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RESOLUTION AUTHORIZING A FIRST AMENDMENT TO THE FIVE (5) YEAR LEASE AGREEMENT WITH RPK BASEBALL, LLC AND NORTHWOODS LEAGUE, INC. FOR THE USE OF WADE STADIUM THROUGH 2020.
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CITY PROPOSAL:
WHEREAS, that the city of Duluth (“City”), RPK Baseball, LLC, d/b/a Duluth Huskies Baseball Club (“Huskies”), and Northwoods League, Inc. (“League”) entered into a five (5) year lease agreement on or about May 30, 2016 (City Contract No. 22851) for use of Wade Stadium by the parties for professional baseball through 2020; and
WHEREAS, the parties need to amend the lease agreement to address the issue of taxes that arise because of, out of, or in the course of the Huskies and League’s lease, operation, and activities under the lease agreement.
NOW, THEREFORE, BE IT RESOLVED, that the proper city officials are hereby authorized to execute a first amendment to the agreement with the Huskies and League, substantially in the form attached hereto as Exhibit A.
Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes the city of Duluth (“City”) to enter into a first amendment to its lease agreement with RPK Baseball, LLC, d/b/a Duluth Huskies Baseball Club (“Huskies”), and Northwoods League, Inc. (“League”). The existing lease agreement allows the Huskies baseball team to use Wade Stadium as its home field and play baseball games through the 2020 playing season.
In year 2016 of the lease agreement, the League and Huskies will pay to the City a rental fee of four hundred twenty-five dollars ($425) per game. Rent payments will increase by three percent (3%) each year of the agreement. In addition to rent payments, the Huskies or its assigns shall contribute five thousand dollars ($5,000) annually to the City in each year of the agreement (“Annual Contribution”). The Annual Contribution shall be deposited into the Special League Fund and specifically earmarked for improvements at Wade Stadium.
After the lease was finalized in May 2016, it was discovered that the agreement did not address the issue of taxes that arise because of, out of, or in the course of the Huskies and League’s lease, operation, and activities under the lease agreement. Therefore, the parties entered into negotiations to address this issue.
This first amendment provides that the Huskies and League are responsible for any taxes for leases under Minnesota law that arise out of their use of Wade Stadium, including sales and personal property taxes. In consideration for the Huskies and League’s additional expense of taxes, the City will reduce the amount of the Huskies’ Annual Contribution by one thousand dollars ($1,000). With the execution of the first agreement, the revised Annual Contribution will be four thousand dollars ($4,000) during each year of the five-year lease agreement. Except for the provisions specifically amended or added by this first amendment, the lease agreement remains in full force and effect.