REPORT TO STADIUM AUTHORITY BOARD
SUBJECT
Title
Report from the Stadium Authority for Action Regarding the Stadium Manager and StadCo's Request to Add Stadium Builder's Licenses to Field Seats in the North and South End Zones of Levi's Stadium
Report
BOARD PILLAR
Ensure Compliance with Measure J and Manage Levi's Stadium
EXECUTIVE SUMMARY
The Forty Niners Stadium Management Company (Stadium Manager) and Forty Niners SC Stadium Company, LLC (StadCo) have presented a proposal to add Stadium Builder's Licenses (SBLs) priced at $17,500 per seat to field seats in the North and South end zones of Levi's Stadium which provides for possible additional Stadium Authority revenue for debt repayment by the Santa Clara Stadium Authority (Stadium Authority).
Staff recommendation is to approve the Stadium Manager/StadCo's proposal, which is projected to generate Stadium Authority revenues totaling $1,651,953 over the life of the SBLs. Additionally, Board approval is recommended to authorize the Executive Director to 1) negotiate and execute an agreement with Stadium Manager/StadCo to formally document the new obligations and commitments of the parties related to the field seats and 2) to work with the Stadium Manager to make modifications, provide clarifications and other clean up language to the SBL agreement in compliance with the Stadium Lease Agreement.
BACKGROUND
This section of the report summarizes the various relevant legal provisions of multiple agreements, NFL approval, and a summary of Board action on previous proposals.
Relevant Agreement Provisions
The following provisions from multiple Stadium Agreements should be taken into consideration as they align with the Stadium Manager/StadCo's proposal.
Stadium Lease Agreement -- Section 4.6.1 of the Stadium Lease Agreement with StadCo provides that the Stadium Authority has the sole and exclusive right to sell, license, or transfer SBLs and similar instruments for all the seats located in Levi's Stadium, with t...
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