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HomeMy WebLinkAbout10/1/2003 - STAFF REPORTS (10) FOURTH AMENDMENT TO MANAGEMENT AGREEMENT This Fourth Amendment to Management Agreement ("Fourth Amendment") is made effective as of September 2003,by and between SMG, a Pennsylvania general partnership, ("Manager") and the City of Palm Springs, a California municipal corporation ("City"). RECITALS: 1. On or about April 1, 1992,Manager's predecessor in interest, Leisure Management International, and the City entered into a management agreement for the Palm Springs Convention Center ("Management Agreement"). 2. On or about August 1, 1994, the parties entered into the"First Amendment to the Management Agreement" ("First Amendment"), whereby the parties agreed to extend the initial term of the Management Agreement to July 31, 1999. 3. On or about April 15, 1998, the parties entered into the "Second Amendment to Management Agreement" ("Second Amendment"),whereby the parties agreed to an amendment extending the tern of the agreement beyond that set out in the First Amendment and through to June 30, 2003, and amended and further defined the duties of the parties in the management, operation, promotion, and marketing of the "Facility." 4. On or about June 18, 2003 (City Council approval), the parties entered into that certain Third Amendment to Management Agreement ("Third Amendment"), whereby the parties extended the agreement to September 30, 2003 to allow the parties to negotiate a new and restated agreement which shall supercede the Management Agreement. 5. The parties are currently negotiating the new agreement in good faith. Due to the complexity of the issues involved,the parties will nevertheless need to extend the existing agreement for a period of sixty (60) days as the parties anticipate that a new and restated agreement will not be prepared and ready for action until the end of November. 6. Accordingly, until the new and restated agreement is in place,the parties desire to amend the Management Agreement to extend the term for a period of sixty (60) days. NOW, THEREFORE,for good and valuable consideration, the sufficiency of which is hereby acknowledged, the parties hereto agree as follows: Doe.#720702v.2 1. Term. The term of the Management Agreement is extended for sixty (60) days to November 30, 2003 or until it has been superceded by the amended and restated agreement. 2. Full Force and Effect. Except as set forth herein,every provision of the Management Agreement and all amendments thereto, shall remain unmodified and in full force and effect for the direction of the term as revised herein. IN WITNESS WHEREOF, the parties have executed and entered into this Fourth Amendment as of the date first written above. CITY OF PALM SPRINGS, a municipal corporation . By: City Manager ATTEST: SMG, a Pennsylvania general partnership By: City Clerk Name Title APPROVED AS TO FORM: City Attorney [END OF SIGNATURES] Je Doe,#720702v.2 MINUTE ORDER NO. APPROVING THE FOURTH AMENDMENT TO MANAGEMENT AGREEMENT BETWEEN THE CITY OF PALM SPRINGS AND SMG WHICH EXTENDS THE EXISTING AGREEMENT FOR SIXTY DAYS TO NOVEMBER 30,2003, OR UNTIL IT HAS BEEN SUPERCEDED BY THE AMENDED AND RESTATED AGREEMENT I HEREBY CERTIFY that this Minute Order Approving the Fourth Amendment to Management Agreement between the City of Palm Springs and SMG which extends the existing agreement for sixty (60) days to November 30, 2003, or until it has been superceded by the amended and restated agreement was adopted by the City Council of the City of Palm Springs, California in a meeting thereof held on the day of 2003. Patricia A. Sanders City Clerk 75