Title
Entering into an Allianz Field operations and maintenance agreement.
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RECOMMENDING TO THE SAINT PAUL CITY COUNCIL APPROVAL OF THE ALLIANZ FIELD OPERATIONS AND MAINTENANCE AGREEMENT BETWEEN THE CITY, METROPOLITAN COUNCIL, MUSC HOLDINGS, LLC, AND MINNESOTA UNITED SOCCER CLUB, LLC, FOR THE OPERATIONS AND MAINTENANCE OF THE SPECIFIED MUNICIPAL INFRASTRUCTURE AT AND SURROUNDING ALLIANZ FIELD WITHIN THE STADIUM DEVELOPMENT SITE.
WHEREAS, the Council is fee owner of certain real property in the City, commonly known as the ''Bus Barn" site, and legally as described in Exhibit 1 (hereinafter, the "Property"); and
WHEREAS, effective April I, 2016, the Council and the City entered into a Net Ground Lease (hereinafter, the "NGL") for approximately a fifty-two (52) year term ending December 31, 2068, which provided for the redevelopment of the Property and, principally, the construction and operation of a stadium as a venue for professional soccer league matches and other recreational, sporting, and entertainment events. A copy of the NGL is made a part of this Agreement by reference; and
WHEREAS, Section 6(b) of the NGL provides that the Council will enter into an Operations and Maintenance Agreement with the City and the party who is managing or operating the improvements on the Property, which is the Club; and
WHEREAS, effective April 1, 2016, the City and the Team, the parent of the Club, entered into a Development Agreement (as heretofore and hereinafter amended, the "Development Agreement"), a copy of which is made a part of this Agreement by reference, pursuant to which the Team constructed Allianz Stadium, partially on the Properly and partially on so-called Team Acquired Property (as defined in the Development Agreement), in which the Team's wholly-owned subsidiary, the Minnesota United Soccer Club, a member of Major League Soccer and operator of the Minnesota United professional soccer team, will play its home soccer matches and in which other recreational, sporting, and entertainment events may take place; and
WHEREAS, Section 3.3 of the Development Agreement provides that the Stadium shall be the properly of and owned by the City as a municipal stadium pursuant to Minn. Stat. § 272.0 I, Subd.2(b)(1), subject to such rights that are conferred upon the Club through the Playing and Use Agreement (as defined below); and
WHEREAS, Section 7.1 (b) of the Development Agreement also provided that the City and the Team's professional soccer club subsidiary will enter into a Playing and Use Agreement for the management, use, operation, and maintenance of the Stadium and, further, that the Club will be responsible for performing and paying for all operations and maintenance of the Stadium including the sidewalks and areas adjacent to the Stadium; and
WHEREAS, Section 7.6 of the Development Agreement provides that the City and the Club enter into an Operations and Maintenance Agreement with the Council; and
WHEREAS, effective April 1, 2016, the City and the Club entered into a Playing and Use Agreement (as heretofore and hereinafter amended, the ''Playing and Use Agreement"), a copy of which is made a part of this Agreement by reference; and
WHEREAS, Section 6.1(a) of the Playing and Use Agreement provides that the Club shall operate and manage the Stadium, Appurtenant Areas and Stadium Site as defined in and in accordance with the Playing and Use Agreement and be responsible to perform and pay for all non-transit operations and maintenance for the Stadium and the Appurtenant Areas; and
THEREFORE, the City enters into this operations and maintenance agreement to allocate responsibility and accomplish coordination for the maintenance, repair, replacement, and operation of the municipal infrastructure elements identified in the included Matrix (Exhibit 3) that are within the defined Stadium Development Site but does not apply to the defined Stadium except for the connection to the storm water system from the Stadium roof as referenced in the Agreement. This Operations and Maintenance Agreement supplements the provisions of the Playing and Use Agreement and is not intended to restate its provisions, nor is it intended to modify the provisions of the NGL, the Development Agreement or the Playing and Use Agreement.