AUTHORIZATION TO ENTER INTO A SETTLEMENT AGREEMENT WITH THE ARIZONA SPORTS AND TOURISM AUTHORITY, THE ARIZONA CARDINALS FOOTBALL CLUB LLC, THE NEW CARDINALS STADIUM LLC, AND THE STADIUM DEVELOPMENT LLC AND APPROVE A GENERAL FUND CONTINGENCY REQUEST
Staff Contact: Kevin R. Phelps, City Manager
Staff Contact: Michael D. Bailey, City Attorney
Purpose and Recommended Action
This is a request for City Council to authorize and direct the City Manager to enter into a Settlement Agreement (the "Agreement") between the City, the Arizona Sports and Tourism Authority, the Arizona Cardinals Football Club LLC, the New Cardinals Stadium LLC, and the Stadium Development LLC.
In accordance with the Agreement, it is requested that the City Council authorize the City Manager to sign the Agreement and to make the payment to the a) Arizona Sports and Tourism Authority (AZSTA) and b) the Arizona Cardinals Football Club LLC, the New Cardinals Stadium LLC, and the Stadium Development LLC (collectively referred to as the "Cardinals") in a settlement amount not to exceed Fourteen Million Eight Hundred Seventy-Five Thousand Dollars ($14,875,000.00). A total of five payments are scheduled to be made through July 1, 2020. The City may exercise its right to reduce the settlement amount to Fourteen Million One Hundred Thousand Dollars ($14,100,000.00) if the final scheduled payment is made prior to July 1, 2019.
This is also a request for City Council approval for a budget appropriation transfer from General Fund, Contingency (1000-11901-510200) to General Fund, Non-Departmental, Professional and Contractual (1000-11801-518200) in the amount of Three Million Dollars $3,000,000.00 which represents the amount due in the current fiscal year under the agreement.
Background
Since the inception of a May 27th, 2003, Parking License and Agreement, the City has been required to make parking available to serve the University of Phoenix Stadium ("Stadium"). On May 2, 2012, a notice of claim f...
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