[troutman]

CITY OF GLENDALE ARENA MANAGEMENT AGREEMENT UPDATE

http://www.glendaleaz.com/documents/...date062713.pdf

Risk to the City:

o
The city bears all the risk if the revenue projected by Renaissance is not realized.

o
The deal requires a $15 million management fee to Renaissance. The city has budgeted
$6 million to pay for part of the $15 million arena management fee and Renaissance has
projected shared revenue streams to help bridge the gap. Should those projections not be
realized, and the city does not receive the projected revenues, then the city would need to make up that loss.

o
The proposed agreement is for 15 years and does not allow for the city to terminate the deal if
revenue projections are not met as long as the Coyotes play in the arena.

o
The proposed contract can be terminated by Renaissance
if their cumulative losses reach $50 million, and, in any event,
after five years.

o
Approximately $3 million,of the proposed revenue is not new to the city
and includes revenue previously included in the city’s budget for next year