REPORT TO STADIUM AUTHORITY BOARD
SUBJECT
Title
Board Consideration and Possible Action on the Stadium Manager's Proposal to Add Stadium Builder's Licenses (SBLs) to Field Seating in the North and South Endzones of Levi's Stadium [Board Pillar: Ensure Compliance with Measure J and Manage Levi's Stadium]
Report
BACKGROUND
The Forty Niners Stadium Management Company LLC (Stadium Manager) has presented a proposal to add SBLs to field seating in the North and South Endzones of Levi's Stadium which provides for possible additional debt repayment by the Santa Clara Stadium Authority (Stadium Authority). This proposal has been previously presented to the Stadium Authority and staff's concerns remain unaddressed. Stadium Authority staff has requested an alternate proposal from the Stadium Manager so that the concerns can be addressed.
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 into consideration, as well as options available to the Stadium Authority to maximize revenue for the purpose of debt repayment, e.g., Lease, Credit, Management, Operations, Non-Relocation, and SBL Agreements.
Lease Agreement -- The Stadium Lease Agreement between the Stadium Authority and 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, license, or otherwise transfer SBLs and similar instruments and rights with respect to any and all of the manifested seats located in the Stadium (i.e., seats available and intended for s...
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