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Home My WebLink AboutIR 6948 1 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 6948 Vd'pTf AFO July \ DoE fORTyp To the Mayor and Members of the City Council Jul Y 3 1984 rEXPy Subject: LEASE AGREEM= — EXPOSITION AND FAT STOCK SHOW X073 Background The Southwestern Exposition and Fat Stock Shaw held its first show at the Will Rogers Memorial Center (WRMC) in 1948. Prior to that time, the event had been held at the Northside Coliseum. Records indicate that the rent paid to the City beginning in 1948 was $17,500 per year. In December of 1963, the City renewed its contract (City Secretary Con- tract No. 1947-Renewal) with the Stock Show for 23 years for the period beginning January 14, 1964 and terminating with the 1987 Stock Show. The lease called for usage of the entire WRMC for a 30 day period each year, except for the offices used by the City's staff. Other basic terms of the agreement included: 1. A base rental of $17,500 per year, payable on March 15 of each year. 2. The rent would cover the use of offices year round by the Stock Show. The Stock Shaw agreed to pay all utility, maintenance, operation and custodial costs involved in the use of its year round office space. 3. An additional rental fee of $7,500 would be paid annually and would be used for the maintenance and/or improvement of the WRMC buildings and grounds. 4. As further rental, the Stock Shaw agreed to construct a Banquet and Exhibits Hall at an estimated cost of $300,000 and convey the building to the City. 5. During the annual 30 day period, the Stock Show would have all concession rights. 6. The Stock Show agreed to pay all utility, maintenance and operation costs for the facilities it uses during the annual 30 day period. 7. The Stock Show agreed to restore the premises to as good a con- dition as they were prior to the annual event. 8. The City agreed not to lease the premises for a livestock exposition, rodeo, horse show or any other livestock event, without written consent of the Stock Show. ISSUED BY THE CITY MANAGER — FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 6948 - p.2 *°"FO DoE fORT�o To the Mayor and Members of the City Council July 3, 1984 � V �TEXAy Subject: LEASE AGREE= — SOUTHWESTERN EXPOSITION AND FAT STOCK SHOW e» Since 1948, the Stock Shwa has made many improvements at WRMC and con- veyed them to the City. According to their records, the total value of donated improvements from 1948 through 1982 is almost $2.4 million (see attached) . 1982-84 BOND PROGRAM During the preparation of the 1982-84 bond program, a new exhibits building at WRMC was included as a potential project. One of the con- siderations given to its inclusion was the willingness of the Stock Show to renegotiate its existing lease and pay a higher annual rental rate. During a series of meetings, beginning in December of 1981, members of the City Council, the City Manager's staff and Stock Show officials began working out the details that would be included in the new lease. They reviewed the sources and amount of revenues for the event. In addition, the expenses incurred by the Stock Show were examined, such as the cost of utilities, labor, and set up and restoration of the facilities after the Shaw. The decision was reached to increase the annual rental fee from $17,500 to $200,000 per year and increase the maintenance fee from $7,500 to $20,000 per year. The following terms were also negotiated: 1. The Stock Show would provide the funds required to do the architectural renderings for the new building. If the bond program passed, they would deduct these costs from the first year's rents. If it failed, they would absorb the total costs. 2. The City agreed to an accelerated construction schedule if the bond issue passed, so that the facility would be available for the 1984 Stock Shaw. 3. The Stock Shaw would be able to deduct the costs for design of their offices and those associated with temporary offices required during construction from the 1984 rental. 4. A new contract would be negotiated for a 20 year period begin- ning in 1984. The amount of the rental fee and payment to the maintenance fund would be renegotiated every five years. 5. The year round office space occupied by the Stock Show will be included in the base rental fee. They will continue to pay for utilities, maintenance and custodial services. ISSUED BY THE CITY MANAGER -- FORT WORTH, TEXAS -— INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 6948 - p. 3 �,,p T E pfO Jul 3 1984 ~pfE'ORl�A To the Mayor and Members of the City Council Y V 1..i S "TEXC,* LEASE AGREEMENT — EXPOSITION AND FAT STOCK SHOW Subject: �e Based on the agreement between the City and Stock Shaw officials on the above terms, the City Council voted to include $18,000,000 in the 1982- 84 bond program for construction of a new exhibits building at WRMC. Volunteers and City staff met with interested groups throughout the City to explain the proposition. On May 22, 1982, the voters approved all propositions in the bond program. The constrution contract for the exhibits building was awarded on November 23, 1982, to the Weitz Construction Company. Work began in February of 1983 after the close of the Stock Show and the schedule called for completion prior to the start of the 1984 Shaw. Contract Negotiations On March 16, 1983, the City Manager forwarded a letter to the President of the Stock Show, reaffirming the basic terms which were agreed to as a condition for construction of the new exhibits hall. A lease agreement was drafted by the City Attorney for review by all parties in August of 1983. There was agreement on all of the terms except one. The Stock Show wanted to retain the clause which required the City to obtain their written approval to hold any livestock events at WRMC. Because of con- C) cern about possible anti-trust violations, the City Attorney's office had deleted this section altogether. On December 20, 1983, a meeting was held to discuss this issue that included members of the Board of Directors of the Stock Show, the City Council, the City Manager's Office and the City Attorney. The City representatives agreed to a limited timeframe in which the Stock Show would be consulted on scheduled livestock events. A clause was added which stated that the City would obtain written approval from the Stock Show on livestock events scheduled from September 1 of each year prior to the Stock Shaw, through the last day of the annual 30 day period that the premises are used. The clause also required that approval would not be unreasonably withheld. Stock Show officials remained concerned about lack of control over the scheduling of certain livestock events between September 1 and the end of their annual Show, so negotiations continued. In March of 1984, a final ccnprcmise was reached in which the City agreed that in cases of a disagreement with the Public Events Director over the scheduling of an event, the Stock Show can appeal his decision to the City Council. The new lease agreement has been prepared that contain all of the terms and conditions which have been agreed to. The terms are retroactive to the 1984 Stock Show. ISSUED BY THE CITY MANAGER -- FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 6948 - Page 4 N T f AfO of fORTy To the Mayor and Members of the City Council Z5 rfx Subject: LEASE AGREEMENT — SOU'T'HWESTERN EXPOSITION AND FAT STOCK SHOW eT� * * * * * * * * * * If additional inforriation is desired, it will be supplied upon request. Robert L. Herchert City Manager RLH:jc Attachment ISSUED BY THE CITY MANAGER --- FORT WORTH, TEXAS