ORDINANCE NO. 210937
title
Authorizing the Director of Finance to execute a Memorandum of Understanding with AEG Kansas City Arena, LLC for the T-Mobile Arena's Capital Improvements for FY21-22 and FY 22-23; appropriating $1,390,226.50 from the Unappropriated Fund Balance of the General Fund for the capital improvements in FY 21-22; authorizing the expenditure in FY22-23 of $2,802,225.00 for the capital improvements in FY22-23 subject to the appropriation of funds by the Council; and designating requisitioning authority.
body
WHEREAS the City and AEG Kansas City Arena, LLC ("Manager") are parties to an Arena Management Agreement dated March 24, 2006, for AEG Kansas City Arena's management and operation of the City's downtown arena now named the T-Mobile Center; and
WHEREAS, pursuant to Section 6.2 (d) of the Management Agreement, to the extent that funds in the Capital Reserve Fund are insufficient to pay the costs of the Arena Capital Repairs and Improvements ("ACRI"), the funding for the payment of capital improvements costs of the Arena are to be paid 65% by City and 35% by Manager; and
WHEREAS, pursuant to the terms of the Management Agreement, City and Manager have agreed to a process for the approval of ACRI, and Manager has provided to City a list setting forth the Arena Capital Repairs and Improvements for completion by Manager in calendar years 2021 and 2022 (See Exhibit A to the attached MOU); and
WHEREAS, the City approves the capital expenditures listed in Exhibit A to be performed in calendar years 2021 and 2022; and
WHEREAS, for FY21-22, the City's share of the ACRI cost is $1,390,226.50 subject to appropriation and the Manager's share is $748,583.50; and
WHEREAS, for FY22-23, the City's share of the ACRI cost is $2,802,225.00 subject to appropriation and the Manager's share is $1,508,891.00; and
WHEREAS, the Downtown Arena Debt Fund balance has historically b...
Click here for full text