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Legislation #: 120571 Introduction Date: 6/21/2012
Type: Ordinance Effective Date: 7/8/2012
Sponsor: None
Title: Authorizing the Director of Convention and Entertainment Facilities to execute two Termination, Release and Release of Guaranty agreements with AEG Management KC, LLC (“Manager”) and Anschutz Entertainment Group (“Guarantor”) regarding management of Kemper Arena and the American Royal Center; authorizing payment of six monthly installment payments for each facility in accordance with the Termination, Release and Release of Guaranty agreements by June 30, 2012; and authorizing a Third Amendment to the Arena Management Agreement.

Legislation History
DateMinutesDescription
6/20/2012 Filed by the Clerk's office
6/21/2012 Referred to Finance, Governance & Ethics Committee
6/27/2012 Advance and Do Pass, Debate
6/28/2012 Passed

View Attachments
FileTypeSizeDescription
120571.tiff Authenticated 82K AUTHENTICATED
120571 Fact Sheet.xls Fact Sheet 143K Fact Sheet
Fiscal Notes Kemper and AR Termination 6-18-12.xls Fiscal Note 68K Fiscal Note Kemper Arena and American Royal Termination

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ORDINANCE NO. 120571

 

Authorizing the Director of Convention and Entertainment Facilities to execute two Termination, Release and Release of Guaranty agreements with AEG Management KC, LLC (“Manager”) and Anschutz Entertainment Group (“Guarantor”) regarding management of Kemper Arena and the American Royal Center; authorizing payment of six monthly installment payments for each facility in accordance with the Termination, Release and Release of Guaranty agreements by June 30, 2012; and authorizing a Third Amendment to the Arena Management Agreement.

 

WHEREAS, the City and Manager are parties to a Kemper Arena Management Agreement and an American Royal Center Management agreement dated as of July 16, 2007 and December 31, 2007, respectively, both guaranteed by Guarantor; and

WHEREAS, Manager has managed both facilities through these agreements that are set to expire on December 31, 2012; and

WHEREAS, City desires to self-manage both Kemper Arena and the American Royal Center starting July 1, 2012, six months before the original contract expiration dates; and

WHEREAS, termination and release documents are necessary to accomplish the early termination of these agreements and to release Guarantor from its obligations under the Guaranty, with the consent of Manager and Guarantor; and

WHEREAS, City and AEG Kansas City Arena, LLC, desire to execute a Third Amendment To Arena Management Agreement (Sprint Center) to make necessary changes that result from the termination of the Kemper Arena and American Royal Center management agreements; NOW, THEREFORE,

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

 

Section 1. That the Director of Convention and Entertainment Facilities is authorized execute a Termination, Release and Release of Guaranty with AEG Management KC, LLC and Anschutz Entertainment Group regarding management of Kemper Arena.

Section 2. That the Director of Convention and Entertainment Facilities is authorized to expend $78,905.68 from funds previously appropriated to Account No. 2360-631110-611010 to pay six monthly management fee installments by June 30, 2012 for the termination of the Kemper Arena Management Agreement.

Section 3. That the Director of Convention and Entertainment Facilities is authorized execute a Termination, Release and Release of Guaranty with AEG Management KC, LLC and Anschutz Entertainment Group regarding management of the American Royal Center.

Section 4. That the Director of Convention and Entertainment Facilities is authorized to expend $47,343.45 from funds previously appropriated to Account No. 2360-631100-611010 to pay six monthly management fee installments by June 30, 2012 for the termination of the American Royal Center Agreement; and

Section 5. That a Third Amendment to the Arena Management Agreement between the City and AEG Kansas City Arena, LLC, is hereby accepted and approved. A copy of the amendment is on file with the Director of Conventions and Entertainment Facilities.

_____________________________________________

I hereby certify that there is a balance, otherwise unencumbered, to the credit of the appropriation to which the foregoing expenditure is to be charged, and a cash balance, otherwise unencumbered, in the treasury, to the credit of the fund from which payment is to be made, each sufficient to meet the obligation hereby incurred.

 

 

_____________________________

Randall J. Landes

Director of Finance

 

Approved as to form and legality:

 

 

______________________________

Joseph A. Guarino

Assistant City Attorney