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25C - AGMT - CHIVAS USA
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25C - AGMT - CHIVAS USA
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Last modified
1/3/2012 3:40:14 PM
Creation date
9/15/2011 4:01:21 PM
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City Clerk
Doc Type
Agenda Packet
Agency
City Manager's Office
Item #
25C
Date
9/19/2011
Destruction Year
2016
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AGREEMENT FOR EXCLUSIVE NEGOTIATING RIGHTS <br />BY AND AMONG <br />THE CITY OF SANTA ANA AND CHIVAS USA ENTERPRISES LLC <br />WHEREAS, the City of Santa Ana and Chivas USA Enterprises LLC (Chivas) desire to explore <br />the potential relocation to Santa Ana of the Chivas Major League Soccer (MLS) team, the <br />Chivas MLS Reserve Division Soccer team, and other Chivas programs; and <br />WHEREAS, in addition to its franchise in Major League Soccer and its Chivas MLS Reserve <br />Division Soccer team, Chivas USA also produces exciting and innovating programs such as the <br />Chivas USA Futbol Academies and other soccer education initiatives; the ChivaTown Fan Zone, <br />the ChivaGirls dance team and other aspects of Chivas USA's uniquely passionate game day <br />experience; and the Fundacion Chivas de Corazon USA 501(c)(3)non-profit organization, as <br />well as other community outreach programs and initiatives; and <br />WHEREAS, the City of Santa Ana and Chivas USA wish to seriously explore a possible <br />agreement to develop a new stadium and other ancillary development on a portion of the <br />approximately 101.5-acre Willowick Golf Course site (Golf Course Site) located within the <br />boundaries of the City of Santa Ana. The Golf Course Site is located within the boundaries of <br />the City of Santa Ana, but the site is owned by the City of Garden Grove. The Golf Course Site <br />is currently subject to a ground lease with Donovan Golf Course Management, Inc. that <br />terminates on December 31, 2020. The ground lease includes a provision that allows the City <br />of Garden Grove to buy out the remaining lease term at any time based upon a defined <br />valuation formula. <br />NOW, THEREFORE, IT IS AGREED, by and between the City of Santa Ana, a charter city and <br />municipal corporation duly organized and existing under the Constitution and laws of the State <br />of California and Chivas USA Enterprises LLC, a Delaware limited liability company, as follows: <br />FOR A PERIOD of six (6) months commencing as of the date of execution of this Agreement by <br />an authorized representative of Chivas USA, the City of Santa Ana agrees that it will not enter <br />into or continue negotiations or discussions of any nature with any other professional sports <br />entity besides Chivas USA for relocation of that sports entity's operations to the City of Santa <br />Ana. <br />Conversely, for that same six (6) month period as referenced above, Chivas USA agrees that it <br />will not enter into or continue any previous or ongoing negotiations or discussions with any other <br />city, county or municipal entity, or any other public or private business or entity of any kind, in <br />any way regarding the relocation of its Major League Soccer team, its MLS Reserve Division <br />Soccer team, and other Chivas programs from their current locations and facilities. <br />During said six month period, the parties intend that their representatives will broadly discuss <br />and explore the potential relocation of the Chivas USA Major League Soccer team and its <br />25C-3
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