Form Rev 2/18/2025
RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING A CARD ROOM OPERATIN G
AGREEMENT WITH STONES SOUTH BAY CORPORATION
WHEREAS, Stones South Bay Corporation, a California Corporation dba: Seven Mile Casino (“Operator”) holds a consolidated cardroom license (“License”) issued by the City that allows it to operate a cardroom within City limits subject to any and all requirements imposed by state law, the Chula Vista Municipal Code (“CVMC”), Gaming Plan, and local land use permits; and
WHEREAS, Pursuant to the terms of the License and local and state law, Operator currently owns and operates a cardroom known as Seven Mile Casino located at 285 Bay Boulevard, Chula Vista California (“CV Cardroom”); and
WHEREAS, City and Operator previously entered into a cardroom operating agreement on July 1, 2019; such agreement was extended through April 14, 2025; and
WHEREAS, City and Operator have negotiated terms for a new Operating Agreement including (1) increasing the Table Rate Fee to $10,952 effective January 1, 2026, (2) confirming a Gross Revenue Fee effective October 1, 2025, and (3) allowing the City Manager, in consultation with the Director of Finance, the authority to implement an interim License Fee ar rangement during a Force Majeure Event or Material Law Change absent a new agreement approved by City Council.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it approves the Card Room Operating Agreement with Stones South Bay Corporation, in the form presented , with such minor modifications as may be required or approved by the City Attorney, a copy of which shall be kept on file in the Office of the City Clerk, and authorizes and directs the City Manager to execute same.
Presented by Approved as to form by
Maria V. Kachadoorian Marco A. Verdugo
City Manager City Attorney