RESOLUTION NO. RS2006-1435
A resolution requesting the Nashville Predators and Powers Management, LLC, to waive the early termination provisions contained in the License and Use Agreement and the Operating and Management Agreement with the Sports Authority.
WHEREAS, the Gaylord Entertainment Center was constructed through debt issued by the Metropolitan Government and backed by the full faith and credit of the Metropolitan Government, which requires millions of dollars in annual debt service payments; and
WHEREAS, the Metropolitan Sports Authority is currently under a contract with Powers Management, LLC, for the operation and management of the Gaylord Entertainment Center, which is home to the Nashville Predators hockey team and the Nashville Kats arena football team; and
WHEREAS, as part of the License and Use Agreement between the Sports Authority and the Nashville Hockey Limited Partnership dated June 25, 1997, the Sports Authority is obligated to pay the capital improvement expenses necessary to maintain the Gaylord Entertainment Center at a level equal to that of comparable facilities; and
WHEREAS, pursuant to Section 27.6 of the License and Use Agreement, the Predators may terminate the contract upon any default by the Sports Authority, which would include failure to maintain and upgrade the facility as required by the contract; and
WHEREAS, the Predators and Powers Management have requested that the Metropolitan Government pay for a new scoreboard and control room for the Gaylord Entertainment Center; and
WHEREAS, while desiring to ensure that the Sports Authority does not commit a material breach of the contracts with the Predators and Powers Management, the Council also wants to take steps to protect the taxpayers of Nashville and Davidson County that continue to fund the debt on the facility, as well as requested improvements; and
WHEREAS, the agreement with Powers Management, LLC, requires Metro to pay a monthly management fee to compensate Powers for operating and managing the arena; and
WHEREAS, waiving the early termination provisions in the contract would go a long way toward ensuring the taxpayers that their investment is protected.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:
Section 1. That the Metropolitan County Council hereby goes on record as requesting the Nashville Predators and Powers Management, LLC, to waive the early termination provisions contained in the License and Use Agreement and the Operating and Management Agreement with the Sports Authority.
Section 2. The Metropolitan Clerk is directed to send a copy of this Resolution to Mr. Craig Leopold, the owner of the Nashville Predators, and to Mr. Hugh Lombardi, the General Manager of the Gaylord Entertainment Center.
Section 3. That this Resolution shall take effect from and after its adoption, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.
Sponsored by: Brenda
|Referred:||Budget & Finance Committee|
|Introduced:||July 18, 2006|
|Deferred:||July 18, 2006|
|Deferred:||August 1, 2006|
|Adopted:||August 15, 2006|
|Returned Unsigned by Mayor:||August 16, 2006|