HomeMy WebLinkAboutIR 10350 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 10350
To the Mayor and Members of the City Council December 10, 2019
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*a SUBJECT: COWTOWN COLISEUM LICENSE AGREEMENT RESTATEMENT,
rrn AMENDMENT AND ASSIGNMENT
The purpose of this Informal Report is to provide the City Council information on the proposed
restatement, amendment and assignment of the License Agreement with Rodeo Plaza, Incorporated (RPI)
for the management and operation of the Cowtown Coliseum.
On February 12, 2002, the City entered into a License Agreement for the management and operation of the
Cowtown Coliseum (Agreement) with Rodeo Plaza, Incorporated (RPI) relative to maintenance,
management and operation of the historic Cowtown Coliseum in the Fort Worth Stockyards Area. (City
Secretary Contract (CSC) No. 27542). The Agreement was subsequently renewed on November 15, 2007
to extend the term of the Agreement through September 30, 2017. On March 22, 2017, the Agreement was
amended and renewed through September 30, 2027 (CSC No. 27542-A6). As part of the current
Agreement, the City of Fort Worth provides a utilities subsidy of approximately $185,000.00 annually to
RPI from the Public Events Department budget.
In the last few months, RPI has been in negotiations with the Fort Worth Heritage Development Co., (the
Majestic/Hickman Partnership) regarding the sale of the RPI assets based on the contingency that the City
would agree to the assignment of the current Agreement with a few changes. The Partnership has an
ongoing interest in making investments in Cowtown Coliseum to ensure that the future of the Coliseum
includes a broad variety of on-brand western entertainment and other programming designed to drive
incremental room nights to the Stockyards. As you are aware, significant investment is being made by the
Partnership in the redevelopment of the Mule Barns and a new four-star hotel.
The Partnership is asking that an amended Agreement with the City be entered into subject to Fort Worth
Terms/Changes:
• Assignment approval by the City Council occur no later than December 17, 2019;
• The current term of the lease be modified to fifteen (15) years with one (1), five (5) year option
to renew;
• The City will no longer be required to provide the annual subsidy;
• Licensee will pay to the City, in arrears, an annual payment equal to 20% of the net profits
generated from the operation of the Coliseum.
• Licensee will make capital improvements to the Coliseum, upon approval by the City, and the
City will participate on a 50150 partnership basis by utilizing net profits as the City
contribution. Licensee will provide the financing for the improvement.
• Licensee will submit an annual business, program and marketing plan for approval by the City.
• The existing non-compete requirement with the Dickies Arena will remain in effect.
• A modification of the licensed property to remove the former mounted patrol facility.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 10350
To the Mayor and Members of the City Council December 10, 2019
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SUBJECT: COWTOWN COLISEUM LICENSE AGREEMENT RESTATEMENT,
r VA AMENDMENT AND ASSIGNMENT
Based on the proposed changes and contingent on the proposed sale as outlined above, Staff will be placing
an item on the agenda for City Council action on December 17, 2019 to authorize the City Manager to
execute a Restatement, Amendment and Assignment of License Agreement for operations and maintenance
of the Cowtown Coliseum.
If you have any questions or concerns related to this effort, please contact Jay Chapa, Assistant City
Manager at 817-392-5804.
David Cooke
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS