Matt Kartozian-US PRESSWIRE - Presswire
The Glendale City Council was presented with new proposed terms to the lease agreement with prospective Phoenix Coyotes buyer Greg Jamison. The city's acting city manager gave council members the specifics and stated the terms were not a final agreement.
The Glendale City Council met for a workshop on Tuesday where Acting City Manager Horatio Skeete presented the "final agreed upon restructuring terms" of the lease agreement with prospective Phoenix Coyotes buyer Greg Jamison. Skeete opened the discussion by saying, "We have no agreement in place at this point." He added that he is bringing concepts that were discussed, forward to the council to seek direction before having a final agreement in place to vote on.
New provisions in the proposed future agreement are: a one-time 5-year renewal option, decrease in total cash payment over 20 year lease from $324 million to $320 million, total event requirements, event incentives and a lockout provision. New performance standards include a minimum of 40 hockey nights and a minimum of 30 non-hockey events per year. The management fee would be reduced by $30,000 for each event not performed below 30. The Jamison group has an opportunity to earn an extra $600,000 per year for each additional 20 events (minimum average attendance of 7,500) above and beyond the 30 events required.
Yearly arena management payment proposed is structured below:
Year 1: Payment drops from $17 million to $11 million
Year 2: Payment drops from $20 million to $14 million
Years 3-4: Payment drops from $20 million to $15 million
Year 5: Payment drops from $18 million to $16 million
Years 6-7: Payment stays at $18 million
Years 8-10: Payment increased from $16 million to $18 million
Year 11: Payment increases from $16 million to $17 million.
Years 12-14: Payment increases from $15 million to $16 million
Year 15: Payment increased from $10 million to $16 million
Year 16: Payment increased from $10 million to $14 million
Years 17-20: Payment increased from $10 million to $13 million
The total arena management payment increases from $300 million to $308 million over the 20-year term of the agreement. Capital replacement/improvement fees for the city would drop from $24 million to $12 million over the 20-year term of the agreement.
There were two new provisions added to the proposal. The first is a one-time 5-year renewal option that was not discussed in any detail on Tuesday. The second is a lockout/strike provision that will reduce the arena management fee by $60,000 per game not played. Skeete said that he and Jamison are still discussing insurance and parking requirements.
The council gave permission to Skeete to proceed with a write-up of the proposed deal and bring it back to them. There is no word on when a vote may take place.
In a city workshop last month, Skeete made it known publicly that Glendale could no longer justify the lease agreement that was passed on June 8. The acting city manager went as far as to say that if he could not get Jamison to agree to a lease renegotiation, he would not recommend the city go forward with the Coyotes.