HomeMy WebLinkAbout25C - AGMT - CHIVAS USAREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
SEPTEMBER 19, 2011
TITLE:
AGREEMENT TO NEGOTIATE WITH CHIVAS
USA ENTERPRISES REGARDING POTENTIAL
RELOCATION TO SANTA ANA
CITY MANAGER
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
APPROVED
? As Recommended
? As Amended
? Ordinance on Vt Reading
? Ordinance on 2nd Reading
? Implementing Resolution
? Set Public Hearing For_
CONTINUED TO
FILE NUMBER
Authorize the Mayor and City Council to execute the attached agreement authorizing the City to
enter into exclusive negotiations for a term of six months with Chivas USA Enterprises, regarding
Chivas' potential relocation to Santa Ana.
DISCUSSION
The City of Santa Ana and Chivas USA Enterprises LLC (Chivas) have informally discussed the
possibility of Chivas' relocation of the Chivas Major League Soccer (MLS) team, the Chivas MLS
Reserve Division Soccer team, and other Chivas programs to Santa Ana. Through these informal
discussions, the City and Chivas have identified the Willowick Golf Course as a potential site for
developing the Chivas facilities.
Entering into an exclusive negotiating agreement allows both the City and Chivas to focus on one
site for the potential relocation of the soccer enterprise. The negotiation would focus on the
economic viability of relocation, the obligations and responsibilities of each of the parties with
respect to the relocation, and existing conditions that may affect relocation. Additionally, the
negotiations should result in a broad timeline of milestones that must be addressed in order to
develop the Chivas facilities in Santa Ana. Successful negotiations would result in a future
agreement setting forth the terms and conditions relating to the relocation of the Chivas soccer
enterprise, including the timelines and milestones.
The relocation of Chivas would bring a professional level soccer enterprise to the City of Santa
Ana. Currently there are no professional soccer facilities in Orange County.
FISCAL IMPACT
There is no fiscal impact associated with this Agreement
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AGREEMENT FOR EXCLUSIVE NEGOTIATING RIGHTS
BY AND AMONG
THE CITY OF SANTA ANA AND CHIVAS USA ENTERPRISES LLC
WHEREAS, the City of Santa Ana and Chivas USA Enterprises LLC (Chivas) desire to explore
the potential relocation to Santa Ana of the Chivas Major League Soccer (MLS) team, the
Chivas MLS Reserve Division Soccer team, and other Chivas programs; and
WHEREAS, in addition to its franchise in Major League Soccer and its Chivas MLS Reserve
Division Soccer team, Chivas USA also produces exciting and innovating programs such as the
Chivas USA Futbol Academies and other soccer education initiatives; the ChivaTown Fan Zone,
the ChivaGirls dance team and other aspects of Chivas USA's uniquely passionate game day
experience; and the Fundacion Chivas de Corazon USA 501(c)(3)non-profit organization, as
well as other community outreach programs and initiatives; and
WHEREAS, the City of Santa Ana and Chivas USA wish to seriously explore a possible
agreement to develop a new stadium and other ancillary development on a portion of the
approximately 101.5-acre Willowick Golf Course site (Golf Course Site) located within the
boundaries of the City of Santa Ana. The Golf Course Site is located within the boundaries of
the City of Santa Ana, but the site is owned by the City of Garden Grove. The Golf Course Site
is currently subject to a ground lease with Donovan Golf Course Management, Inc. that
terminates on December 31, 2020. The ground lease includes a provision that allows the City
of Garden Grove to buy out the remaining lease term at any time based upon a defined
valuation formula.
NOW, THEREFORE, IT IS AGREED, by and between the City of Santa Ana, a charter city and
municipal corporation duly organized and existing under the Constitution and laws of the State
of California and Chivas USA Enterprises LLC, a Delaware limited liability company, as follows:
FOR A PERIOD of six (6) months commencing as of the date of execution of this Agreement by
an authorized representative of Chivas USA, the City of Santa Ana agrees that it will not enter
into or continue negotiations or discussions of any nature with any other professional sports
entity besides Chivas USA for relocation of that sports entity's operations to the City of Santa
Ana.
Conversely, for that same six (6) month period as referenced above, Chivas USA agrees that it
will not enter into or continue any previous or ongoing negotiations or discussions with any other
city, county or municipal entity, or any other public or private business or entity of any kind, in
any way regarding the relocation of its Major League Soccer team, its MLS Reserve Division
Soccer team, and other Chivas programs from their current locations and facilities.
During said six month period, the parties intend that their representatives will broadly discuss
and explore the potential relocation of the Chivas USA Major League Soccer team and its
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related entities to a professional level soccer stadium and supporting facilities at the Willowick
Golf Course site. These discussions will necessarily include joint discussions between the
Parties hereto and representatives of the City of Garden Gove as the owners of the Golf Course
Site and the Lessor on the lease with Donovan Golf Course Management, Inc.
The representative for City shall be the Mayor or his designee. The representative for Chivas
shall be (name or title), or his/her designee.
Both parties hereto agree that this Agreement is entered into in the City of Santa Ana,
California, and shall be governed by the laws of the state of California.
Further, both parties acknowledge and agree that no party hereto shall have any expectations
that any subsequent agreement between the parties as to actual relocation of the Chivas USA
Major Soccer League team and its related entities to the City of Santa Ana and/or development
of the Willowick Golf Course site as a soccer stadium will be entered into nor that any
entitlements or permits will be granted by the City related thereto.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement the date and year
first above written.
CITY OF SANTA ANA
ATTEST:
MARIA D. HUIZAR
Clerk of the Council
APPROVED AS TO FORM:
JOSEPH STRAKA
Interim City Attorney
MIGUEL PULIDO
Mayor
CHIVAS USA ENTERPRISES LLC
RECOMMENDED FOR APPROVAL:
GERARDO MOUET
Executive Director
Parks, Recreation & Community
Services Agency
(NAME)
(Title)
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