TITLE
Recommendation to authorize City Manager to execute a consent to assignment of the Amended and Restated Agreement No. 16278 with the Grand Prix Association of Long Beach to Aquarium Asset Management, an affiliate of Champ Car World Series. (Citywide)
DISCUSSION
On April 15, 1975, the City and the Grand Prix Association of Long Beach
(Association) entered into an agreement granting permission to the Association to
conduct championship Grand Prix automobile races in the City of Long Beach. In
April 1995, the City Council approved the Amended and Restated Agreement Number
16278 (City Agreement) with the Association, extending the term of the agreement to
June 30,2010.
On May 5, 1998, the City Council approved a Consent to Assignment of the City
Agreement to Dover Downs Entertainment, Inc. (Dover). The City has recently
received documentation from Dover that the Grand Prix Association of Long Beach,
Inc. has entered into a Purchase of Assets Agreement with Aquarium Asset
Management, LLC, an affiliate of Champ Car World Series. Under the provisions of
the City Agreement, the City Council must approve any transfer of ownership of the
Association. Therefore, the City Council's approval of the assignment of the City
Agreement to Aquarium Asset Management is a necessary condition to completing
the purchase agreement of the Association. All terms and provisions of the City
Agreement will remain the same. The City may be asked at a later date by Aquarium
Asset Management to revisit the City Agreement to extend the existing term beyond
the 2010 expiration. Any change to the City Agreement will be brought to the City
Council for approval.
This letter was reviewed by Deputy City Attorney J. Charles Parkin on June 2, 2005.
TIMING CONSIDERATIONS
The City Council’s consent to the assignment of the City’s Amended and Restated
Agreement Number 16278 is the sole condition of the Purchase of Assets Agreement
between Aquarium Asset Management and the Association. Therefor...
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