REPORT TO STADIUM AUTHORITY BOARD
SUBJECT
Title
Stadium Authority Response Regarding the Stadium Manager's Proposal to Add Stadium Builder's Licenses to Temporary Field Seats in the North and South Endzones of Levi's Stadium
Report
BOARD PILLAR
Ensure Compliance with Measure J and Manage Levi's Stadium
BACKGROUND
The Forty Niners Stadium Management Company LLC (Stadium Manager) has presented a proposal to add Stadium Builder's Licenses (SBLs) to temporary field seats in the North and South Endzones of Levi's Stadium which provides for possible additional Stadium Authority revenue for debt repayment by the Santa Clara Stadium Authority (Stadium Authority). This proposal has been previously presented to the Stadium Authority Board and was denied with Board direction for additional modifications to the Stadium Manager's proposal.
This section of the report summarizes the various relevant legal provisions of multiple agreements, NFL approval, and a summary of SBLs for temporary field seats.
Relevant Provisions in the Lease, Management and/or SBL Agreements
When considering the Stadium Manager's proposal, it is important to take all of the following provisions from multiple Stadium Agreements into consideration, as well as options available to the Stadium Authority to minimize risk and maximize revenue for the purpose of debt repayment (e.g., Lease, Credit, Management, Operations, Non-Relocation, and SBL Agreements).
Lease Agreement -- Stadium Lease Agreement with the Forty Niners SC Stadium Company LLC (StadCo) provides that the Stadium Authority has the sole and exclusive right to sell, license, or transfer SBLs and similar instruments for the seats located in Levi's Stadium, with the exception of those seats located in, or accessible through, the Suites. Specifically, the relevant Agreement section reads:
STADIUM LEASE AGREEMENT 4.6.1 STADIUM BUILDER'S LICENSES.
As owner of the Stadium, the Stadium Authority possesses the sole and exclusive right to sell...
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