"/ 28/2024
1 1
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Santa Clara Stadium
Authority
Action on Amendment No. 2 to the Ground Lease and Amendment No. 1 to the Restated and Amended Stadium Lease to Implement the Settlement Agreement and Mutual Release (Buffet and Public Safety Cost Arbitration) with Forty Niners SC Stadium Company LLC and Forty Niners Stadium Management Company LLC
May 28, 2024, #24-578
• Jovan Grogan
o City Manager/ Executive Director, Santa Clara Stadium Authority Presenters
• Glen Googins
o City Attorney/ Authority Counsel, Santa Clara Stadium Authority • Kenn Lee
o Finance Director/ Treasurer, Santa Clara Stadium Authority SCSA
SAUJA. CLARA SJA OIUM AUlttORllY
2 2
POST MEETING MATERIAL
item 6
1 5/28/2024
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Agenda
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SCSA
S ANJA Cl.ARA S lAOIUM AUHIORIIY
3 --
SCSA ------- -
SAHJA CU\HA S JAOIUM AUlllORIIY
4 Executive Summary
Stadium-Related Agreements
Stadium Economics
49ers & Stadium Authority Litigation Disputes
Funds Held in Litigation Reserve
Public Safety Cost Dispute (NFL events)
Buffet Costs Dispute
Settlement Agreement and Implementing Leases-Agend izedforAction Tonight o Summary
0 PSC
0 Buffet Costs
0 Additional Revenues
Fiscal Impact
Staff Recommendation
Next Steps Tonight
3 Executive Summary
4 item 6
2 ,5/28/2024
5 6
Key Issues in
Dispute
SCSA
SAHJA ClARA SJ AOIUM AUTIIORIIY
Beneficial
Aspects of
Original
Agreements
SCSA
SAHii\ Cl.ARA S JAOIUM AUlllORlfV
•
•
•
•
•
•
•
•
•
•
•
Executive Summary
Public Safety Costs: Measure J and Stadium Lease provide a Public Safety Costs Threshold for NFL Games; 49ers (StadCo) pays City public safety costs, but Stadium Authority must reimburse StadCo for costs above the Threshold
o Initial Threshold too low
o 49ers disputed Stadium Authority's efforts to increase the Threshold Buffet Costs: Stadium Lease obligates Stadium Authority to reimburse StadCo for the complimentary buffets provided to Legacy seat license holders (::::942)
o No Facility Rent to cover costs or cap on costs or controls on costs in the original Stadium Lease
5 Executive Summary
State-of-the-art billion -dollar Stadium, financed without money from the City's General Fund or City Utility Enterprises
Stadium Events generate economic activity in Santa Clara and revenue for local businesses
Enhanced Cultural, Entertainment, and Economic Vitality of Santa Clara City receives guaranteed Ground Rent for 40 years
City receives supplemental revenue for Senior and Youth Programs City receives Performance-Based Rent payments
Once Stadium Authority's Reserve Accounts are full, City's General Fund will receive year-end excess revenues, every year
City's General Fund is not used and not responsible for any Stadium expenses, debt or liability
If City wants the Stadium demolished at end of the Lease terms, demolition funds have already been set aside in a Reserve Fund, and the 49ers/StadCo responsible for additional demolition costs 6
item 6
3 5; 28/2024
7 8
Key Aspects of the
Settlement
Agreement
SCSA
Executive Summary
•
•
Resolves long-standing disputes between Santa Clara Stadium Authority and the 49ers
Addresses the 49ers $22.3 million claim against the Stadium Authority of owed buffet and public safety reimbursements which Authority stopped making in 2018}
o Reduces balance to $14.8 million and provides a structured reimbursement plan with no interest
• Amends reimbursement obligations for buffet costs, and public safety costs, as well as creates new Authority revenues, accelerates funds to the City's General Fund, and other items • Various terms less than desirable to SCSA from the original deal, such as performance-based rent formula, waterfall/excess revenue process, escalator on Senior and Youth fee, etc. also addressed
------ 7
-
SAHM Cl.ARA STA DIUM AUlltORllY
Additional
Benefits
of
Settlement
SCSA
~At• tA(LJ\RA SIADIU M AUHIORITY
Executive Summary (cont.)
• Settlement avoids costs and uncertainty of a fully "litigated" arbitration proceeding
• Even if Authority prevailed in the Arbitration, the Arbitration would be solely focused on Public Safety and Buffet costs disputes and will not provide enhancements related to ... o Cap on Stadium Authority's Buffet Costs
o New ticket surcharge revenue
o New PSC credit Carryforward terms to ensure the City receives at least 50% of Performance Based-Rent
o Restructured Waterfall flow of funds to the General Fund o Increase to the Senior/ Youth Fee to the City
o Use of the Litigation Reserve to fund a Performance-Based Rent payment to the City a
item 6
4 5/28/2024
9 10
Executive Summary (cont.}
Settlement Terms and Proposed Lease Amendments DO NOT ...
SCSA
SANJA CLARA SlADIUM AUlllORllY
O Tonight's
Action:
• Alter 49ers/StadCo obligations to pay the City of Santa Clara "actual and reasonable" public safety costs
• Impact the Santa Clara Police Department's ability or authority to determine the public safety needs and make deployment decisions for Levi's Stadium, the surrounding neighborhoods or any other area within their jurisdiction Executive Summary (cont.)
• Necessary to implement key terms of the Settlement
Agreement
• First amendment: Stadium Lease between Stadium
Authority and "StadCo" (49ers entity)
--Lease
Amendments
• Second amendment: Ground Lease between Stadium
Authority and the City (owner of Stadium property)
--Budget
Amendments
SCSA
SANrA ctAn ASTAmuM AUTIIORITY
• Approval sought for delegation to Executive Director/City Manager to amend other required agreements
• Request for approval of related budget amendments
item 6
9 10
5 5/28/2024
SCSA
SANTA Cl/\RA S TADIUM AUlll ORITY
11 SCSA
Executive Summary (cont.)
Next Up ...
• Brief history and summary of Levi's Stadium
development and operations terms provided
• Overview of buffet costs and public safety costs
disputes
• Summary of terms in Settlement Agreement
resolving disputes
• Presentation of terms for required lease
amendments and budgetary actions
Stadium-Related Agreements
- ----SANJJ\ Cl.ARA S l AOIUM AUlll ORITY
12 item 6
11 12
6 S'/28/2024
13 14
Measure J
• Approved by Santa Clara voters on
June 8, 2010
• Permits development of a professional
football stadium on City property
• Established Santa Clara Stadium
Authority, a joint powers authority
SCSA
S AHJA Cl.ARA S TADIUM AUTIIO RHY
Key Terms
Measure J
_1'1_ 111'._, c-,,....,.,_.,., ,_ ~-•--..... - . __ ,..,,__ ...... _ .. ._ ...... _ ... _ ... _-::
~::.:...._ ... ";:::..,c.._,_ :..-:::~"'.!::".!'..:::".:b _,_ ... ,_ -::::,;::: a-z.:t:==~"":ei
- ~f~~ ~~~~
::;:::= ~~~;;~= --••---~ ... -- I;;..:--·-·•-.. -.. _-~ .. -~ .. ._..... ,_,_ ... _____ _ . ~--:~~_;:_.;;~ -··--:---, - ___ .. ::::,....----
.!.:.=. ... - ......... .._ .. ...
SCSA
SAHJACLARA S JAOIUMAUtf~
13 • The City of Santa Clara is prohibited from using its general fund or enterprise funds for the stadium's
development
• The ground lease mandates fixed base rent payments
totaling $40,875,000 over 40 years, starting from the
first year of stadium operations and increasing annually to a minimum of $1,000,000 from the 11th year
onwards
•
•
Performance-based rent formula: sharing revenues less
expenses of non-NFL events, to provide fair market rent to the City
Neither City nor its Redevelopment Agency is liable for Stadium Authority obligations
14 item 6
7 15
16 Key Terms (cont.}
Measure J
---•--1 c:-utllUltl-..ill •-
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. -!::"Z- ............ = .:::..:=..:.-::: -=---~---=--.::=.::'~ :;._ _ ______ •.. .':
_ ........ - ... --.. "" .....
SCSA ------SANJA Cl.ARA S JAOIUM AUTIIO RllY
Ground Lease
•
•
•
•
On March 28, 2012, the City
and Stadium Authority signed
a Ground Lease
Grants Stadium Authority
exclusive rights to the
Stadium Site for 40 years
Stadium Authority to make
Fixed Ground Rent and
Performance-Based Rent
payments to the City
SCSA
S At~JA Cl.ARA S IAOIUM AUIIIORIIY
Lease requires payment to the Stadium Authority,
covering ground rent and stadium operating and
maintenance expenses
Initial NFL game seasons incur Public Safety Costs with a $170 000/game threshold increasing annuallv bv 4%.
Excess costs are reimbursed by the Stadium Authority
from its Discretionary Fund or through reducing
Performance-Based Rent payments
If NFL game-related Public Safety Costs exceed the
threshold for three consecutive seasons, negotiations
may occur for a possible threshold increase, though the 49ers are not obligated to agree
Groun ease stipu ates a ee o 0.35 per tic et or
professional football games, capped at $250,000
annually, allocated for parks, recreation, and library
programs, for seniors and youth activities
15 16
item 6
8 5/ 28/2024
Stadium Lease
On June 19, 2013, Stadium
Authority signed a Reinstated
and Amended Stadium Lease
Agreement with StadCo
40 yr lease for NFL operations
Leases the stadium for half of
each fiscal year
StadCo responsible for the
Stadium Manager's operating
expenses during the lease
SCSA
SAH JA CLARA S JA.OIUM AUHIORITY
17 17
Other Agreements (cont.)
18 Stadium Management Agreement
(Management Agreement)
• Stadium Authority and StadCo engaged
Forty Niners Stadium Management
Company LLC as Stadium Manager
• Responsibilities include day-to-day
operations and maintenance per the
Stadium Lease
• Stadium Manager handles marketing
and booking of Non-NFL Events on
behalf of Stadium Authority
SCSA
SAHTA Cl.ARA S fAOIUM AUTIIORIIY
Stadium Operations Agreement
• Outlines operational terms in addition
to the Management Agreement
• Covers procedures for scheduling
Stadium events
• Includes preparation and approval of
annual plans and budgets
• Provides procurement guidelines
• Specifies rules for access by Suite
licensees and Premium Stadium Areas
18 item 6
9 19
20 Stadium Entities & Roles
Santa Clara Stadium Authority
(Authority)
• Ground leases the land to Authority. • Owns the Stadium. 49ers Footb all
Company (TeamCo}
• Owns and operates 49ers
Football team.
• Not a party to City or
Authority contracts.
SCSA
SANJA CU\RA S JAOIUM AUTIIO RIJY
• Leases to StadCo for NFL Season (6 months).
• Receives net revenues from Non-NFL events.
49ers Stadium
Company (StadCo}
• Tenant of the Stadium for
NFL Season (6 months).
• Lease with Authority.
• Sub-leases the Stadium to
TeamCo.
49ers Management
Company (Manco)
• Management Agreement
w/StadCo and Authority.
• Manages the Stadium,
year-round for both NFL
and non-NFL events.
Stadium Economics
SCSA
SANI A CLARA STADIUM AUTHORITY
item 6
19 20
10 s·;2s;2024
21 22
Stadium Authority Budget Flowchart
Operating
Budget
$47.3M
21 Debt Service
+ Budget +
$19.7M
CapEx
Budget
$22.0M
Debt Service
and Capital
- Transfers Out -
$23.lM
Total
Budget
$65.9M
Excess Revenues Distribution (cont.)
Excess Revenue Cash Reserves Summary
Reserve Category
Capital Expenditure Reserve
Operating Reserve
Renovation/Demolition Reserve
Total
22 FY 2022/23
Actual
$22.SM
$25.4M
$S.3M
$53.2M
FY 2023/24 FY 2024/25
Projected Budget
$18.2M $3.4M
$26.lM $26.9M
$24.lM $35.SM
$68.4M $GS.BM
item 6
11 5/28/2024
23 24
Stadium Authority Operating Budget
(cont.)
Revenues:
Facility Rent $ 24,762,000
NFL Ticket Surcharge 13,700,000
Naming Rights 7,830,000
Non-NFL Event Net Revenue 6,000,000
SBL Proceeds 5,057,000
Interest 3,534,000
Non-NFL Event Ticket Surcharge 1,149,000
Sponsorship Revenue {STR) 519,000
Senior & Youth Program Fees 233,000
Total Revenues $62,784,000 23
Stadium Authority Operating Budget
(cont.)
24 Expenses:
Shared Stadium Manager Expenses
Stadium Authority General & Administrative
SBL Sales and Service
Utilities
Ground Rent
Performance Rent •
other Expenses
Discretionary Fund Expense
Senior and Youth Program Fees
Use of StadCo Tenant Improvements
Naming Rights Expenses
Subtoal E11penses
Transfers Out:
Debt Service
Capita l Expenditures Reserve
Capital Expenditures Reserve - Levi's Naming Rights
Subtotal Transfers Out
Total Use of Funds
• Pending resolutlon of litigation
$13,554,000
4,188,000
2,448,000
1,488,000
1,000,000 ~
---,,,,,- Paid to the
o -+
City's
748
'
000
General
250,000
Fund
233,000 -+ ~---~
151,000
136,000
$24,196,000
$17,471,000
4,032,000
1,575,000
$23,078,000
$47,274,000
item 6
12 5/28/2024
25 26
Stadium Authority Capital Budget
Total Capital Budget of $22.0 million
o Stadium Improvements: $20.5 million
• New Projects: $8.4 million
■ Construction ($7.2 million): Lighting Systems, Waterproofing/Caulk/Joint Replacements ■ Equipment ($784,000): Stadium Camera Coverage Upgrade, Command Post Video Wall Upgrade
■ Contingency ($400,000)
• Carryover Projects: $12.1 million
• Construction ($6.4 million): Naming Rights Signage, Aesthetic Improvements ■ Equipment ($5.1 million): Street Signage, Replace Furniture in Club and Special Event Spaces
■ Contingency ($573,000)
o Stadium Warranty-Related Construction: $1.5 million
25 • Part of the original Stadium Development/Construction Budget Stadium Authority Operating Budget
26 · (cont.) ·
Performance Based Rent Calculation
o Stadium Authority pays the City performance-based rent on top of the fixed ground rent
o Performance-based rent is equal to 50% of the net income from Non-NFL events less 50% of the ground rent and any credited public safety costs
o Credited public safety costs is the amount by which public safety costs exceed the public safety costs threshold
o Credited PSC that reduces Performance-Based Rent is capped in the Original Stadium Lease at 50% of net income from Non-NFL Events. item 6
13 5/28/2024
27 28
Stadium Authority Operating Budget
(cont.)
Performance Rent Calculation (cont.)
Non-NFL Event Net Revenue {in millions)
$10.0
$8.8
$8.0 $7.8
$6.1
$5.3
$6.0
$6.0 $5;-2
I
$5.2
I
$4.0
I I I
$2.0
$-
$-
I - -
$(2.0)
$(0.5) $(0.3)
$(4.0) $(2.7)
March March Ma rch March March March March March March March March 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
27 (Forecast ) {Budge t)
Stadium Authority Debt Service Budget
(cont.)
28 $500 ;----- ----
Total Outstanding Debt (in millions)
66% reduction in
1----.= ~ ----------- --1 outstanding debt
from March 2014
$429.8
$400 $396.1 .~ $=38=2~.7 ____________ _
S300 +---- --1
$200 +----I
March Ma.,ch March March Match March March March March Match March March March March 201 2 2013 201 4 201 5 201 6 2017 2018 2019 2020 2021 2022 2023 2024 2025 (forecast) (budget)
• Construction Loan • SladCo Agency Advance ■ Term B Loan ■ Term A Loan • StadCo CFD Advance ■ StadCo Subordinated Loan item 6
14 s·;2s;2024
Waterfall: Excess Revenues Distribution
29 30
Excess Revenues Distribution: If revenues exceeds expenses in a lease year the Excess Revenues are require'd to be distributed in the order as set forth in Article 14 of the Stadium Lease agreement as shown below.
1. Payoff any
outstanding Manco
Revolving Loan - N/A
2. Fund Future Stadiu
Authority Expenses up
$2M - Completed in FY
2014/15
3. Fund Stadium Capit
Expenditure Reserve u
to $1M -Annual
29 contribution
6. Fund Operating Expense
Reserve up to $20M - Complet
in FY2022/23, Annual 3%
Contribution Ongoing
5. Repay any outstanding
principal balance on Subordinate
Loan - Completed in FY 2022/23
4. Fund Operating Expense
Reserve up to $10M - Com pl et
in FY 2014/15
7. Fund Renovation/
Demolition Reserve if the
balance is less than $70M -
In progress
8. Additional
disbursements can be used
to pay Stadium Authority
Discretionary Expense,
including the City's general
fund - Future Allocation
49ers & Stadium Authority
Litigation Disputes
SCSA ------ 30
SANfA Cl.AHA SIAOIU M AUHIORITY
item 6
15 5/28/2024
31 32
Litigation/ Arbitration Summary
• Disputes over stadium agreement terms and operations arose early on and continued through 2019
• Many issues disputed, including accounting transparency requirements, management standards for non-NFL events, conflicts of interest, reimbursement obligations, cost calculations • In 2018, Stadium Authority stopped paying StadCo any Public Safety cost reimbursements StadCo claimed it was owed
• In March 2020, StadCo issued Stadium Authority its first invoice for buffet costs it claimed it was owed for Years 2014 through 2019; Stadium Authority declined to pay
• Litigation ensued
SCSA
SANTA ClA RA S JAOIUM AUTIIOAl l Y
Litigation/ Arbitration Timeline
PUBLIC SAFETY
COSTS (PSC)
ARBITRATION
StadCo initiated PSC
arbitration
2019
Jun
SCSA
SAU JA Cl.ARA S f AOIUM AU JII ORITY
...
BUFFET
COSTS
ARBITRATION
StadCo initiated
buffet costs
arbitration
2021
Sep
...
LITIGATION
RESERVE
Stadium Authority begins setting aside
funds to cover possible outcome of
litigation in fiscal year 21/22 . Current
balance : $11.1 million
2021/22
Lease Year ®
item 6
31 Iv
5/28/2024
33 34
2022 Settlement & Stay
• On August 31, 2022, the City, Stadium Authority, StadCo, and Stadium Manager settled management and
operational disputes from the 2019 lawsuit and
arbitration claims
• Public Safety Costs and Buffet Costs disputes were not resolved and remain ongoing
• Parties agreed to "stay" arbitration proceedings,
discovery, and litigation to attempt resolution, with no interest accruing on claimed amounts
SCSA
SANJA CU\RA S IAOIUM AUlltORIIY
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Public Safety Cost Dispute (NFL events)
SCSA
SAHJA CLARA S TADIUM AUTII OFIIIY
item 6
33 34
17 5/28/2024
I
Public Safety Costs (PSC) Overview
• City provides public safety services for stadium events • StadCo reimburses the City for all NFL event Public Safety Costs (PSC), including police, fire, traffic management, and parking support
• As contemplated by Measure J, StadCo is reimbursed for public safety costs exceeding the contractual "threshold" by the Stadium Authority via payments form the Authority's "Discretionary Fund" or "Credits" against StadCo's Facility Rent Obligation • Initial Threshold set at $170,000/game in 2014-15, increasing 4% annually • In the very first season, threshold exceeded by $75,514/game • PSC for each subsequent season (except 2020-21 for COVID) have also exceeded the threshold
• Estimated 2023-24 PSC are $521,494/game, exceeding the threshold by $299,531 SCSA 35 SANTA ClARA S fADIUM AUHIORllY
35 i600 ,0U0
1soo,ooo
1400,000
1300,000
1200,000
1100,000
$-
36 PSC Costs Over the Threshold
$300,251
I
$5 17,186
I
$ 145,U2
$206,831 $215 104
I
$546,204
I
241,963
1st Season 2nd Season 3rd Season 4th Season 5th Season 6th Season 7th Season 8th Season 9th Season 1oth Season (2014-15) (2015-16) (2016-17) (2017-18) (2018-19) (2019-20) (2020-21) (2021-22) (2022-23) (2023-24) EST - Total PSC Costs ...,_ Lease Threshold ( 4%}
36 item 6
18 5/28/2024
37 38
PSC Dispute Summary
• Stadium Lease allows threshold adjustment after three consecutive years of exceeding PSC thresholds; good faith negotiations required, with StadCo retaining sole discretion to approve any increase to the threshold
• Because PSC costs exceeded the PSC threshold for years 2014, 2015 and 2016, Stadium Authority initiated the PSC threshold adjustment process in 2017 • Disputes arose over the appropriate Year 4 threshold adjustment, with parties taking widely divergent positions
• In 2018, in light of the dispute, Authority stopped paying StadCo amounts in dispute over the threshold; StadCo continued to pay the City the full amount of PSC billed • Due to these disputes, and uncertainty of outcome regarding the amount of PSC credits accrued, no Performance Based Rent has been paid to the City since 2021-22 SCSA
~
PSC Dispute - Bottom Line
The parties have been disputing the amount by which the PSC Threshold should be adjusted
• StadCo's claimed PSC owed for fiscal year 2017-18 through 2023-24 is approximately $15.5 million and that going forward the threshold should be closer to the original contractual threshold
• Stadium Authority claimed PSC amount owed should be less and that PSC threshold going forward should be closer to actual costs.
SCSA -----SAtHA CLARA S TADIUM AUTIIORIJY
37 38
item 6
19 s'/28/2024
39 40
Buffet Costs Dispute
SCSA 39 SAN JA CLARA STADIU M AUTHORITY
Buffet Costs Dispute Summary
• Stadium Authority sells Stadium Builders' Licenses (SB Ls) for all stadium seats; all season ticket holders are SBL holders
• Some SBLs include a complimentary buffet
• For the 942 "Legacy SB Ls," Stadium Authority is obligated to cover the costs of these buffets w/i 30 days of invoice from StadCo.
• SBL revenues are fixed, but buffet costs have no cap and are not controlled by the Stadium Authority; further StadCo's "facility rent" paid to Stadium Authority does not account for the buffet cost expenses.
• StadCo first invoiced buffet costs in 2020, totaling approximately $4.39M • In 2020, $1.39M was paid for FY2019/20 buffet costs; in 2022, $902.lk was paid for FY2021/22 buffet costs. Total accrued buffet costs currently stand at $6.8M • Projected buffet costs through the lease term could range from $70M to over $100M, posing significant financial risk to Stadium Authority.
SCSA
S ANlA CLARA ST ADIUM AUTIIORITY 40
item 6
20 5/28/2024
Year Season
2014-15 1st
2015-16 2nd
2016-17 3rd
2017-18 4th
2018-19 5th
2019-20 6th
2020-21 7th
2021-22 8th
2022-23 9th
2023-24 10th
lroTAL
SCSA
Accrued Buffet Costs
Games Buffet Costs Paid
--10 1 $ 760,847 1_$_
101 $ 766,070 $
10 $ sn,948 I $
10: $ 989,862 I $
10: $ 999,979 [ $
12! $ 1,391,01s i $
s! $ - I $
10: $ 902,os1 I $
12 $ 1,164,667 I $
12, $ 1,254,367 r $
101! $ 9,100,836 I $
Litigation
Contigency
Avg/ Game Balance Due Reserve
- I $ 16,oss 1 $ 160,s41 I
- I $ 16,601 I $ 166,010 I
$ 87,195 1 $ 871,948 j
$ 98,986 $ 989,s62 I
- I $ 99,998 $ 999,979 I
1,391,01s
1 $ 11s,91s $ - I
- 1$ - 1$ - i
902,081 j $ 90,208 $ - I $ 902,081
- $ 97,056 $ 1,164,667 I $ 1,164,667
- ; $ 104,531 I $ 1,254,367 I $ 1,254,367 1
2,293,096 : $ 846,583 : $ 6,so1,140 I $ 3,321,11s I
41 SANTA CLARA S TADIUM AUTHORITY
41 42
Buffet Costs Dispute - Bottom Line
The parties disputed the amount of buffet costs owed
and the terms for payment going forward ...
o StadCo claimed Stadium Authority should pay the entire $6.8 million, with a continuing obligation to pay
going forward
o Stadium Authority claimed Facility Rent should be adjusted to include buffet costs, and thereby offsetting
amounts otherwise owed
42 item 6
21 5/28/2024
43 44
Settlement Negotiations
• StadCo presented proposed settlement terms for these
disputes at the end of 2022
• The parties agreed to wait for new City Manager and City Attorney to come on board and get up to speed to continue • Over the last 6+ months the parties have been engaged in confidential settlement negotiations
SCSA
SANJA, CU\RA SJADIUM AIHIIO RITY
Settlement Agreement: Summary
SCSA
SAHJA Cl.ARA S JADIUM AUlllORITY
item 6
43 44
22 5/28/2024
45 46
Settlement Agreement Summary
On May 20, 2024, the Stadium Authority Board and City Council authorized settlement of the disputes related to public safety and buffet costs and authorized Executive Director/City Manager to sign a settlement agreement, subject to legal approval as to form. The finalized agreement was executed and released to the public on May 23, 2024 Settlement
Goals
SCSA
SANJA CU\RA S TADIUM AUHIORITY
• Aimed to resolve outstanding disputes
• Simultaneously aimed to boost revenue and financial stability for the City and Stadium Authority
• Negotiated terms directly addressed the disputes and extended beyond them to aspects outside of the issues that would be before the Arbitrator
• Many deal points require inclusion in amendments to Ground Lease and Stadium Lease
Settlement Agreement Summary (cont.}
45 High-level
Benefits
• Will generate $20 million to the General Fund over the next two years SCSA
SAN JA CU\RA STADIUM AUlltORlfY
• Reduces the amount owed to 49ers from $22.3 million to $14.8 million • PSC Threshold is initially increased to $360k/game, up from $251k/game
• Buffet Costs flat fee of $90k/game vs. no limit (avg. is $104.Sk/game) • Additional $4 ticket surcharge on non-NFL events to offset over the threshold public safety costs
• Restructured waterfall to accelerate revenue to the City's General Fund • Increase in Senior and Youth fee and higher funding cap • Mutual release of specific liabilities
46 item 6
23 5/28/2024
47 48
Settlement Agreement:
Public Safety Costs (PSC)
47 Public Safety Costs: Payment of Reduced Balance to StadCo Settlement amount: Claimed Amount of $15.SM reduced to $14.9M • Partial payment : About $3.4M from litigation contingency funds • Remaining balance: $11.SM redefined as Stadium Lease for Public Safety Costs: 2024 Outstanding Balance • Repayment method: Remaining balance paid over-time, with no interest owed, out of excess revenues in restructured "waterfall" provisions
Restructured "waterfall" provisions: 50% of excess revenues to Demolition Reserve Fund, 25% to repay Public Safety Costs 2024 Balance, and 25% available for City's General Fund • Once outstanding balance is repaid, 50% of excess revenues to Demolition Reserve Fund and 50% to City's General Fund
Benefits: Allows for PBR rent payments to City for Years 9 and 10; City's General Fund receives excess revenues sooner than previously projected; Deferred PSC cost balance owed to StadCo deferred with no interest
0 Changes reflected in Amendments to Paragraphs 14.7 and 14.8 of the Stadium Lease 48 SCSA
SMHA CU\RA S lAOIU M AUlll ORITY
item 6
24 5/28/2024
49 50
PSC Settlement - Threshold Adjustment
SCSA
Threshold Overview
• Initial threshold set at
$170K/game, increasing
4% annually, reaching
$251K/game by Year 11
(2024-25)
• StadCo has discretion to
adjust the threshold after
good faith negotiations .
SAHTA Cl.ARA STADIUM AUHIORITY
Negotiated Outcome
• Year 11 threshold
increased from $251K to
$360K/game.
• Increase of $109K/game x
10 games= $1.lM
additional value per year
compared to original
contract threshold
PSC Settlement - Deployment / Safety
49 The PSC Settlement Threshold Adjustment does not impact deployment of safety personnel and in no way changes or compromises the Police Department's ability to protect the facility Current
Deployment/
Safety Model
SCSA
SANIA Cl.ARA STADIU M AUTHORITY
• City of Santa Clara Police Department (SCPD) assesses the threat level per NFL event
• SCPD determines the appropriate deployment and coordinates with StadCo and Stadium Manager.
• SCPD makes the final decisions public safety and on deployment levels • PSC Threshold level at $251K/game does not currently impact deployment or safety levels
_. PSC Threshold level increase to $360K/game, per the settlement, will not impact deployment or safety levels
50 item 6
25 5/28/2024
51 Increase in Non-NFL Ticket Surcharge
Future PSC Costs
• Non-NFL ticket
surcharge increased
to $8/ticket, with a $1
escalator every 4 yrs
• Applies to events
booked after
settlement
• StadCo and Stadium
Manager may
consider further
increases
SCSA
SANTA CLARA S TADIUM AUlllORIJY
Additional Surcharge Revenue
• Revenue> $4 per ticket used to
reimburse PSC costs over threshold
• Revenue after reimbursement
goes to stadium Cap Ex
expenditure reserve fund (up to
$2M)
• Excess revenues after funding the
reserve to be discussed for
distribution.
• Estimated to generate an
additional $1.35M/yr based on
2024-25 budget
Note:
• $4/ticket surplus
generated
approximately
$1.3M/yr over
past 10 yrs
51 Modification of Performance-Base Rent Credits Formula The Settlement Agreement also modifies the existing formula for the payment of Performance Based Rent (PBR) to the City to make such payments more likely Performance -Based Rent to City = Non -NFL Events Net Revenue - Ground Rent Credit and PSC Credits • Under existing terms, the amount ofthe PSC Credits are capped at 50% ofthe Non-NFL Events Net Revenues.
Key Terms • If PSC Credits are not paid in full, StadCo can be reimbursed in the next year by reducing its Facility Rent payments to the Authority.
52 o Under existing terms, the reduction of Facility Rent is also capped at 50% of Non-NFL Events Net Revenues.
• Settlement Agreement reduces the PSC Credits cap from 50% to 25% of Non-NFL Net Revenues.
SCSA
S ANJA CLARA S TADIUM AUIIIORIIY
o Reduced cap means: Less PSC Credits deducted from Non-NFL Events Net Revenue a Higher Performance -Based Rent for years with Non-NFL Events Net Revenue. o StadCo's Facility Rent reduction is also capped at 25% of Non-NFL Net Revenues. The remaining amounts due are deferred to next/later years. 52 item 6
26 5/28/2024
53 54
Modification of PBR Credits Formula (cont.)
The Settlement Agreement also modifies the existing formula for the payment of Performance Based Rent (PBR) to the City to make such payments more likely 0 Amendments
SCSA
SAH I A Cl.AHA SJADIUM AUJII ORHY
_. Stadium Lease
Amendments to Paragraph 7.5.3 of the Stadium Lease and
1.94 of the Ground Lease reflect these changes.
_. Ground Lease
City/Stadium Authority agree to extend Facility Rent credit carryforward expiration date from 5 years to 10 years in Paragraph 1.95 of the Ground Lease
Additional PSC Settlement Terms
• Capital Expenditure (CapEx) depreciation expenses on Non-NFL events will be corrected going back to 2017-18 and will not be deducted from net Non-NFL event cash moving forward to avoid double -charging
53 • City will assess overhead calculation for double -badgers, with findings and overhead charges at sole discretion of City and its consultants
• Reduction in overhead rates possible, only if concluded by the City, becomes effective for 2024/25 Lease Year
• StadCo agrees to pay cancellation fees if included as public safety costs under Stadium lease
SCSA ----~ S At4l A Cl.ARA S lAUIUM AUJIIO RllY
54 item 6
27 5/28/2024
Additional PSC Settlement Terms - Declaratory Relief
• In 2021, the City and the POA / IAFF Associations entered into Memorandum of Understandings (effective through December 31, 2025)
o The MOUs provided 1.SX overtime rates for Non-NFL Events. But 2.0X overtime rates for NFL Events.
o City and Associations were aware of the pending PSC Arbitration and there were real questions regarding the sustainability of these rates in light of the arbitration. o Accordingly, the parties agreed to include specific terms in their MOUs to lower and reopen negotiations of the 2.0X overtime rates for NFL Events if the Arbitrator issued decisions regarding reimbursement obligations.
SCSA 55
SANTA CLARA SJADIUM l+.UlltoRIJY
55 56
Additional PSC Settlement Terms - Declaratory Relief ... • To address this, the Settlement Agreement includes of provision for the 49ers and Stadium Authority to pursue the Arbitrator's Decisions on PSC terms and Threshold reimbursement obligations
o The Settlement is not conditioned on any such decision and would remain in effect regardless of the Arbitrator's determination
• We are several steps away from any actual impact on public safety rates paid o First, the process to obtain Declaratory Relief findings are part of the confidential PSC Arbitration proceedings between 49ers and Stadium Authority. o Second, the process and terms with the City and POA/IAFF would only get started if the Arbitrator issues the decisions
o The outcome of City negotiations with POA/IAFF are a separate and independent process and are not decided by the Settlement Agreement 56 item 6
28 5/28/2024
57 58
Settlement Agreement: Buffet Costs
SCSA 57
SANTA CLARA SJAOIUM AUltlORITY
Buffet Costs Terms Summary
The settlement of Buffet Costs claims has two parts: a) Resolving the accrued balance to date; and b) Setting a fixed payment for future buffet costs, limiting Stadium Authority's liability and establishing an accounting process. Part b requires an amendment to the Stadium Lease {Paragraph 4.6.1)
Key Details
SCSA
SJ\NfA CLARA ST ADIUM AUlllORllY
• Stadium Authority didn't fully pay buffet costs due to pending litigation • 49ers claim of $6.SM for accrued buffet costs are waived in the settlement • Obligation to reimburse buffet costs from FY 2018/19 to 2023/24 are completed • Going forward, Authority will reimburse Legacy SBL buffet expenses to StadCo • Stadium Lease lacks a cap or limit on Buffet Costs charged to Authority • Starting FY 2024/25, buffet costs allocated to Authority will be fixed and limited, reducing financial liability
• Resulting from the settlement, Authority will pay a flat fee of $90k/game for the buffet, with a 3% annual increase
58 item 6
29 5/28/2024
59 60
Buffet Cost Settlement - Financial Analysis
Current Buffet Costs
• Recent average buffet
cost: $104.SK/game
• Total cost for a 12-game
season: $1.2M
• Buffet costs have
exceeded $90K/game in
6 of the last 9 years
(excluding FY 2020-21
due to the pandemic)
SCSA
S AHJA CLARA SfA OIUM AUHIORllY
Flat Fee Impact
• New flat fee: $90K/game
with a 3% annual increase
• Cost for a 12-game season
at the flat fee: $1.lM
• Savings/game: $14.SK
• Total annual savings:
$174K
Predictable Budgeting
• The flat fee reduces
financial exposure by
capping buffet cost
• Provides predictable
budgeting for the
Stadium Authority
• Ensures ongoing cost
savings compared to
the previous terms in
the Stadium lease
59 Buffet Cost Settlement - Risk Analysis
Negotiated terms ensure $90k / game flat payment obligation is not> than actual costs • Starting Year 11, Stadium Authority will
pay a flat buffet cost of $90K/game with
a 3% annual increase
• Stadium Authority can request a buffet
accounting and has audit rights
• An additional 5% accounting fee is added
to the fixed payment for that year if
accounting is requested
• If actual buffet costs are less than the fixed
payment, StadCo will refund the greater of
the difference or the 5% accounting fee
Example:
o Fixed payment= $1M, accounting fee= $SOK
o Actual costs= $975K, StadCo refunds $SOK
o Actual costs= $9OOK, StadCo refunds $10OK
0 Stadium Lease Amendment in Paragraph 4.6.1 implements the $90k/game flat payment increasing 3% annually, and the optional accounting process SCSA
SANTA Cl.ARA STADIUM AUHIORllY
60 item 6
30 5/28/2024
61 62
Settlement Agreement: Additional Revenues
SCSA 61
SANTA CLARA SJAOIUM AUJIIORITY
Excess Revenues - Restructured Waterfall
As stated above, the Settlement Agreement provides for a restructured waterfall of the use of Stadium Authority's year-end excess revenues (Paragraph 14 of the Stadium lease Key Details • Stadium Lease originally mandated excess revenues to fill the $70M Renovation/Demolition Reserve Fund before flowing to the General Fund SCSA
• Settlement Agreement restructures this, allowing excess revenues to fill the Reserve Fund at 50%, repay the Public Safety Costs 2024 Outstanding Balance to StadCo (25%), and release excess revenues to the City's General Fund (25%) • Once the balance is repaid, restructured waterfall allocates 50% of excess revenues to the Renovation/Demolition Reserve fund and 50% to the General Fund • Estimated to provide $3.lM to the City's General Fund by year-end and expedite future funds by four or five years
0 Restructur ing is reflected in Amendments to Paragraphs 14.7 and 14.8 of the Stadium Lease
------ 62 SANJA CLARA S iADIUM AUT II ORllY
item 6
31 5/28/2024
63 64
Senior and Youth Program Fee
• Increase from $0.35 to $0.40 per NFL
game ticket; increases $0.05 every
decade
• Expected additional revenue: $35-45K
annually for the next decade,
increasing by $20-30K every ten years
• Minimum value over 30 years: $2M
additional funds to the City
• Cap is increased from $2SOK to $300K
in 2024/25 with and increase of
$SOK every ten years
SCSA
SAtHA ClARA S JADIUM AUHIORITY
Summary of Lease Amendments
• Key Changes to the Ground Lease between Stadium Authority and City;_ o Performance-Based Rent:
--Modify Performance Based Rent Credits (reducing cap on PSC credits) in Section 1.94 --Extend Facility Rent credit carryforward expiration date from 5 years to 10 years in Section 1.95 o Increase Senior/Youth Fee in Section 8.2
o Provide for Additional non-NFL Ticket Surcharge Revenue in Sections 8.4 and 8.5 • Key Changes to the Stadium Lease between Stadium Authority and StadCo:
o Buffet Cost Fixed Payment: Paragraph 4.6.1 implements the $90k/game flat payment increasing 3% annually, and the optional accounting process.
o Performance-Based Rent: Modifies the current formula to reduce deductions, Paragraph 7.5.3. o Sets the Year 11 PSC Threshold, Paragraph 7.5.3(b) .
o Provide for Additional non-NFL Ticket Surcharge Revenue in Paragraph 12.1. o Increase Senior/ Youth Fee in Paragraph 12.2.
o Waterfall Restructuring : Reflected in Amendments to Paragraphs 14.7 and 14.8.
SCSA
SAHTA Cl.ARA S TADIU M AUTHORITY
item 6
63 64
32 5/28/2024
Fiscal Impact
SCSA
S ANfA CLARA S fADIUM AUHI ORIJY
65 66
Fiscal Impact
Public Safety Costs
• ~ Balance through FY2023/24:
$15.5 million
• StadCo waives $664,000 related
to FY2017 /18
• Remaining balance owed by
Stadium Authority: $14.8 million
• Payments to StadCo: $3.4 million
from Litigation Contingency
Reserve, $3.1 million from Excess
Revenue
Buffet Costs
• ~ Balance through
FY2023/24 : $6.8 million
• Originally budgeted $1.1 million
for FY2024/25 SBL
Complementary Buffet costs
• Funds were to be transferred into
Legal Contingency Reserve
• Projected payment for these costs
is now $900,000
• Savings of $200,000 will flow
through Excess Revenue at the
end of the year
item 6
65 66
33 5/28/2024
67 68
Fiscal Impact (cont.)
Legal Contingency Reserve
• Budgeted balance of $14.7 million at
the end of FY2024/25
• Settlement requires liquidation of
these reserves
• Funds to be used for payments,
planned expenditures, or Excess
Revenue transfers at the end of the
year
SCSA
S ANTA ClARA STA DIUM AUlllORllY
Renovation/Demolition Reserve
• Projected balance of $35.5
million at the end of FY2024/25
• Lease adjustments and
liquidation of Legal Contingency
Reserves result in a net decrease
of $5.3 million
• New projected balance: $30.2
million
Fiscal Impact (cont.)
Excess Revenue Distribution
• Adjusted distribution in FY2024/25:
o 50% to Renovation/Demolition
Reserve
o 25% to PSC 2024 Outstanding
Balance
o 25% to City's General Fund
o Projected distribution: $6.1 million
to Renovation/Demolition
Reserve, $3.1 million to StadCo,
$3.1 million to General Fund
SCSA
SANfA Cl.ARA SlA OlUM AUHIORIIY
Performance-Based Rent
• ~ Payment to City for FYs 2022/23
and 2023/24: $7.1 million
• ~ Payment for FY2024/25: $2.5
million
Senior and Youth Program Fee
• Fee increases from $0.35 to $0.40
per NFL ticket in FY2024/25
• Projected additional revenue:
$35,000, paid to the City
item 6
67 68
34 ' 5/28/2024
69 70
Estimated $20M Payments to the City
Base Rent ($2 M) Year-End "Excess Revenue" ($7.7 M)
• FY 2024/25 - $1 M • FY 2024/25 - $3.1 M (est.)
• FY 2025/26 - $1 M • FY 2024/25 - $1.0 M (G&A Savings) • FY 2025/26 - $3.6 M (est.)
Performance-Based Rent {$9.6 M) Senior and Youth Program Fees {$0.6 M) • FY 2022/23 - $4.2 M • FY 2024/25 - $0.3 M (est.)
• FY 2023/24 - $2.9 M • FY 2025/26 - $0.3 M (est.)
• FY 2024/25 - $2.5 M (est.)
SCSA
SAtHA CLARA S fAOIUM AUIIIORITY
o FY 2024 25 Bud et Amendments
Description
Sources
Senior & Youth Program Fees
Total Sources
Uses
Expenses
Senior & Youth Program Fees (paid to City)
Perfonnance Rent 2022/23 & 2023/24 (paid to
City)
Perfonnance Rent 2024/25 (paid to City)
Public Safety Costs (from Settlement)
Public Safety Costs (2024/25 Excess Revenues)
Transfer to City General Fund (2024/25 Excess
Revenues
SBL Complementary Buffet
Ending Fund Balance
Legal Contingency Reserve - Buffet Costs
Legal Contingency Reserve - Public Safety Costs
Renovation/Demolition Reserve
SCSA Total Uses
SANJ.'\ CLARA S fAOIUM AUlllORITY
Current
$233,000
$233,000
$233,000
$0
$0
$0
$0
$0
$0
$4,441,801
$10,305,725
$35,476,705
$50,457,231
Increase/
Decrease
$35,000
$35,000
$35,000
$7,100,000
$2,500,000
$3,400,000
$3,073,000
$3,073,000
$900,000
($4,441,801)
($10,305 ,725)
{$5,298,474)
$35,000
Revised
$268,000
$268,000
$268,000
$7,100,000
$2,500,000
$3,400,000
$3,073,000
$3,073,000
$900,000
$0
$0
$30,178,231
$50,492,231
69 70
item 6
35 5/28/2024
71 72
Staff Recommendation
71 Staff Recommendation
1. Authorize the City Manager to execute a Second Amendment to the Ground Lease with the Santa Clara Stadium Authority
2. Authorize the Executive Director to execute a Second Amendment to the Ground Lease with the City of Santa Clara
3. Authorize the Executive Director to execute a First Amendment to the Amended and Restated Stadium Lease Agreement with Forty Niners SC Stadium Company, LLC
4. Approve the following FY 2024/25 net budget amendments in the Santa Clara Stadium Authority Operating Budget:
o Increase the revenue estimate and payment to the City for Senior and Youth fees by $35,000 o Increase the Performance-Based Rent expense to the City by $9,600,000 , increase the Public Safety Cost expense by $6,473,000, increase the transfer to the City's General Fund by $3,073,000, increase the SBL Complementary Buffet expense by $900,000, offset by the elimination of Legal Contingency Reserves, of $14,747,526, and a decrease to the Renovation/Demolition Reserve by $5,298,474
SCSA
SA Nf A CLARA S JAOIUM AUTII ORITY 72
item 6
36 ~
5/28/2024 item 6
Next Steps Tonight
• Council/Board Questions on Staff Presentation
• P_ublic Comment
• Council/Board Deliberations
• Council/Board Action
SCSA
SAtHA CLARA S iAOIUM AUHIORITY 73
73 37
City of
Santa Clara
The Center of What's Possible
Date: May 28, 2024
To: City Manager
Mayor and Council Office
Memorandum
From: Executive Assistant to the Mayor & City Council
Subject: Correspondence received regarding Item 24-578 on the May 28, 2024, Joint City Council and Authorities Concurrent & Santa Clara Stadium Authority Board meeting agenda.
Please find attached correspondence received on the following agenda item:
Agenda Item 24-578
Action on Amendment No. 2 to the Ground Lease , and Amendment No. 1 to the Restated and Amended Stadium Lease, to Implement the Settlement Agreement and Mutual Release (Buffet and Public Safety Cost Arbitration) with Forty Niners SC Stadium Company LLC and Forty Niners Stadium Management Company LLC, and Approve Related Budget Amendments
cc: City Council
POST MEETING MATERIAL
RE: Agenda Item #24-578
Mayor Gilmore & Council Members,
RECEIVED
MAY 2 B 2024
MAYOR & COUNCIL OFFICES
CITY OF SANT A CLARA
1( , lh
DRE #01100 262
I want to thank you for your dedication to serving our great City of Santa Clara. In June 2010 Santa Claran's voted for more entertainment in the northern part of Santa Clara. Over the years, we have had many family fun events at Levi Stadium. Unfortunately, the current litigation and curfew has harmed our ability to get some of the best acts at Levi Stadium. I know we can find a compromise that addresses everyone's concerns. I think it is time to end the ongoing litigation. Each event is important to our economy and local businesses. Finally, I want the promise of entertainment at Levi, City Place, Mission College, Great America, and the surrounding area to continue. This can only happen through compromise, so lets rise to the challenge get it done for the residents if Santa Clara.
Thoz
.// ~
Steve Kelly
3093 Forbes Ave
Santa Clara, CA 95051
ca
POST MEETING MATERIAL
Silicon Valley Properties I WWW.SteveKellyBroker.com
3093 Forbes Ave I San ta Clara, CA 95051 1408.482.0318 I [email protected] May 27, 2024
Santa Clara City Council
1500 Warburton Ave
Santa Clara, C4 95050
~d-'-\-S'"\ i
RECEIVED
MAY 2 8 2024·
MAYOR & COUNCIL OFFICES
CITY Cr JANT A CLARA
RE Agenda Item #24-578
Santa Clara City Council,
I am in support of ending the litigation with the 49ers. I love living in Santa Clara and one of the best things is the local entertainment at Levi stadium. It is well managed. I also work close to Levi Stadium at Cisco Systems. The traffic is manageable and there is not a noise problem. I think you should accept the proposed settlement agreement since it is best for everyone to resolve this issue. I know Santa Clara residents want & need more local entertainment .
Max Tatum
3093 Forbes Ave
Santa Clara, CA 9051
POST MEETING MATERIAL
May 25, 2024
Santa Clara City Council
1500 Warburton Ave
Santa Clara, CA 95050
RE· Agenda Item #24-5 78
Dear Council Members,
RECE I ✓ED
MAY 2 8 2024
MAYOR & COUNCIL OFFICES
CITY OiF SANTA CLARA
I am in support of settling the litigation with the 49ers. My family and I have attended multiple events at Levi stadium. It is well managed. Unfortunately, there were only a fee concerts at Levi the last few years! I have been told the litigation is making it hard to get the best performers as is the current curfew ' times. I would ask that you improve your working relationship with the 49ers. It is best for our community to have entertainment locally. It also means more sales tax revenue into our general fund for things lik'1 senior services. Finally, / Additional events will speed up the day that the stadium is paid off and generating rent for the benefit of Santa Clara residents :OJ Sincerely,
.
~ax--vU
Je°½iffer Castillo
309 7 Forbes Ave
Santa Clara, CA 9051
POST MEmNG MATER-!AL L
Santa Clara City Council
1 500 Warburton Ave
Santa Clara, CA 95050
RE Agenda Item #24-578
MAY 2 8 2024
MAYOR & r:OUNCIL OFFICES
CITY OF SANTA CLARA
Santa Clara City Council Members,
I would ask you to work out a settlement with the 49ers . I want family fun events in our city. The litigation is making it difficult to get top performers to come here to Levi Stadium. Let's have a better working relationship with the 49ers. It helps our community through increased sales taxes revenue which funds city services.
Thank You,
Dai Nguyen
2189 Calabazas Blvd
Santa Clara, CA 9051
POST MEmNG MATERIAL
Santa Clara City Council
1500 Warburton Ave
Santa Clara, CA 95050
RE: Agenda Item #24-578
City Council Members,
~ :)~--S7l ·
RECE!'/ED
MAY 2 8 2024
MAY\~..., r c: ' . C :.. OfffCES
CJT'. ...,, ;:.. • ...i.~TAClARA
I know you have a difficult job. I would like to ask you to work out a settlement for Santa Clara residents with the 49ers. We have to improve our working relationship with the 49ers moving forward, so we can have more entertainment in our city for the benefit of residents and our local businesses. For instance, my daughter a few weeks ago went to the Luke Combs concert at Levi, stayed at a local hotel, and ate dinner at the hotel. Each event helps our local business and part of the tax revenue funds our city services! Let's work it out an agreement with the 49ers, Santa Clara has a real need for family entertainment.
Thank You,
ff:::::;,n ~
2189 Calabazas Blvd
Santa Clara, CA 9051
POST MEETING MATERIAL
Melissa Lee
From:
Sent:
To:
Subject:
Richard Kanda < rkonda@asianlawalliance .org >
Tuesday, May 28, 2024 7:00 AM
Mayor and Council
settlement with SF 49ers
I You don't often get email from [email protected]. Learn why this is important Dear Mayor Gilmor and members of the Santa Clara City Council:
I understand from news reports that a settlement proposal to end the ongoing litigation with the 49ers is before you. I urge you to continue to move forward in a collaborative spirit that will benefit all of the residents of the city of Santa Clara.
Continuing the legal dispute at this time of limited funding for essential city projects is not in the best interests of your constituents . The additional funds that will flow from the revenue generated by the stadium will help you to address your ongoing deficit.
Sincerely,
Richard Konda (he/him/his)
Executive Director
Phone: (408) 287-971 O
Email: [email protected]
991 W. Hedding Street, Ste. 202
San Jose, CA 95126
ooeoo
ST A TEMENT OF CONFIDENTIALITY: This message is being sent by a legal organization. The contents of this email message and any attachments are confidential and are intended solely for the addressee. The information may also be legally privileged. This transmission is sent in trust, for the so.le purpose of delivery to the intended recipient. If you have received this transmission in error, any use, reproduction or dissemination of this transmission is strictly prohibited. If you are not the intended recipient, please notify the sender immediately by reply email and delete this message and its attachments, if any. Email is covered by the Electronic Communications Privacy Act, 18 USC 2510-2521 and is legally privileged.
POST MEETING MATERIAL
1