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HomeMy WebLinkAboutResolution - 4747 - Agreement-Texas Professional Baseball Inc-Fielding A Professional Baseball Team - 02/17/1995Resolution No. 4747 February 17, 1995 Item #4 RESOLUTION WHEREAS, Section 380.001 of the Local Government Code and Article 835s of Vernon's Annotated Civil Statutes permits municipalities to establish and provide for the administration of one or more programs to promote local economic development and to stimulate business and commercial activity within the municipality; and WHEREAS, the City Council of the City of Lubbock deems it to be in the best interest of the citizens of the City of Lubbock to establish a commercial program to bring professional baseball to Lubbock; and WHEREAS, the City Council desires to contract with Texas Professional Baseball, Inc., to provide a Texas -Louisiana League professional baseball team to play in Lubbock; and WHEREAS, the City Council by means of a separate interlocal agreement with Texas Tech University will provide a stadium for professional baseball use by Texas Professional Baseball, Inc.; NOW THEREFORE: BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: SECTION 1. THAT the City Council for the City of Lubbock hereby establishes a commercial economic development program under Section 380.001 of the Local Government Code and Article 835s, Vernon's Annotated Civil Statutes, to bring professional baseball to Lubbock. SECTION 2. THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock an Agreement, attached herewith, by and between the City of Lubbock and Texas Professional Baseball, Inc., with regard to fielding a professional baseball team in Lubbock, and any associated documents, which Agreement shall be spread upon the minutes of the Council and as spread upon the minutes of this Council shall constitute and be a part of this Resolution as if fully copied herein in detail. Passed by the City Council this ATTEST: Betty M. Ahnson, ity Secretary APPRO A TO CONTENT: Rod E is, birector of Business Development APPROVED AS TO FORM: nald G. Vandiver, First Assistant City Attorney DGV:da ddres/ccdocs/tpbcon. res February 15, 1995 2 Resolution No. 4747 February 17, 1995 Item #4 AGREEMENT STATE OF TEXAS § COUNTY OF LUBBOCK § This Agreement is hereby made and entered into on this the 17th day of February , 1995, by and between the CITY OF LUBBOCK, a Municipal Corporation of the State of Texas, hereinafter called "City", and TEXAS PROFESSIONAL BASEBALL, INC., a Texas corporation, hereinafter called "T.P.B." WITNESSETH: WHEREAS, City desires to locate a professional baseball team in Lubbock, Texas; and WHEREAS, T.P.B. has indicated that it desires to place a professional baseball team in Lubbock, Texas, but acquiring the use of a suitable stadium for team activities is a necessary consideration in placing a professional team in Lubbock; and WHEREAS, Texas Tech University, hereinafter called "University", has an existing baseball stadium on campus which, with modifications, will meet the standards necessary for professional baseball; and WHEREAS, the City Council of the City finds that the location of a professional baseball team is a commercial activity; and WHEREAS, the University is desirous of leasing its baseball stadium to T.P.B. if improvements to the stadium are made to such facility; and WHEREAS, University has authority under section 109.54 of the Education Code of the State of Texas to lease such stadium to T.P.B.; and WHEREAS, City is authorized by Section 380.001, Local Government Code of the State of Texas, to enter into this agreement with T.P.B. to bring professional baseball to Lubbock as a commercial activity; and WHEREAS, the existence of professional baseball in the City of Lubbock will enhance the economy of Lubbock and be an attraction for future economic growth; and WHEREAS, the City is authorized to establish and provide for the administration of one or more programs to promote state or local economic development and to stimulate business and commercial activity in the municipality under Section 380.001; and WHEREAS, the governing body may contract with a state agency for the administration of a program; and WHEREAS, T.P.B. desires to field a professional baseball team in Lubbock at a suitable stadium; and WHEREAS, the University desires to improve its baseball facilities; and WHEREAS, the City desires to provide partial funding for such improvements as will be needed to provide for professional baseball for Lubbock as a commercial activity; and WHEREAS, the City and the University agree that the City will provide $350,000.00 to the University to improve its baseball facility pursuant to an interlocal agreement between the City and the University to be executed on even date with this agreement; and WHEREAS, the University will contract with T.P.B. to play professional baseball at the University's baseball facility by means of a lease agreement between the University and T.P.B. to be executed on even date with this agreement; and WHEREAS, T.P.B. shall pay a surcharge of $.50 per ticket sold the City as consideration for the arrangement of the City of a place to play professional baseball during the initial lease term and any extensions thereof up to a maximum of fifteen years as is provided for in the Lease Agreement by and between the University and T.P.B.; and Agreement -- Texas Professional Baseball, Inc. Page 2 WHEREAS, each of the three agreements by and between the City, the University and T.P.B., which shall be a lease agreement between the University and T.P.B., an interlocal agreement between the University and the City, and this agreement between T.P.B. and the City, shall be executed on even date and shall each be consideration for execution of each of the other named agreements; NOW THEREFORE, the parties hereto do mutually agree as follows: I. T.P.B. does hereby agree to lease from the University the baseball stadium and facilities located upon the campus of University in Lubbock, Lubbock County, Texas, known as Dan Law Field, which shall hereinafter be referred to as "stadium." II. The term of this agreement shall be as is provided for in the lease agreement of even date herewith executed by and between T.P.B. and the University and such term shall commence upon execution of said lease agreement from the University to T.P.B. The City does hereby agree to contract with the University to fund certain improvements to the University's stadium as are set forth in the interlocal agreement between the University and the City. It is agreed and understood by all parties hereto that City funding of such improvements shall not exceed the sum of Three Hundred Fifty Thousand Dollars ($350,000.00). The improvements shall include increased seating, restrooms and concession facilities for a total of 5,000 spectators. IV. T.P.B. shall provide a surcharge of $.50 per ticket sold shall be paid directly to the City by T.P.B. each year, said payments to be made October 1 each and every year of the Agreement -- Texas Professional Baseball, Inc. Page 3 initial lease term and any subsequent renewals. However, such payments shall not be required to be made for more than fifteen years. Such payments shall be computed upon the number of tickets sold by T.P.B. times the number of games. The number of tickets that may be provided at no cost for promotional activities by T.P.B. shall not exceed 1% of the total number of tickets sold by T.P.B. during the season. IV In the event that T.P.B. does not perform its obligations under this agreement, then the City shall not be estopped to solicit and contract with another professional baseball team to make use of said facilities in place of T.P.B. VI. This agreement shall be construed in accordance with the laws of the State of Texas. Venue shall be in Lubbock County. VII. T.P.B. hereby agrees to hold the City harmless from any and all lawsuits or claims of any nature whatsoever that shall arise from the activities of T.P.B. pursuant to this agreement. In addition, T.P.B. shall provide adequate public liability insurance in an amount of not less than one million dollars ($1,000,000.00) naming the City as an additional insured. VIII. All notices required by this agreement shall be sent to the parties at the following addresses: CITY OF LUBBOCK P.O. Box 2000 Lubbock, TX 79457 Agreement -- Texas Professional Baseball, Inc. Page 4 TEXAS PROFESSIONAL BASEBALL, INC. TEXAS -LOUISIANA LEAGUE Galleria Tower II, Suite 1650 13455 Noel Road Dallas, TX 75240 This agreement contains and incorporates the entire agreement of the parties. It or modified only by an agreement in writing signed by both parties. David R. Langston Title: Mayor Texas Professional Baseball, Inc.: By: Title: CC: Texas Tech University Office of General Counsel P.O. Box 42021 Lubbock, TX 79409-2021 DGV:da cityatt\B-TPB.doc February 14, 1995 Agreement -- Texas Professional Baseball, Inc. Page 5 Texas -Louisiana League May 22, 1995 Ms. Betty M. Johnson, City Secretary City of Lubbock 1625 13th, Room 206 Lubbock, Texas 79457 Dear Betty: Enclosed herewith please find one (1) fully executed copy of the Agreement between Texas Professional Baseball, Inc. and the City of Lubbock. Please let me know if there is anything further required from this office. Yours very truly, ( "aA� , Douglas B. Theodore President RECEIVED MAY 24 1995 CITY SECRETARY LUBBOCK, TEXAS Galleria Tower II • 13455 Noel Road • Suite 1650 • Dallas, Texas 75240 214 991-3332 • Fax 214 991-8887 'Pti TECy: *\ Texas Tech University `�V ME�� 2` z F!' Texas Tech University Health Sciences Center Office of Vice President and General Counsel '= Box 4641/Lubbock, Texas 79409-2021/(806) 742-2155 PLEASE NOTE CHANGE: Box 42021, Lubbock, Texas 79409-2021 Fax No. 806/742-2330 April 28, 1995 Mr. John Ross City Attorney P.O. Box 2000 Lubbock, Texas 79457-0001 RE: TPB-TTU Agreement Dear John: MHl I` C, j� {`RNEY'S OFFICE Enclosed please find an executed copy of the Agreement between the University and Texas Professional Baseball, Inc. Please let me know how the City wants to proceed regarding the payment of funds to the University. Your rul , j Xek�� Pat Campbell PC/da/2265 Enclosure "An Equal Opportunity/Affirmative Action Institution" City of Lubbock P.O. Box 2000 1 625 13th, Room 206 Lubbock, Texas 79457 806-767-2026 FAX: 806-762-1 946 May 12, 1995 Texas Professional Baseball, Inc. Mr. Doug Theodore 13455 Noel Road, Suite 1650 Dallas, Texas 75240 Dear Mr. Theodore: Office of Citv Secretary Attached are two copies of the agreement between the City of Lubbock and Texas Professional Baseball, Inc., along with a copy of the resolution authorizing the Mayor to execute the agreement. Please sign both copies of the agreement, return one copy to me at the mailing address indicated above, and retain one copy for your files. Please call me at (806) 767-2026 if you have any questions. Sincerely, v yr Betty M. Johnson City Secretary lbw Attachment Resolution No. 4747 February 17, 1995 Item #4 RESOLUTION WHEREAS, Section 380.001 of the Local Government Code and Article 835s of Vernon's Annotated Civil Statutes permits municipalities to establish and provide for the administration of one or more programs to promote local economic development and to stimulate business and commercial activity within the municipality; and WHEREAS, the City Council of the City of Lubbock deems it to be in the best interest of the citizens of the City of Lubbock to establish a commercial program to bring professional baseball to Lubbock; and WHEREAS, the City Council desires to contract with Texas Professional Baseball, Inc., to provide a Texas -Louisiana League professional baseball team to play in Lubbock; and WHEREAS, the City Council by means of a separate interlocal agreement with Texas Tech University will provide a stadium for professional baseball use by Texas Professional Baseball, Inc.; NOW THEREFORE: BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: SECTION 1. THAT the City Council for the City of Lubbock hereby establishes a commercial economic development program under Section 380.001 of the Local Government Code and Article 835s, Vernon's Annotated Civil Statutes, to bring professional baseball to Lubbock. SECTION 2. THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock an Agreement, attached herewith, by and between the City of Lubbock and Texas Professional Baseball, Inc., with regard to fielding a professional baseball team in Lubbock, and any associated documents, which Agreement shall be spread upon the minutes of the Council and as spread upon the minutes of this Council shall constitute and be a part of this Resolution as if fully copied herein in detail. Passed by the City Council this ATTEST: Betty M. Ahrison, itity Secretary APPRO A TO CONTENT: Rod E is, Director of Business Development APPROVED AS TO FORM: nald G. Vandiver, First Assistant City Attorney DGV:da ddres/ccdoc s/tpbcon. res February 15, 1995 2 Resolution No. 4747 February 17, 1995 Item #4 AGREEMENT STATE OF TEXAS § COUNTY OF LUBBOCK § This Agreement is hereby made and entered into on this the 17th day of February , 1995, by and between the CITY OF LUBBOCK, a Municipal Corporation of the State of Texas, hereinafter called "City", and TEXAS PROFESSIONAL BASEBALL, INC., a Texas corporation, hereinafter called "T.P.B." WITNESSETH: WHEREAS, City desires to locate a professional baseball team in Lubbock, Texas; and WHEREAS, T.P.B. has indicated that it desires to place a professional baseball team in Lubbock, Texas, but acquiring the use of a suitable stadium for team activities is a necessary consideration in placing a professional team in Lubbock; and WHEREAS, Texas Tech University, hereinafter called "University", has an existing baseball stadium on campus which, with modifications, will meet the standards necessary for professional baseball; and WHEREAS, the City Council of the City finds that the location of a professional baseball team is a commercial activity; and WHEREAS, the University is desirous of leasing its baseball stadium to T.P.B. if improvements to the stadium are made to such facility; and WHEREAS, University has authority under section 109.54 of the Education Code of the State of Texas to lease such stadium to T.P.B.; and WHEREAS, City is authorized by Section 380.001, Local Government Code of the State of Texas, to enter into this agreement with T.P.B. to bring professional baseball to Lubbock as a commercial activity; and WHEREAS, the existence of professional baseball in the City of Lubbock will enhance the economy of Lubbock and be an attraction for future economic growth; and WHEREAS, the City is authorized to establish and provide for the administration of one or more programs to promote state or local economic development and to stimulate business and commercial activity in the municipality under Section 380.001; and WHEREAS, the governing body may contract with a state agency for the administration of a program; and WHEREAS, T.P.B. desires to field a professional baseball team in Lubbock at a suitable stadium; and WHEREAS, the University desires to improve its baseball facilities; and WHEREAS, the City desires to provide partial funding for such improvements as will be needed to provide for professional baseball for Lubbock as a commercial activity; and WHEREAS, the City and the University agree that the City will provide $350,000.00 to the University to improve its baseball facility pursuant to an interlocal agreement between the City and the University to be executed on even date with this agreement; and WHEREAS, the University will contract with T.P.B. to play professional baseball at the University's baseball facility by means of a lease agreement between the University and T.P.B. to be executed on even date with this agreement; and WHEREAS, T.P.B. shall pay a surcharge of $.50 per ticket sold the City as consideration for the arrangement of the City of a place to play professional baseball during the initial lease term and any extensions thereof up to a maximum of fifteen years as is provided for in the Lease Agreement by and between the University and T.P.B.; and Agreement -- Texas Professional Baseball, Inc. Page 2 WHEREAS, each of the three agreements by and between the City, the University and T.P.B., which shall be a lease agreement between the University and T.P.B., an interlocal agreement between the University and the City, and this agreement between T.P.B. and the City, shall be executed on even date and shall each be consideration for execution of each of the other named agreements; NOW THEREFORE, the parties hereto do mutually agree as follows: I. T.P.B. does hereby agree to lease from the University the baseball stadium and facilities located upon the campus of University in Lubbock, Lubbock County, Texas, known as Dan Law Field, which shall hereinafter be referred to as "stadium." II. The term of this agreement shall be as is provided for in the lease agreement of even date herewith executed by and between T.P.B. and the University and such term shall commence upon execution of said lease agreement from the University to T.P.B. The City does hereby agree to contract with the University to fund certain improvements to the University's stadium as are set forth in the interlocal agreement between the University and the City. It is agreed and understood by all parties hereto that City funding of such improvements shall not exceed the sum of Three Hundred Fifty Thousand Dollars ($350,000.00). The improvements shall include increased seating, restrooms and concession facilities for a total of 5,000 spectators. IV. T.P.B. shall provide a surcharge of $.50 per ticket sold shall be paid directly to the City by T.P.B. each year, said payments to be made October 1 each and every year of the Agreement -- Texas Professional Baseball, Inc. Page 3 initial lease term and any subsequent renewals. However, such payments shall not be required to be made for more than fifteen years. Such payments shall be computed upon the number of tickets sold by T.P.B. times the number of games. The number of tickets that may be provided at no cost for promotional activities by T.P.B. shall not exceed 1% of the total number of tickets sold by T.P.B. during the season. V. In the event that T.P.B. does not perform its obligations under this agreement, then the City shall not be estopped to solicit and contract with another professional baseball team to make use of said facilities in place of T.P.B. VI. This agreement shall be construed in accordance with the laws of the State of Texas. Venue shall be in Lubbock County. T.P.B. hereby agrees to hold the City harmless from any and all lawsuits or claims of any nature whatsoever that shall arise from the activities of T.P.B. pursuant to this agreement. In addition, T.P.B. shall provide adequate public liability insurance in an amount of not less than one million dollars ($1,000,0000.00) naming the City as an additional insured. VIII. All notices required by this agreement shall be sent to the parties at the following addresses: CITY OF LUBBOCK P.O. Box 2000 Lubbock, TX 79457 Agreement -- Texas Professional Baseball, Inc. Page 4 TEXAS PROFESSIONAL BASEBALL, INC. TEXAS -LOUISIANA LEAGUE Galleria Tower II, Suite 1650 13455 Noel Road Dallas, TX 75240 This agreement contains and incorporates the entire agreement of the parties. It amended or modified only by an agreement in writing signed by both parties. By: David R. Langston V Title: Mayor Texas Professional Baseball, Inc.: Title: CC: Texas Tech University Office of General Counsel P.O. Box 42021 Lubbock, TX 79409-2021 DGV:da ciryatt\B-TPB.doc February 14, 1995 Agreement -- Texas Professional Baseball, Inc. Page 5 STATE OF TEXAS COUNTY OF LUBBOCK LEASE AGREEMENT A This Lease Agreement (Agreement) is entered into this ;Z -of April, 1995 between Texas Tech University, an institution of higher education in the State of Texas (University) and Texas Professional Baseball, Inc., a Texas corporation with its principle place of business located at Dallas, Texas (TPB). Whereas, the City of Lubbock (City) desires to locate a professional baseball team in Lubbock, Texas and TPB desires to place a professional baseball team in Lubbock, Texas; and Whereas, University has an existing baseball stadium on its campus which, with modifications, will meet the standards necessary for professional baseball; and Whereas, the City, by its action dated February 17, 1995, has agreed to provide $350,000 to the University for the purpose of modifying the University's baseball stadium, known as Dan Law Field (Stadium) to facilitate the playing of professional baseball games; and Whereas, the University is willing to improve and lease its baseball stadium to TPB in order to accommodate the City and TPB in locating a professional baseball team in Lubbock; Now therefore, the parties mutually agree that University shall, subject to the terms and conditions set forth herein, lease the Stadium exclusively to TPB for the purpose of operating a professional baseball franchise upon the terms and conditions contained herein. 314.VM I. LEASE University, conditioned upon receipt of $350,000 from the City, as set out in the Interlocal Agreement between City and University executed on the day of April, 1995, does hereby agree to lease to TPB the Stadium and other facilities as outlined herein. Receipt of such payment from the City of Lubbock is a condition to this Agreement. University and TPB agree that this Agreement shall lose all force and effect if such payment is not received by University within ten (10) days of the execution of this Agreement. 11=0:3 V The term of this agreement shall be for five (5) years, commencing upon execution of this lease agreement. TPB shall have the option, by giving written notice to the University on or before February 15, 2000, to extend this agreement for an additional five (5) year period under terms and conditions to be negotiated between TPB and University. TPB shall have the further option, by giving written notice to the University on or before February 15, 2005 to extend this agreement for an additional five (5) year period under terms and conditions to be negotiated between TPB and University. III. CONSIDERATION TPB shall pay to University for the use and occupancy of Stadium, premises and services enumerated herein the sum of $39,000 per year. Payment is to be made in equal monthly installments of $13,000, each due and payable on first day of June, July and August of each year of this Agreement, except that the installment due June 1, 1995 shall be paid upon the execution of this 314.VM 2 Agreement and upon confirmation that funding of improvements to the Stadium by the City has been secured, as set out in the Interlocal Agreement between the City of Lubbock and -Texas Tech University executed on the of April, 1995. IV. TWES OF OCCUPANCY It is specifically understood and agreed that TPB shall have exclusive right of access and use to the Stadium as outlined below, unless such periods conflict with University's baseball team or for University regular or post -season tournament play at the Stadium, home games or practices. University shall have primary use and occupancy of the Stadium at all times not specifically designated herein to TPB. It is specifically understood and agreed that TPB shall have the right of occupancy of Stadium to play professional baseball games from the next day following University's varsity baseball team's final regular season or post -season playoff game, whichever is later, to September 15, both dates inclusive, during each year of the term of this agreement, said occupancy to include the entire stadium structure, restrooms, press box, storage spaces, dressing areas, concession facilities and equipment, ticket selling and ticket taking facilities, grounds, playing field, bases, outfield fences, and parking areas as described herein, except that the office of the University's baseball coach and all skybox suites shall be excluded unless leased from University by TPB by separate agreement. TPB shall have the right to access stadium for the purpose of conducting baseball practices and other TPB events as specifically agreed to between University and TPB. This Agreement contemplates that 50-55 home games will be played at the Stadium each year. sia.VM 3 V. REGULAR AND POST -SEASON GAMES AND TOURNAMENTS Should a circumstance develop such that rules of the Southwest Athletic Conference, Big 12 Athletic Conference, or the National Collegiate Athletic Association require the playing of regular season or post -season home games by University's varsity baseball team on or after the first day of TPB's period of occupancy of Stadium hereunder of any year of this Agreement, if University notifies TPB within 48 hours as such a circumstance had developed, TPB agrees that University's varsity baseball team shall play such baseball games in Stadium as are required by said rules according to a schedule submitted by University, and all parties agree that no other provision of this Agreement including but not limited to provisions related to TPB's exclusive right to the sale of advertising, concessions, or souvenirs at Stadium during its period of occupancy shall be affected or changed in any way by permitting University's varsity baseball team to play such games at Stadium except that University shall be entitled to all ticket revenue of such games, shall have the bxclusive right to sell concessions and souvenirs and to charge for paridng at Stadium and shall, with respect to such games, be responsible for providing the normal and usual services it provides for varsity baseball games. University agrees that if its applies for designation of Stadium as a site of a regularly scheduled Southwest Athletic Conference, Big 12 Athletic Conference, or National Collegiate Athletic Association post -season baseball tournament, it will notify TPB within 48 hours of deciding to make such application; and if University receives designation of Stadium as the site of such event, it will notify TPB within 48 hours of receiving said designation. TPB agrees that in such event University shall have the use of Stadium to conduct such games as may be necessary for any such tournament according to a schedule submitted by University; and all parties agree that no other provision of this Agreement, including but not limited to provisions related to TPB's exclusive right 314.VM 4 to the sale of advertising, concessions, or souvenirs at Stadium during its period of occupancy shall be affected or changed in any way by permitting University to host such tournament at Stadium, except that University shall be entitled to all ticket revenue from such games, shall have the exclusive right to sell concessions and souvenirs and to charge for parking at stadium and shall, with respect to such games, be responsible for providing the normal and customary services University provides at its varsity baseball games. VI. SUMN ER CAMPS It is further understood that University's baseball coaching staff conducts a summer baseball camp in Stadium for which they shall have access to Stadium during the daytime on certain days according to a schedule to be agreed upon by the parties. TPB specifically agrees that the conduct of a baseball camp or the providing of baseball instructions seminars or lessons at Stadium is the exclusive right of the University and TPB agrees that it will not conduct any such baseball camp or baseball instructional seminars or lessons at Stadium without the explicit approval the University's Athletic Director. VII. IMPROVEMENTS This Agreement shall be legally binding upon University only if City pays $350,000 to University for improvements to Stadium. This Agreement shall be legally binding upon TPB only if contracts are awarded to construct the improvements to Stadium as set forth herein by University or other third party or institution, or any combination thereof on or before the dates specified in this section. If they are not, or if it is manifestly clear that the contracts cannot be awarded by the dates 314.VM set forth herein, TPB shall have the option to continue this Agreement in force without said improvements, or to cancel the Agreement by giving written notice to University of such time prior to May 1, 1995, that it becomes clear that the contracts for the construction of said improvements cannot be awarded. University agrees, upon the making of this Agreement, to undertake steps for construction for the improvements listed herein according to University policies and procedures and State law. It is specifically agreed that University and TPB shall make diligent efforts to arrive at a mutually agreeable schedule for.the completion of the improvements listed below. University agrees to use its best efforts to diligently pursue completion or substantial completion of said construction schedules. However, due to the uncertainties of bidding and construction schedules, weather conditions and other contingencies associated with construction projects which are beyond University's control, University does not warrant that said improvements will be completed or substantially completed by the mutually agreed upon construction schedule. -, The improvements to be made are as follows: a) An increase in seating capacity of Stadium to a minimum total of 5,000 seats, layout and type of seating to be determined by University (the contract for construction of the additional seats is to be awarded by July 15, 1995). It is understood that University shall make diligent efforts to provide temporary seating for TPB games until the above -referenced improvements are completed. b) Contracts for construction of the following improvements shall be awarded on or before August 15, 1995, subject to University's Intercollegiate Athletics Department acquiring adequate funding: 314.VM 6 1) Construction of additional men and women restroom facilities; which together with existing restroom facilities provide restroom facilities to serve public events attended by 5,000 persons; and 2) Construction of additional concession facilities, including concession equipment, which together with the existing concession facilities provide concession facilities to serve public events attended by 5,000 persons. TPB may install, at its own expense, any additional temporary concession facilities which it may deem necessary for its operation. Such installation shall require the prior written approval of University. TPB may construct additional permanent concession facilities beyond those required above. Such construction shall require the written prior approval of University. The expense of such additional facilities may, if University elects to do so, be divided equally betwecn TPB and University, unless University determines that such additional facilities are not necessary to its operation, in which case the full expense shall be borne exclusively by TPB. All such additional permanent concession facilities constructed shall become the property of University; any temporary concession facilities shall remain the property of TPB. Any such temporary concession facilities shall be removed by TPB at TPB's expense within fifteen (15) days of the last TPB game of each year of this Agreement. VIII. EXCLUSIVE RIGHTS OF TPB TPB shall have the exclusive right to sell, dispense, vend, market or otherwise distribute to the public all food and drink concession items for all TPB events taking place at Stadium during the 314NM 7 period of its occupancy hereunder and shall have the right to prohibit the bringing of any food or beverage into Stadium or on to grounds of Stadium by any person other than TPB or its contractors. Neither TPB, nor any subcontractor or agent of TPB, shall dispense, vend, or otherwise distribute tobacco products, beer, wine, liquor, or any other alcoholic beverage within leased premises. However, it is expressly understood that all concession rights granted herein to TPB shall be subject to any and all existing and future contractual commitments of University to third parties, it being agreed that University will not enter into future contracts which alter TPB, Inc.'s rights to sell concessions during TPB events under this agreement. TPB shall have the exclusive right to sell, dispense, vend, market or otherwise distribute any souvenirs, programs, clothing, printed matter, photographs or other items for all TPB events taking place at Stadium during the period of its occupancy hereunder, subject to any existing or firture contractual commitments of University, it being agreed that University will not enter into future contracts which alter TPB, Inc.'s rights to sell such items during TPB events:under this agreement. It is expressly agreed that TPB may not sell, dispense, vend, market or otherwise distribute any item which infringes upon any trademark or servicemark owned or held by Texas Tech University or its affiliated support organizations. TPB shall have the exclusive right to sell advertising signs to be affixed to Stadium premises throughout its period of occupancy of each year of this Agreement. All signs shall face the interior of Stadium. TPB shall have the exclusive right to sell advertising signs to be affixed to the outfield fence throughout its period of occupancy of each year of this Agreement; and shall have the option to constrict, at TPB's sole expense, a second level of fence equal in appearance to the existing fence for the sale of advertising signs to be affixed thereto. No advertising shall be affixed to the premises 314MM 8 which is fraudulent, illegal or which a person of ordinary sensibilities would find distasteful. No advertising shall be affixed to the premises which advertises tobacco, beer, wine, liquor or any alcoholic beverage except that advertising of non-alcoholic beer will be permitted. All signs shall require approval of University as to their content and location in Stadium prior to placement. TPB shall be responsible for any repairs to Stadium resulting from any modifications made by TPB to accommodate such signs. TPB shall remove all such signs from premises within fifteen (15) days of the date of the final game played in Stadium by TPB during each year of this Agreement, and shall make all repairs necessary to place the premises into its pre-existing condition within the same fifteen (15) day period. IX. UNIVERSITY RESPONSIBILITIES TO TPB University shall provide as part of the terms of this Agreement and for the consideration recited above the following: ME a) Maintenance repair of Stadium structure, Stadium facilities and grounds, including maintenance and care of the playing field in its present condition, and, to the extent possible, emergency response by University to electrical and plumbing system failures which affect the ability of TPB to begin or complete a game; b) All domestic water and sewer service and all electric and gas utilities costs; • c) All normal and customary custodial services and cleaning of Stadium and all Stadium facilities, including dressing rooms, offices, restrooms, concession areas, and grounds after each baseball game or public event held in conjunction with a TPB baseball game; 314NM 9 d) Access to and use of University's athletic training facilities which are routinely located at Stadium for use by its baseball team, including batting tunnels and weight equipment. Such use agreed to and to be coordinated between University's Athletic Director and TPB; e) Permission to position one or more signs on the day before TPB game days and the day of TPB games at prominent traffic exposed locations on University premises to indicate that a TPB event or professional baseball game will take place in Stadium. TPB shall obtain prior approval from University for such signs as to content and location; f) Parking places, beginning from those parking areas nearest stadium through each adjacent parking area as described in Exhibit A attached hereto which are located on University property which is expressly agreed that TPB's use of University's parking facilities shall not interfere with or encroach upon parking privileges of University students, faculty or staff. It is acknowledged that parking areas adjacent to Jones Stadium on its west side are located on City of Lubbock property and TPB shall deal directly with City to secure authority to utilize such parking for its events at Stadium. It is expressly agreed between University and TPB that University shall only make available to TPB the University parking spaces specifically identified in Exhibit A attached herein. TPB shall have the sole duty and expense of obtaining any additional parking spaces it deems necessary for its operations. The specific hours of TPB's 314NM 10 occupancy of University's parking facilities shall commence two hours prior to the scheduled game and terminate at the conclusion of the game. • MM g) Space on grounds of Stadium for a permanent or temporary building to house the offices for TPB and access for the said building to the utilities, water, and sewer lines facilities serving stadium and buildings on the premises of Stadium. Construction or installation of such building and all utility connections shall be subject to prior University approval and at the sole expense of TPB. The location and design of any building shall be subject to the prior approval of University. X. TPB OBLIGATIONS TO UNIVERSITY In addition to those terms set out elsewhere in this Agreement, TPB shall provide as part of the terms of this agreement the following: m a) Qualified security personnel during TPB games or events at Stadium in sufficient number to comply with local ordinances or regulations pertaining to public events and to protect the premises from damage, to protect persons in attendance and to satisfy the carrier of liability insurance insuring TPB and University. b) All custodial services and cleaning of Stadium and Stadium facilities, including dressing rooms, offices, restrooms, concession areas, and grounds after each baseball practice or other TPB event not specifically associated with or arising from a TPB baseball game including, but not limited to fireworks displays, media events, receptions, fan appreciation days, or other non -game events. 314NM I 1 c) Qualified traffic control personnel as necessary beginning two hours prior to TPB games and for one hour after said games at Stadium in sufficient number to direct traffic through University grounds to appropriate City parking spaces and to safely direct traffic through and out of University after TPB games. d) Any and all telecommunications lines and equipment necessary to conduct professional baseball games including, but not limited to telephonic lines, fax lines, on - field and dugout communications lines to the press box and computer modem lines. e) Personnel to operate the Stadium scoreboard during TPB games, such personnel to be approved by University. m 1) All personnel necessary for game day operations for a professional baseball game franchise including, but not limited to, media support, statisticians, scorekeepers and announcers. XI. INSURANCE TPB agrees to procure public liability insurance having limits not less than $1,000,000 per person nor less than $1,000,000 for any accident and $100,000 property damage coverage. A certificate of insurance showing such insurance is enforced and naming University as an additional insured, shall be delivered to University prior to May 1 of each year of occupancy hereunder. TPB shall submit any such insurance policy to University's Office of Contracting and Risk Management 314 -VM 12 for approval both as to the policy and carrier. All deductibles shall be paid by TPB. The said policy shall contain a provision requiring the insurance company to furnish University with written notification of any cancellation or non -renewal within thirty (30) days prior to the cancellation date or inception date, whichever the case may be. It is further provided that the minimum insurance coverage provided herein in no way limits the obligation of TPB to indemnify and save harmless University as set forth herein. TPB shall provide for its employees a Workers' Compensation Policy with statutory limits and an employer's liability policy that provides $100,000 per accident for bodily injury by accident, a $500,000 policy limit for bodily injury by disease, and $100,000 for each employee for bodily injury by disease. Certificates of said policy shall be furnished to University and shall be submitted to University's Office of Contracting and Risk Management for approval as to both policy and carrier. TPB shall keep its fixtures, merchandise and equipment insured against loss or damage by fire, with extended coverage endorsements. TPB shall provide a copy of any such:insurance policy to University. TPB assumes all risk and damage to its own property arising from any cause whatsoever, including without limitation, loss by theft or otherwise. XII. INDEMNITY TPB shall conform to all laws and University rules and regulations affecting the lease premises, and shall keep and save University, its successors and assigns, harmless from any penalty, damage or charge imposed or incurred for any violations for said ordinances or laws, whether occasion by the neglect or otherwise of TPB, or its agent, tenant, guest, invitees or contractor then upon or using the leased premises. As used herein, "laws" includes all University policies and procedures, municipal ordinances, laws of the State of Texas, any subdivision of the State of Texas, 31a.VM 13 or of the United States government. TPB shall protect, defend, indemnify, and save harmless University; its officers, regents and employees from and against any and all claims, demands, losses, suits, liabilities, or expenses, including court costs and attorneys fees, if any, or property damage, or for injury to or death of persons occurring on the premises described herein or on University premises in connection with the use or occupancy of the premises by TPB, or occasion by any activities engaged in by TPB on these premises or activity conducted by TPB in connection with these premises, howsoever caused, whether by the negligence of TPB or its subcontractors, its agents or employees, invitees, licensees or trespassers, whether by defects or unfitness of the premises or any equipment, building or structure thereon, wheresoever occurring, even though the said negligence, defects, or unfitness may have been caused, occasioned or contributed to, actually or allegedly, by the sole, concurrent, or comparative negligence of University or its officers, regents or employees. TPB agrees that such indemnity will be supported by, but not limited to liability insurance, under which the insurer has no right of subrogation against the University as indemnity -lessor. TPB shall be responsible for and shall indemnify University for any damage to fixtures, merchandise, equipment, fences, buildings, stands, seats or other realty or personalty on the leased premises which shall be damaged or destroyed during a TPB game or event by TPB's negligence or any act or circumstances within TPB's control including, but not limited to actions by TPB's agents, employees, tenants, guests, invitees or contractors. XIII. DAMAGE TO STADIUM University, as an agency of the State of Texas is self-insured. In the event the premises should be damaged by fire, windstorm, or other casualty, University 314_VM 14 shall, to the extent possible, and depending upon available funds, at its own expense, excepting as relating to modification to Stadium made by TPB, forthwith proceed to repair such damage and to restore the leased premises, provided that University shall not be responsible for any delay which may result from any cause beyond its reasonable control, and an appropriate diminution of cessation of rent shall be made until such restoration shall have been completed. University shall, at its sole discretion, prosecute such work with all reasonable speed. Should it be impossible to restore the premises to substantially the same condition as before the fire or other casualty within a reasonable period of time for TPB's use, other mutually acceptable arrangements for the use of another stadium may be made, or TPB may cancel the Agreement upon thirty (30) days written notice to University. Notwithstanding the foregoing provisions hereof in the event that the premises shall be so severely damaged by fire or other casualty that the operation of TDB's business is rendered wholly impractical, TPB shall have the right to cancel this Agreement forthwith by giving written notice to University. If TPB does not notify University within sixty (60) days after the,date of such damages that it elects to cancel this Agreement, TPB shall be deemed to have elected not to cancel this Agreement. In the event the leased premises is totally damaged or totally destroyed by fire, windstorm, or other casualty, this lease shall, at the option of University or TPB terminate upon University or TPB giving written notice to the other of its intention to exercise such option to terminate and the rent shall be due and payable only to the date of such destruction. The terms "totally damaged" and "totally destroyed" as used in this paragraph shall have reference to damage or destruction of such a character as cannot reasonably be expected to be repaired or restored within thirty (30) days from the time that such repair or restoration work would be commenced and which results in a loss of more than 50% of the value of the premises. 314NM 15 XIV. NON-DISCRRvffMATION TPB, as part of the consideration hereof; does hereby covenant and agree as follows: a) That no person on the grounds of race, creed, color, sex, national origin or disability shall be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of said facilities; b) That in the construction of any improvements on, over or under the Stadium and in the furnishing of services therein and in employment practices conducted thereon, no person on the ground of race, creed, color, sex, national origin or disability shall be excluded from participation in, denied the benefits of or otherwise subjected to discrimination; and c) That TPB shall use the premises in compliance with all applicable requirements of University policies and procedures, Federal, State or local law related to non- discrimination on the basis of race, creed, color, sex, national origin or disability. XV. EFFECT OF BREACH If either party shall breach arty of its obligations hereunder and fail to correct the breach within thirty (30) days after written notice thereof, the other party may cancel this Agreement. In the event of any legal action between University and TPB to enforce any of the provisions and/or legal rights hereunder, the unsuccessful party in such actions shall pay to the other party all costs and expenses, as allowed by law. si+.vM 16 XVI. FORCE MAJEURE This Agreement is subject to force majeure. If either party is prohibited to performing its obligations under this Agreement or fielding a professional baseball team due to force majeure, it shall be relieved of its obligations to perform under this Agreement to the extent it is so prohibited. Examples of force majeure shall include but not be limited to destruction of the Stadium by natural disaster, loss of the players for a team or teams operated by TPB due to accident which includes the players of the team or teams employed by or working under player development contracts with TPB. XVII. SALE OF LEASED PREMISES In the event of a sale and conveyance by University of its title or interest in and to the leased premises, including the reversionary interest, if any, this Agreement shall not terminate but shall continue in full force and effect and such sale and conveyance shall be made expressly subject to this agreement and subject to the express agreement of any such purchaser or -grantee of the leased premises to assume and bear all of the obligations imposed hereunder upon University; and, in such event, University shall be completely relieved and discharged from its performance of any and all covenants and agreements herein agreed to be performed. XVIII. CONDEMNATION If the whole or any part of leased premises shall be taken by any public authority under the power of eminent domain, then the term of this Lease shall cease on the part so taken from the date the possession of that part shall be required for any public purpose, and the rent shall be paid only up to that date. If a portion of the leased premises is taken so that the remaining portion will not reasonably be adequate for the operation of TPB's business after University completes such repairs 314.VM 17 or alteration, TPB shall have the right to elect either to terminate this Agreement within sixty (60) days after the award of eminent domain becomes final upon written notice to University or to remain in possession of the remainder of the leased premises not so taken, in which latter events there shall be a proportionate adjustment of rent based upon the portion of the leased premises so taken. In the event TPB elects to remain in possession, all of the terms of this lease shall continue in effect and University may at its option, and its own cost and expense make all necessary repairs or alterations to the premises. TPB shall participate proportionately in any final award in eminemt domain proceeding to the extent any improvements, real or personal, owned by TPB or part of the leased premises so taken for which an award is made. XIX. TERMINATION OF CONTRACT BY UNIVERSITY Univers ity may terminate this Agreement upon the occurrence of any one more of the following events: IM a) The making by TPB of an assignment for the benefit of its creditors; b) The levying on or against the property of TPB of a writ of execution or attachment which is not released or discharged within thirty (30) days thereafter; c) In the event proceedings are instituted in a court of competent jurisdiction for the reorganization, liquidation, or involuntary dissolution of TPB or for its adjudication as a bankrupt or insolvent, or for the appointment of a receiver of the property of TPB, and proceedings are not dismissed, any receiver, trustee, or liquidator is appointed therein is not discharged within thirty (30) days after the institution of said 314NM 18 proceedings; d) The doing or permitting to be done by TPB of any act which creates a mechanic's lien or claim therefore against the land or building of which the lease premises are a part which is not released or otherwise provided for by indemnification satisfactory to University within thirty (30) days thereafter; e) The failure of TPB to pay any installment of rent, or other charge or money obligation herein required to be paid by TPB, within ten (10) days such performance is required by the terms herein; f) The violation by TPB of any term or condition of this agreement. In the event of any breach hereunder by TPB, University may immediately or at any time thereafter without notice, cure such breach at the expense of TPB. If University at any time, by reason of such breach, is compelled or elects to pay, any sum of money, or to do any act which will require the payment of any sum of money, or is compelled to incur any expense, including attorneys fees, in instituting or prosecuting any action or proceeding to enforce University's rights hereunder, the sum or sums so paid by University, with interest thereon at the rate of 18% per annum from the date of payment thereof; shall be deemed to be additional rent hereunder and shall be due from TPB to University on the first day of the month following the payment of such respective sums or expense. All rights and remedies of University herein enumerated shall be cumulative and none shall exclude any other right or remedy allowed by law, and said rights and remedies may be exercised and enforced concurrently and whenever and as often as occasion therefore arises. Should University be in default under the terms of this Agreement, University shall have reasonable and adequate time in 314 -VM 19 which to cure the same after written notice to University by TPB. No waiver by University, its successors or assigns, of any breach of any of the obligations of TPB hereunder, or of any other person holding hereunder, shall be construed to be a waiver of any succeeding breach of the same obligation. XX. PAYMENT OF TAXES In the event any lawful taxing jurisdiction should assess ad valorem taxes or unrelated business income taxes against University as a result of the lease of the Stadium or any other University property to TPB, TPB agrees that it shall bear and timely discharge all such taxes assessed against University if, as and when they become due and payable; providing, however, that in such event, TPB shall have the option, after paying said taxes, to terminate this Agreement upon giving written notice to University within sixty (60) days of the final payment of all taxes assessed against University. All personal property taxes lawfully assessed or levied against the machinery, equipment, furniture, fixtures, signs and inventory of TPB shall be paid by TPB. University agrees to send to TPB the original personal property tax statements, if any, issued by the taxing jurisdictions, or copies thereof; within thirty (30) days prior to the date the taxes would become delinquent. In the event any personal property taxes should become delinquent during the term of this agreement, TPB shall pay said delinquent taxes plus any penalty and interest charges assessed for such delinquency unless such delinquency is caused by University's failure to perform its obligations hereunder. In no event shall TPB be responsible for any taxes or delinquencies assessed or charged against University's personal property. 314.VM 20 XXI. ASSIGNMENT OF AGREEMENT This Agreement, or any interest therein, is not assignable without the prior written consent of University. Any successor or assignee shall be bound by all of the obligations an*d provisions as stated in this Agreement. XXH. VENUE This Agreement shall be governed exclusively by the laws of the State of Texas, and venue for any litigation related to this Agreement shall be in Lubbock County, Texas. XXIII. ENTIRETIES CLAUSE This Agreement contains and incorporates the entire agreement of the parties. It may be amended or modified only by an agreement in writing signed by both parties. i TEXAS PROFESSIONAL BASEBALL, INC. TEXAS TECH UNIVERSITY —J, Title: Vice President and General Counsel Date: April 27, 1995 314NM 21 ident C-1 PARKING LOT Office of Citi- Secretary City of Lubbock P.O. Box 2000 1 625 13th, Room 206 Lubbock. Texas 79457 606-767-2026 FAX: 606-762-1 946 May 30, 1995 Mr. Douglas B. Theodore President Texas - Louisiana Professional Baseball League Galleria Tower II 13455 Noel Road, Suite 1650 Dallas, Texas 75240 Dear Mr. Theodore: Thank you for your prompt response to my request for execution of the agreement between the City of Lubbock and Texas Professional Baseball, Inc. Upon receipt of the executed document, I noticed that there was a typographical error on page 4 of the agreement and had our Legal Department run replacement pages. Attached is the replacement page for your copy. Please let me know if you have any questions. Sincerely, i Betty M. Jo son City Secretary lbw Attachment initial lease term and any subsequent renewals. However. such payments shall not be required to be made for more than fifteen years. Such payments shall be computed upon the number of tickets sold by T.P.B. times the number of games. The number of tickets that may be provided at no cost for promotional activities by T.P.B. shall not exceed 1% of the total number of tickets sold by T.P.B. during the season. a In the event that T.P.B. does not perform its obligations under this agreement, then the City shall not be estopped to solicit and contract with another professional baseball team to make use of said facilities in place of T.P.B. VI. This agreement shall be construed in accordance with the laws of the State of Texas. Venue shall be in Lubbock County. T.P.B. hereby agrees to hold the City harmless from any and all lawsuits or claims of any nature whatsoever that shall arise from the activities of T.P.B. pursuant to this agreement. In addition, T.P.B. shall provide adequate public liability insurance in an amount of not less than one million dollars ($1.000,000.00) naming the City as an additional insured. VIII. All notices required by this agreement shall be sent to the parties at the following addresses: CITY OF LUBBOCK P.O. Box 2000 Lubbock, TX 79457 Agreement -- Texas Professional Baseball, Inc. Page 4