(Rev.

12-5-2016 #3)
Facility Use and Development Agreement
(Reno Events Center)
Draft Discussion Term Sheet
This is a non-binding draft of possible terms of a management and operating agreement prepared
for discussion purposes only. It is not a binding offer and no party is bound by or obligated to
offer, accept or bargain in good faith toward or even include any of the possibilities discussed
herein in a final definitive agreement if one is reached. Possible terms must be reviewed and
approved by bond counsel for the City for compliance with tax laws and bond covenants, and
must be reviewed and approved by counsel for both parties. No party may rely on any promises
or statements (or any implications thereof) made herein or during discussions hereof.
1

Facility

Reno Events Center, 400 North Center Street

Parties

Term

City City of Reno, owner of Facility

Lessee Entity to be formed to lease the Center
RPC Reno Puck Club, as owner of hockey team.
Until July 1, 2027.

Due Diligence
& Conditions
Precedent

a. Due Diligence period until May 30, 2017, with agreed upon sequence,
schedule and obligations to negotiate in good faith.
b. Plans & Specs for Ice Rink Improvements must be approved and
Lessee must obtain letter of credit commitment by May 30, 2017.
c. RPC must procure a hockey team and ECHL license by May 30, 2017.
d. RSCVA must agree (in separate agreement) to continue $500,000
annual subsidy for 5 years.
e. Tax opinion by bond counsel that 2013 refunding bonds remain tax
exempt under this arrangement.
f. Lessee must demonstrate project financial feasibility.
g. All legal requirements for entering into agreement have been met.

Lease &
Development
Agreement

a. City and Lessee enter into an exclusive use triple net lease for ten
years, commencing July 1, 2017. Nominal lease payments.
b. Lessee has full charge of Facility, including marketing, scheduling,
operations, vendors, insurance, signs and scoreboards, maintenance
and security. Some restrictions (compliance with laws, lease bidding
requirements, etc).
c. Lessee retains all revenues and pays all operating expenses.
d. City responsible for capital improvements (To be defined)* which
must be approved before the expense is incurred.
e. Hockey team to be a sublessee with 10 year non-relocation agreement.
f. Lessee must post operational security (letter of credit, bond etc) of
$500,000

6.

Construction
of Ice Rink
Improvements

a. Ice Rink Improvements described in Attachment A. Lessee to design

with City approval.
b. Lessee to post letter of credit for construction costs.
c. City to competitively bid and administer construction as a public work
under NRS Chapter 338.

Financing and
Payment by
City for Ice
Rink
Improvements.

a. Fixed Amount of RSCVA and City contributions is $5,000,000

b. RSCVA to contribute $500,000 per year from 2017 2021 based on
operating agreement with City.
c. City to consider appropriating $500,000 each year from $2 Capital
Projects Surcharge Fund from 2022 2027* to help pay for the ice
rink capital improvements.
d. No general obligation of City.

Conditions and
Limitations

a. Marketing and Development Plan must be approved by City and

Lessee. Annual reports to City Council required.
b. Lessee has exclusive naming rights, subject to reasonable City
approval and cannot extend beyond July 1, 2028; and advertising
rights which must be appropriate for public building.
c. Existing obligations & bookings made by RSCVA must be honored.
d. Must maintain tax exempt status for bonds. Manager must keep
accounting records and if payments exceed payment test, parties must
renegotiate or terminate deal.
e. City entitled to free use of Facility for 6 public events, provided that
City pays reasonable overhead costs and Ice Rink rent.

9.

Contract Form

Will include provisions regarding contract assignments, performance

standards, default and remedies; representations and warranties; capital
improvements; mutual indemnifications; insurance requirements.

(* subject to non-appropriation clause required by NRS 354.626)