Coordination

Agreements are necessary to outline the coordination responsibilities between the two builders, the Sports Commission and WDC Baseball Partners. Once these two projects are underway, coordination between the Clark/Hunt/Smoot team building the stadium and KUD building the proposed parking/multi-use complex will be critical. There will be two developers working side by side in a very small space. Priority of work will have to be agreed upon and enforced.

In summary, and at the risk of being redundant, the structure was built to be asbestos-free, but refrigeration units were brought in and asbestos was found in the insulation. The removal of this additional oil and asbestos will cost approximately $3 million, which increased environmental remediation costs further to approximately $14.4 million. These higher costs will be paid from the project contingency fund.

Will the relevant parties be able to complete negotiations by Labor Day on a range of documents and legal actions involving at least the following 11 items:

• Submission of any additional documents requested by the Zoning Commission to secure zoning approval;
• Approval by the Council of the resolution that is the subject of today’s discussion, including confirmation that the resolution is consistent with the cost cap legislation;
• Obtaining from the team any necessary consents, approvals and amendments under the District’s earlier agreements, including resolution of any design concerns of the team relating to this project;
• Negotiation of an agreement between WDC Baseball Partners and the stadium construction manager with respect to coordination of construction priorities;
• Negotiation (and approval by the Council, if required) of the definitive agreement between the District and WDC Baseball Partners;
• Negotiation of an agreement relating to the north parking facility contemplated by the Exclusive Rights Agreement, including the scope of WDC Baseball Partners’ indemnity obligations to the District;
• Completion by WDC Baseball Partners of its equity financing to the satisfaction of the District;
• Identification of a lender and completion of the debt financing portion of WDC Baseball Partners’ proposal to the satisfaction of the District;
• Identification of an appropriate WDC Baseball Partners’ affiliate to act as a guarantor as contemplated by the Exclusive Rights Agreement, and the completion of negotiations relating to such guaranty;
• Identification of a bank to issue the letter of credit contemplated by the Exclusive Rights Agreement and completion of the negotiations of such a letter of credit on terms satisfactory to the District; and
• Completion of actions required to transfer property to WDC Baseball Partners.