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RESOLUTION AUTHORIZING A FIRST AMENDMENT TO THE LEASE AGREEMENT WITH DULUTH SOFTBALL PLAYERS ASSOCIATION, INC. FOR THE OPERATION OF THE WHEELER FIELD SOFTBALL COMPLEX CONCESSIONS BUILDING.
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CITY PROPOSAL:
RESOLVED, that the proper city officials are hereby authorized to execute a first amendment to lease agreement, substantially the same as the amendment attached hereto as Exhibit A, with Duluth Softball Players Association, Inc. for the operation of the Wheeler Athletic Complex concessions building. Funds received under this agreement shall be deposited into the City's Special Leagues Fund No. 210-030-3190-4625-04 and specifically earmarked for improvements at the Wheeler Field Softball Complex.
Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes a first amendment to the council approved lease agreement #22865 with Duluth Softball Players Association, Inc. (DSPA), for use of the Wheeler Athletic Complex concession building (Concessions Building).
The purpose of the amendment is to reassign responsibility for paying electricity costs from DSPA to the City. All other provisions in the original lease agreement remain in full force and effect through its original term, which ends on December 31, 2018.
The amendment is necessary because new agreement provisions approved on June 2, 2016 placed significant additional financial burdens on DSPA that have proven to be excessive. The DSPA lease agreement that was in effect through 2015 assigned responsibility for all utility expenses to the City of Duluth and did not require DSPA to pay a user fee of any kind. The current DSPA lease agreement approved June 2, 2016 for the summer 2016 season reassigned responsibility for electricity costs for the period May 1 to August 31 to DSPA and required them to pay one-half (1/2) of their advertising revenue to the City. The several thousand dollars per year cost of these provisions proved to be greater than DSPA can sustain and gr...
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