STRATEGIC PRIORITY: Government Performance and Financial Management
AGENDA DATE: April 14, 2021
COUNCIL DISTRICT(S):|910|DEPARTMENT: Department of Convention and Event Services
EXECUTIVE: Joey Zapata
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SUBJECT
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Authorize a second letter amendment to the Lease Agreement between the City of Dallas and the Arena Group to (1) grant a second deferment of the due date for the Fiscal Year (FY) 2021 rent payment in the amount of $3,400,000.00 for the American Airlines Center (AAC) from a date previously requested by the Center Operating Company, L.P. from April 30, 2021 to September 30, 2021 and approved by the City Council on October 13, 2020 by letter amendment to the Lease Agreement between the City of Dallas and the Arena Group; and (2) grant a one-time deferral of the due date for the FY 2022 rent payment in the amount of $3,400,000.00 for the AAC from October 1, 2021 until April 30, 2022 - Financing: This action has no cost consideration to the City (see Fiscal Information)
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BACKGROUND
Given the economic setbacks to both the tourism and sports/entertainment industries created by the onset of the COVID-19 pandemic, the Center Operating Company, L.P. (COC) requested the City of Dallas City Council's consideration of a deferment of the FY 2021 rent payment in the amount of $3,400,000.00 for the AAC to offset the significant loss in revenue experienced since March 2019. The City Council originally approved a deferment of the $3,400,000.00 rent payment due on October 1, 2020, until April 30, 2021, by Resolution No. 20-1519 on October 13, 2020, with the forecasted end of the pandemic assumed to be early spring 2021.
With the continued pandemic, collateral revenue loss has persisted and COC has requested further interim deferment relief. Convention and Event Services staff recommends an additional deferment of the previously approved October 1, 2020 rent deferment to September 30, 2021 an...
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