HomeMy WebLinkAbout1996-104 - Settlement Agreement with Missouri Gaming CompanyORDINANCE NO.~- ~ ~ I
AN ORDINANCE APPROVING AND AUTHORIZING THE EXECUTION
OF A SETTLEMENT AGREEMENT WITH MISSOURI GAMING
COMPANY ("ARGOSY") REGARDING LEASE PAYMENTS RELATING
TO THE LONGTERM LEASE CONTRACT ("LONGTERM LEASE")
UNDER WHICH ARGOSY IS LEASING CITY PROPERTY LOCATED
DIRECTLY NEXT TO THE ARGOSY PERMANENT GAMING SITE, AND
THE LEASE AGREEMENT UNDER WHICH ARGOSY IS LEASING
PROPERTY OWNED BY THE CITY AND USED BY ARGOSY AS ITS
TEMPORARY GAMING SITE ("TEMPORARY SITE LEASE").
WHEREAS, the City of Riverside ("City") and Argosy entered into the Long-Term Lease; and
WHEREAS, pursuant to Section SA of the Long-Term Lease, Argosy was to make monthly
payments of $10,000 per month until certain events occurred ("Initial Monthly Payments"); and
WHEREAS, the City and Argosy entered into the Temporary Site Lease pursuant to which
Argosy is to make monthly payments to the City in the amount of $33,333 during the term of the
Temporary Site Lease; and
and
WHEREAS, City claims that Argosy has underpaid the City under the Temporary Site Lease;
WHEREAS, the City and Argosy desire to compromise and settle this dispute pursuant to the
Settlement Agreement and addendum, copies of which are attached as Exhibits A and B;
BE IT ORDAINED BY THE BOARD OF ALDERMEN OF THE CITY OF RIVERSIDE,
MISSOURI AS FOLLOWS:
SECTION 1. The Settlement Agreement and Addendmn aze approved and the Mayor and
City Clerk aze authorized and directed to execute the Settlement Agreement and Addendum, in
substantially the form attached as Exhibits A and B, on behalf of the City.
SECTION 2. This Ordinance shall be in full force and effect from and after its passage and
approval.
ATTEST:
Grace Kemerling,
APPROVED AS TO FORM: ~~ ~~ I~"`~ ~
Stephen A. Crystal, City Attorney
PASSED AND APPROVED THIS ' ~ DAY OF SEPTEMBER, 1996.
6184747636 ARGOSY GAMING CO. 226 P03 SEP 17 '96 16:51
ADDENDUM TO SETTI.EIYIENT AG)REE11t1E1~'
TINS ADIIE,NDUM ist rruade as of September ~ 1996 h,~v~aeri the City of
Riverside, Missouri ("City"), and 114issouri Grarnitrg Company ("R.rgosy"), to the
settlement A,greernumt dated same date.
~ City and ~'$a63' aelrnawledge that the temporary site still regttirea
additional worlr an Argaey's tram to restore said site so far als practivas to it8 original
Condition.
B. City acid Argdtry speci~cBlly acknowledge that for the site ~ t~ s-eturreed to
its previous condition filet a!1 canopies retust be removed from site; the milted asphalt nwat
be taken off' site; and the area which was previously raisers Pot the road 1'or the temporary
srte moat be enuoothed out such that grass would grew on that area to pr~~wit a sigtdficartt
croaiaa problem.
C. The only improG~xmenta to be left on site by Argosy c:rar:ld be a small
portion of asphalt pA ~ ~~ s4atioh, and underground utilities.
NQW '><'aER.EFORE. the patties, in conaidciation of the covern~tlts and premises
set Forth herein, agree that this addendum shall amend the settlement agreerinent signed by
the Ctarties as tl clari8c8tion of the specific notions still required by Ar~asy to restate the
temporary park site to its previous existing canditian,
IT LS AG1AtElEb drat upon the curnpletion of the additional ward. by Argosy as
above stated by September 30, 199b, the lease premises wi11 be aocepteai ]xy than City out
the ha.Ris that all athcr ennditians of the temporary site lease have been sstis~ied.
1117:. "~l i Y ~~
ATTF,$T; ~'
Grace ICettterlirtg, sty Clerl~'' l~'dward Rule, Mayor
AppRQVI?t~ AS TO 1~OR11d: _
Stephen A. Crystal, City Attorney
"ARGOSY°
1VIIS50URI GAIMIING CdI~SPAIVY
ay: ••-~ d~.,.~.
Tine: ~'
R=97% 6184747636 09-17-96 06: OOPM P003 #36
6184747636 ARGOSY GAMING CO. 226 P04 SEP 17 '96 16:51
;3~I'l'LEMENT' AGrREEINiEP1'I'
'['Rl$ AGREE1bIFFdT is reads as of Soproatbar L 1996 ha?weCn the City of
IttvOralde, Mtseouri ("City°~ and M16sa11m Craming COmPNY ~"AMY")
A. The City and Arm entered into the Inng-term Cor~act dated Yuts~ 7, 1993 (Lrntg-
Term Leese") under which Araaoy is leasing City nropcrty lacaaafd directiv Haut to the Argosy
pormaneut gamliag site.
8. Parauant to Soctlan 5A of the L,nng-Term L.ea~c, Argosy rlas Co ms!:'~n manaay
paysaertts rrl'S30,000 PQ month until cutain cventa occurred ("Initial Monthly P~y.~~~:").
C. Ta date, Argtssy hes made initial Monthly Payments in the e~~regtate aeaptuft og
S2gQ000.
D. Argosy claims thet it has avtrpaid Ure City S1SS,000 is hritial Admtthly payuaa-ta
ntukr rho Lang-Term Leese but the City claims that the avtupaymwtt is Daly $90,Oi10 ("tJovtsrpayraent
Diaptste°).
~. 11ta City sad Argosy eotawd into the Lease Agreement under wlticll Argot:y ie loaairy3
property award by lho GiRy and ttsred by Argosy as its temporary gaming site ("Temporary Site l.case").
prrrsusat to which Arggay is W malco: aumthly paywents !a the City in the amount of 033,333 during the
term of the Temporary Site L.eaat:.
l:. Tlw City and Argun. eigrse tlwt Argosy owes Uu City S26a,Siq~$ (i~unugh Iseptearber
30, 3496) is mtmthly peytttaata ur~sr the Temporary site Lease ("Uuderpaymctrt"), rrs $ catnpanenl of
this aeglemnat agr'egtlent.
G. The City and Atgamy desire m cw-yrromise And settle the Qvc~^p~ynAtonl YSlsputo sqd
arrAnge foe' paymmet of dfe 1lAderpnymeat.
NOW '1'FiIvREFORE. the parties, is consideration of the covenants a~ttd prtawtlses set Earth
h~in, ttgroo v follows:
1 ,tit. The Uadespttya>tntt Dispute and Ovm~prytnent shall be camprnmieed and
acttlcd by Argosy'e payment ~' S14b,495.00 tp the City by September 17, 1996 r~precendng lease
paymcrtta owed to the City under the 'temporary Situ Lease and the I,ong•Terta Leases through
Septeimber 30, 1946; provided,ltawevzr, if tht Temporary Site Leese is in eilPect on Octofoer 1, 1996,
Argaay xltall continue to make paymurts of533,333 for each month ar portion tlrrrecrf during which the
Tetaparary Site'L,ease is io et3eet.
2. Waiver ofNotice. The Tanpersry Site Lease requires that Argosy Siwe tots City thirty
(3U) days Holies prior ro terms~ation of the Temporary SitC i.case ('Nodoe lteq„ie~emeru'~. >Lf the leased
pr'ea4ieai nttder the Temporary Site Luse ("Premiers") arc eocapmd by the City as eetlocted solely in
the Addendum to sdtleotatt egrnerrrertt, the City waiver the Nntice Requirement.
3. p ul )Etpact. Tbt: retnporary 5ita I.cata (arc~opt as sn~ fardt is paragraph Z
about:) and the Lotng-Term Lease Shall Caatinue is full force and et1•eet unless att9 until terminated
etocording to iq rgepaGtiva ton'ane.
g-gq/ 6184747636 09-17-96 06:OOPM P004 #36
6184747636 ARGOSY GAMING CO.
09/17fa8 'i'U8 OY:dl FAX
~'. At'goAy relcatlBA the City end agtra~ ~ ~-
defend sad bald hetmleea the C.lty et ~ time and from t#nae to tft»e ftc~ and Ott ~y a~
ail Claims, ~aauta, dematalt, caat8, exp~sae, d.mages, beset, ac~.iane sttdlor ^~• of ~iion
(including without fin, catttt cads ~d xaaaoneblo atdornays' fnrs~ v6iclt try be bought
pgainat or presented tlb r.~ty lu aonnnec~ w;th -1,A Qve~tpaytaent Ifiepuea. ~ rotgata~
A1C~1y aacl agtoen tO ~, drffgitd and hold l,armiless Augory at arty time sttd fx'em time
tq thne {7O11i and agsipAt ~ m!d 811 CI~Ao llllig~ danaada. CpgtB. CxpenaCa„ ~~ "~ ~~a. yne~s,
actress sndJar ceurea of saran (~dlag witlynut limlfiatiort, court coats ~ ;~aeaas4lt
aunaneYa' rhea) which n~yr 190 htaught r:,~inet ar prpgpated ~aiuet Aa~oty in end w"dh
tbo T.lndeepaynunt 1~Apntc. 'Y'4iu~ pe~a~+ine~a eluat! aarvivc tanniaatfoA o[ trie
L.OLAC and tfte I.at1g-'l`east Leate.
5. ,511~N9~..~.A11(~lld. `7i~la lbrt ~bril1 be billing upgn z~raaa fan Ilto
harupfit of kite parties and tribtr toApe~ve euooca9ars sed aapigna.
6. Zara Ageeem0t-t rn4q nut be altrz~ ax aeaeo~d
axoq~t by a wrleing steed by the pasty against almae e~t'ora0atgnt Of wch IatiOn ar
smcnds~nt is lpught. 'hie Agrepmcat t~stitet0e the e ~ hetwt~act ~ peYtlsa
with ritspect to t% sulf~ect aneGttar heneaf and +l~b sra as prnmiaoe, agceoments, ,t~nostfuae,
wat~sltisa ar uIIdGL'tt8ntlings, stitLer oxplcas.~ed er jatpllad~ 6etvvecn the patties rzri~ raAp~t roa
the subja~ matter b+ w61ch ate sot e;.~sa1y eat ~ herein.
'1. Sslt'Yl17111t1r.~,iCl1G• 'rbls t shAl1 he ctmstnted And etdntcecl. ~ ~~o~dswce
wttq t(7e btws of 11d61ssOtztl aVltbgantt ra$at~ LU 9!6 CanfliCt oE' 1RgVa etarnte.
1N WITN66S q-HHR~. the pica hs`•o set dse~r 6ansl9 anti saaL oa ttax ~y anol year
~itat aDavc wrhtau.
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g-gq/ 6184744636 09-14-96 06: OOPM P005 #36