Section 2.1 City To Form Stadium Authority. The City and the Agency will enter into a joint powers agreement creating the Stadium Authority . The Stadium Authority's governing board will be the seven members of the City Council. The City Manager will be the Executive Director and the City Attorney will be the General Counsel of the Stadium Authority. The Stadium Authority will build, own and operate the Stadium, as further described below, and have all powers granted to it by the City and Agency. The Stadium Authority will be a separate and distinct legal entity, and neither the City nor the Agency will be liable for the debts or obligations of the Stadium Authority.
Section 2.2 City to Lease Stadium Site to Stadium Authority. The City will enter into a ground lease with the Stadium Authority ("Ground Lease"), pursuant to which the City will lease the Stadium Site to the Stadium Authority upon the terms and conditions contained in Article 4 and other terms and conditions acceptable to the Parties.
Section 2.3 Formation of Mello-Roos Communities Facilities District. The City will make reasonable good faith efforts to form a Mello-Roos Community Facilities District ("CFD") that will include all hotel properties in the vicinity of the Stadium (of which there are presently eight such hotel properties). If approved by a vote of the property owners included in the CFD, the properties in the district would be subject to a special tax based on hotel room revenue.
Section 2.4 Limitation of City Liability. No City funds, investments, contracts or property interests, including cash balances of and revenue streams to the City's general and enterprise funds, will be used for the construction or operations of the Stadium or pledged or loaned for the payment of any Stadium construction financing, at any time, except for activities undertaken at the City's discretion, including the City's relocation of the Tasman Substation to meet the parking needs of the Great America Theme Park, the Stadium and the Convention Center area using City enterprise funds to pay the costs of the relocation.
