| Resolution - Parks and Recreation: Consider a resolution authorizing the Mayor to execute an amendment to the Park Land License Agreement with Alstrom Angels, waiving fees until Milestone Development & Play Park is open to the public, permitting the City Manager, or his designee, to execute any necessary documents regarding subordination of the City's security interest in temporary improvements/fixtures, and to allow for additional construction time. |
In March 2021, the City Council approved a Park Land License Agreement between the City of Lubbock and Alstrom Angels, a 501 (c) (3) non-profit charity, to utilize a portion of McAlister Park for the construction and operation of Milestone Development & Play Park. This park will provide children of all ability levels, with a stimulating environment that will allow them to play, learn, and share experiences together, embracing the true spirit of inclusion, and creating an atmosphere of acceptance and understanding of everyone.
The term of the Park Land License Agreement is for 10 years from the time of execution (March 2021), with the option to renew for 4 additional, 5-year terms. If the agreement expires or terminates, the Licensed Premise becomes the property of the City.
The payment structure of the agreement is $500 per month/$6,000 annually for the first 3 years. After 3 years, the amount will increase 3% per year.
| Contract Years |
Amount |
| Years 1-3 |
$6,000.00 |
| Year 4 |
$6,180.00 |
| Year 5 |
$6,365.40 |
| Year 6 |
$6,556,36 |
| Year 7 |
$6,753.05 |
| Year 8 |
$6,955.64 |
| Year 9 |
$7,164.31 |
| Year 10 |
$7,379.24 |
In May 2023, Alstrom Angels contacted City staff regarding the desire to amend the existing License Agreement in order to obtain financing to complete construction of Milestone Development and Play Park. The agenda item for consideration amends the existing License Agreement with regard to the following:
Section 3. Compensation, Fees, and Other Charges, Paragraph A - Currently, Alstrom Angels is paying the City of Lubbock $500 monthly. The amendment affords Alstrom Angels the opportunity to stop payments until the Licensed Premise is open to the public. (Estimated loss in revenue is $1,500).
Section 4. Covenants and Conditions, Paragraph I- The purpose of this amendment is to allow Alstrom Angels the opportunity to obtain financing for their business operations, including financing for the acquisition or repair of any temporary improvements/fixtures/equipment. The amendment states the City may agree to subordinate its security interest in temporary improvements/fixtures/equipment and other property of Alstrom Angels to lenders. The City Manager, or his designee, may have the authority to execute any necessary documents regarding a subordination, including, but not limited to, a Landlord’s Release and Consent. This amendment does not impact permanent improvements. Permanent improvements become the property of the City upon termination of the License.
Section 7. Construction, Paragraph A - The amendment changes the construction completion timeline from 24 months, to within 48 months from the date of commencement of construction. |
