BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IRVING, TEXAS: SECTION I. THAT the City Council hereby approves the attached agreement between the City of Irving and Kansas City Explorers, Inc. for marketing services and economic incentives in connection with World Team Tennis matches in an amount not to exceed $400,000.00, and the Mayor is authorized to execute the agreement. SECTION II. THAT this expenditure shall be charged to Account No. 1020-2906-561501-100. SECTION III. THAT this resolution shall take effect from and after its final date of passage, and it is accordingly so ordered. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF IRVING, TEXAS, on January 10, 2013. ________________________________ BETH VAN DUYNE MAYOR ATTEST: _______________________________ Shanae Jennings Acting City Secretary APPROVED AS TO FORM: _______________________________ Charles R. Anderson City Attorney 17 Packet Pg. 234 World Team Tennis Incentive Agreement v.7; 1_2_13 MARKETING AGREEMENT STATE OF TEXAS COUNTY OF DALLAS CTY OF RVNG This Marketing Agreement (Agreement), is entered into on the ___ day of January, 2013, by and between the CTY OF RVNG, TEXAS (the "City), a home rule City and municipal corporation of Dallas County, Texas, and the Kansas City Explorers, nc. a Missouri benevolent corporation (the "Team), acting by and through its authorized officers, for the purposes and considerations stated below: WHEREAS, the City has adopted a Compre hensive Policy Statement on Local Economic Development and Business Stimulation ncentives (Policy Statement), by the passage of Ordinance No. 9137 on the 3rd day of December, 2009; and WHEREAS, the Policy Statement constitutes appropriate guidelines and criteria governing economic incentive agreements and marketing agreements to be entered into by the City as contemplated by Chapter 380, Texas Local Government Code (the "Code); and WHEREAS, the City desires to enter into an Agreement with Team for econ omic incentives and marketing pursuant to Chapter 380 of the Code; and WHEREAS, the contemplated use of the Premises, and the other terms hereof are consistent with encouraging development and diversification of the economy of the state, retention of employees by this major corporate citizen and are in compliance with the Policy Statement and similar guidelines and criteria adopted by the City and all applicable law; and WHEREAS, in order to maintain and enhance the commercial and industrial economic and employment base of the City of rving, the City Council finds that it is in the best interest of the taxpayers for the City to enter into this Agreement; NOW, THEREFORE, the City and Team for and in consideration of the mutual covenants and promises contained herein, do hereby contract, covenant and agree as follows: I. MARKETING INCENTIVE A. TEAM Obligations. n consideration of the City entering into this Agreement providing for the payment of funds constituting a grant, Team agrees to: 1. Provide proof of entering into an agreement with the Four Seasons Hotel (the "Hotel) to host at least seven home professional tennis matches in 2013 (and one additional exhibition match) (collectively called the "Tennis Matches) at 4150 N. MacArthur Boulevard, rvin g, Texas 75038 (the Premises) no later than February 28, 2013. 17.a Packet Pg. 235 A t t a c h m e n t :
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T e n n i s ) World Team Tennis Incentive Agreement v.7; 1_2_13 2. Provide proof, no later than February 28, 2013, of W orld Team Tennis League (the "League) consent to conduct the Tennis Matches in 2013 at the Premises. 3. Conduct the Tennis Matches at the Premises between July 1, 2013 and September 1, 2013, each with an anticipated paid attendance of 1800. 4. During the 2013 season, the Tennis Matches shall include: a. The team agrees to host two to three home matches featuring marquee players. ("Marquee players is defined as current or former players ranked in the top 50 by either the Association of Tennis Professionals ATP Tour or the W omen's Tennis Association W TA Tour in either the single or doubles individual category . i.e. Bryan brothers, Venus W illiams, Serena Williams, Andy Roddick, Andre Agassi.) b. One nationally televised match (league produced) to air across a group of networks on national and regional cable, including one of the following: Tennis Channel, Comcast Sports Net, MSG and Fox Sport s Net systems. The nationally televised match will also be rebroadcasted internationally on 5 continents. City will receive one 30 second advertising spot during the broadcast. City will provide talking points so that the sports commentators will have cont ent to promote City during contest. City agrees to provide a high ranking official to be interviewed during the broadcast. Sister City will be recognized during the broadcast. c. One to two televised home Tennis Matches (Team produced) to air on regional cable or network described in (b). The City will be provided three 30 second TV spots per match to be used by City for promotions. n addition, Sister City will be recognized during the broadcast of the local Tennis Matches. d. Two (2) PA announcements per home match with tagline. e. Two (2) courtside signs and one (1) grandstand sign at all home matches f. One baseline camera-view banner sign located on TV end of shot to be seen at all televised matches g. Two (2) full -page color ads (including inside cover) in the team's official program, which will be sold at all home matches and used in marketing material. City will receive 500 copies of the 8,000 printed. h. A display booth at all matches for City marketing purposes. i. Twenty-six (26) complimentary box seat tickets to all home matches j. City Officials may be invited to participate in events surrounding home matches, such as: coin toss, on-court halftime interviews, etc. 17.a Packet Pg. 236 A t t a c h m e n t :
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T e n n i s ) World Team Tennis Incentive Agreement v.7; 1_2_13 5. Provide media outreach and coverage that includes: a. Press conference featuring League Commissioner announcing the Team's move to rving b. Thirty complimentary tickets to sponsor receptions featuring players, coaches, media and sponsors c. Team agrees to work with a professional public relations firm to maximize the opportunities available to both the Team and the City. 6. Conduct community outreach featuring Quick Start program for 200 rving children, in cooperation with City recreational programs. Each participant will receive a complimentary tennis racquet. 7. Use Premises at all times in a manner that is consistent with City zoning ordinances and applicable law. 8. For taxation and residency purposes, locate all business personal property in rving, Texas and remain current on all taxes of property owned by Team in the City of rving for the term of this Agreement. 9. Use the words "rving, Texas or "rving, TX when printing an address on literature, all stationery, business cards, or other printed or electronic material s which identify the Tennis Events and Premises. a. the new Team logo to include the name "rving b. City of rving will be tagged in all print advertising, and other advertising where applicable. c. rving logo to be included on the Team's website, with direct link to City website. 10. Covenant and certify that Team does not and will not knowingly employ an undocumented worker as that term is defined by Section 2264.01(4) of the Texas Government Code. n accordance with Section 2264.052 of the Texas Government Code, if Team is convicted of a violation under 8 U.S.D. Section 1324a(f), Team shall repay to the City the full amount of the Grant made under this Agreement, plus ten percent (10%) per annum from the date the Grant was made. Repayment shall be paid within one hundred twenty (120) days after the date Team receives notice of violation from the City. 11. Remit to the City a sum equal to the Grant made under this Agreement, plus interest at five percent (5%) per annum from the date Grant was made, s hould Team breach this Agreement or fail to comply with any material term of this Agreement, following thirty (30) days written notice from City to come into compliance. 17.a Packet Pg. 237 A t t a c h m e n t :
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T e n n i s ) World Team Tennis Incentive Agreement v.7; 1_2_13 B. City Grant. Upon compliance wi th all terms and provisions of the Marketing ncentive of this Agreement, City shall provide Team from lawfully available funds a Grant not to exceed $250,000; payable as follows: $150,000 upon execution of this Agreement and the Team's certification verifying performance of Team Obligations A.1 and A.2; $50,000 June 1, 2013; and $50,000 upon the Team's certification verifying performance of Team Obligations A.4 and A.6 no later than August 15, 2013. II. PREMISES INCENTIVE A. TEAM Obligations. n consider ation of the City entering into this Agreement providing for the payment of funds constituting a grant, Team agrees to: 1. Provide proof of entering into an agreement with the Four Seasons Hotel (the "Hotel) to host at least seven home professional tenni s matches in 2013 (and one additional exhibition match) (collectively called the "Tennis Matches) at 4150 N. MacArthur Boulevard, rving, Texas 75038 (the Premises) no later than February 28, 2013. 2. Provide proof, no later than February 28, 2013, of W orld Team Tennis League (the "League) consent to conduct the Tennis Matches in 2013 at the Premises. 3. Resurface and maintain the center court tennis court at the Premises to a level acceptable to conducting the Tennis Matches. 4. Provide stadium seating and lighting suitable for the Tennis Matches. 5. Use Premises at all times in a manner that is consistent with City zoning ordinances and applicable law. 6. Remit to the City a sum equal to the Grant made under this Agreement, plus interest at five perc ent (5%) per annum from the date Grant was made, should Team breach this Agreement or fail to comply with any material term of this Agreement, following thirty (30) days written notice from City to come into compliance. B. City Grant. Upon compliance with all terms and provisions of the Premises ncentive of this Agreement, and upon providing invoices of actual costs for completing items A.3 and A.4, City shall provide Team from lawfully available funds a Grant not to exceed $150,000 for the actual costs of completing items A.3 and A.4 of this Premises ncentive. This Premises ncentive is wholly separate and in addition to the Marketing ncentive. III. TERM This Agreement shall become effective upon execution by both parties , and remain in effect until December 31, 2013. n the event this Agreement is not fully executed by February 28, 2013, this Agreement shall be of no force or effect. 17.a Packet Pg. 238 A t t a c h m e n t :
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T e n n i s ) World Team Tennis Incentive Agreement v.7; 1_2_13 IV. RECORDS AND AUDITS Throughout the term of this Agreement, the City or its agents shall have reasonable access to the Premises (upon prior reasonable notice to Team) for the purpose of verifying Team's compliance with the conditions of this Agreement; provided that Team shall have the right to accompany City employees for any such verification and keeping in mind the privacy and security interest of Team and its employees. V. BREACH f Team fails to comply with the terms of this Agreement, or in the event that (i) Team allows its ad valorem taxes with respect to real or personal property owed the City to become delinq uent and fails to timely and properly follow the legal procedures for protest and/or contest of any such ad valorem taxes, or (ii) Team breaches any of the material terms or conditions of this Agreement, then Team shall be in default of this Agreement. n the event that Team defaults in its performance of (i) or (ii), the City shall give Team written notice of such default and if Team has not cured such default within thirty (30) days of said written notice, or, if such default cannot be cured by the payme nt of money or posting of a bond or other collateral reasonably acceptable to the City, and cannot with due diligence be cured within such thirty (30) day period owing to causes beyond the control of Team, this Agreement may be terminated by the City. Provided, however, that if such default is not reasonably susceptible of cure within such thirty (30) day period and Team has commenced and is pursuing the cure of same, then after first advising the City Council of Team efforts to cure same, Team may utilize an additional thirty (30) days. Time, in addition to the foregoing sixty (60) days may be authorized by the City Council. During the term of this Agreement, as City's sole and exclusive remedy for any material breach by Team under this Agreement, in the event of default after the expiration of the applicable notice and cure periods, Team shall repay the City as liquidated damages all previous payments made by the City to Team pursuant to this Agreement and 5% interest per annum from the date of such paym ent. Such amount shall be due, owing, and paid to the City by Team within sixty (60) days of the expiration of the above -mentioned applicable curing period. The parties acknowledge that actual damages in the event of default and termination would be speculative and difficult to determine. f during the term no grant payment has been made to Team, as City's sole and exclusive remedy for any material breach under this Agreement, after the expiration of the applicable notice and cure periods, the City may c ancel the Agreement and no payments shall be due to Team. VI. EFFECT OF SALE, ASSIGNMENT OR LEASE OF PROPERTY This Agreement and the economic incentives are not assignable by Team to any entity other than an affiliated company or successor without approval of the City Council. n the event of assignment to an affiliated company or successor, Team must confirm such assignment in writing to the City, and the successor must confirm its intent to be bound by this Agreement and to assume all responsibilities of Team within 90 days of such assignment. n the event of failure to confirm assignment to an affiliate or successor hereunder, then no Grant shall be paid until such assignment is approved by the City Council. 17.a Packet Pg. 239 A t t a c h m e n t :
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T e n n i s ) World Team Tennis Incentive Agreement v.7; 1_2_13 VII. NOTICE All notices called for or required by this Agreement shall be addressed to the following, or such other party or address as either party designates in writing, by certified mail, postage prepaid or by hand delivery: KANSAS CTY EXPLORERS, NC. PO Box 6545 Lees Summit, MO 64064 Attention: Jeff Launius GM-Co-owner CTY OF RVNG, TEXAS 825 W. rving Boulevard rving, Texas 75060 Attention: City Secretary
VIII. CITY COUNCIL AUTHORIZATION This Agreement was authorized by resolution of the City Council that was approved by the affirmative vote of a majority of the City Council at its regularly scheduled City Council meeting on the 10th day of January, 2013, authorizing the Mayor to execute this Agreement on behalf of the City. IX. BOARD OF DIRECTORS AUTHORIZATION This Agreement was entered into by an authorized representative of Team pursuant to authority granted by its respective Board of Directors through formal delegations. X. SEVERABILITY n the event any section, subsection, paragraph, sentence, phrase or word is held invalid, illegal, or unconstitutional, the balance of this Agreement shall stand, shall be enforceable and shall be read as if the parties intended at all times to delete said invalid section, subsection, paragraph, sentence, phrase or word. XI. APPLICABLE LAW This Agreement shall be construed under the laws of the State of Texas. Venue for any action under this Agreement shall be the State District Court of Dallas County, Texas. This Agreement is performable in Dallas County, Texas. XII. ENTIRE AGREEMENT This Agreement constitutes the entire economic incentive and marketing agreement between the parties, supersedes any prior understanding or written or oral agreements or 17.a Packet Pg. 240 A t t a c h m e n t :
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T e n n i s ) World Team Tennis Incentive Agreement v.7; 1_2_13 representations between the parties, and can be modified only by written instrument subscribed to by both parties. This Agreement may be executed in multiple counterparts, each of which shall be considered an original. CTY OF RVNG, TEXAS By: ____________________________ Beth Van Duyne, Mayor Date of execution: January ____, 2013 Attest: __________________________ Shanae Jennings Acting City Secretary Approved as to form: __________________________ Charles R. Anderson City Attorney 17.a Packet Pg. 241 A t t a c h m e n t :
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T e n n i s ) World Team Tennis Incentive Agreement v.7; 1_2_13 KANSAS CTY EXPLORERS, NC By: _______________________ Name: _____________________ Title: _______________________ Date of execution: ___________________, 2013 CORPORATE ACKNOWLEDGEMENT THE STATE OF _______
COUNTY OF _________ BEFORE ME, the undersigned authority, a Notary Public in and for said County and State, on this day personally appeared __________________________, ___________________________ of Kansas City Explorers , nc. known to me to be the person and officer whose name is subscribed to the foregoing instrument and acknowledged to me he/she executed the same as a duly authorized officer of such corporation, and as the act and deed of such corporation, for the purp oses and consideration therein expressed, and in the capacity therein stated. GVEN UNDER MY HAND AND SEAL OF OFFCE this _____ day of _______________, A.D., 2013. _________________________________________ Notary Public _________________________________________ (Typed/Printed Name of Notary) My Commission Expires: ____________________ 17.a Packet Pg. 242 A t t a c h m e n t :