Presenter
Presented by Mr. Deasy
Title
Resolution authorizing a Cooperation Agreement by and between the City of Pittsburgh ("City") and the Sports & Exhibition Authority of Pittsburgh and Allegheny County ("SEA") providing that if the City's Amusement Tax, or a comparable tax on tickets or admissions, shall be increased above Five Percent (5%) during the term of a proposed Lease pursuant to which the SEA will lease a proposed new Arena to the Pittsburgh Penguins, the City will pay to the SEA an amount equal to the revenue generated at the Arena by the tax percentage in excess of Five Percent (5%).
Body
Whereas, the City, the Commonwealth of Pennsylvania and the County of Allegheny have reached an Agreement with the Pittsburgh Penguins, Inc. ("Penguins") providing for, among other things, construction by the SEA of a new Arena for the exhibition of professional hockey and other events, and leasing of said Arena by the SEA to the Penguins for a Term of Twenty-Nine and One-Half (29 1/5) years ("Lease"); and
Whereas, the Lease will provide that if the City's Amusement Tax (which is now at the rate of Five Percent (5%)), or any comparable tax on tickets or admissions, shall be increased above Five Percent (5%), the SEA will pay to the Penguins any revenue generated at the Arena by the tax percentage in excess of Five Percent (5%); and
Whereas, the Agreement also provides that the City will reimburse the SEA for any payment made by the SEA to the Penguins (or credit granted by the SEA to the Penguins on account of any indebtedness of the Penguins to the SEA) on account of any increase in the Amusement Tax above Five Percent (5 %).
Be it resolved by the Council of the City of Pittsburgh, as follows:
Section 1. The Mayor and the Director of the Department of Finance are hereby authorized to enter into a Cooperation Agreement with the SEA, approved in form and substance by the City Solicitor, providing for reimbursement by the City to the SEA for any payment, or credit in lieu of payment, made by the SEA to the Penguins under the Lease resulting from any increase in the City's Amusement Tax (or any comparable tax on tickets or admissions which may be enacted during the term of the Lease), any revenue generated at the Arena by the tax percentage in excess of Five Percent (5%), together with any additional terms and conditions reasonably necessary to effectuate the intent of this Resolution.