Manager �ith a capy to: Redding City Attorney 7'77 Cypress A�venue Redding, California 96f101 Attention: Dave Tranberg,Assistant City Attorney If to Tenant,to: Big League Dreams Redding,LLC 33-'700 Date Palm Drive Cathedral City, California 92234 Attention: Richard Odekirk With a copy to: Big League Dreams USA,LLC 10550 Galena Street Mira Loma, California 91752 Attention: Scott Parks LeTellier 20. Attorne s' Fees. a. If Landlard becomes a party to any litigation brought by any third pariy concerning this Agreement or the Prernises as to which Landlord is entitled to indemrufication fram Tenant,then Tenarit shall be liak�le far actual atto�ey's fees and eourt costs incurred by Landlard 1tl��28�1�1���10I1. b. If either pariy comrnences an action against the t�ther party arising out af or in cannection with this Agreement,the prevailing party shall be entitled to have and recover fram the losing party its reasanable attorneys' fees and casts of suit. 21. Liti�ation Concernin� Validity of this A�reement. Tn the event any Legal Challenge is undertaken, Landlord shall have the right,exercisable not later than ninety (90) days from#he date of this Agreement,to terminate this Agreement by thirty(30) days written notice to Tenatzt without any fi.lrther liability to Tenant whatsaever; provzded,however, Landlord shall nc�t terminate this Agreement if Tenant shall agree ir�writing to inden�ify, defend, and hald ha�mless Landlard for all casts and expenses incurred by Landlard an accaunt of such Legal Challenge, and shall deposit with Landlord reasonable cash or cash equivalent security therefor. Such defense sha11 be undertaken by legal counsel �elected and paid for by Tenant, subject to Landlard's reasonable apprc�val. Landlord shall have no liability to Tenant if this Agreement is terminated by reason of such Legal Challenge. �� ReddingL,ease4_3d.wpd �ig League Dreams Redding 5ports Park L.ease 22. Estoppel Certificates. At any time and from time to time, within thirty (30) days after nc�tice of xequest by either party,the other party shall execute,aci�nowlectge,and deliver to the requesting partY,or to such other recipient as the notzce shall direct,a staternent certifying that this Agreement is unmodified and in full force and effect, or,if there have been modifications,that it is in full force and effect as modified in the manner specified in the statement and acknowledging that there are no uncured defaults or failures to perform any covenant or provision of this Agreement on the part c�f the requesting party or specifying any such defaults ar failures which are claimed ta exist. The statement shall also state the dates to which the rent and any other charges have been paid in advance. The statement shall be such that it can be relied on by any auditor, creditor, commercial banker, and investment banker of either party and by any prospective lender with respect ta the Premises or all or any part or parts af Tenant's ar Landlord's interests under this Agreement. Either party's failure to execute, acknowledge, and deliver, on request, the certified statement describcd above within the sp�cif ed tirne shall constitute a breach af this Agreement. IfTenant fails ta deliver the certificate within ten{10)days,Tenant constitutes and appoints Landlord as iis special attorney- in-fact to execute and deliver the certificate to a third party, which appointment is irrevocable ant� is hereby coupled with an interest. 23. Subordination. This Agreement is subject and subordinate to a11 prior leases and underlying liens, martgages and deeds of trust which now affect the Premises ar the Land, and tc� all renewals, modif catic�ns, consolidations,replacements, and extensians thereaf. If the holder ar holders of any such mortgage or deed of trust shail advise Landlord tl�at they desire or require this Agreement ta b� prior and superior thereta, upon written request of Landlard to Tenant, Tenant agrees pramptly to execute, acknawledge,and deliver any and all docurnents ar instrwments which are reasonably necessary or desirabie for purposes thereo£ Landlord shall have the right to cause this Agreement to be arid become and remain subject and subordinate to future and fizrther ground or underlying financing Ieases, moz-tgages ar deeds of trust which may hereafter be executed covering the Premises and the Land,or any renewals,modifications,consalidations,replacements ar extensions thereof,for the full amount af all advances rnade ar to be made thereunder and without regard to the time or character of such advances,together with interest thereon and subject to all the terms and provisions thereof. Tenant agrees,within thirty(30)days after Landlord`s written requests therefor,to execute,acknowledge, and deliver any and all documents or instruments requested by Landlord,ar that are necessary ar pr4p�r to assure the subordination of this Agreement to any such rnortgages,deeds oftrust,or leasehold estates;pravided,however,that the faregaing provisians with respect to such election of subordination by Landlord sha11 not be effective unless the owner or holder c�f any such znortgage, deed af trust, or leasehold estate shall execute with Tenant a nondisturbance agreement under which such owner, holder, or lessar shall agree, in the event af termination of such leasehold estate or upon the fareclosure of any such mort�age ar deed of trust, that Tenant's quiet enjayment ofthe Premises will not be disturbed so long as Tenant pays rent and �� ReddingC.ease4}6.wpci Big League Dreams Redding Sports Park Lease abserves and perform all af the provisions of this Agreement ta be abserved and perfarmed by Tenant. Notwithstanding anything to the cantrary set forth in this section,Tenant hereby attarns and agrees tc� attorn to {at the option a� any person, firm, or corparation purchasing or otherwise acquiring the Premises at any sale or other proceeding or pursuant ta the exercise of any other rights, powers, ar remedies under such mortgages, or deeds of trust, or graund or underlying leases, as if such person, firm, or corparation had been named as Landlord herein. 24. Sale or Transfer bv Landlord. In the event of any transfer or transfers ofLandlord°s interest in the Premises, other than a transfer for security purposes only, the transferor shall automatically be r�lzeved of azay and all obliga�ions and liabilities on the part of the Landlord accruzng fram and after the date of such transfer;provided,however,that any fi�nds in the hands af Landlord in which Tenant has an interest, at the time of such transfer, shall be turned over to the transferee and upon such transfer, Landlord shall be discharged fram any further liability with reference to such fiznds. The covenants and obligations of Landlard contained in this Agreement shall be binding upan Landlord, its successors and assigns only during their respective periods c�f ownership. 25. Surrender of Premises. At the expiration or earlier termination of the Term,Tenant shall surrender to Landlord the possession of the Premises. Surrender or removal of improvements, fixtures and trade fixtures shall be as directed in the provisians of this Agreement on ownership of improvements,fixtures and trade fixtures at expiration or ternaination of this Agreement. Except as provided in Sectian 13 hereof ta the contrary, Tenant shall leave#he surrendered property and any other property in good and broom clean condition. AZl personal property that Tenant is not required to surrender but that Tenant does abandon shall,at Landlord's election,become Landlt�rd's property at expiratian or the sc�oner tertnination of this Agreement. 2b. Farm of Nondiscrimination and Nonse�regation Clauses. The Tenant herein covenants by and far itself,its suceessors and assigns,and all persons claiming under or through it, and this Agreement is made and accepted upon and subject to the following conditions: That there shall be no discrimination against ar segregation af any person or group af persans, on account of race,colar,creed,religzon,sex,marital status,nationa�origin,or ancestry,in the leasing,subleasing, transferring,use,occupancy,tenure,or enjoyrnent af the Prernises nor shall the Tenant itself,or any persan claiming under or through i#, establish or permit any such practice t�r practices of discrimination or segregation with reference to the selection, location,number,use,or occupancy, af tenants, lessees, sublessees, sub#enants, ar vendees in the Premises. 2'7. Holdin�Over. If Tenant remains in possession of the Premises or any part thereof after the expiration or termination af the Term of this Agreement,such accupancy shall be a tenancy from month to manth upon all the provisions of this Agreement pertaining ta the obligations of 3� ReddingL,ease4_34.wpd Big League Dreams Redding Sports Park Lease Tenant, except that the Percentage Rent shall be increased to ten percent (10°l4} of the Gross Revenues and the Percentage Rent shall be payable in arrears an a monthly basis, as otherwise set farth in Sectian 4. 28. Representations,Warranties and Acknowledgrnenfs. Tenarif makes the following representations, warranties and acknawledgments as af the date of this Agreement and agrees that such representations, warranties and acknowledgments shall survive and continue thereafter: a. �tatus. Tenant is a limited liability company,tiuly farrned and validly existing and has all power and authority to perform the abligations contemplated hereby, Throughout the Term of this Agree�nent,Tenant shall be and remain a single-purpase,bankruptcy remote entity. b. Authoritx. Tenant has complied with all laws and regulatzons cancerning its organization, existence and transaction af business. Tenant has the right and power ta lease and operate the Project and Sports Park Improvements thereon as cantemplated in this Agreement. Tenant has, or at aII appropriate times shall have properly obtained, all permits, licenses and approvals necessary to occupy and c�perate the Spc�rts Park Improvements on the Land and in so daing has, ar shall have{as appropriate), substantially cornplied with all applicable Statutes. c. No Liti a�on. There is no litigation,action,suit,or other proceeding pending or threatened against Tenant which may in any manner whatsoever substantially adversely affect the validzty, priority, or enforceability of this Agreement or the canstruction, use, occupancy or operation of the Project. d. Enforceabilitv, Tenant has full right, povver and authority to execute and deliver this Agreement and the Memorandum of Lease executed pursuant hereto,and to perform the undertakings of Tenant contained in this Agreement.This Agreement constitutes valid and binding abligations of Tenant which are legally enforceable in accardance with their terms, subject to the laws of ba3�lcruptcy, cred'rtar's rights exceptions, and equity. e. Nfl Breach. None of the undertakings of Tenas�t contained in this Agreement violates any applzcab�e Statute or any order or ruling of any court, or eonflicts with, or constitutes a breach or default under,any agreement by which 2enant is bound or regulated. f. Accuracv. To the best af Tenant's knowledge, all documents, reports, instruments,papers,data,information and forms of evidence delivered to Landlord by Tenant with respect to this Agreement are accurate and correct, are complete insofar as cornpleteness may be necessary ta give Landlard true and accurate knowledge af the subject matter thereaf, and do not contain any rnaterial misrepresentatic�n or omission. g. Taxes. To the best of Tenant's knowledge,Tenant has filed a11 federal,state, county and mtu�icipal tax returns required to have been filed by Tenant,and has paid all ta�ces which �� ReddingI.ease4_30.wpd Big League Dreams Redding Spor�s Park Lease have become due pursuant to such returns ar to any notice af as�essment received by Tenant. Tenant has no knowledge of any basis for additianal assessment with respect to such taxes. 29. Snecial Provisions. a. City Use of Premzses. Tenant agrees to make the Prernises available to the Laridlord faur days each year for com�iunity activities. Such days shall be reasonably selected by Tenant and Landlord,which selection shall be based,among other factors,on space availability. The Landlord shall give Tenant at least three (3) manths prior written notice of the date or dates it proposes for use of the Premises. 4n such dates {hereinafter"City Days"), the Premises shall be made available ta Landlard free of charge, provided, however, a11 haurly (but not salaried) labor emplayed to service City Days activities shall be charged ta the Landlord based on Tenant's actual cost. Food and beverages shall be s�ld to guests and invitees of Landlord at reguiar retail prices on City Days. b. Pre-Openin�Expenses. Tenant acknawledges that Tenant�vi11 be responsible far the initial capitalization of Tenant's business aperations on the Premises and will be respansible for start-up expenses in connection with Tenant's business operations including,withc�ut limitatian, hiring and training of employees, acquisition of inventory and pre-c�pening marketing expenses, including, but not Iimited to, those activities described in the Marketing Plan attached hereta as Exhibit 6. c. Com�etin�Business. During the Term of this Agreement or,in the event this Agreerar�ent is terminated as a result of a default by Tenant or as a result of Tenarrt's surrender or abandonment of the Premises,for a period af thirty-five(35)years from the Terrn Comm�nceznent 17ate, whichever is langer, neither Tenant nar an Affiliate of Tenazat, sha11 owr�, lease, or manage, nor Iicense the use of the name "Big League Dreams"in cannectian with a competing sports park facility similar in nature and function to the Sports Park or any other sports park t�r sports facility located within a radius of one hundred and thirty (130j miles from the Sports Park. The cross hatched area shown on the attached Exhibit 7(which exhibit is incorparated herein by this reference) graphically depicts this one hundred thirty (130)mile exclusion radius and the czties and counties included therein.The parties acknowledge that the entirety of Sacramento County is ou#side the 130 miie exclusion radius. The parties agree, whether ar not the cities of Woodland{in Yolo County} and Raseville (in Placer County)are within the l30 rr�ile exclusian radius, that such cities shall be deetned to be autside the 130 mile exclusion aradius for purposes of this Agreeznent. In the event this Agreement is tezx�ninated by Landlord for reasons ather thasi a default by Tenant ar Tenant's surrender ar abandonment of the Premises, or is terminated by Tenant as a result of a default by Landlord,the restrictions contained in this subsection{c) shall lapse on#he effective date of such a termination of this Agreement. d. Electrical Costs. During the Term, Landlord shall cause the City owned �Jr ReddingLease4_30.wpd Big League Dreams Redding Sporfs Park Lease electrical utility(so long as it is awned by the City�to pravide electricity to the Sports Park at a rate na higher than the lawest rate in effect at any given time far any other commercial or municipal user with comparable energy consumptian. e. Si na e During the Term, Tenant shall permit Landlord to display one non-cozrunercial,public interest sign per stadium replica field without payrnent of any advertiszng fees. Landlard sha11, at its optian, fabricate and provide the signs to Tenant according to speeifications Tenant shall develop for advertising signs generally or reimburse Tenant for Tenant's actual costs in fabricating the signs far Zandlord. Tenant shall not accept or display tobacco product or adult entertainment advertising in the Sports Park. 30. Hazardous Materials. Tenant sha11 not store, generate, treat, or dispose of any hazardous substances ar hazardous waste, as defned in the Califarnia Health and Safety Code,on the Premises; provided, however, tliat Tenant is permitted to bring onto the Premises Hazardous Materials{defined below)contained in emergency back-up batteries,undex the canditian that Tenan� will treat all such Haz�ardous Materials brought onto the Premises by it in accordance with a11 applicable federal, state,and local laws and r.egulations. a. Definition. Hazardous Materials are defined as follows: z. Substazaces which axe flaannzable, explosive, c�rrosive, radzoactive, or toxic; ii. Any material or substances defined as hazardous substances,hazardt�us materials, toxic substa.nces, or hazardous wastes in the Compreh�nsive Enviranmental Respanse, Compensatian and Liability Act of 1980(42 U.S.C.Sectians 96Q1,et seq.),the Hazardous Materials Transportation Act{49 U.S.C.Sec�ions 1$01 et.seq.},the Resource Conservatian and Recavery Act (42 U.S.C. Sections b901 et seq.),the Hazardous Waste Control Act(California Health & Safety Code Sections 25100 et seq.), and the Hazardous Substance Account Act (California Heaith & Safety Code Sectians 25300 et seq.},the California l-�azazdaus Was�e Management Act(California Health�Safety Code Sections 2S 1'70.1,et seq.),Califarnia Health az�.d Safety Code Section 25280, et seq,{Underground Storage of Hazardous Waste Management Act�,California Health and Safety Code Section 2550, et seq. (Hazardous Materials Release Respanse Plans and Inventory), or the California Porter-Cologne Water Quality Control Act, Water Code Section 13000, et seq., and a11 amendments to these 1aws, and regulations adapted c�r publications promulgated pursuant to these laws; iii. Thase asbestos-cantaining materials defined and described in Enviranmental Pratection Agency Repc�rt No. 5615-85-024 (June 1985) whether or not friable, ar any related or successor report, or ather applicable government regulations defir�ing or describzng such materials; ��7 ReddingLcasa4_30.wpd Big League Dreams Redding Sports Park Lease iv. Pesticides as defined by Section 136(u)of FIFRA(7 U.S.C. Section 136) as may be present in soil or groundwater; v. "Hazazdous wastes" as defined in Section 25117 of the California Health and Safety Code, or as a chemical that is known to the State of California"to cause cancer or reproductive toxicity" under the Safe Drinking Water and Toxic Enforcement Action of 1986, California Health and Safety Code Sections 25249.5, et seq.; and vi. Hazardous materials, substances or waste, or toxic materials, substances or waste as those terms or similar terms are defined by any other federal, state, or local law or regulation or orders. b. Tenant Indemnitv. Tenant shall indemnify,protect,hold harmless,and defend the Landlord,its elected officials,officers,employees,agents,and volunteers from and against any and all liability, directly or indirectly arising from the use, generation, storage, or disposal of Hazardous Materials by Tenant, and (b) the cost of any required or necessary repair, cleanup, or detoxification and the preparation of any closure or other required plans,to the full extent that such liability is attributable, directly or indirectly, to the presence or use, generation, storage, release, threatened release, or disposal of Hazardous Materials by Tenant, its officers, employees, agents and/or invitees on or with respect to the Premises after the Term Commencement Date. c. Landlord Indemnitv. Landlord shall indemnify,protect,hold harmless,and defend the Tenant and its officers, directors,members and employees from and against any and all liability(including reasonable attorneys'fees),directly or indirectly arising from the use,generation, storage, or disposal of Hazardous Materials to the full extent that such liability is attributable, directly or indirectly, to the presence or use, generation, storage, release, threatened release, or disposal of Hazardous Materials on or with respect to the Premises prior to the Term Commencement Date or from the actions of the Landlord or the Landlord's elected officials,officers, employees,agents,and volunteers that result in Hazazdous Materials being brought to the Premises after the Term Commencement Date. d. Tenant Release. Other than indemnity claims under subsection (c) above, Tenant releases the Landlord from any and all claims Tenant may have against the Landlord of whatever kind or nature resulting from or in any way connected with the environmental condition of the Premises, including any and all claims Tenant may have against the Landlord under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended ("CERCLA"),or any other federal,state,or local law,whether statutory or common law,ordinance, or regulation pertaining to the release of Hazardous Materials into the environment from or at the Premises. Tenant expressly waives the benefits of Civil Code Section 1542, which provides as follows: 3 7 ReddingLease4_30.wpd Big League L7reams Redding Sports Park Lease A general release does not extend to claims which the creditor does nat know or expect to exist in his favaz at the time of executing the release, which if known by hirn must have materially affected his s�ttlement with the debtor. e. Survival of Obli at�ions. Tenant's and Landlord's abligatic�r�s under this sec#ion shall survive termination or expiration of this Agreement. 31, Misc+�llaneaus. a. �overning Law. This Agreement shall be caristrued and interpreted in accardance with the laws of the State of California. b. Time is of the Essence. Time is of the essence herein. c. Additional Rent. Any rnanetary obligatians of Tenant ta Landlord under the terms c�f this Agreerr�ent shall be deemed to be rent. d. (luiet Fnjovment. Upon Tenant's paying the Percentage Rent and other sums provided hereunder,and observing and performing a11 of the covenants, conditians,and provisions on Tenan#'s part to be observed and performed hereunder, Tenant shall enjoy the quiet possession of the Premises for the entire Term hereof, subject ta all of the provisions of this Agreement. e. Waivers. The waiver by Landlc�rd ar Tenant c�f any breaeh by the other party of any term,cavenant,or conditian herein contained shall nat be deemed to be a waiver of such term, covenant, or condition or any subsequent breach t�f the same or any other term, covenant, or conditian herein contained. The subsequent acceptance of all or part af the rent du�hereunder by Landlozd shall nat be deemed to be a waiver af any preceding breach by Tenant of any term, cavenant,or candition of this Agreement,ather than the failure to pay the particuiar rent so accepted, regardless af Landlord's knawledge of such preceding breach at the time of acceptance of such rent. Acceptance by Landlc�rd of a part payment of the rent or any other sum due shall nt�t be construed as a waiver by Landlord of any rights to collect the balance of the rent due unless Landlord has executed a specif c written waiver of#he specific amount due on an instrument separate from the check by which the payment is tendered. f. Brokers. Each party warrants to and far the benefit ofthe other that it has had no dealings with any real estate braker or other agent{attorneys excepted) in cannection with the negatiation or rr�aking c�f#�ais Agreement. Landlord shali indemnify Tenant for breaches by La.ndiord ofthis warranty,and Tenant shall indemnify Landlord far any breaches by Tenant ofthis warranty. g. Headin�s. The captions of the various sections of this Agreement are for convenience and ease af reference only and da nat define, limit, augment, or describe the scope, contents, or intent of this Agreement or of any part az parts o:f this Agreement. �� ReddingT,ease4_3Q.wpd h. Inspection of Books and Records. Landlord shall have the right at all reasonable times to inspect the books and records of Tenant relevant to the purposes of this Agreement as provided in Section 4(d)(ii). i. Mer�er. The voluntary or other surrender of this Agreement by Tenant, or a mutual cancellation thereof,or a termination by Landlord,shall not work a merger,but instead,at the option of Landlord, shall either terminate all or any existing subtenancies, or at the option of Landlord, operate as an assignment to Landlord of any or all of such subtenancies. j. Gender; Number. The neuter gender includes the feminine and masculine, the masculine includes the feminine and neuter,and the feminine includes the masculine and neuter, and each includes corporations, partnerships and other legal entities whenever the context so requires., The singular number includes the plural whenever the context so requires. k. No Joint Venture. Nothing contained herein shall be construed to render the Landlord in any way or for any purpose a partner,joint venturer, or associated in any relationship with Tenant other than that of Landlord and Tenant, nor shall this Agreement be construed to authorize either party to act as agent for the other, or to make Landlord in any way responsible for the liabilities, debts or losses of Tenant. 1. Exhibits. All exhibits to which reference is made in this Agreement are hereby incorporated by reference in full. Any reference to "this Agreement" includes matters incorporated by reference. m. Entire Agreement; Modification. This Agreement contains the entire agreement between the parties. No verbal agreement or implied covenant shall be held to vary the provisions hereof, any statements, law or custom to the contrary notwithstanding. No promise, representation, warranty, or covenant not included in this Agreement has been or is relied on by either party. Each party has relied on its own inspection of the Premises and examination of this Agreement, the counsel of its own advisors, and the warranties, representations, and covenants in this Agreement itself. The failure or refusal of either party to inspect the Premises, to read this Agreement or other documents, or to obtain legal or other advice relevant to this transaction constitutes a waiver of any objection, contention, or claim that might have been based on such reading, inspection, or advice. No provision of this Agreement may be amended or varied except by an agreement in writing signed by the parties hereto and the lender under a permitted first leasehold encumbrance or their respective permitted successors. n. Joint and Several Obli�ations. If more than one person or entity is Tenant herein,the obligations imposed on such parties shall be j oint and several. o. Severabilitv. The invalidity or illegality of any provision shall not affect the remainder of this Agreement and all remaining provisions shall,notwithstanding any such invalidity or illegality, continue in full force and effect. p. Consents of Landlord. Neither Landlord's execution of this Agreement nor any consent or approval given by Landlord hereunder in its capacity as Landlord shall waive, Big League Dreams Redding Sparts Park Lease abridge, impair ar otherwise affect Landlard's powers and duties as a governmental body. Any requireznents under this Agreement that Tenant abtain consents or approvals af Landlord are in addition tc� and not in lieu of any requirements of law that Tenant abtain approvals, licenses, or pezznits. q. Recordation of Memarandum of Lease. This Agreement sha11 not be recarded without Landlord's cansent. A Memorandum of this Agreement sha11 be recarded in the C?fficial Records of Shasta County,California,within thirty(30)days after the executian of this Agreement. r. Execution in Caunterparts. This Agreement, or the Memarandutn of this Agreement, or both, may be executed in two ar mare counterparts, each of which shali be an original, but all af which shall �onstitute one and the same instrument. s. I}ate of Agreeznent. The date of this Agreement shall be the date it is signed by the Landlard. �� Reddingi.eased}4.wpd Big League Dreams Redding Sports Park Lease IN V4'�TNESS WHEREOF,the undersigned have executed this Agreement as ofthe date fzrst written above. LANDLORD: CITY tJF R.EDDING . � Dated: MaY 2 :• 20�1 B � . ( David cGeo g , Ma r. ATTEST: APPROVED AS Ta FQRM: �� ` � By: Conni�Strohmayer, Cifi�C,�rk David E. Tranberg,Ass�s ity Attorne (/ TENANT: BIG LEAGUE DREAMS REDDING,LLC t By: Sco Parks LeTellier Chief Executive Officer 4� ReddingLease4}O.wpd Big League Dreams Redding Sports Park Lease STATE OF CALIFORNTA ) ) ss COLTNTY OF Las Angeles � CJn May 1 ,2001,befor�zne, Carmelita E. Callins ,a Notary Public in and for said State,personally appeared Scatt Parks LeTellier , (or praved to me an the basis of satisfactory evidence) to be the person{,� whose name(�}-is�+e subscribed to the within instrument and acknowledged to me that hef���executed the same in his�'i���rt authorized capacit�,��, and that by his��� signature� on the instrument, the person{�;ar the entity upon behalf of which the person¢�j acted, e�ecuted the instrument. WIT'NESS my hand and afficial seal. ...r� CARMELITfI E. COLLINS C.aT�mtssiort#1245788 � � � " �'Y��-Coi'rfomia � � "✓ los Mgeles Cocmfy t�t�'c°R'm.�"est�rz2oos Notary Public STATE �F CALIFOFZNIA } } ss COLTNTY OF ) On ,2001,before me, ,a Notary Public in and for said State,persanally appeared ,personally known to me (or proved ta me on the basis of satisfactory evidence} ta be the persan(s) whose name(s) islare subseribed to the within instrurnent and acknowledged ta me that he/she/they executed the same in hislher/their authorized capacity(ies}, and that by hislher/their signature(s) on the instrument, the persQn(s}, or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Natary Public �3 Reddin�;Lease4_34.wpd EX�-IIBIT 1 PLOT PLAN 4F LAND Big League Dreams Redding Sports Park Lease EXHIBIT 2 PR{)JECT DESCRIPTION The Big League Dreams Redding Sp4rts Fark will be a warld-class facility featuring unique Big League Dreams state-of-the-art theznes and design features,and wi11 be a destination park,attracting tournament teams{youth and adult}from all over the country. First and foremast,however, it wi11 provide local families with a spectacular family entertainment va�ue, The City af Redding will be adding significant tourism while enhancing its reputation as a stab�e, fatnily-friendly city. The Redding Big League Dreams faeility would eontain the following elements,a11 eanstructed to a first class standard with high quality building materials: 1. Three youth baseball/adult softball rnajor league stadium replicas. 2. Twa additional yauth baseballladult soft6a11 minar league {i.e. non-replica) fields, one of which may be designed to accommodate adult regulation basebali as well. 3. A nine-statian batting cage combined wzth an instructional academy area. 4. One or more covered 20,400 squaxe fc�ot multi-spart pavilion(s),designed to accomrnodate inline hockey, basketball, indoor soccer, indoor volleyball, and corporate and special events. 5. Four sand/beach volleyball courts. 6. Twa playgrounds and picnie area. 7. The Stadium Club--a food and beverage (both alcohoiic and non-alcohalic) family-sty�e sports restaurant,designed and operated to attract and accommodate league,tournament,and corporate users. 8. Arz additianal cancessionlpatio facility ta the minar Ieague fields. 9. Parking for 400 automobiles. � ReddingLease4_30.wpd Big League Dreams Redding Sports Park Lease EXHIBIT 3 SPORTS PARK PROJECT BUDGET Property Acquisition $784,000 Professional Services, including EIR, Design, Permits, $1,651,000 Inspections and BLD Contracts Site Infrastructure $800,000 Construction Grading and Drainage $6,180,000 Project Allowances: $865,000 Lighting $275,000 Pavilion $340,000 FF&E $250,000 Contingency - 10% $720,000 TOTAL $11,000,000 3 ReddingLease4_30.wpd Big League Dreams h��ding Sporfs Park Lease EXHIBIT 4 MITIGATION ��EASURES Impact Mitigation Measure Impact 4.3.2 The project MM 4.3.2b AIl events at the Sports Complex shali be scheduled so that all activity is ca�rtpleted would introduce new sources before or as near to 10:30 p.m.as practicable,but under no circumstances shall any illumination of of light and glare in the the playing fietds be permitted after i 1:00 p.m.,except to conclude a scheduled event that was in vicini#y af the project site. progress befare 11.00 p.m.and circumstances prevented canclusion ofthe event before 11:00 p.m. 7'irrtzng/Implementation: Upon cammencernent of project operations. MM 4.3.2c Lighting of parkirtg lats at the Sports Co�nplex shall consist of tow-pressure sodium Iainps. Lighting poles used in parking lots shall be no tailer than 25 feet in height. Parking�ots shall rennain lighted na later than 30 minutes after the conclusion of a scheduled event,but should cease as clnse ta 11:00 p.m.as practicable. ?'iming/Implemenfation: Upon cammencemerrt ofproject operatr`ons. Impact 4.8.2 Contaminants MM 4.8.2a Fertilizer used shatl be af the slow release form,or the proper chemical reiease for the from the project site may sail textural class and infiltration rate,or a more soluble type applied as a salution. Fertilization rates enter surface and ground shall be applied so that nutrients will not leach belaw the root zane. waters. Timing/Irnplemeniati�rn: Upan installation and maintenance af sports frelds. MM 4.8.2b Herbicides may only be applied with selective equipment such as recirculating spray systems,shielded applicators or wiper applicators. Appiication rates shall not exceed specific rates o#�application and instructions for control of the specific problem weed as recommended by the manufacturer. T'iming/Implementation: Upon installation arrd rrtaintenance af sparts�elds. MM 4.8.2c Irrigation rates shall nat exceed 90 percent of the infiltratian rate for each soil type and turf management combination. Irrigation shall be timed to correspond with fertilizer and herbicide application as recc�mmended by the chemical nnanufacturers. Timing/Implementation: Upan installatian and maintenance af sports fields. Impact 4.9.1 The project MM4.9.1b Nighttime soccer games and practices {those occurring after 10:00 p.m.} shouid be would generate noise conducted on the fields which are farthest from the nearesi residential property lines. The center of associated with sports the soccer fieId used during nighttime hours would need to be setback approximately 3Q0 feet from activities the nearest resadences. [This setback assumes that the playing field wouid alsa be shielded from view of those residences by the intervening 6-faot tall berm described in MM4.9.1a] Timing/Implementation: Upon commencement ofproleci operations. � Reddingl,ease4_34.wgd Big League Dreams Redding Sporfs Park Lease Impact 4.9.4 Public address MM 4.9.4a Regardless of when events are terminated at the soccer,basel�ail,and softbati fields,the systems instal]ed at the PA system shaIl be designed so as to produce the minimum possible noise levels at the nearest sports fields could generate existirag residential areas. if sparting events are to be concluded prior to lO:Op p.m.,tha PA system noise that dis#e�rbs nearby insta[led at the stadium shall be designed and tested sa as nat ta exceed an average noase leval of 50 residents. dB Leq at the nearest residential property lines. If such events are to be concluded after I0:00 p.m., the PA systems shall be designed and tested so as not to exceed average noise levels of 40 dB at the nearest residential praperty lines. These Ievels include a 5 dB penalty far annoyance assaciated with speech. In recagnitian of Re�ional anfl Toumament p1ay,the SO dB Leq may be used past Id:00 p.m.far ane three-day event eaeh year. 1'iming/Implementatiorz: Upon commencement of praject operatr"ons. � ReddingC,ease4_3Q.wpd E�:HIBTT 5 FURNISHINGS,FIXTURES AND EQUIPMENT 5ome of the KitchenlConcession F�&E will be provided as per the Plans and Specifications and shall include smallwares, storage shelving, safes,and pflint-of-sale systems. A. Restaurant-Buildin�A #Ea. Descriptian #Ea. Descriptian 5 Booths 15 30" x 49" Tables 12 Baath Stools 12 30" x 30" Tables 26 Swivel Bar Stools 27 Table Base 110 Arm Chairs 1 Credit Card Machine 1 ATM Machine 3 Menu Board/Signs 3 60" Television Sets 6 36" Television Sets 1 Wall Clock 1 Music and P.A. Systems 1 Baby Changing Counter Decorative Flags Window Louvers/Shades Art/Graphics B. C}ffice #Ea. Description #Ea. Description 2 Copy Machines 1 Credit Card Machine 15 Computers 2 Printers 2 F�Machines I Safe Deslcs, Chairs as needed 1 Conference Table, chairs Filing Cabinets as needed 1 T'.A.IMusic System Storage Cabinets Waste Baskets C. Corporate/Special Event #Ea. Description #Ea. Description 50� Chairs 50 Tables 3 Portable Bars 30 Baseball Gloves 1 20' x 20' Party Tent 2 10' x 10'Party Tents 3 Portable Food Wanners 3 Portable Barbecues D. Battzng Cage # Description #Ea. Descriptian Ea. I Complete Master Pitch 1 Repair KitlParts Equipment Package 1 Change Machine l5 Bats 2 5 Helmets l24 Dazen Balls E. Retail #Ea. Descriptian #Ea. Description 1 Paint-of-Sa1e System 1 ComputerlPrinter 1 Counter/Fixtures Display Shelves Storage Racks F. Maintenance #Ea. Descriptian #Ea. Descriptian 1 Grang Mower 1 Triplex Mower 1 Toro #3104 Vehicle 1 Verti-Drain 1 John Deere Groomer 1 Front-Load Tractor 1 Sweeper 1 Sodcutter 1 Aerator 1 Topdresser 1 Fertilizer Spreader 4 Golf Cartslt,Ttility $eds 1 Floor Scrubber 1 Toro 22" Mower 2 McClane Edgers 2 Backpack Blowers 1 1 Rotary Spreader 1 Drop Spreader 2 Wheelbarrows 2 Pressure Washer l Chemical Sprayer 1 Roto Tzller 3 Weedeaters 4 Landscape Rakes 4 Leaf Rakes 4 Square-Nosed Shovels 4 Pointed Shovels 2 Large Shovels 2 6" Trenching Shavels 4 24" Push Brooms 4 50' Hases 2 Regular Braoms � Weed Hoes 1 Pole Pn�ner 1 Tree Pruner 2 Tree Hand Saws 1 Power Chain Saw 1 Pitch For�C I Hand Pump Wrenches, assorted Easy-outs, assorted 2 Pipe Saws 1 PSI Guage 5 Quick Caupler Keys 4 2.5 Gallon Gas Cans 2 Nail Drags 2 Infielc�Drags 2 Chalkers 2 Batters Box Frames 2 100' Tapes 2 400' String Reels 1 '/z" Electric Hamrner 1 1/4 "Portable Drill 1 Tool Bax l 4 '/2" �rinder 1 7" Power Saw 1 Impact Wrench Set 1 Electric Multi-Tester Fliers/Toois, assorted 4 Extension Cords 1 Electric Pump 2 Vacuum Cleaners Trash Receptacles, asst. 6 Hand-Held Radios Storage Shelves, asst. 1 Spray Rig 1 Welding Equipment G. Sports #Ea. Description #Ea. Description Soccer Goals, as per plans 2 Hockey Goals 6 Basketballs 4 Volleyball Nets/Poles 4 Basketball Backboards/Goals 2500' Sportfence 7 Home Plates 7 Pitching Rubbers 7 Portable Mounds 23 single Bases 9 Double Bases 90 Base Mounts 14 Bat Racks 1 Portable P.A. System 6 Electric Baseball Scoreboards 2 Electric Basketball Scoreboards 10 Scoreboard Controllers 4 Bulletin Boards Player Benches, as per plans Backstop Netting, as per plans 6 Portable Bleachers, as per plans 1 Video Camera 1 VCR Player H. Miscellaneous #Ea. Description #Ea. Description Playground Equipment, as per Safety Netting, as per plans plans Picnic Tables Drinking Fountains, as per plans Parking Netting, as per plans 1 Entry Turnstile Fan Shade Nets, as per plans 1 Bike Rack 1 Security System 2 Mist System, as per plans 8 Ash Trays/Urns Instruction School Equipment 1 Telephone and Voicemail Systems EXHIBIT 6 BIG LEAGUE DREAMS REDDING MARKETING PLAN INTR�DUCTI(JN BIG LEAGUE DREAMS OF REDDING wili launch an aggressive marketing campaign ninety (90} days prior to the projected opening of the facility in Summer 2�42. This aggressive marketing campaign will intensify as the park's opening approaches. Marketing Plan progress reports wiil be submitted to the Gity on a quarterly basis during calendar year 2002 beginning January 1, 2002. Six areas that require special attention in terms of marketing are the grand openingldedication,tearn sports, foad and beverage, company picnics, special events and tournaments. This plan discusses the gaals for the various areas and a plan of actic�n to reach those goals. The plan aiso discusses the marketing tools required to execute the marketing campaign. GOALS A. �"acility 1. Became the local center for adult and youth tearn sports, recreatic�n and active recreatian through: a. Public awareness b. Customer satisfaction through well-managed programs c. Establishing and maintaining relatianships with the {1) Business cornmunity {2) Local media {3) City of Redding B. League Sports 1. 100 saftball teams by the third quarter crf 2003 2. 20 volleyball teams by the third quarter of 2003 3. 20 basketball teams 4, 25 indoor soccer teazns 5. 12 inline hc►ckey teams C. Tournarnents 1. 10 tournaments in 2002, and 27 tournaments in 2003 Big League Dreams Redding Sporfs Park Lease 2. Showcase BIG LEAGUE DREAMS (JF REDDII�G for xegional and national exposure D. Food and Bevera e 1. High quality at reasc�nable prices 2. Achieve $4 pex person spending on food and beverages E. Company Picnics arnd Special Events 1. 750 participants in company picnics in 2003 2. Three special events in 2002, and six special events in 2003 F. Billboards Scoreboards ar�d Commissians 1. Proinote and sell advertising space on billboards, scoreboards and bar�ners 2. Sell advertising space on admission tickets 3. Establish relationship with local hotels for out-of-tawzi tournament players G. Carnrnunications 1. Gain public awareness and familiarity 2. Keep community informed of BIG LEAGUE DREAMS OF REDDING activities ACTI{�►I'�i FLAN Grand Openin�Dedication The grand opening/dedication is prajected to be held in Summer�002. BIG LEAGUE DREAMS aF REI�DING will wark closely wzth the City af Redding in the plar�ning af the grand opening/ dedication. Invitations will be sent to Redding City officials,local media, cornmunity leaders,eontractors, and future customers. The grand opening/d.edication is an excellent opportunity to increase public awareness. A. Haw and wh�re it will be prornoted: 1. Press releases a. Print, local newspapers b. Broadcast media {1) Local radio stations (2) Local television stations 2. Signs a. Displayed at local businesses b. Posted throughout the local area 3. Direct Mail a. Invitatians to existing Rec�ding tearns b. Invitations to various Redding City officials ant�community leaders �� R�ddingL,ease4 30.wpd Big League Dreams Redding Sports Park Lease 4. Advertising Specialties a. Promotional items printed with BIG LEAGITE DREAMS OF REDDING logo 5. Comp�imentary $BQ 6. Novelty Acts/Finishing Touches a. Clc�wns for�he children b. Colorful streamers, balloans c. �reate a festive atmosphere d. Sports personalities League S�orts League sports farm the faundation for BIG LEAG�t..TE DREAMS QF R.EUDING. Adult and youth softball, youth baseball, volleyball, indoor soccer, inline hackey, flag football and basketball are the sports that are offered. Generating interest in BIG LEAGUE DREAMS OF REI}DING and its leagues will be accomplished by rr�aking sates calis to companies in the area. Smooth running, competitive, yet fiun leagues will encaurage participatian. Marketing ta expan:d league participatian is the best way to create success and profitability for BIG LEAGUE DREAMS OF REDDING. Each of the existing Redding teams wi11 be contacted well in advance of each ten-week season. A. How and where they will be promated: 1, Sales calls to a. Companies within a 25-minute drive b. Existing leagues at other locations c. Local churches d. Community organizations e. Residential a�d apartrnent camplexes 2. Advertising/Promotian a. Local area newspapers b. I)irect mail to existing Redding league presidents c. Flyers and brc�chures d. Trade show displays e. Redding Big League Dreatns Newsletter f. Promotional tnaterials at Ioeal businesses 3. Word-of-Mauth a. Primary source of add.itiona� customers 4, Redding Big League Dreams Newsletter{periodical�yj 1� ReddingLease4_3Q.wpd Big League Dreams Redding ,Spor�s Park Lease B. Marketing to be accomplished: 1. 3-4 weeks prior to an upcoming season �. In the morning at canapanies 3. In the morning at churches 4. At cammunity organizations as required �. In the evenings to leagues at other facilities 6. By#he marketing director and program staff Food and Bevera�e Food and beverage is a vital part of the BTG LEAGUE DREAMS OF REl7DiNG operation. It will be important that menu items are of high quality, convenient and reasonably priced. Pricing, presenfiation, and merehandising are a11 keys to succe�sfully marketing food and l�everage. A. Haw and where they will be pramated: 1. Ward of mouth 2. Signs 3. Value packaging 4. Section in each newsletter 5. Kid's meal 6. "Specials"menu 7. Coupc�ns 8, Menu Board 9. Entrarice Fee/Token P�an B. Marketing to be accomplished. 1. Throughout the year 2. By the eoncession manager, rr�arketing director and general manager 3. Concession employees will be trained ta be marketing-minded Tournaments Tournarnents are plar�ned for weekends throughout the year. They are a great opportrun.ity to showcase BIG LEAGt�E I7REAMS OF REDI7TI�1G. A goal of 10 tournaments has been set for Redding in 2002,and�7 in 2003. Area,regional and national tournaments will be pursued. The programming director has the primary responsibility far scheduling tournaments. The marketing directc�r will assist in establishing the tournament schedule in addition to other marketing arelated fianctions. A. Sflurces: 1. Local, state and national sports organizations 2. Independent tournament proznoters 3. Advertising in sports industty journa�s �� ReddingLease4_36.xpd Big League Dreams Redding Sports Park Lease 4. Corporate tournaments B. Vi�hen and by whorn the marketing will be done: 1. Throughau#the year 2. Eznphasis 2 ta 3 weeks prior ta the taurnament 3. Ceneral Manager and Sports Directar Campanv PicnicslCorporate Outin�s BIG LEAGUE DREAMS OF REDDTN�'r is available fa�camparry picnics and corporate outings during times other than scheduled league play. It is a great way to expase BIG LEAGUE DREAMS QF REL7I7ING to potential customers wha may not otherwise be familiar with BIG LEAGUE DREAMS OF REDDING. Some of the activities offered for corpc�rate autings are softball,valleyball, basketball,batting cages, durik tank,jumping castle, clowns, carnival games, and much more. A. Haw and where they wi11 be promated: l. Sa1es calls a. Medium to large campanies b. Local associations c. Meeting planners d. Marketing and sales directors (of larger hotelslmotels} e. Industry associatiflns (SDIRC) f. Redding C�nventian arzd Visitors Bureau 2. Advertising/Promotion a. Brochure b. Video c. I�irect mail, foliow up d. Trade show displays 3. Referrals and word of mauth B. VJhen and by whom the marketing will be done: l. Weekly 2. Park Sales Director 3. General Manager Special Events �4 ReddingLease4 30.wpd Special events generally take place on weekends throughout the year. They are an c�pportunity for increased community involvement, These events can be Faurth of July parties, Easter sunrise services, concerts, carnivals, corporate challenges, and City of Redding sponsared events. Staff capabilities and the facility attractions will make this a venue in demand by event promoters. Biliboards. Scoreboards and Commissians Billboards will be available far rental on all of the softball fields. There will be sponsorship space available in a11 element locatic�ns. Space wi11 be available fc�r sponsors in the center af each of the three out�eld scorebaards. Three locations will be available ta the City af Redding for public-service messages. When on sales calls,the Park Sales directar will explore a company's interest in advertising at BIG LEAGUE DREAMS OF REDDING. Commissions come fram agreements worked out with local hotels. A commission for BIG LEAGUE DREAMS OF REDDING and a guaranteed room rate for taurnament players wi11 be set on an annual basis with host hotels. Cammunicatians Cornm�znications are impartant, especially in our first year of operatic�n. $IG LEAGUE DREAMS OF REDDING will cammunicate with the public in numerous ways. A newsletter wiil be sent to players periodically keeping them informed of the latest BIG LEAGUE DREAMS OF REDDINCx programs. Flyers cc�vering all the important information (dates, fees, deadlines, park policies, etc.)will be posted and sent aut initia�ly to each player and thereafter ta each manager. Timely press releases will keep players up-to-date an ieagues, free-agent tryauts, umpire clinics, etc. Newspaper articles and stories wili cover many of our events. Cable television will be explored as a passible means of cammunication, CONCLUSION The first-year marketing campaign for BIG LEAGUE DREAMS OF REDDING will require a concerted effart to reach the goals discussed in the rr�arketing plan, It is impartant that the right marketing taals be chosen. Printed promatianal materials reflecting the high standards of BIC'x LEAGUE I7REAMS OF REDDING will be a vaivabie tool for the marketing campaign, as will a professionally produced video presentation. The importance of the sales call ean't be overstated. It is the single most impartant function of the marketing director. The direct mail pragrarn is a�so important. Ta implement communication, an accurate and up-to-date database will be rnaintained. A contact manager will provide tracking af prospects. Use of inedia advertising requires careful analysis ta ensure that the marketing budget is effective. Big League Dreams Redding Sparfs Park Lease EXHIBIT 7 I}EPICTION OF TERRITORIAL RESTRICTIONS �� ReddingLease4_30.wpd AMENDMENT NO. 1 TO SPORTS PARK LEASE C-0458 THIS AMENDMENT NO.1 is made at Redding,California,by and between the CITY OF REDDING, a Municipal Corporation (Landlord), and BIG LEAGUE DREAMS�c, LLC, a ��'7 California Limited Liability Company(Tenant). �'R�DDIN� �iv� RECITALS A. On May 24,2001,Landlord and Tenant entered into a Sports Park Lease("Lease")for the Project generally described as the Sports Park. B. Landlord and Tenant now desire to modify the term of the Lease pursuant to the terms and conditions of this Amendment No. 1. AGREEMENT 1. AMENDMENT OF PARAGRAPH 9a OF THE LEASE. Paragraph 9a,Landlord's Construction Obligations, is hereby replaced in its entirety by the following: 9. Landlord's Development of the Sports Park. a. Landlord's Construction Obli at�. The Sports Park Improvements shall be constructed by Landlord, as set forth in the Project Description and the Plans and Specifications,promptly and with due diligence. The quality of construction and the quality of materials used in the construction of the Sports Park Improvements shall be of a first-class quality and in accordance with the Project Description and the Plans and Specifications. Landlord shall prosecute Landlord's construction obligations hereunder to completion without undue interruption or delay and in a good,workmanlike manner. Landlord warrants that it will endeavor to cause the Sports Park Improvements to be completed and possession of the Premises delivered to Tenant on or before August 1, 2002. In the event the Sports Park Improvements are not completed and possession of the Premises is not delivered to Tenant on or before August l, 2002,Tenant shall have no obligation to pay any rent or other payments or perform any other obligations under this Agreement until the Term Commencement Date. Landlord shall have no liability to Tenant for failure to complete the Sports Park Improvements and deliver possession of the Premises on or before the date hereinbefore described. Tenant shall,however, �-�=���,,;. have the option to terminate this Agreement, without further obligation or liability � �, ��: ������ __..�� � � y Amendment No. 1 to Sports Park Lease Page 1 p /3 � n e � _ hereunder,in the event Landlord is unable to complete the Sports Park Improvements and deliver possession of the Premises to Tenant on or before October 1, 2003. 2. EFFECTIVENESS OF CONTRACT PROVISIONS. This Amendment No. 1 is specifically made a part of and included in the Sports Park Lease dated May 24, 20C►1. Except as specifically set forth in this Amendment No. 1, all terms and conditions of the Lease shall remain unchanged and in full force and effect. 3. EFFECTIVE DATE. The effective date of this Amendment No. 1 shall be the date it is signed by the Landlord. IN WITNESS WHEREOF,the Landlord and Tenant have executed this Amendment No. 1 on the days and year set forth below. CITY OF REDDING ( J _ � � Dated: �=Z�' , 2002 By: f `� �'�-' PAT HIGHT, ayor Att�sto Form Approved: . � Cnrtr�ie�trohmayer, Ci. � lark David E. Tranberg,Acting City - l�EDOiN� �,� BIG LEAGUE DREAMS'�, LLC r4 �� Dated: � '�' , 2002 By: OTT PARKS LeTELLIER Chief Executive Officer Taxpayer ID No. �S- a4�3S(�3 Z:IAR AgreementslBLD Lease A�nendn:enr 1 frml.wpd Amendment No. 1 to Sports Park Lease Page 2 AMENDMENT NO. 1 T4 PLANNII�IG, TSESIGN ANl) CONSTRUCTICIN C4NSULTII''+TG SERVICES�I.+GREEMENT C-04S$ THIS AMENDMENT N0.1 is made at Redding,Californ:ia,by and between the CITSI OF REDDING, a Municipal Corpora#ion {City), and BIG LEAGUE DREAMS USA, LLC, a Califarnia Limited Liability Company{BLD). RECITALS A. On May 24, 2001, City and BLD entered into a Planning, Design and Constructian Consulting Services Agreement (Agreement) for the Project generally described as the planning, design and constructiorz of a multi-purpose recreational sports park. B. City and BLD wish to amend the Agreement pursuant ta the terrns and conditians o� this Arnendment No. 1. AGREEMENT l. AMENDMEl�'T QF PARAGRA.PH A 4F THE AGREEMENT. Paragraph 4 is hereby replaced in its entirety by the following: 4. Campensation For the consulting services described herein,the City shall pay to BLD a fixed fee in the amount of three hundred eighty thousand doilars ($380,Q00). Such amaunt shall be payable in fourteen(14)payments in the amount of$25,333 each and a final pay�ment af$25,338 during the Term,payable in advance an the first day of each rnonth comrnencing with the first month after the effective date of this Agreement, subject to the remaining provisions of this paragraph tthe "Fees"). Provided this Agreement has not sooner been terminated as pravided in Sectzon 3, the total of all Fees to be paid to BLD shall be$380,000. The City shall make the frst seven mantlaly payments (up to $190,OQ0)beginning the month after this Agreement is executed. The last seven pa.yments shall be made beginning in 3uly ?002 and continuing until full payment is made{an additianal $190,000 for a total of$380,000). Between payment intervals and after all payments are made,BLD shall be obligated to continue ta provide consulting services thraugh the complction of constructian withaut additional campensation. In the event this Agreement is terminated as a res�lt of a Legal Challenge or otherwise as provided in Section 3 prior to completion of the Spc�rts Park Impravements, BLD shall be entitled to receive all Fees due through the effective date c�f terminatiar_. If the effective date of terminatian is not tlae first day of a given month,the monthly fee shall be adjusted on a pra rata basis. � § _�����. � � �» — c Amendment Na. 1 to Planning,Design and Page 3 � Constructian Cansulting Services Agreement � l ,n ,,,.nn z� �� „� "�l _'`'s _,-, �_.. � k 2. EFFECTIVENESS OF CONTRAC`T PROVISIONS. This Amendment No. 1 to the Planning, Design and Construction Consulting Services Ag�eement dated May 24, 2001, is specifically mad� a part of and included in the Agreement. Except as specifically set forth in this Arnendment No. 1, all terms and canditions of the Agreement sha11 remain unchanged and in full force and effect. 3. EFFECTIVE DATE. The effective date of this Amendment No. 1 shall be the date it is signed by the City. IN WITNESS WHEREOF, City and BLD have executed this Arnendrnent No. 1 an the days and year set forth below. CZTY OF�:EI7►DING 1 r Dated: �-,2 ? ,2002 By: �` I AEL ARREN City Man er �ttesx: Form Approved: ���-�2. .?--- � C�itnie Strohrz�fte�; Csty er David E. Trunberg,Acting�'ity ttor ey BIG LEAGUE DREAMS USA,LLC f T)afed: �J j'� �� 2002 By: S TT PARKS LeTELLIER Chief Executive Officer T�xpayerTDNa .��"����$(p� 'L:`AR Agreements\BLD Cansultin�X Amendment I final.wpd Amendment No. 1 to Plann'sng,Design and Page 2 Gonstruction Cansulting Services Agreement AMENDMENT NO. 2 Ta SPORTS PARK LEASE C-QA�S8 THIS AMENDIYIENT NO. 2 is made at Redding, California, by and between the CITY OF REDDING, a Califarnia Municipal Corporation (Landlord), and BIG LEAGUE DREAMS REDDING, LLC, a California Limited Liability Campany(Tenant). RECITALS A. On IVIay 24, 2001, Landlord and Tenant entered into a Sports Park Lease ("Lease"} far the Project generally described as the Big League Dr�ams Redding Sports Park{the "Sports Park"). B. On about August 28, 2002, Landlaxd and Tenant entered into Amendment No. 1 ta extend the date af the opening of the Sports Park. C. Landlord and Tenant now desire ta further madify the Lease pursuant to the terrns and conditions of this Amendment No. 2. AMENI�MENT AND AGREEMENT 1. AMENDMENT C1F S�C'TIC}N 9(a}OF THE LEASE. Section 9(a}, Landlard's Constructian Obligations, is hereby replaced in its entirety by the following: a. Landlard's Canstructian Obli at� ions. The Sports Park Tmprc�vernents shall be constructed by Landlord, as set farth in the Praject Descriptian and the Plan� and Specifications, promptly and with due diligence. The quality of canstruction and the quality of materials used in the coristruction of the Sports Park Improvements shail be of a first-class c�uality and in accordance with the Praject Description and the Plans and Speci�catzons. Landlord shall prosecute Landlord's constructian obligations hereunder to cc�mpletian without undue interruption or delay and in a goad, warkrnan�ike manner. Landlord warrants that it will endeavor to cause the Sparts Park Irnpr4vements to be co�pleted and passessian af the Premises delivered to Tenant on or befare July 15, 2004. In the event the Sports Park Improvements are nat completed and possession of the Prernises is not delivered to Tenant an or before July 15, 2004, Tenant shall have no ob�igation to pay any rent or other payments or perfarm any other obligations under this Agreement until the Terrn Commencement Date. Landlord shall have no liability ta Tenant for failure to complete the Sparts Park Improvements and deliver possessian of the Premzses an or before the date hereinbefore described. �� Amendment No.2-Sports Park Lease Page 1 of 10 � �-,{"�� ��.��?Z�'�''�-� /t:�,�i':•'��1�. � �: l��" f `'� � �. � `�'- �� 2. ADD SECTIaN 32 pertaining to Synthetic Turf, as follows: 32. �yn#hetic Tuxf a. $rand At Tenant's request, the Landlord has issued a change order ta change the saftba�l fields from grass outfield and dirt infield and warning tracks to synthetic turf. The manufacturer and product mutual�y selected by Tenant and Landlord is FieldTurf, Series 2 (the "Synthetic Turf'). b. Pu�r c�se The reason for this change is to exte�d the time when fields may be used, to provide a mare consistent and unifarm playing surface, to apen the park saoner, to reduce maintenar�ce casts, and ta a11ow other sports ta occur on the fields during the winter. c. Scope of Change This change does the fallowing - eliminates most ofthe underground drainage systems, irrigation systems, stolons and raat zane mix, and substitutes therefare base rock, Synthetic Turf, larger side drains, and three sprinklers far each infield area. d. Warranty The manufacturer's warranty for fi�e Synthetic Turf is to be far eight years. e. Repiacement Tenant hereby agrees to replace or repair darnage to the Synthetic Turf at the end of its useful life or if damaged. f. Payment for the Turf The estimated cost of the change order is $1,106,000, including contingency. The Landlard shall pay the entire cast of the change arder for the Synthetic Turf. The Landlard has agreed to allocate $24Q,000 of the cast fram the Project construction contingency. Tenant is to fund the balance of the cost of$866,000 with payments to Landlord occurring at the rate of $86,600 per year for ten years, payable as provided in Sectian 32{g} belaw. Amendment No,2-Sparts Park L,ease Page Z of 10 g. Su�plemental Lease Pavments Tenant shall ma�e forty (40) supplemental lease payments, with each such paymer�t ta be made farty-five (45} days a�ter the end of the applicable calendar quarter of each of the first ten (10} Lease Years (as defined in the Lease) comrr�encing with respect to the first calendar quarter of the first fizll Lease �ear. Subject anly to potential increase as provided in Section 32(h) below, the suppler�ental quarterly lease payxr�ent will be $21,b50 ($86,600 / 4). The supplemental payments are aver and abave any other lease payment, h. Actual Cost Higher Than Estimate In the event the actual cost to convert to Synthetic Turf fields is higher than the estimate, Tenant and Landlord sha�t split the increase equally up to a maximun� increase of $200,000, or $100,000 each. If the final cast is higher than the estimate in Section 32{fl above, the quarterly payment shall be adjusted accordingly up to a maximum of$�,�00 per quarter ta be added to the amount in Section 32{g) above. This is a disputed work itezn with the General Contractar. 3. REPLACE EXHTBIT l, Lease Area The Plot of Land, Exhibit 1, is hereby replaced in its entirety with the drawing labeled Exhibit l, Lease Area, Redding Sports Park, Big League Dreams, attached hereto. The document attached hereto as �xhibit 1 to this amendment is incor�aarated into the Lease, dated May 24, 2001, and sha�l appea.r as Exhibit 1 to that Lease. 4. AMEND E�HIBIT 2,Praject I?escription The Project Description on Exhibit 2 is amended as follows: a. Change Itern 1 ta read as fallows: 1. Three youth basebalUadult softball majar Ieague stadium replica fields wzth precast cancxete walls and Synthetic Turf fields that can be used for saftball, baseba�l, saccer, field hockey, kickball, and junior foatball. b. Change Item 2 to read as follows: 2. Additio�al youth baseball/adult softball minaz league (i.e., non-replica} fields with Synthetic Turf. One of the fields shall be desig�ed to accommodate adult regulatian baseball. Bath fields can be used far the same sports as outlined for the replica fields. Amend�nent No. 2-Sports Park Lease 1'age 3 of 10 c. Modify Item 4 to read as follows: 4. A fully enclosed 26,274 square foot multipurpose building (field house) designed to accommodate inline hockey, basketball, indoor soccer, indoor volleyball, and corporate and special events. The building shall contain a concession, restrooms, team rooms, and a geothermal heating and cooling system designed to lower or raise temperature by 15 to 20 degrees on the warmest or coldest days. d. Change Item 8 to read as follows: 8. The concession space in the multipurpose facility shall have an exterior window to serve the non-replica ball fields. 5. EXHIBIT 3 IS REPLACED in its entirety with the following: SPORTS PARK PROJECT BUDGET Project Component Cost Estimate Property/Easement Acquisition/Wetlands Mitigation $ 1,063,000 Management Services including BLD contracts 986,000 Design Services 1,039,000 Site Studies/Fees/Permits 393,000 Site Development and Utility Extensions 14,068,000 Fixtures, Furnishings and Equipment/Graphics 422,000 Subtotal $17,971,000 Off-Site Improvements, Signals, Water, Sewer, and Streets 1,221,000 Total $19,192,000 6. REPLACE EXHIBIT 5 - Furnishings, Fixtures, and Equipment The list of Furnishings, Fixtures, and Equipment on Exhibit 5 shall be replaced in its entirety with the following updated List of Fixtures, Furnishings, and Equipment. The fixtures, furnishings, and equipment identified shall be provided in the construction contract, purchased by the Landlord or purchased by the Tenant as noted where Tenant wants to maintain uniformity and same materials or standards between its sports parks. "City" indicates purchase by Landlord, and "BLD" indicates items to be purchased by Tenant. Where an asterisk (*) is shown, it means the item(s) is being purchased by the City in the construction contract. Amendment No.2 -Sports Park Lease Page 4 of 10 �-- __ _ Location � _ Item Quantity Purchaser I A. Restaurant j Booth Tables 5 BLD I � Booths 5 City* ! !� Booth stools 12 BLD � Swivel bar stools 26 BLD �� Arm chairs 110 BLD i ATM machine 1 BLD 32"television sets 8 City 36"television sets 3 City Wall clock 1 BLD Baby changing counter 1 City* Window louvers/shades City 30" x 49" tables 15 BLD 30" x 30" tables 12 BLD �Table bases 27 BLD ' Credit card machine 1 BLD Art graphics BLD Floor safe 1 City B. Of�ce/Administration/Retail Copy machine 2 BLD �omputers 11 City Fax machine 2 City Desks 12 BLD Chairs 13 BLD Filing cabinets A.N. BLD Storage cabinets A.N. BLD Credit card machine 1 BLD Printers 2 City Safe 1 City Conference Table 1 BLD Conference Chairs 8 BLD Waste baskets 15 City Recycling baskets 15 City � Point of sale system 1 BLD Retail counter case 1 BLD Storage racks A.N. BLD Office Pro XP 11 City Display shelves BLD Drafting stools 4 BLD Guest chairs 11 BLD Amendment No.2-Sports Park Lease Page 5 of 10 Location Item Quantity Purchaser Floor safe 1 City Thru wall safe 1 City C. Batting Cages Master Pitch Package � 1 City* ; ;C anh ge machine 1 City ' Helmets 15 BLD '�Repair kit for pitching machines 1 City* � Softl ball bats 15 i Balls 120 BLD D. Corporate/Special Event Equip. Portable bars 2 City 20'x 20'party tent 1 City Baseball gloves 30 City 10'x 10'party tent 2 City Portable Barbecues 2 City E. Sports Equipment Soccer goals 2 Ciiy* Basketballs 6 City Volleyball poles 8 City* Volleyball nets 4 City* Portable sports fence 2,500 ft. BLD Back stop pads City* j Outfield wall pads(replica City �wa11s) _ Hockey goals 2 City* Double bases 6 BLD Home Plates 6 City* Single Bases 18 BLD Portable mounds 7 BLD Basketball backboards/goals 4 City* Bulletin boards 4 City Backstop netting Per plans City* Electric baseball scoreboards 5 BLD Electric basketball scoreboards 2 City Bat racks 10 City* Scoreboard controllers 10 BLD Player benches Per plans City* Portable bleachers 6 City* Video camera 1 City VCR Player 1 City Fence cap BLD F. Maintenance Equipment Toro#3100 Vehicle 1 City -- --- --------�—._--- ----- Amendment No.2-Sports Park Lease Page 6 of 10 -- --------- ------ Location j Item Quantity Purchaser i Sweeper 1 City '�Triplex mower 1 City To dresser 1 City I� p � Fertilizer spreader 1 City Floor scrubber-walk behind 1 City McClane Edger 1 City Pressure washer 2 City Roto Tiller 1 City Landscape Rakes 4 City , Square nosed shovels 4 City ' Large shovels 2 City 24" push brooms 4 City Regular brooms 2 City Pole pruner 1 City �Tree hand saws 2 City Pitch fork 1 City Assorted wrenches City Pipe saws 2 City Quick Coupler Keys 5 City Nail drags 2 City Chalkers 2 City 100'tapes 2 City '/z" electric hammer 1 City Tool box 1 City 7" power saw 1 City Electric multi-tester 1 City Extension cords 4 City Vacuum cleaners 2 City � Golf cart utility beds ' 4 BLD T ro 0 22" mower 1 City �Backpack blowers 2 City Rotary spreader 1 City Wheelbarrows 2 City Chemical sprayer- pull behind 1 City Weedeaters 3 City Leaf rakes 4 City Pointed shovels � 4 City 6" trenching shovels 2 City Amendment No.2-Sports Park Lease Page 7 of 10 Location ; Item Quantity Purchaser � 50'� hoses 4 City ' weed hoes 2 City � Tree pruner 1 City ; Power chain saw 1 City Hand pump 1 City Easy-outs, assorted City � PSI gauge 1 City � --- — ! 2-5 gallon gas can 4 City � Batter box frames 2 City %2" portable drill 1 City 4'h" grinder 1 City Impact wrench set 1 City �liers/tools, assorted City Electric pump 1 City Trash receptacles,asst. 20 City Hand-held radios 6 BLD Spray rig 1 City I Storage shelves BLD Ir Welding Equipment 1 City Field Turf Super Groomer 1 CiTy G. Miscellaneous Tot playground 1 City* Picnic tables 6 City* Safety netting City* Fan shade nets Per plans City Security system 1 City Ash trays/urns 7 City Telephone and voicemail system 1 City Drinking fountain Per plans City* Entry turnstile 1 City* Bike rack 1 City* Mist system 2 BLD Ceiling Fans 24 BLD Public Address System 1 City Fake Ivy(Wrigley Field) For those items purchased by Tenant, reimbursement to Tenant for purchases made by Tenant shall be made pursuant to Section 11(c) of the Lease. Amendment No.2-Sports Park Lease Page 8 of 10 7. GRAPHICS BLD graphics and replica wall graphics wi11 be provided by Tenant. The City has set aside $120,000 for Tenant ta purchase and install graphics. Reimbursement to Tenant shall be made pursuant to Section 11(c) of the Lease. S. MISCELLANECIUS a. Effectiveness of Cantract Provisions. This Amendment No. Z is specifically made a part of and inciuded in the Sports Park Lease, dated May 24, 2001. Except as speci�cally set forth in this Amendment 1�10. 2, a11 terms and conditions of the Lease shall remain uncharzged arzd in full force and effect. b. Effective Date. The effective date af this Amendment No. 2 shall be the date it is signed by the Landlord. IN WITNESS WHERECIF,the Tenant and Landlord�ave executed this Amendrnent No. 2 on the days and year set farth below. CITY OF ItEDDING, A Municip Corporation , r // Dated: �� ' � " , 2004 By: %' �,,�r�����?�"�_ r ohn R. Mathena ,Mayor Attest`: Farm Appraved: LYNETTE M. FREDIANI, Interim Cit�Attor�ey � �'annre Stroh r�,;�er, C`ity ,,er c By: ,� �'�����.�° BIG L�AGU DREAMS RE➢DING,LLC , Dated. ������ 2004 By: Scatt Parks LeTel�ier Chief Executive Officer Taxpayer ID No. 45-4473563 Amendment No.2-5ports Park Lease Page 9 af 10 Attachments: Exhibit l, Lease Area N:\Sports Complex\BLDagmtaddl0-12-04.wpd Amendment No.2-Sports Park Lease Page 10 of 10 � .i'���:�,L,:�.:1t�-=\1 : J — m��p _, .""��.'� I�pm� N ' _ � ���� �� N. �� mp�Z , - � 1- �x�O �� �- �� �_ r— ,� O �J ] � m o - � � m o m � - c� —- � r r� � �O I - i� --- m � � rn n� - — �_ _— � o N -Zi f� T I i I -- - \� .=�r.1-- { . _ � m p �rnrn � -- ��' 1 m � � =" ' � �� `'��,� m � o O � m / V-_� < I o � o a m �.. � a D Z � z � �' � o m ��� ��'• n � o � � ,. � �-- �,`'';: � n :��4�� ., / v , ui �� � = li��Ui,��'r� ��� �uu�n� � '�iyi,uc,� � � ,"'��n�ii�y,,,4, � ..,, � � � � ��� m,� � � �quniin �u<„� �m � o�� r f�i I ' " ��`��� � �u���� ,��,w.ii '" mr�7 ��ul��, / ^! m )>/%q hlp�i..! i(iIIYU(1111�iT1�til�0��;0���\lIS - 1V ry((!, 71j/r� / p` � > ti �(r� . . . . ,. .5 . I uuh U�S���`' �""�...� i ,,,.,,.� Il II.�I LI I LIllL14!IUUU- ""`^^---.�r:..-..___ � � �— r "" � � ; � � ' �,',,, - � � r � I � f � NORTH STAR DR � � r O � i I - }f � eoo• — D �-,__.,---.----: D � D t � � c/) --{ - , % C � � ! i mpn Q ; , ' _ � � �'J z i ', �,-, n � ' ` — � n � _ � ,� � z , � ���, o cn � -p ; � � ' _; �, � . , — — — - —�— N����� o�o � ��l � Z -r— Redding Electric Utility INTERNAL COMMUNICATION DAT�: March 21, 2013 TO: Pamela Mize, City Clerk FROM: Barry Tippin, Electric Utility Director SUBJECT: Amendment to Lease with Big League Dreams At the City Council meeting of September 20, 201 l, the Council approved an allowance for Big League Dreams (BLD) to access the stadium lighting electric rate using an 80/20 rule instead of a requirement to make changes to the facilities' meter system. The Council report calls for an amendment of the lease to achieve the desired result. Your office recently requested a copy of the amendment. After thorough research, I have determined that an amendment was not done; however, after a review of the situation with the City Attorney's office, it has been determined an amendment is not required. It appears that staff initially felt the amendment was necessary to allow BLD access to the electric rate, and may have found that it wasn't necessary to achieve the Council's direction. The staff member who led this effort no longer works for the City so I was unable to confirm this. The purpose of this memo is to provide documentation to complete the City Clerk's file. , c: Rick Duvernay,City Attorney Patrick Keener,Energy Services Manager G:\REU Admin FilesUviemos�013\BLD Amendment 3-21-13 � _ I �l^ vl �. C I T Y O F CITY OF REDDING - . 777 Cypress Avenue, Redding, CA 96001 '� � ' PO BOX 496071, Redding, CA 96049-6071 � // C A L I F O =R N�%�j cityofredding.org PAMELA MIZE.CITY CLERK SHARLENE TIPTON;ASSISTANT CITY CLERK 530.225:4447 530,225:4463 FAX March 21, 2023 ' � �x,� i ,��r j ,4,, Big League Dreams L������+�,� � � � �{ t t� t �{ <12 4 a xt t 163�39 Fairfield R�����,��i'ad ���{�;{�'t'# f t, Chino�Hills, CA 5�;����9� ��'tt„� lt z t���� � � , t[��t�� ,t,�. xf RE' L�t���`of Agreement—C-�k',�{��` ' t� f ,t��5� k ,r t,; � ,,,ff x r �� �it 1, Dear Sir or Ma���, ���fl;t ts', ��� ��� , , �r t, t t hits €i t 1 7 � }��t s 1$S s� Enclosed p ����tt ,a��z���� ab�r��4�}���'�������1 fully executed Letter of Agreement by and between the City of Re'�c�ng f and t������;eague ������ms USA�, LLC�, relative to the Redding Big� League l�reams Park located at 2����t,�� Viking Wa��}��edding, �A. ; �l, � If you have any question�$���arding th��;l�Y`�eeme����c�r if we can be of assistance, please � t, contact t1�e Office of th� City�Cler�'����,��1�����L439 � ' �� a r4 i � r }t{(i4 }�7t�i �.r,�� {s�a� j 4 5�7�' if f t�tE r $$5 tt ii;} ��f 4 ts k .in�ra S �f�i�t�}.� "i?j t � rts� s � t ,���t�{sifs., �t'Itf,. � : ��s, � � {t�t ���t �j��j�).i�� tk t�7� .. it �Sincer���tt'���„t ,� 7�,�� � } J Stt � t iifS jtl} . { � t� t s f tltl? �f i�ri;� t{Yy�l£jit yiz 7i}afsti#4� lsf�72. ttrf� � r5 ttt�t}lrf. !�: �t„�;�:. }y i�ti �,}�f 12,.r t i . . � '4,�;fa,�;li.,j�'7` -ti t lJ; � ... {5�� �� �{ if �tt Kri�sten McGee ; � �``�`�`��� tt,'�r��`�� � 'l�'''};z��.u� ti,it r { Management Analyst �'��}� � r 1�€,Ffj`�'t'f'}=� f� �r t3 t{i }'t s� x.�, � 4S g�t 1� })� � ��kY�tt f k ifiS f�,i�r,F.. iNbr3�ti( {i '��t<{�,,,t, �tt y,}Fqfit..,. . Enclosure cc: ChaneI Kincaid Kim Niemer Ellen Grannis Letter of Agreement Between the City of Redding and Big League Dreams USA WHEREAS;the City of Redding (CITY) and Big League Dreams USA�LLC (BLD USA) entered into a SportsPark Lease agreement onApril3, 2001; WHEREAS, the lease agreement, attached and incorporated herein,requires payment of monthly lease fees ' t tc�i��t ;�+t}a;��1t ���s t�l ���� l; " �utti tt��i� WHEREAS, fr,�1�st���`"months o��`���ary 2020 through December 2022, inclusive BLD USA ; 1 ��,Y. f�iled to mak� ��� 'payments ta the; � '' ��'4 r� , �� ' � �y���`� t`ixti � WHEREA��jJ,�e physical condition��*,`�ie park facility is poor; and r{, � rr t�t, i j f� ', �t r�p,; ss �t '�< �WHEREAS�,���partres des�re tn�formalize the�payment sch�dule for past Yease payments and caprtal irnprov'`���t pro�ect�to be completed at the Redding Big League Dreams Park located�af� 20155�Vilcing���t�,?};�'�4���`�����A it �`s��t �f`{`;'�j t`��`� }l���fii,,,4,i�,�.��. .. t�r:r �t{ � 3 i F s 1 �ee` ';}�f i �'� �is£��' NOW, THEREFORE, for goa�;'�;�td sufficient���,sideration acknowledged by the Parties, the �Parties�agree as follows�: ''t��f',� �t�`�;�� r�'�,x�z s`��t,t� , �r ,'S t l t � rs JJ �Gt �, l�)tji �{t f �3{ itt }411} t} i{ ) � SECTION 1. LEASE A�������`'�" $ 't}}S' `' ' '� 4 $ ����}tJ �t '���„la�� rrtt itsi7 �fi� �t i li{.. : rl f��f t j A. The Farties agree that the Lease dates�J$z����il 3, 2001, a�`�mended; shall remain in full �force�and effect. The Parties intend�'���blish a sched����f pa�rnents for rents past�due�� and a schedule of capital pro�ec������i���,,,when accp����ished�a,��all satisfy all of BLD� USA s past due� obligations ur�����a���'�e L��;�� ��,��;���t� 3, 2��='�, as amended, and City 7� Jint , ir,r t � �shall�consider the prompt perforr�iance of sa������'���impro����nts a�nd payment o�past� due rent set forth herein as an accord and satisfaction of t���'� obligat�c����,�ast due and » s f t xr�t1t��J,. 4j�5r �OWlllg. ����tii{ �4 r�� }r�'� il t f �� k �t t�t� „ i t4ri° � 7 }. „ ,� } � t s r� tj'j 7is,�}�,, B: This accard and satisfaction of past rent due sk�ll not r��,`��,,'z°��y modify the continuing �obligation to pay rent under the Lease Agre�}�'���'����� April 3; 2001, as amended. Payment shall be structured as set forth in the Payment Plan. SECTION 2. DEBT BLD USA shall pay the CITY an amount of$1$2,81$ in past due leas� payments in addition to lease payments due for ongoing activities per the lease agreement. h i O � 1 � SECTION 3. PAYMENT PLAN BLD USA shall make payment as follows` February 28, 2023 $18;000 March 30, 2023 $15,000 Apri130,2023 $18,000 May 30, 2023 $1$,000 June 30, 2023 $18,000 July 30, 2023 $18,000 August 30, 2023 $18,000 , September 30, 2023 ,��f������` ; t, r ft i ��3 <st.' � �}�s � r�r �October 30, 202�={; �,'{j,x�}���t�,000 "�'�+}�,';�,ti��} November 30,������ �$�18;000 ���,�{r�Y,� December 3�$'���L3� $ 2,81�8 =t'F''`t� �� ta; , f�, T 1 5 t ;},. t�� j. � � � 7 � j 4t�tt{ }t4�5a � � { }} try j� . ifj�t( S�ti4 ; t t�jl 7 1 �SECTION 4. �;,` � � ���,�t'�'�AL IM�i� �§��,�VIENTS 7tt�i� {t1t� t �' tt � t ��4�> > ,it t Sf„�,}i};.jt;t,t zI <7}{�i zt t� � i} BLD will accamplish the capital��;�`�vements'��t the schedule set forth belo�: _� �r£i i)4i��v{ .,1�15v{��. t {' }f Battin Ca e Re airs "i,;,�� 3���;�"' February g g p ���,.,.,f �,�t=�s�t.,r��. � y `�� ,`, �� �� February New POS S stem ��t�� �� }.1��' �{ ,t�� �b�,.�..,: o,t�f ,s; �„f..,,, {� I 1 Its r s`7;� t��j r4 �. Paint Buildings '`�',��`t{�,', ,�t¢��� �,�' `, ,j, i ,�"1`,�{;�:���bruary ,x t�, ��r��af� �u,tct,x'.� } 3 H.� Paint Outfield Replica Walls� �r����,� �� ��� ary ��a.,.s� ����r, ,�,{,� � ,� Parking Lot Lighting �r'� � �£' �',��ruary k'}z�er�it r� „&�,t+ r;�t t � i � } � 4 Stadium Club Paint ,Ij;{};�4 >t' ��}E, i;,����iruar�t��'` ,_,<, Fix all Broken Stadium Seats {,';�;��' ��` ;t',l`tY ,,�f ��t� ,"������Vlarc�,t� �` �� Pawtucket Grading Repairs in Outfield �������������5 Mar��;t������� {, ; t }�� ' t�t,'��{ �,,�s� Restroom Upgrade M�,��� ,,,t�z, ar�� ,,4,�} ,� ,<� t���� j � ��, r Stadium Club Flooring 1��#��� �r�,� ��"�� � j lzf i f ti Repair Damaged Turf ����t` �''�������i� ���, {�,� it,,,,,� fs, ��� 7 �„4,.,�, ., Turf in Batter's Boxes March Repair Shade Structures -Replica Fields April Sand in Volleyball Courts April BLD USA will provide to the Community Services Director monthly reports on the status of the projects listed above on the 20`h of each month. 2 SECTION 5: DEFAULT A. In the event that BLD USA fails to make payment as set forth herein, the City shall have all remedies in law and equity available ta it for breach of lease in accord with the Lease dated April 3, 2001. If payrnent is not made per the Payment Plan, CITY shall be autharized to demand acceleration of all remaining payments under the Plan and said total amount not yet paid shall become immediate due and payable. B. Any statutes of limitations, statutes of repose, notice or other time-related defenses ar limitations, whether statutory, contractual, or otherwise, and whether at law, in ec�uity, or others (including the doctrines of waiver, laches, acqu����rt�}'����``��"J�,����pel), which �may be applicable to any breach of the Lease� d����,;��ril 3, 2(������,�d which may fix or limit the period within which a claim ��,'�l�e brought und��`����Lease Agreement�are tolled for tke period�of this�Letter ;>; �t'�reernent�(the "To11��,�;�EPeriod"). The Parties each agree not tb� assert, plead or ,`������ise in any fashion a��r'��me-based defenses to claims under the Lease Agreement� ��`_�,`�',�lated April �3, 2001, `��;��ch time-based�defense�s rely in whole or in part on time ,,f �,"�}��'�at p�assed during�tke Tolling Period_ t ,z �rU, rYt�} � t, �;$ , C. ����t��a��z�t,��y�ll rem����x�,�{}��w or equity for breach of the Lease dated April 3, 200�,>��,�.��tes �����;��'�r`�i��t j';��ter Agreement to be independently enforceable� as a settlement t�����tion of tll`��{,��rties, and the F'arties further agree that this� Letter Agreem��t�t��all be�admis���s�e as evidence in establishing a breach of the } obligation set ft���m the�Letter '`��emen� �{� � f� tr f+ t� t3 {�'�t s S17 �ii� �t�`�yk SECTION 6: AMEND���,�� ,�`'�";lt $„r',� 4``,f" ��, z,�x , }�, t ��Ix4r�, tf�r{.,r� Jtiti�;�{?� t�tt��ystl�� i73},.iti„r.t� kfJ� .t,,, � ) The Parties agree that any amendments made tc�,'�����Agreemet`�t�t4#E'�ust be in writing where they must be signed by both Parties to�this�Agreerr�,��,�,'x'`As such,�any�,��endments made by�the Parties� will�be applied to�this Agreement. j s�`'' ''� '� ,,s;��'�� r�,z It i 13 t> � { i k{{{7'i$Z;jr �, tt�l��j tj J 7 1', I t is S ttt� 3i � 1k .tF}1Jt rY1 z��.$$S 11 ) ��s'�' i" "{�t} t�i �,{ ;�t r } `�{j �'`i' �'�{ tt ..s�� 1 �.?�( y ?it t..� tt 4 ;V r rL,.r�- , 3 ,.. .ljtis3 � f. x ���t tt t1 t f(s�'� z�rit�.,: a�?� � ,�afyz 4{ i 4,},��y,v,,. i ttt' � 1 � � i� ' � s� ti�{?t lf � t,�� � t}} ,'rrtFl��t7 4{i�>,�=��,< t }t' �7;rt .;i�I�t iitt�rj=4 i�v{�S��s 4ti ;tti�tit7ust Ci�. :�tt �tk t ��„3u7�. 3 SECTION 7: DATE OF AGREEMENT The Parties hereby agree to the terms and conditions set forth in this Agreement and such is demonstrated throughout by their signatures below. The date of this Agreement shall be the date it is signed by the CITY. In Witness Whereof, CZ��'1�d BLD USA have executed this Agreement on the days and year , f} {z} set forth below: �4,'��1,',`t,,�f{',`'£''� �`' �`''�'�{ ���,jl���.� �5 ty,r� ti {S�s1�t{i. H�,=t7i L 4�S�1 J �t4 t��i t � � �}}t�5�. tt �${ L 37tttr3: }J [J�„ 4}t f i f}i, $ t :., �tltt7l.� t� ''t{ ' �r�r � }�' CITY OF REDDING `�'" � '�� r {r:r. A Municipal Corporation i3 f I t��fQ t�'t li ) �� �"!� tf � ��r�'tt� �}.t{t4 r ft�� �t �ily�t . i�4 }ult :: J7 ft t�f4f 1 � tt jt �2S#�� (�} t x t c .,�,. ���'?r�r,li,�,,d t''{ it ia��' 4�s��i Dated: .,,� st#�t4y�rL� Y'�5 � . t ,�'�`t�l'�� �'�1`��ICHAEL D'�CQUISTO, Ma�or 4 �f z� i����t�'` xt FI# �`� t s� t�a sti t i'tt�}�' t t�r($ !t J t ji t rts 1 �t Ftt} ; ��tiT � �'�}�y t y4 � St� t S t t t j t ��{ � 1it ij�,s� �7 }ti� � r tT7r.��t� ATTEST: � �Jf,�»,,;,,4,,,,; �„��������`���TO FORM: � '� "rt t 4 �f ' � �y.�1 t V= � f tk�rl ,( ��... /� . ��t�z}t���3�f��`�, tl��,'�� � f/ \ "1 )4'V \ .. a�3tt%f r{£} t f}t }t�� ,,. (' � �_ �F �Y t Y}�t }I ,a�� � ��j � '� � 4 �(7�� rt,i��� ��ir t t . 4,.v �,����'f'� PAMELA MIZE, City Clerk `�`��,�'� � � r� ;��� A j, ,yr�� it�Attorney �t.�,.�,4��i�� :�l�t` , � BIG LEAGUE I�!;�,����AMS L����,``�z1��,C �, ,,lr tta,�� it t ]� • S}tt.<d i.i t t j 1 �rr t f t tt�'�,.y�.,� ' i�f t�, J, �,>a,�. � � y 7 1 . �„>r . ,ya,,;r ti.p.,,t.,. ..,.� .�c,. Dated: ,2023 . �4i `�'�EYNO 4 ys tl�� ����"��� TRANSMITTAL FORM � � ��� ���, ��°�" 7f.��tid�t3�'I�`S�t�'�ltl�l�`E�*13t�1�1�'�"�"-,�t.��l F'��f�2��7�'E� TQ CITY ATTORNEY(225-40501&GITY CLERK(22 -4439� Agreements t}Bonds p Contracts p Leases p Escrow Instructions Q Deeds¢Securities p Resolutions p Ordinances p Opinions Date: 7119123 From: �ulie Crummett ���� �� -�—�` .� � Communit Services 641 530-225-4104 � °� � Dept. Name: y Dept. # Phone: Kim Niemer 530-225-4085 � ������ Person most knowledgeable: Phone: �� �s�'f $. r� tNSURANCE REQUIREMENTS MET? When su6mitting contracf for review, you must also subrrtit an tnsu�ance Transmittat Form to Risk so insurance can be requested and approved in P(NS. lf not, you�contract wiN be hetd in the Clerk's�ffice. For help contact Risk Liability at pcEaht c�i eitvofreddin�.orp or(530)225-4385. DESCRIBE ATTACHED DUCUMENT�,,,,.Sl Document Title: First Amendment to the Letter of Aqreement (C-0458) outside Party(ies): g�g Leaque Dreams USA ProjectjPurpase: To complete eapital improvements by specified date(s} COUNCIL APPROVAL REQUIRED? No�'es�IF YES,DATE OF MEETING: �������_ Agenda Item#: 4.6a Was contract jagreement the result of an RFP or Bid?No QYes � Bid Schedule#or RFP#: REQUEST F(JR ATTORNEY SERVICES � A�t��°��lt����vnr� T}r���-.�11 doeurnents anust be revie�nr�d�ap�z-ov�d b��'c�re abtainin�any signatures. V�Then arn�ndi�g�c�ntracts,�ttac� a c�p�r c�f�riginal ccsr�tract ar�d a1I pricar�m�r�dr�ents. L3c�not e- ail d�eum�nts v�ri�haut prior a�proval. ❑ Return drafts t�: (to finalize&obtain outside signahzres) � �t��€tR�����i x�� ��i i��I�, �� ������rt ��`T� ���° ��'t��°: (�) �ra�� �,�s�1��n��-�vi�s��slyrevi�wed& a���re�vec���y Attc�t�r���r� (2) �ept.la�� a�stairs�c� crutsici�si�;tz�t��r�s. I�1e��s� sr.a����,��� �ribin�ls. Lise p�p� z� -na sta�a��s -anc�a�fix"�i���H�re"�abs c�n�£1 si�nature��ges. �,,�'" (Attorney approval mandatory-RMC§4.20.120.A� - �`Nate: Signed originals will be forwarded to City Cierk for necessary City signatures,insurance& other requirement veri�catian,and processing. � � MailingJdistribution Instructions: See below � Prepare Certificate of Acceptance (easement&grant deeds) . � Memo or additional infa is attached. �f Other: ��9 League Dreams USA, LLC, 16333 Fairfield Ranch Road, Chino Hills, CA 91709 Save for Attomey's Notes �� �' � � � �. � � ,�� � �"`'�' City Attorney Log# gi�'���°"-� � � � � � � Logged Out By: � Rev.ObJ2d � � ��TY F I ,..---�' _ �=, =f 7�7 Cypi�ess Avenue, Redding, CA 9600� ' � PO BOX 496071, Redding, CA 96Q49-6071 � � � I F���� C� �� f�- � .�;'` �i���f'r�c��ir�e�acarg SHAR�ENE TIPTQN,CITY CLERK 530.225.4447 53d.225.4463 FAX JLiIy 25, 2023 I3ig League Dreams USA, LLC 16333 Fairfield Ranch Raad Chino Hi11s, CA 91709 RE: First Amendment—C-0458 Dear Sir or Madam: Enclased please find the above referenced fully executed First Amendment to the Letter af�greement by and between the City af Redding and Big League Dreams USA, LLC for the purpose of the Capital Improvement Plan. If yau have any questions regarding this agreement, or if we can be of assistance, please contact the Office of the City C1erk at(530} 225-4439. Sincerely, � � � ..._._ �; � I{risten Mc�ee� � Management Analyst Enclosure � ec: Julie Crummett Kim Niemer E11e�1 Grannis FIRST AMENDMENT TO THE LETTER OF AGREEMENT (C-0458) The Letter of Agreement {C-0458) dated March 2Q, 2023, between the City of Redding, California, ("City") a municipal carporatian, and Big League Dreams USA {"BLD USA"} is amended as follows: Section 4 is amended to read in its entirety as fa�laws: A. BLD will complete the capital improvements below by August 15, 2023: 1) Batting Cage Repairs 2) New POS System 3} Paint Buildings 4) Paint Outfield Replica Walls 5} Parking Lot Lighting 6) Stadium Cl�ub Paint 7} Fix all Broken Stadium Seats 8) Pawtucket Grading Repairs in Outfield 9) Restraom Upgrade 10)Stadium Club Floaring B. BLD wi11 camplete the capital improvements below by 4ctober 1, 2023: 1) Repair Shade Structures -Replica Fields C. BLD will complete the capital improvements below by March 31, 2024: 1) Turf installatian at home base 2} Turf replaeement infield 3) Sand in Vo11ey Ball Courts D. BLD USA will provide to the Comrnunity Services Director rnonthly reports on the status of the projects listed above an the 20th of each month. A11 other terms and conditians of the Contract dated February 15, 2017, shall remain in full force and effect. ��� � The date af this Amendment sha11 be the date it is signed by�ity. � �� In Witness Whereof, CITY and BLD USA have executed this Agreement an the days and year set forth beZow: CITY OF REDDING A Municipal Corparation 'm� � � �� � ����Mw `������ Dated: � � � , 2023 �`% � � .`�. MICI3AEL DACQUISTO, Mayor � T'��T� APPROVEI}AS TO FORM: ��, �� � � �, � � N�, � �� ��' � �� SHARLEZ?E TIPTON, CITY GLERK BAg�y E. DeWALT, City Attarney BIG LEAGUE DREAMS USA, LLC , , � � � Dated: � �� ,2023 ��' � %' By: L� Y RE�'Nf�LDS From: Members.Co�neil To: �ack Nlunns;7oshua�ohnson;Julie VVinter;Mark Niezzano;Tenessa Audet�e Cc: Ti i�,�arrv;Bade,S�eu,�;C�rtis�C"hristi�n;(�enne,Tr vi,�; Barnhart,Eri�;Ti�ton �harl�ne;Cates,Anz tt� Subject: FW: Big League Dreams-Redding � Ideas for Consideration-Item 3.1 on tonight"s Council Agenda(7/29/24) Date: Monday,July 29,2024 8:13:21 AM Attachments: BL[3 Qriainal FuIIv Executed�ontract 2001.pdf CiN of�eddinn Cauncil Ac�enda It�m 4.6c-�fu�sdav, 7une 20,2023. df From• Sent:Sunday,July 28, 2024 3:45 PM To: Mezzano, Mark<mmezzano@cityofredding.org>; Winter,Julie<jwinter@cityofredding.org>; Munns,Jack<jmunns@cityofredding.org>; Audette, Tenessa <taudette@cityofredding.org>; Johnson,Joshua <jjohnson@cityofredding.org>; CityClerk<CityClerk@ci.redding.ca.us> Cc: 'Ed Rullman' <ed@crgibbs.com>; 'Rick Bosetti' <bosetti@charter.net>; 'Jennifer' <jenjackson73@gmail.com>; rfmiddleton3@gmail.com; 'Jake Mangas' <jake.mangas@gmail.com>; 'Andrew Boesiger' <aboesiger@grantschoolcougars.com>; 'Michael Dacquisto' <mdacquisto2@gmaiLcom>; 'Jason Russell' <jmruss77@gmail.com>; 'Lee Lamp' <1e14355@yahoo.com>; ryan@burkscm.com; 'Ryan Denham' <ryan@sjdenham.com>; tenessaaudette@gmail.com; 'Kimberly Archuleta' <kimarchuleta@kw.com>; 'Jeff Tugwell' <jefftugwell@icloud.com>; 'Douglas Wrignt' <douglaswrightesq@gmail.com>; 'Charles Tracy' <charles.tracyid@gmail.com>; 'Erin Resner' <resner.erin@gmail.com>; stevewestlake@charter.net; karlsson@charter.net; aampi3@yahoo.com; fast77cam@aol.com; kicksavel@hotmail.com; brett.cloney@yahoo.com; 'Tyler Van Dyke' <ttvandyke@krcrtv.com>; michele.chandler@redding.com; BBArcnuleta7l@gmail.com; 'Silas Lyons' <silas.lyons@redding.com>; 'Kerry Loring' <kloring@krcrtv.com>; 'Les Melburg' <melburg@nmrdesign.com>; 'Michael Dacquisto' <mdacquistocc@gmail.com>; 'Henrik Karlsson' <karlssonhenrik@icloud.com>; Dave & Rhonda Paris<kicksavel@hotmail.com>; david.benda@redding.com;lenny Espino<jenny.espino@redding.com>; 'Shasta Scout' <editor@shastascout.org> Subject: Big League Dreams- Redding � Ideas for Consideration �:1'�1JTI�?�J:Thi>a rn<ai9 c�rig�ir��t��l�rc�rr�c�u�,,€cic fhc�t�'iiy�F F��c�c�ir��, ��#c�sc, �a��.�a,��f��l with lir�k,,�r��tiac:hrn���t:t,. Good afternoon Honorable Mayor, Redding City Council Members and Community Members, It has been nearly two years to the day since my first email to the City Council regarding very serious concerns with conditions at our Sports Complex—Big League Dreams- BLD (original emai) below). Since then, I have sent or received hundreds of emails, phone calls and texts related to BLD. Most recently, Thursday,July 25th, news broke that TC Sports Group (the City's current contracted operator of BLD since approx. 2022) had effectively "given the BLD keys back to the City" and our Sports Complex would be closed. The Council is hosting a special meeting tomorrow night to hear from the community. I cannot make it to the special meeting but would like to offer my thoughts for you to consider: l. In my opinion, and shared by many, the City of Redding needs a mind set shift as it relates to the Operators of its two Park assets—Big League Dreams and Redding Soccer Park. 2. The City of Redding should stop considering Big League Dreams and the Redding Soccer Park as revenue sources for the City of Redding. These are City Parks, City Assets that the City of Redding is fortunate to have contracted Operators running and "maintaining". Enterprise Park is not a revenue generating Park—neither is Caldwell or Lake Redding Park. The City operates and maintains these parks, not a contracted Operator. Consider changing how you look at BLD and Redding Soccer Park—they are just City Parks—they are community amenities that thousands of our community's families enjoy. 3. The City of Redding needs to consider ceasing monthly rent charges to the businesses that operate Big �eague Dreams and the Redding Soccer Park; consider these facilities just as another City Park, like any other park, with the exception that both of these "parks" have contracted operators—Big League Dreams and the Redding Soccer Park are community amenities with construction of both paid for in large part through State Park Grants (former Senator Maurice Johannesen was instrumental in securing the State Park funding to build Big League Dreams; not 100%sure about the Soccer Park). I do not believe either BLD or Redding Soccer Park have any Debt Service obligations? Allow these Operators to redirect rent payments to capital improvement projects at both parks (turf replacement fund etc). We must throw these entities a "life-line" if we expect them to survive. 4. The City of Redding needs to eliminate the revenue sharing component of the Operator contracts. The Operators of Big League Dreams and the Redding Soccer Park are required to maintain both City complexes to "first class conditions" including repairing and eventually, replacing all artificial turf fields at end of life. Big �eague Dreams' turf was due to be replaced 10+years ago—this year, it will be20 years old—in many areas it is unsafe. It will cost $5M- $10M to replace. No Operator, under the current contract terms paying rent to the City and a sharing its revenues with the City, will make this level of capital investment in the City's asset with no return on that investment—it has not, and will not happen. The Redding Soccer Park was in the same position with its artificial turf and if not for approximately$3.5M from REU and approximately$1M from the McConnell Foundation to replace the Soccer Park turf, it is doubtful the Redding Soccer Park would be open today. 5. The City of Redding needs to assign Community Services Staff to explore and secure all local sponsorships for capital improvements at BLD (replace the turf,the sport court and climate system in the pavilion/arena); in addition to local-private funding support, Staff also needs to work vigorously to secure grant funding for the same. This needs to be a priority and should have been a priority years ago, rather than relying on a private business/operator to invest $millions into your asset with little hope of seeing a return on that investment (regardless of whether or not they accepted the terms of your agreement "requiring" them to do so). 6. The City Council should consider adopting a reduced electric rate tariff designed specifically for Big �eague Dreams and the Redding Soccer Park; yes, this would effectively be providing both parks with a subsidy (reduced rate), however, if we truly want both parks to survive and thrive, we as a community need to pay for it—this is low hanging fruit and one the City Council can direct REU staff to develop and Council can choose to adopt. Develop an electric tariff/rate that reduces both park's monthly operating costs. 7. Clearly, the business model the Contracted operators of BLD have been operating under does not work—the economics do not work (see attached original B�D operator contract and staff report on TC Sports Group's operating contact and renovation agreement). 1 believe by now we should all be able to agree what we have been doing isn't working. The City needs to develop a new and attractive set of Terms and Conditions (T's &C's)for future Operators that provide economic incentive to the Operator—not the City. Issue an RFP to prospective Operators and work in partnership with them to ensure both the Operator and the Community "win". When I say "Community" I mean the citizens of Redding. 8. The City of Redding should consider providing both B�D and Redding Soccer Park with City Parks Maintenance staff support—I'll say it again, both of these facilities are City owned Parks that exist for the benefit of our community and visitors of our community—they do not exist to be revenue generators for the City of Redding. 9. Bottom line,the City will have to subsidize both BLD and Redding Soccer Park to ensure their long-term survival. The City needs to work in partnership with the Operators to ensure both Parks are successful. If we do not change how we handle these contracted Operators and the T's & C's we expect them to operate under, both parks will continue to fail eventually—in my opinion. I ask that you keep an open mind to all options presented tomorrow night, including and not limited to any offers to purchase the sports complex (BLD), should any offers come forward. Thank you for your time. David Jackson 47 Year Redding Resident) From: David Jackson Sent:Sunday,July 31, 2022 3:16 PM To:kschredert�cityofreddin�.or�;mdacc�uistol�cityc�freddin�.or�; eresner(�cit�ofreddir��.or�,' mr�ezzano eit ofreddin ,or ; �winter cit ofreddin .or Cc:Jake Mangas<ial�e(a�reddin eharr�b�r,cc�m>; Ed Rullman <edC�cr ibbs.com>; Steve Gaines <st�ve cr ibbs.carn>; Rick Bosetti <basetti charter.r�et>;Jennifer<�en'acl<son73 rr�ail,corn>; David Jackson Subject: Big League Dreams, Redding-Very Poor Condition -What is the Plan to Correct? I�onorable Mayor and Redding City Council Members, I am writing you today after just visiting Big League Dreams (BLD) Redding (this morning) for the first time in several years. Our son grew up playing travel baseball at BLD since it opened in 2004. To say we spent a lot of time at BLD from 2004 to 2012 would be an understatement. When BLD Redding opened, it was among the best baseball/sports complexes north of Sacramento and south of Salem- it was a gem for our community and attracted visitors from a11 over the west coast for baseball and softball tournaments. The replica fields (Fenway, Yankee and Wrigley) included amazing wall graphics of cheering fans and many businesses proudly paid to hang a banner on the wa11s and batting cages. Wrigley had artificial ivy on the outfield wa11s to replicate the original in Chicago and the turf on all fields was pristine. The purpose of our visit to BLD today was to watch the daughter of our Portland friends playing in this weekend's youth softball tournament. We were excited to be back at the ballpark and encouraged to see so many out of state license plates in the parking lot -visitors staying in our hotels and eating at our restaurants. Good stuff. Then, we walked through the front gate; that is when our pride and excitement turned to frustration, anger and embarrassment for our community. The replica field wa11s were a disgrace; wa11 graphics completely gone with 2x4 boards remaining in their place - honestly, those once beautiful outfield walls today look more like a dilapidated bu11-fighting arena somewhere in Central America - not the thriving City of Redding! Chipped and faded paint everywhere (appears to be the original paint from 2004 - 18 years ago). The snack bar/ "restaurant" exterior is also in very poor shape, graphies of announcers above the restaurant torn up or completely gone. Water fountains missing service access plates; sand volleyball pits are not playable-nets are down; shade cover over the exterior snack bar is gone; no roofing material on the structure over the pitching machines in the batting cages; volunteer- growth palm trees that have sprouted up have been allowed to grow as tall as 5' between Yankee and Wrigley (they need to be removed); garbage in line of sight for our visitors (behind the Fenway south wall), and disgraceful views of the City Corporation Yard nextdoor where the City stores wrecked/junk vehicles within plain sight of our visitors -none of this is a good look for our community and everyone of us should be embarrassed(see attached photos). I have some questions and comments: 1. What is the status of the sale of BLD? My understanding is that BLD had been negotiating to sell the rights to the operation and maintenance of our basebalUhockey sports complex, but those negotiations did not include the City selling the property and asset to a private company. Is that correct? Please confirm if those negotiations continue and what the terms look like for Redding. 2. Under the terms of the operating agreement between the City and BLD, the City has and I presume continues to receive 6% of the gross sales receipts from BLD, and those revenues received by the City are held and spent in the City's Parks Fund. Is that correct? 3. If#2 above is accurate, why haven't and aren't those funds spent toward augmenting BLD's budget to appropriately maintain our community's asset? 4. My understanding is City staff recominended the Council direct$3M of the City's COVID relief funds toward South City Park; the Council approved this; later the Council reduced that amount to $2.SM after pulling $SOOK for the Sacramento River Specific Plan. I also understand Rick Bosetti and the Redding Colt 45s (and others in the Community)requested an alternate plan for South City Park that included a new Little League field(absolutely needed). The Council declined that option in favor of hiring a consultant to develop a plan for South City Park and later to consider constructing that plan. This next sentence is important- The City of Redding should not spend another penny on any City funded park(s) development until the City addresses the absolute travesty known as BLD Redding. 5. Can COVID relief funds be spent on maintenance and upkeep of existing facilities? If so, the City Council needs to redirect every dime of that$2.SM toward deferred maintenance at BLD. I don't care if maintenance is and has always been the responsibility of BLD per the contract, that facility is owned by the City of Redding and its citizens and needs to be maintained. BLD has never had the resources to properly maintain our facility; the gate fee (which today was $7)would need to be significantly higher to generate the revenue needed to satisfactorily maintain our facility. And raising the gate fee to $15, $20 or $30 would eliminate the tournaments and revenue stream -people wi11 not pay much mare than BLD is charging today ($7/person). So clearly, we as a community have a serious problem(the sports complex) and we need a plan to correct it- as soon as possible. 6. What is the Parks Fund current balance? What projects are currently earmarked for these funds? Can those earmarks/plans be changed and funds redirected? '7. Finally, the turf at BLD is in awful shape - I would almost suggest the fields are unplayable and a liability. All field t�urf needs to be replaced. �-Iow long has it been since any of you have visited BLD? If it has been a while, I encourage a11 of you to visit asap and be sure to take notes,photos and have an eye far the areas that need work- there are many. Our friends from Portland regrettably indicated their team (which is an all-star team of girls from all over the northwest) will not be back to Redding for tournaments at BLD. Our friend is one of the teain's coaches and said several of the other team coaches expressed the same. We overheard conversations of parents/spectators commenting on our facility's "disgraceful" condition. This should be concerning to all of us - especially those in the hospitality sector and those who promote tourism for our community. When you leave BLD, drive west on Viking Way and notice the amazing condition of the City's Corp Yard landscape and facilities -notice the property across the street(City owned vacant lot) and its carefully maintained landscape -both are in stark contrast to BLD and ironically neither of which generate any revenue for our hotels, our restaurants - our community. Below, is a link to a Record Searchlight article re: the sale of BLD (Feb 2021}. I've included photos my wife and I took today. Redding should not build any additional parks until Redding has a long term plan in place to take care of the facilities we currently own. We just spent significant dollars on the Aquatic Center-the same needs to happen at BLD. I am so disappointed in our City re: our multi-million dollar asset's condition and believe the City does not have a plan to address it; I hope you respond with "the plan" and prove me wrong. With Concern, David Jackson 45 Year Redding Resident) h���;11�v��,r�ddingP����/stc��v/��ws/1���1/2021 iQ2/25/�i��a�dr���s-r�dd%.�-�s��ld- sc�ca�lm����mr��w�c�w��rs�i�/6�216'73 002/ The photo below is how our BLD facility looked at opening and for the first few years; a stark contrast to its current state. � � �� , �`�t � w, F x,��� �=v ;f{ �,;�'; 4�, t��r�..f.s�y�r', r.�f,,�"'e� '�`n'�..,.;�,;..t �v �e �,4 .� ..t F r,,� 11Jk: tI,<ttp i , �t`'`; From: Members.Co�neil To: �ack Nlunns;7oshua�ohnson;Julie VVinter;Mark Niezzano;Tenessa Audet�e Cc: Ti i�,�arrv;Bade,S�eu,�;C�rtis�C"hristi�n;(�enne,Tr vi,�; Barnhart,Eri�;Ti�ton �harl�ne;Cates,Anz tt� Subject: FW: Big League Dreams-Redding � Ideas for Consideration-Part II-Item 3.1 on tonight"s Council Agenda (7/29/24) Date: Monday,July 29,2024 9:35:03 AM From• Sent: Monday,July 29, 2024 9:11 AM To: Mezzano, Mark<mmezzano@cityofredding.org>; Winter,Julie<jwinter@cityofredding.org>; Munns,Jack<jmunns@cityofredding.org>; Audette, Tenessa <taudette@cityofredding.org>; Johnson,Joshua <jjohnson@cityofredding.org>; CityClerk<CityClerk@ci.redding.ca.us> Cc: 'Ed Rullman' <ed@crgibbs.com>; 'Rick Bosetti' <bosetti@charter.net>; 'Jennifer' <jenjackson73@gmail.com>; rfmiddleton3@gmail.com; 'Jake Mangas' <jake.mangas@gmail.com>; 'Andrew Boesiger' <aboesiger@grantschoolcougars.com>; 'Michael Dacquisto' <mdacquisto2@gmail.com>; 'Jason Russell' <jmruss77@gmail.com>; '�ee Lamp' <1e14355@yahoo.com>; ryan@burkscm.com; 'Ryan Denham' <ryan@sjdenham.com>; tenessaaudette@gmail.com; 'Kimberly Archuleta' <kimarchuleta@kw.com>; 'Jeff Tugwell' <jefftugwell@icloud.com>; 'Douglas Wright' <douglaswrightesq@gmail.com>; 'Charles Tracy' <charles.tracyid@gmail.com>; 'Erin Resner' <resner.erin@gmail.com>; stevewestlake@charter.net; karlsson@charter.net; aampi3@yahoo.com; fast77cam@aol.com; kicksavel@hotmail.com; brett.cloney@yahoo.com; 'Tyler Van Dyke' <ttvandyke@krcrtv.com>; michele.chandler@redding.com; BBArchuleta7l@gmail.com; 'Silas Lyons' <silas.lyons@redding.com>; 'Kerry �oring' <kloring@krcrtv.com>; '�es Melburg' <melburg@nmrdesign.com>; 'Michael Dacquisto' <mdacquistocc@gmail.com>; 'Henrik Karlsson' <karlssonhenrik@icloud.com>; 'Dave & Rhonda Paris' <kicksavel@hotmail.com>; david.benda@redding.com; 'Jenny Espino' <jenny.espino@redding.com>; 'Shasta Scout' <editor@shastascout.org> Subject: RE: Big �eague Dreams- Redding � Ideas for Consideration - Part II ��;�JT1C��J: �i�iz>��rr�a�l c��-ic�ie��t�c�frc�n�c����:=�ic�e t:���City��,:.,F F°€�c��n�;;, ��I���s�k�e c�:r����l w�tl� lir���;c�r�itacF�r�c�r�t:�. Follow up—received an email this morning suggesting the City remove the artificial turf at BLD and convert the fields to natural grass. Perform a realistic cost/benefit analysis on grass fields (conversion/construction cost, maintenance and water cost) vs immediate artificial turf replacement and subsequent replacement every 10 years. Our community is counting on you. Thank you. From� Sent:Sunday,July 28, 2024 3:45 PM To: mrr�ezzar�o eit ofreddir� .or ; �wi�ter cit ofreddin .or ; 'munr�s cit c�freddin .or ; taudette�cityofreddin .or�; iiohnscanC�cityofreddir��car�; cityclerkC�cituofreddin .or� Cc: 'Ed Rullman' <ed cr ibbs,com>; 'Rick Bosetti' <baset�i charter.net>; 'Jennifer' <ienjacksan73��mailec�rn>; r�middletor�3C��,rn�ilecom; 'Jake Mangas' <iake.rnan�as(��mail.corrs>; 'Andrew Boesiger' <aboesi er rar�tschaolcou ars.com>; 'Michael Dacquisto' <mdacauisto2� m�ilecc�m>; 'Jason Russell' <imruss77t�,�mail.ce�m>; 'Lee Lamp' <IeE4355 al�oaecom>; r an b�rkscm.com; 'Ryan Denham' <r an s�der��arr�.cam>; teness�a�detteCr��rriail,corr�; 'Kimberly Archuleta' <kimarchul�ta kv�r.corr7>; 'Jeff Tugwell' <iefftu�well�icloud.com>; 'Douglas Wright' <dou�lasvvri�htesqC��mailacom>; 'Charles Tracy' <charfes,trac id(� mail.com>; 'Erin Resner' <resner.erir�t��mail.carn>; stev�westlake(�charter,r�et; kar3ssont�charterenet; aam i3C�yal�ooecarn; �ast77carr�t�aol.cc�m; kicksavelC��totmail.com; brett.clor�evC��ahoo,com; 'Tyler Van Dyke' <ttvandvke�krcr�v.co�>; michele.chandlert�reddin�ecom; g�Archulet�7lC��mailacc�rr�; 'Silas Lyons' <silas.f�onsC�reddin�.,com>; 'Kerry Loring' <�lorin tc��rerfiv.com>; 'Les Melburg' <melbur�C�nrr�rdesi�r�.com>; 'Michael Dacquisto' <tndacquistocc��rnail,com>; 'Henrik Karlsson' <karlssonher�rik�icloud.com>; Dave & Rhonda Paris<k�cl<savelC�hotmail.corn>; david.bendaC�reddin .corr�;Jenny Espino<ier�n .es ino�re�din ecom>; 'Shasta Scout' <edit�r shastasco��,o�> Subject: Big League Dreams- Redding � Ideas for Consideration Good afternoon Honorable Mayor, Redding City Council Members and Community Members, It has been nearly two years to the day since my first email to the City Council regarding very serious concerns with conditions at our Sports Complex—Big �eague Dreams- BLD (original email below). Since then, I have sent or received hundreds of emails, phone calls and texts related to BLD. Most recently, Thursday,July 25th, news broke that TC Sports Group (the City's current contracted operator of BLD since approx. 2022) had effectively "given the BLD keys back to the City" and our Sports Complex would be closed. The Council is hosting a special meeting tomorrow night to hear from the community. I cannot make it to the special meeting but would like to offer my thoughts for you to consider: l. In my opinion, and shared by many, the City of Redding needs a mind set shift as it relates to the Operators of its two Park assets—Big �eague Dreams and Redding Soccer Park. 2. The City of Redding should stop considering Big League Dreams and the Redding Soccer Park as revenue sources for the City of Redding. These are City Parks, City Assets that the City of Redding is fortunate to have contracted Operators running and "maintaining". Enterprise Park is not a revenue generating Park—neither is Caldwell or Lake Redding Park. The City operates and maintains these parks, not a contracted Operator. Consider changing how you look at BLD and Redding Soccer Park—they arejust City Parks—they are community amenities that thousands of our community's families enjoy. 3. The City of Redding needs to consider ceasing monthly rent charges to the businesses that operate Big League Dreams and the Redding Soccer Park; consider these facilities just as another City Park, like any other park, with the exception that both of these "parks" have contracted operators— Big League Dreams and the Redding Soccer Park are community amenities with construction of both paid for in large part through State Park Grants (former Senator Maurice Johannesen was instrumental in securing the State Park funding to build Big League Dreams; not 100%sure about the Soccer Park). I do not believe either B�D or Redding Soccer Park have any Debt Service obligations? Allow these Operators to redirect rent payments to capital improvement projects at both parks (turf replacement fund etc). We must throw these entities a "life-line" if we expect them to survive. 4. The City of Redding needs to eliminate the revenue sharing component of the Operator contracts. The Operators of Big League Dreams and the Redding Soccer Park are required to maintain both City complexes to "first class conditions" including repairing and eventually, replacing all artificial turf fields at end of life. Big �eague Dreams' turf was due to be replaced 10+years ago—this year, it will be20 years old—in many areas it is unsafe. It will cost $5M- $10M to replace. No Operator, under the current contract terms paying rent to the City and a sharing its revenues with the City, will make this level of capital investment in the City's asset with no return on that investment—it has not, and will not happen. The Redding Soccer Park was in the same position with its artificial turf and if not for approximately$3.5M from REU and approximately$1M from the McConnell Foundation to replace the Soccer Park turf, it is doubtful the Redding Soccer Park would be open today. 5. The City of Redding needs to assign Community Services Staff to explore and secure all local sponsorships for capital improvements at BLD (replace the turf,the sport court and climate system in the pavilion/arena); in addition to local-private funding support, Staff also needs to work vigorously to secure grant funding for the same. This needs to be a priority and should have been a priority years ago, rather than relying on a private business/operator to invest $millions into your asset with little hope of seeing a return on that investment (regardless of whether or not they accepted the terms of your agreement "requiring" them to do so). 6. The City Council should consider adopting a reduced electric rate tariff designed specifically for Big �eague Dreams and the Redding Soccer Park; yes, this would effectively be providing both parks with a subsidy (reduced rate), however, if we truly want both parks to survive and thrive, we as a community need to pay for it—this is low hanging fruit and one the City Council can direct REU staff to develop and Council can choose to adopt. Develop an electric tariff/rate that reduces both park's monthly operating costs. "7. Clearly, the business model the Contracted operators of BLD have been operating under does not work—the economics do not work (see attached original B�D operator contract and staff report on TC Sports Group's operating contact and renovation agreement). 1 believe by now we should all be able to agree what we have been doing isn't working. The City needs to develop a new and attractive set of Terms and Conditions (T's &C's)for future Operators that provide economic incentive to the Operator—not the City. Issue an RFP to prospective Operators and work in partnership with them to ensure both the Operator and the Community "win". When I say "Community" I mean the citizens of Redding. 8. The City of Redding should consider providing both B�D and Redding Soccer Park with City Parks Maintenance staff support—I'll say it again, both of these facilities are City owned Parks that exist for the benefit of our community and visitors of our community—they do not exist to be revenue generators for the City of Redding. 9. Bottom line,the City will have to subsidize both BLD and Redding Soccer Park to ensure their long-term survival. The City needs to work in partnership with the Operators to ensure both Parks are successful. If we do not change how we handle these contracted Operators and the T's & C's we expect them to operate under, both parks will continue to fail eventually—in my opinion. I ask that you keep an open mind to all options presented tomorrow night, including and not limited to any offers to purchase the sports complex (BLD), should any offers come forward. Thank you for your time. David Jackson 47 Year Redding Resident) From: David Jackson Sent:Sunday,July 31, 2022 3:16 PM To: kscl�reder cit afreddin .or ; mdac �aisto cit ofreddin aor ; eresr�er cit ofreddin .or ; mmezzano�cit�ofreddir��.c�r�; iwinter�cit�ofredd€n .or� Cc:Jake Mangas<��I�e r��din chamber.corr»; Ed Rullman <ed cr ibbs,corr�>; Steve Gaines <stev�(�cr�ibbs.cc�rn>; Rick Bosetti <bos��ti �.har�er.��t>;Jennifer<ie�jacksos�73t��rnail.com>; David Jackson <dv�ackson27 mail.com> Subject: Big League Dreams, Redding-Very Poor Condition -What is the Plan to Correct? Honorable Mayor and Redding Ciry Council Members, I am writing you today after just visiting Big League Dreams (BLD) Redding (this morning) for the first time in several years. Our son grew up playing travel baseball at BLD since it opened in 2004. To say we spent a lot of time at BLD from 2004 to 2012 would be an understatement. When BLD Redding opened, it was among the best baseball/sports complexes north of Sacramento and south of Salem- it was a gem for our community and attracted visitors from a11 over the west coast for baseball and softball tournaments. The replica fields (Fenway, Yankee and Wrigley) included amazing wall graphics of cheering fans and many businesses proudly paid to hang a banner on the wa11s and batting cages. Wrigley had arti�cial ivy on the outfield walls to replicate the original in Chicago and the turf on all fields was pristine. The purpose of our visit to BLD today was to watch the daughter of our Portland friends playing in this weekend's youth softball tournament. We were excited to be back at the ballpark and encouraged to see so many out of state license plates in the parking lot -visitors staying in our hotels and eating at our restaurants. Good stuff. Then, we walked through the front gate; that is when our pride and excitement turned to frustration, anger and embarrassment for our community. The replica field wa11s were a disgrace; wa11 graphics completely gone with 2x4 boards remaining in their place - honestly, those once beautiful outfield walls today look more like a dilapidated bu11-fighting arena solnewhere in Central America-not the thriving City of Redding! Chipped and faded paint everywhere (appears to be the original paint from 2004 - 18 years ago). The snack bar/ "restaurant" exterior is also in very poor shape, graphics of announcers above the restaurant torn up or eompletely gone. Water fountains missing serviee aecess plates; sand volleyball pits are not playable-nets are down; shade cover over the exterior snack bar is gone; no roofing material on the structure over the pitching machines in the batting cages; volunteer- growth palm trees that have sprouted up have been allowed to grow as tall as 5'between Yankee and Wrigley(they need to be removed); garbage in line of sight for our visitors (behind the Fenway south wall), and disgraceful views of the City Corporation Yard nextdoor where the City stores wrecked/junk vehicles within plain sight of our visitors-none of this is a good look for our community and everyone of us should be embarrassed(see attached photos). I have some questions and comments: 1. What is the status of the sale of BLD? My understanding is that BLD had been negotiating to sell the rights to the operation and maintenance of our basebalUhockey sports complex, but those negotiations did not include the City selling the property and asset to a private company. Is tl�at correct? Please confirm if those negotiations continue and what the terms look like for Redding. 2. Under the terms of the operating agreement between the City and BLD, the City has and I presume continues to receive 6% of the gross sales receipts from BLD, and those revenues received by the City are held and spent in the City's Parks Fund. Is that correct? 3. If#2 above is accurate, why haven't and aren't those funds spent toward augmenting BLD's budget to appropriately maintain our community's asset? 4. My understanding is City staff recommended the Council direct $3M of the City's COVID relief funds toward South City Park; the Council approved this; later the Council reduced that amount to $2.SM after pulling $SOOK for the Sacramento River Specific Plan. I also understand Rick Bosetti and the Redding Colt 45s (and others in the Community) requested an alternate plan for South City Park that included a new Little League field(absolutely needed). The Council declined that option in favor of hiring a consultant to develop a plan for South City Park and later to consider constructing that p1an. This next sentence is important- The City of Redding should not spend another penny on any City funded park(s) development until the City addresses the absolute travesty known as BLD Redding. 5. Can COVID relief funds be spent on maintenance and upkeep of existing facilities? If so, the City Council needs to redirect every dime of that $2.SM toward deferred maintenance at BLD. I don't care if maintenance is and has always been the responsibility of BLD per the contract, that facility is owned by the City of Redding and its citizens and needs to be maintained. BLD has never had the resources to properly maintain our facility; the gate fee (which today was $7)would need to be signi�cantly higher to generate the revenue needed to satisfactorily maintain our facility. And raising the gate fee to $15, $20 or $30 would eliminate the tournaments and revenue stream-people wi11 not pay much more than BLD is charging today ($7/person). So clearly, we as a community have a serious problem (the sports complex) and we need a plan to correct it- as soon as possible. 6. What is the Parks Fund current balance? What projects are currently earmarked for these funds? Can those earmarks/plans be changed and funds redirected? 7. Finally, the turf at BLD is in awful shape - I would almost suggest the fields are unplayable and a liabi]ity. All field turf needs to be replaced. How long has it been since any of you have visited BLD? If it has been a while, I encourage a11 of you to visit asap and be sure to take notes,photos and have an eye for the areas that need work- there are many. Our friends from Portland regrettably indicated their team (which is an a11-star team of girls from all over the northwest) will not be back to Redding for tournaments at BLD. Our friend is one of the team's coaches and said several of the other team coaches expressed the same. We overheard conversations of parents/spectators commenting on our facility's "disgraceful" condition. This should be concerning to all of us - especially those in the hospitality sector and those who promote tourism for our community. When you leave BLD, drive west on Viking Way and notice the amazing condition of the City's Corp Yard landscape and facilities - notice the property across the street(City owned vacant lot) and its carefully maintained landscape -both are in stark contrast to BLD and ironically neither of which generate any revenue for our hotels, our restaurants - our community. Below, is a link to a Record Searchlight article re: the sale of BLD (Feb 2021). I've included photos my wife and I took today. Redding should not build any additional parks until Redding has a long term plan in place to take care of the faeilities we currently own. We just spent significant dollars on the Aquatic Center-the same needs to happen at BLD. I am so disappointed in our City re: our multi-million dollar asset's condition and believe the City does not have a plan to address it; I hope you respond with "the plan" and prove me wrong. With Concern, David Jackson (45 Year Redding Resident) �� ht���w/! �a,��dd�n�,�cs /st��/����/lc���l/2021102125/bi ���������r�� _sar�dd�n ����ldffi ��c��-hav�-���r-aa ��rshi�a/6�2�6'730021 The photo below is how our BLD facility looked at opening and for the first few years; a stark contrast to its current state. ` ** ���� �,� � � �� � ��� ���F i;�, 4 �" T,� a ;s u , �,. �,,.v . i�e�w��y '„a.� 's a � t rt � ',.y . .y�. ,v�, � �' � � � � . ,� ,J'a' � ,.� �, �,� tfi )j`, f;l �`. Mayor Tenessa Audette Redding City Council 7-28-24 Re: Big League Dreams Sports Complex Dear Ms. Audette, I am writing to you as a concerned Grandmother of two Shasta Roller Hockey League (SRH�) Players. My Grandson and Granddaughter play recreational Roiler Hockey and are on the SRHL Roadrunners Traveling Team. I urge you to make the decision to reopen Big �eague Dreams as soon as possible. My Grandkids and the other players have had the most wonderfui sport experience playing Roller Hockey. Some players on their teams drive to Redding from Mt. Shasta and from Chico to participate. Without the Big League Dreams Hockey Arena, they would need to be driven to Vacaville to participate in this sport. My son is a coach and a participant in the adult hockey league also. The Softball and Baseball teams also utilize this sports complex and bring in money to the community by hosting tournaments. I have heard from people in other cities who have a favorite Redding Restaurant and Hotel due to their participation in the tournaments hosted at Big League Dreams. As I am sure you know, participation in sports is very important for children and adults and we hope to continue using this Sports Complex in the years to come. Thank you for your consideration, Mary Ocasion ���1�1�11 -����1� From: Members.Co�neil To: �ack Nlunns;7oshua�ohnson;Julie VVinter;Mark Niezzano;Tenessa Audet�e Cc: Ti i�,�arrv;Bade,S�eu,�;C�rtis�C"hristi�n;(�enne,Tr vi,�;Tipton.Sharlene;�arnhart�Erin;Cates,Anz tt� Subject: FW: Big League Dreams-Redding � Ideas for Consideration-Part II-Item 3.1 on tonight"s Ciry Council Meeting Agenda(7/29/24) Date: Monday,July 29,2024 11:25:20 AM - Sent: Monday,July 29, 2024 10:40 AM To: dvjackson27@gmail.com; Mezzano, Mark<mmezzano@cityofredding.org>; Winter,Julie <jwinter@cityofredding.org>; Munns,Jack<jmunns@cityofredding.org>; Audette,Tenessa <taudette@cityofredding.org>; Johnson,Joshua <jjohnson@cityofredding.org>; CityClerk <CityClerk@ci.redding.ca.us> Cc: 'Ed Rullman' <ed@crgibbs.com>; 'Rick Bosetti' <bosetti@charter.net>; 'Jennifer' <jenjackson73@gmail.com>; 'Jake Mangas' <jake.mangas@gmaiLcom>; 'Andrew Boesiger' <aboesiger@grantschoolcougars.com>; 'Michael Dacquisto' <mdacquisto2@gmail.com>; 'Jason Russell' <jmruss77@gmail.com>; 'Lee �amp' <1e14355@yahoo.com>; ryan@burkscm.com; 'Ryan Denham' <ryan@sjdenham.com>; tenessaaudette@gmail.com; 'Kimberly Archuleta' <kimarchuleta@kw.com>; 'JeffTugwell' <jefftugwell@icloud.com>; 'Douglas Wright' <douglaswrightesq@gmail.com>; 'Charles Tracy' <charles.tracyid@gmail.com>; 'Erin Resner' <resner.erin@gmail.com>; stevewestlake@charter.net; karlsson@charter.net; aampi3@yahoo.com; fast77cam@aol.com; kicksavel@hotmail.com; brett.cloney@yahoo.com; 'Tyler Van Dyke' <ttvandyke@krcrtv.com>; michele.chandler@redding.com; BBArchuleta7l@gmail.com; 'Silas Lyons' <silas.lyons@redding.com>; 'Kerry Loring' <kloring@krcrtv.com>; '�es Melburg' <melburg@nmrdesign.com>; 'Michael Dacquisto' <mdacquistocc@gmail.com>; 'Henrik Karlsson' <karlssonhenrik@icloud.com>; 'Dave & Rhonda Paris' <kicksavel@hotmail.com>; david.benda@redding.com; 'Jenny Espino' <jenny.espino@redding.com>; 'Shasta Scout' <editor@shastascout.org> Subject: RE: Big �eague Dreams - Redding � Ideas for Consideration - Part II t::�l.!T1tmr��;�CF�i��m�i1 ori�,ir���t�:cl f���rr�c��+�4����th�Ciiy e�f�;�d�in�„; �„I���s�E���ar�f�,�€�rii.h lir�k���r ati�chr���e�ts. Dave, Honestly I would hate to see BLD get converted to grass as it's eurrently the only facility around with artifieial turf that allows teams to play during the rainy season in Reddin�. The dirt"batter's box"area has been an issue in the past with how muddy it gets. Thankfully the maintenance crews have done a pretty good job of using absorbent to a11ow games to be played. If the whole infield was dirt there would be no way games would get played though. Grass/Dirt takes so long to dry out between storms which is the reason so many of the high schools and travel baseball/softball organizations play at BLD during the fall and winter months when their own fields are flooded out. Just my two cents. Sincerely, From: dv�acicsor�27 mail.corr7 <�v�acksor�27 mail.com> Sent: Monday,July 29, 2024 9:11 AM To: mmezzano eit ofreddir� .or ; �wir�ter cit afreddir� .or ; �rn�r�ns cit ofreddin so� ; taudette(�cityofredc4ir� .or�,'j�ahnsonta�cit�rofreddir��sar�; cityclerkC�cituoFreddin�.or� Cc: 'Ed Rullman' <ed cr��bbs�com>; 'Rick Bosetti' <basetti charter.net>; 'Jennifer' <ieniacksan73��mailecorn>; rfmiddletor�3C��,rn�ilecom; 'Jake Mangas' <i�ke.rnan�as(��rr�ail.com>; 'Andrew Boesiger' <aboesi er rar�tschaolcou ars.com>; 'Michael Dacquisto' <mdacauisto2� mailecr�m>; 'Jason Russell' <imruss77C��mail.ce�m>; 'Lee Lamp' <IeE4355 al�oaecom>; r an b�rkscm.com; 'Ryan Denham' <r an s�der��arr�.com>; ter�essaaudetteC� mail.�am; 'Kimberly Archuleta' <kimarchuletaC�kw.�m>; 'Jeff Tugwell' <�efftu vvell icloud,com>; 'Douglas Wright' <dou lasvvri htes mail,eom>; 'Charles Tracy' <charles.trac idC��mailecorr�>; 'Erin Resner' <resner.erir�t� rn�.lecc�m>; stev�vvestlakeC��harter.ne�; ka�lsson charter.net; aarr� i3 ahao.com; fast77cam aol.com; kicksavel hotmail.com; �ar�tt.�I4r���.C�yahe�Q.�arn; 'Tyler Van Dyke' <�tvandvket�krcrtv.�orr�>; michele,chandler reddin .com; B�Archuleta7l mail,com; 'Silas Lyons' <silas.� or�sC�reddin�.com>; 'Kerry Loring' <1<I�rin (�krcrtv.cr�m>; 'Les Melburg' <rr7elbur nrrrrdesi r�.com>; 'Michael Dacquisto' <mdac �istocc mail.com>; 'Henrik Karlsson' <karlssonhenrikt�icic��s�.�carn>; 'Dave & Rhonda Paris' <kicksavelC�hr>trr�aile�orr�>; d�vid.benda reddin ,corr�; 'Jenny Espino' <��nr� ,es ir�a re�din ,com>; 'Shasta Scout' <editorC�sh�stascout.or�> Subject: RE: Big �eague Dreams- Redding � Ideas for Consideration - Part II Follow up—received an emai) this morning suggesting the City remove the artificial turf at BLD and convert the fields to natural grass. Perform a realistic cost/benefit analysis on grass fields (conversion/construction cost, maintenance and water cost) vs immediate artificial turf replacement and subsequent replacement every 10 years. Our community is counting on you. Thank you. From: dvjacksor�?7t��.mail.com <dv�acksor�27� rnai(scorn> Sent:Sunday,July 28, 2024 3:45 PM To: mmezzanoC�cit�ofreddin .or ; iv,rir�terla�cituofreddin ,or�; irn�annsCa�cit�ofreddin .or ; t�udett�C�cit�o�reddin .or�;jiohnsc�nt�citvc�fre.ddir��.or�; cityclerk(�cityofreddin.�.or� Cc: 'Ed Rullman' <ed(a�cr ibbs,corrl>; 'Rick Bosetti' <b�settiCc�char�ter.net>; 'Jennifer' <ie�iacksc�n73C� rr�ail.corr�>; r�midd(eton3C� m�il,cc�m; 'Jake Mangas' <iake.rr�an�as(� mail.com>; 'Andrew Boesiger' <aboesi�er(c��rantschoolcou�ars.corr»; 'Michael Dacquisto' <rr�dacquisfio2l��rnail.c..�m>; 'Jason Russell' <�mruss77t��mail,com>; 'Lee Lamp' <1e14355�yahoo.com>; r �ntc�burkscm.com; 'Ryan Denham' <r ar�{c�s�der�harr�.eom>; ter�essaaudet#�C��rr�ail.c�m; 'Kimberly Archuleta' <kimareh�.let�[�kw.corr�>; 'Jeff Tugwell' <iefft��wellC�iclo�d.com>; 'Douglas Wright' <dou�laswri hte�qC��mail,com>; 'Charles Tracy' <eharles.�racyidC��mail.com>; 'Erin Resner' <resr��r.�rir�C��mailecorn>;s�ev�westlakeC�ch,�rf,�r.r��t; karlssor�Ca�charter.net; aam i3C��ahoo.com; fast77camC�aol.cam; kicksavel(�hotmail.com; 6arett,cic�nevC�.�ahac�.c m; 'Tyler Van Dyke' <t�var�d keC�krcrtv.com>; michele,c�tar�dlerC�reddir� ,com; �B�rchuleta7l��mail.com; 'Silas �yons' <si3as.l�car�st�reddin�.c�arr�>; 'Kerry Loring' <I<Iorin�C�krcrtv.com>; 'Les Melburg' <rr�elbur {�nrnrdesi n.com>; 'Michael Dacquisto' <mdac uistaccC��mail.corr7>; 'Henrik Karlsson' <karlssor�henrikl�icloud.cam>; Dave & Rhonda Paris<I�ic1<savelC�hotmailecom>; david.k�endaC�reddin�.,eo�n;Jenny Espino<ienr� .es ino reddin .corr�>; 'Shasta Scout' <editort�shastascau�.ar�> Subject: Big League Dreams- Redding � Ideas for Consideration Good afternoon Honorable Mayor, Redding City Council Members and Community Members, It has been nearly two years to the day since my first email to the City Council regarding very serious concerns with conditions at our Sports Complex—Big League Dreams- BLD (original email below). Since then, I have sent or received hundreds of emails, phone calls and texts related to BLD. Most recently, Thursday,July 25th, news broke that TC Sports Group (tne City's current contracted operator of BLD since approx. 2022) had effectively "given the BLD keys back to the City" and our Sports Complex would be closed. The Council is hosting a special meeting tomorrow night to hear from the community. I cannot make it to the special meeting but would like to offer my thoughts for you to consider: l. In my opinion, and shared by many,the City of Redding needs a mind set shift as it relates to the Operators of its two Park assets—Big League Dreams and Redding Soccer Park. 2. The City of Redding should stop considering Big League Dreams and the Redding Soccer Park as revenue sources for the City of Redding. These are City Parks, City Assets that the City of Redding is fortunate to have contracted Operators running and "maintaining". Enterprise Park is not a revenue generating Park—neither is Caldwell or �ake Redding Park. The City operates and maintains these parks, not a contracted Operator. Consider changing how you look at BLD and Redding Soccer Park—they are just City Parks—they are community amenities that thousands of our community's families enjoy. 3. The City of Redding needs to consider ceasing monthly rent charges to the businesses that operate Big �eague Dreams and the Redding Soccer Park; consider these facilities just as another City Park, like any other park, with the exception that both of these "parks" have contracted operators— Big League Dreams and the Redding Soccer Park are community amenities with construction of both paid for in large part through State Park Grants (former Senator Maurice Johannesen was instrumental in securing the State Park funding to build Big League Dreams; not 100%sure about the Soccer Park). I do not believe either B�D or Redding Soccer Park have any Debt Service obligations? Allow these Operators to redirect rent payments to capital improvement projects at both parks (turf replacement fund etc). We must throw tnese entities a "life-line" if we expect them to survive. 4. The City of Redding needs to eliminate the revenue sharing component of the Operator contracts. The Operators of Big League Dreams and the Redding Soccer Park are required to maintain both City complexes to "first class conditions" including repairing and eventually, replacing all artificial turf fields at end of life. Big League Dreams' turf was due to be replaced 10+years ago—this year, it will be20 years old—in many areas it is unsafe. It will cost$5M- $10M to replace. No Operator, under the current contract terms paying rent to the City and a sharing its revenues with the City, will make this level of capital investment in the City's asset with no return on that investment—it has not, and will not happen. The Redding Soccer Park was in the same position with its artificial turf and if not for approximately$3.5M from REU and approximately$1M from the McConnell Foundation to replace the Soccer Park turf, it is doubtful the Redding Soccer Park would be open today. 5. The City of Redding needs to assign Community Services Staff to explore and secure all local sponsorships for capital improvements at BLD (replace the turf,the sport court and climate system in the pavilion/arena); in addition to local-private funding support, Staff also needs to work vigorously to secure grant funding for the same. This needs to be a priority and should have been a priority years ago, rather than relying on a private business/operator to invest $millions into your asset with little hope of seeing a return on that investment (regardless of whether or not they accepted the terms of your agreement "requiring" them to do so). 6. The City Council should consider adopting a reduced electric rate tariff designed specifically for Big �eague Dreams and the Redding Soccer Park; yes, this would effectively be providing both parks with a subsidy (reduced rate), however, if we truly want both parks to survive and thrive, we as a community need to pay for it—this is low hanging fruit and one the City Council can direct REU staff to develop and Council can choose to adopt. Develop an electric tariff/rate that reduces both park's monthly operating costs. 7. Clearly, the business model the Contracted operators of BLD have been operating under does not work—the economics do not work (see attached original B�D operator contract and staff report on TC Sports Group's operating contact and renovation agreement). 1 believe by now we should all be able to agree what we have been doing isn't working. The City needs to develop a new and attractive set of Terms and Conditions (T's &C's)for future Operators that provide economic incentive to the Operator—not the City. Issue an RFP to prospective Operators and work in partnership with them to ensure both the Operator and the Community "win". When I say "Community" I mean the citizens of Redding. 8. The City of Redding should consider providing both B�D and Redding Soccer Park with City Parks Maintenance staff support—I'll say it again, both of these facilities are City owned Parks that exist for the benefit of our community and visitors of our community—they do not exist to be revenue generators for the City of Redding. 9. Bottom line, the City will have to subsidize both BLD and Redding Soccer Park to ensure their long-term survival. The City needs to work in partnership with the Operators to ensure both Parks are successful. If we do not change how we handle these contracted Operators and the T's & C's we expect them to operate under, both parks will continue to fail eventually—in my opinion. I ask that you keep an open mind to all options presented tomorrow night, including and not limited to any offers to purchase the sports complex (BLD), should any offers come forward. Thank you for your time. David Jackson 47 Year Redding Resident) From: Sent:Sunday,July 31, 2022 3:16 PM To: kschreder�t�cityofreddir� .or�; mdac uistot�cit�ofreddin�.or�;eresner(�ci��rofreddi� .or�,' mr�ezzano eit ofreddin ,or ; �winter cit ofreddir� .or Cc:Jake Mangas<iakeC�reddir��ehamber.com>; Ed Rullman <edCa�cr ibbs.com>; Steve Gaines <st�ve cr ibbs.cam>; Rick Bosetti <basetti ch�rter.r�et>;Jennifer<�en�acl<son73 rr�ail,corn>; Subject: Big League Dreams, Redding-Very Poor Condition -What is the Plan to Correct? I�onorable Mayor and Redding City Council Members, I am writing you today after just visiting Big League Dreams (BLD) Redding (this morning) for the first time in several years. Our son grew up playing travel baseball at BLD since it opened in 2004. To say we spent a lot of time at BLD from 2004 to 2012 would be an understatement. When BLD Redding opened, it was among the best baseball/sports complexes north of Sacramento and south of Salem- it was a gem for our community and at�raeted visitors from a11 over the west eoast for baseball and softball tournaments. The replica fields (Fenway, Yankee and Wrigley) included amazing wall graphics of cheering fans and many businesses proudly paid to hang a banner on the wa11s and batting cages. Wrigley had artificial ivy on the outfield walls to replicate the original in Chicago and the turf on a11 fields was pristine. The purpose of our visit to BLD today was to watch the daughter of our Portland friends playing in this weekend's youth softball tournament. We were excited to be back at the ballpark and encouraged to see so many out of state lieense plates in the parking lot- visitors staying in our hotels and eating at our restaurants. Good stuff. Then, we walked through the front gate; that is when our pride and excitement turned to frustration, anger and embarrassment for our community. The replica field wa11s were a disgrace; wa]1 graphics completely gone with 2x4 boards remaining in their place -honestly, those once beautiful outf eld walls today look Inore like a dilapidated bu11-fighting arena somewhere in Central America-not the thriving City of Redding! Chipped and faded paint everywhere (appears to be the original paint from 2004 - 18 years ago). The snack bar/ "restaurant" exterior is also in very poor shape, graphics of announcers above the restaurant torn up or completely gone. Water fountains missing service access plates; sand volleyball pits are not playable -nets are down; shade cover over the exterior snack bar is gone; no roofing material on the structure over the pitching machines in the batting eages; volunteer- growth palm trees that have sprouted up have been allowed to grow as tall as 5' between Yankee and Wrigley (they need to be removed); garbage in line of sight for our visitors (behind the Fenway south wall), and disgraceful views of the City Corporation Yard nextdoor where the City stores wrecked/junk vehieles within plain sight of our visitors -none of this is a good look for our community and everyone of us should be embarrassed(see attached photos). I have some questions and comments: 1. What is the status of the sale of BLD? My understanding is that BLD had been negotiating to sell the rights to the operation and maintenance of our basebalUhockey sports complex,but those negotiations did not include the City selling the property and asset to a private company. Is that correct? Please confirm if those negotiations continue and what the terms look like for Redding. 2. Under the terms of the operating agreement between the City and BLD, the City has and I presume continues to receive 6% of the gross sales receipts from BLD, and those revenues received by the City are held and spent in the City's Parks Fund. Is that correct? 3. If#2 above is accurate, why haven't and aren't those funds spent toward augmenting BLD's budget to appropriately maintain our community's asset? 4. My understanding is City staff recommended the Council direct$3M of the City's COVID relief funds toward South City Park; the Council approved this; later the Council reduced that amount to $2.SM after pulling $SOOK for the Sacramento River Specific P1an_ T also understand Rick Bosetti and the Redding Colt 45s (and others in the Community) requested an alternate plan for South City Park that included a new Little League field(absolutely needed). The Council declined that option in favor of hiring a consu]tant to develop a plan for South City Park and later to consider constructing that p1an. This next sentence is important- The City of Redding should not spend another penny on any City funded park(s} development until the City addresses the absolute travesty known as BLD Redding. 5. Can COVID relief funds be spent on maintenance and upkeep of existing facilities? If so, the City Council needs to redirect every dime of that$2.5M toward deferred maintenance at BLD, I don't care if maintenance is and has always been the responsibility of BLD per the contract, that facility is owned by the City of Redding and its citizens and needs to be maintained. BLD has never had the resourees to properly maintain our facility; the gate fee(which today was $7)would need to be significantly higher to generate the revenue needed to satisfactorily maintain our facility. And raising the gate fee to $15, $20 or $30 would eliminate the tournaments and revenue stream-people will not pay much more than BLD is charging today ($7/person). So clearly, we as a community have a serious problem(the sports complex) and we need a plan to correct it - as soon as possible. 6. What is the Parks Fund current balance? What projects are currently earmarked for these funds? Can those earmarks/plans be changed and funds redirected? 7. Finally, the turf at BLD is in awful shape - T would almost suggest the fields are unplayable and a liability. All field t�urf needs to be replaced. How long has it been since any of you have visited BLD? If it has been a while, I encourage all of you to visit asap and be sure to take notes,photos and have an eye for the areas that need work- there are many. Our friends from Portland regrettably indicated their team (which is an all-star team of girls from all over the northwest) will not be back to Redding for tournaments at BLD. Our friend is one of the team's coaches and said several of the other team coaches expressed the same. We overheard conversations of parents/spectators commenting on our facility's "disgraceful" condition. This should be concerning to all of us - especially those in the hospitality sector and those who promote tourism for our community. When you leave BLD, drive west on Viking Way and notice the amazing condition of the City's Corp Yard landscape and facilities -notice the property across the street(City owned vacant lot) and its carefully maintained landscape -both are in stark contrast to BLD and ironically neither of which generate any revenue for our hotels, our restaurants - our community. Below, is a link to a Record Searchlight article re: the sale of BLD (Feb 2021). I've included photos my wife and I took today. Redding should not build any additional parks until Redding has a long term plan in place to take care of the facilities we currently own. We just spent significant dollars on the Aquatic Center-the same needs to happen at BLD. I am so disappointed in our City re: our multi-million dollar asset's condition and believe the City does not have a plan to address it; I hope you respond with "the plan" and prove me wrong. With Concern, David Jackson 45 Year Redding Resident) ��t s� �r �� � s� r /� /1 �1 2 21 02 2 /b� �2 � �� - r rr� -r i� - � l _ �����m��v�����v���v�����i�/f�����7`��Q21 The photo below is how our BLD facility looked at opening and for the first few years; a stark contrast to its current state. t; . , �s� � �� > � , ���� � ' � ; � � , � � a , s,s :�° -,�� �s3;� "�� r�,���,� �. `°�t�k�,�,,,, ,j Y.. ar� �'i: �n �