The following is a summary of the first half of the Lease Agreement between The Board of Commissioners of Hamilton County, Ohio and Cincinnati Bengals, Inc. as of May 29, 1997. A complete copy of this agreement is available (by appointment) for review at the office (see address above). The second half will be available in the near future.
That the citizens of Hamilton County passed a general sales tax to keep competitive and viable major league football and baseball teams in Cincinnati, Ohio by, among other things, the construction of a new football stadium in Hamilton County.
County has also agreed to design, construct and develop parking facilities readily accessible to the football stadium and other infrastructure improvements necessary or appropriate for the use of the football stadiums and the parking facilities.
Team, County and State of Ohio have agreed to be responsible for the contribution of certain funds to pay the costs required to design, construct and develop the football stadium and related facilities, parking facilities and infrastructure improvements.
"Infrastructure Improvements" shall mean those streets, roads, traffic signals, directional and other signage, bridges and other access routes, utility lines, pipes, wires, and other services and other public improvements that are necessary or appropriate in order to permit proper and efficient access to and egress from (both vehicular and pedestrian), and to permit safe and convenient use of, the Stadium Complex and the Parking Facilities.
"Parking Facilities" shall mean the Cinergy Field Parking Facilities and the Stadium Parking Facility.
"Practice Area" shall mean the practice area generally located west of Central Avenue, south of Pete Rose Way, north of Mehring Way and east of the Clay Wade Bailey Bridge together with the improvements thereon consisting of two NFL regulation size natural grass football fields and one NFL regulation size artificial turf football field and such other facilities as described in the Architectural Program.
"Preliminary Budget is $280,447,690 with such changes thereto as may be later approved by both County and Team. "Project" shall mean, collectively, the Stadium Complex, the Parking Facilities and the Infrastructure Improvements. "Restaurant" shall mean the restaurant, if any, located at the Stadium intended to be open to the general public. "Stadium Complex" shall mean the Stadium Site, the Plaza, the Stadium and the Practice Area (including the Stadium Parking Facility located on or within the Stadium Site). "Stadium Development Project" shall mean, collectively, the acquisition of the Stadium Site, the design, development and construction of the Stadium Complex and the Stadium Parking Facility, and the work and services necessary in order to provide the Project as described in this Lease.
"Stadium Site" shall mean the area generally located west of the Roebling Suspension Bridge, north of the Ohio River, east of Brent Spence / I-75 Bridge and south of Third Street.
"Substantial Completion" shall mean the completion of the Project, including without limitation, the Parking Facilities and the Infrastructure Improvements, and all Components thereof by June 1, 2000. The Completion Target Date is August 1, 2000.
The design and construction process for the Project, and the entire Stadium Development Project, shall be a cooperative mutual endeavor in which County and Team shall work together. County has selected NBBJ East Limited Partnership as the Project Architect, Getz Ventures as the Project Manager, and Turner Construction Company, Barton Mallow and D.A.G. Construction Company, Inc. as the Construction Manager.
The Construction Design Committee, comprised of a mediator jointly selected by the County and Team, a County representative and a Team representative, shall use guidelines, most of which are subject to the constraints of the Preliminary Budget.
If Team has not received and accepted the plans and budget on or prior to January 31, 1998, Team shall have the right to terminate this Lease and any other agreements entered into by the Team in connection herewith. Upon such termination of this Lease by Team, neither the County nor Team may claim any legal rights against the other.
Upon Substantial Completion of the Project any remaining portion of the Team Contingency (an allowance of $5,000,000 for changes that may be requested by Team) shall be deposited in a reserve account to be held in Team's name, which account may be use by Team to pay for the cost of Improvements to the Stadium made during the Term by Team in its sole and absolute discretion.
County shall receive and retain all revenues generated from the sale of COA's (rights to season tickets) prior to August 1, 2000. Team shall have the further right to sell and retain all revenues arising from additional COA's from and after August 1, 2000.
The term of this Lease shall commence on the date on which Team occupies the entire Stadium Complex no later than the first day of the first Football Season and end on June 30, 2026 County shall pay penalty payments to Bengals of $4 million for each of the first six games and $6 million for each game thereafter until the stadium and infrastructure is substantially complete and the Team is unable to play any of its home NFL games at the Stadium. Furthermore, Team shall have the right to play in Cinergy Field on a "rent free" basis. Team may terminate any such arrangement for the use of Cinergy Field upon giving 90 days prior written notice to County. Team may extend the Lease for 5 consecutive periods of 2 years each (extending lease to June 30, 2036).
Team shall pay $11,700,000 during the first 9 Lease Years.
All real estate taxes and personal property taxes shall be paid by County.
County shall not impose on Team any taxes in addition to or in lieu of the 25¢ Ticket Surtax.
Team shall use and occupy, on a 365-day year round basis, the Private Suites, the Club Lounge and the Restaurant, if any, for private and public entertainment purposes, business and other meeting purposes.
Team shall use all concession areas and related food preparation and food storage areas (including central commissary and concession personnel lockers on the service area) for their intended purposes for any and all events held at the Stadium Complex.
Team shall have the exclusive right to possess and use the Stadium Complex on Team Use Days and Private Team Use Days. County shall be entitled to use the Stadium Complex (except for the Exclusive Leased Premises, Private Suites other than the County Private Suite, Club Lounge, the Restaurant, and the concession related areas) for a reasonable number of days for bona fide events (which are not intended to result in an operating profit to County) sponsored by County, related to operations of County and not in the nature of a for-profit public entertainment event.
County and Team shall jointly engage a firm experienced on a national basis with the promotion and sponsorship of large public entertainment events.
Team shall have the sole and exclusive right to present professional soccer events at the Stadium.
Team and County agree that each shall use good faith efforts and cooperate with each other and that each shall work with third parties in the scheduling of events at the Stadium Complex and at other locations within the general vicinity of the banks of the Ohio River that are within one mile of the Stadium Complex so as to minimize scheduling conflicts and to provide for the efficient use of the Parking Facilities.
County shall be entitled to the exclusive use of a Private Suite in a location mutually agreed upon by Team and County. County shall not be required to pay Team any rental fee for the use of the County Private Suite, however, County shall be required to purchase tickets.
County shall use all commercially reasonable efforts to work with Team to gain for Team (at no additional cost to Team) the right to use during the Term of the Lease the area south of Mehring Way and south of the Stadium Complex for activities on Team Use Days (including, without limitation, the sale of concessions and novelties and other activities related to Team events (including, to the extent not prohibited by Legal Requirements, the sale of alcoholic beverages and the holding of private parties)), even if such area is developed for park purposes in the future.
Team shall have and control exclusively, and receive all revenues from, all advertising and promotional rights in and to the Stadium Complex and the Stadium Parking Facility including, without limitation, permanent and transitory advertising and including, without limitation, scoreboard advertising, canopy advertising, video board advertising, public address advertising and exterior message board advertising.
Team shall have the exclusive right to film, record, broadcast, transmit, or otherwise publish, and to authorize right to film, record, broadcast, transmit or otherwise publish all or any portion of any event at the Stadium Complex, any and all descriptions and accounts of such events and any and all activities related to such events by any medium.
Team shall have the right to receive all revenues accruing from operation of the Project on Team Use Days including, without limitation, ticket revenue, Private Suite revenue, advertising revenue, Club Seat revenue, Broadcast Rights revenue, concessions and novelty revenue, revenue from the Parking Facilities relating to parking for Team events and any other revenues earned from operation of the Project on Team Use Days.
Team shall also have the right, on a 365-day year round basis (and regardless of whether relating to a Team Use Day, a County Use Day or an Other Event), to receive all revenues from the following sources: (a) any advertising; (b) all Broadcast Rights; (c) operation of the Club Lounge, the Restaurant and the Exlusive Leased Premises; food and beverage concessions (including alcoholic beverages) sold at the Stadium Complex or the Parking Facilities; provided, however, with respect to Cinergy Field Parking Facilities only, Team's right to such revenues shall be subject to any existing rights that the current concessionaire for Cinergy Field may have and that County agrees to use all commercially reasonable efforts to terminate any such rights held by the current Cinergy Field concessionaire and County shall promptly pay to Team any revenues received by County arising from any such rights of current Cinergy Field concessionaire relating to the Cinergy Field Parking Facilities; (e) all novelties, publications and other products sold at the Stadium Complex or the Parking Facilities, including the year-round revenues from any gift shops or novelty stores that are part of the Stadium Complex; provided, however, with respect to the Parking Facilities only, Team's revenue rights shall relate to Team Use Days only and provide further, such rights shall be subject to any existing rights that the current concessionaire for Cinergy Field may have with respect to the Cinergy Field Parking Facilities; (f) naming rights of the Stadium Complex.