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HomeMy WebLinkAboutAD07-010 - Original - Amiga, Inc. - Letter of Intent: Naming Rights Agreement - 04/17/2007 ' Records Man-&-a- geme-n- - t,,,,,�., TWA=„,„G,o„ Document CONTRACT COVER SHEET This is to be completed by the Contract Manager prior to submission to City Clerks Office. All portions are to be completed, if you have questions, please contact City Clerks Office. Vendor Name: AA/ GFI Vendor Number: JD Edwards Number Contract Number. POO- o /0 This is assigned by Clerk's Office Description: 0& - ' Detail: Project Name: Contract Effective Date: /-�7�� / Termination Date: Contract Renewal Notice (Days): Number of days required notice for termination or renewal or amendment Contract Manager: Department: Abstract: AgA",q-Ar S Public\RecordsManagement\forms\ContractCover\ADCL7832 07/02 LETTER OF INTENT—NAMING RIGHTS AGREEMENT AMIGA CENTER at KENT THIS LETTER OF INTENT is entered into among the City of Kent, a Washington municipal cor oration, Amiga, Inc., and Thunderbird Hockey Enterprises, L.L.C. 1. On or about February 24, 2007, Amiga and the Team entered into a Naming Rights Deal Memorandum, an unsigned copy of which is attached as Exhibit A. This Memorandum contemplates various rights and obligations affecting all the parties related the naming rights to be attached to the development and construction of an approximately 6025 seat events center in Kent. Kent was not a party to this Memorandum. 2. Subsequent to the two parties executing this Memorandum, Amiga and the Team negotiated the naming rights terms with Kent. The payment schedule in the Memorandum was adjusted to a $2,500,000 initial payment to be followed by 15 annual payments of $500,000, with no payments to be made for the last five years of naming rights for the events center. 3. The parties have been negotiating in good faith to finalize and execute a naming rights agreement, but due to time constraints have not been able to finalize all terms of that agreement. 4. The parties will publicly announce the Team and the City's naming rights partner, Amiga, at a special event to be held today, April 17, 2007. Accordingly, all parties agree, in principle, to the terms, rights and obligations established in the attached Memorandum, including all rights and obligations referenced that would inure to the City, subject to negotiation and execution of a final naming rights agreement. 5. This Letter of Intent will take effect Tuesday, April 17, 2007. A , INC. THUNDERBIRDS HOCKEY ENTERPRISES, L.L.C. i��� BY B1KNT, � BY C Ca pbell ITS ITS DATE DATE CITY WASHINGTON 7Cef Ho gsqq I S Ad hest t Officer lDA —�-rIT � ,. _S_EA 4 Naming Rights Deal Memorandum Amiga, Inc and Thunderbird Hockey Enterprises, LLC, agree that a naming rights agreement by and among Amiga, Thunderbird Hockey Enterprises and the City of Kent for the planned events center in the City of Kent, will include the following terms and deal points: 1) Event Center to be named—AMIGA CENTER AT KENT 2) Locations for signs with the name of the Center would include: a. Front of the Center at the Main Entrance and on the side facing Highway 167 b. Possible placement on the roof c Any Marquee that may or may not be put in Front of the center d. City signs giving direction to the Center e. Elements inside the Center i. Name on the Score Clock ii. Name under the Ice iii. Name on the Zamboni's 3) Amiga will be given use of a Suite in the Center for the term of the agreement 4) Term and Payment: 20 year agreement beginning when the Center opens in 2008 and running through 2027. Payment schedule - $5,000,000 00 up front, annual Payments of$500,000.00 would be due the first of October,beginning in 2008 and running through 2017, according to the following schedule: Up front payment: $ 5,000,000.00 1 2008 $ 500,000 00 Oct 1,2008 2 2009 $ 500,000 00 Oct 1,2009 3 2010 $ 500,000 00 Oct 1,2010 4 2011 $ 500,000 00 Oct 1,2011 5 2012 $ 500,000 00 Oct 1,2012 6 2013 $ 500,000 00 Oct 1,2013 7 2014 $ 500,000 00 Oct 1,2014 8 2015 $ 500,000 00 Oct 1,2015 9 2016 $ 500,000 00 Oct. 1,2016 10 2017 $ 500,000 00 Oct. 1,2017 11 2018 Oct 1,2018 12 2019 Oct 1,2019 13 2020 Oct 1,2020 14 2021 Oct 1,2021 15 2022 Oct 1,2022 16 2023 Oct 1,2023 17 2024 Oct. 1,2024 18 2025 Oct 1,2025 19 2026 Oct 1,2026 20 2027 Oct 1,2027 TOTAL $10,000,00000 EXHIBIT 5) Each party is able to use the other's logos for signage, souvenirs, etc with respect to promoting the Event Center: Amiga License to the City and the Thunderbirds City and Thunderbird License to Amiga 6) Right of First Refusal to Extend: Amiga has Right of First Refusal to extend the agreement. 7) Option to Change Center Mark: Amiga may change center mark with approval from the City and subject to any exclusivity deals that may be in place. Change of all signage would be at the expense of Amiga. Agreed to By: Agreed to By: Bill McEwen Date Colin Campbell Date Amiga, Inc. Thunderbird Hockey Enterprises, LLC Naming Rights Deal Memorandum 2