The Broomfield Urban Renewal Authority (BURA) will consider a proposed Management and Operations Agreement for the Broomfield Event Center. The proposed agreement is with a new operator, Peak Entertainment LLC, a company formed by Anschutz Entertainment (AEG) and Kroenke Sports (KSE) for the operation of the Broomfield Event Center.

To accomplish this five agreements are proposed:

• A Management and Operations Agreement between  Peak Entertainment LLC and the Broomfield Urban Renewal Authority (BURA)
• An Intergovernmental Agreement Between BURA, Broomfield Sports and Entertainment, LLC, and the Arista Metropolitan District
• A Parking Lease Agreement Between BURA and Park 36 Investment LLC
• An Termination Agreement Between BURA and Broomfield Sports and Entertainment, LLC
• A release and settlement agreement with Colorado Tier Hockey Association

Below is a summary of the proposed agreements needed to put new management in place at the Broomfield Event Center.

Management and Operations Agreement

Financial considerations associated with the new operations agreement are:

• Base net revenue share -- 75% Peak Entertainment LLC and 25% BURA
• Beginning in year 4 -- 90% Peak Entertainment LLC and 10% BURA. Peak Entertainment LLC has an option to convert to the 90-10 split prior to year 4 if Peak Entertainment LLC repays BURA operating loss coverage payments prior to conversion.
• Supplemental revenue share -- BURA will receive 7.5% of net revenues above $2.5 million until BURA is fully reimbursed for amounts contributed to initial capital improvements up to $500,000, and operating losses up to $450,000. Thereafter, BURA will receive 5% of net revenues in excess of $2.5 million for the term of the agreement.

Operating loss coverage:

• BURA pays the first $450,000 in cumulative operating losses for the first 3 years unless Peak Entertainment LLC converts to the 90/10 revenue share prior to the end of year 3. If Peak Entertainment LLC does not convert, BURA is paid back for its contribution through the supplemental revenue share.
• BURA may pay its share of operating losses or payment of Event Center costs by mutually agreed-upon in-kind contributions. These can include Police, security and traffic control services, utility costs, insurance costs and energy savings resulting from the city's aggregate alternative use at the Event Center and other city buildings.

Capital improvements:

• Peak Entertainment LLC will make up to $1 million or more of initial improvements
• BURA will share in these costs up to $500,000. BURA is paid back through the annual supplemental revenue (above). Any amounts over $1 million are paid by Peak Entertainment LLC.
• BURA has approval authority on the initial capital improvements.
• Upon mutual agreement, BURA may provide services in place of cash payments for its portion of the initial capital improvements.
• After the first year, Peak Entertainment LLC is responsible for all necessary annual capital improvements up to $1 million annually. If the amount exceeds $1 million in any year, Peak Entertainment LLC can either pay the excess, or terminate the operations agreement with 120 days' written notice and payment of the pro-rated amount of all parking payments for the remaining years in the agreement, or BURA can choose to pay such excess amounts, or the parties can choose another method of funding such excess amounts.
• Peak Entertainment LLC has the right to rename the venue.  Revenues for this figure into the operating revenues for calculation of net revenues.

Other items:

• BURA will receive 10 rent-free days for venue usage each year.
• Peak Entertainment LLC will maintain all off street parking areas.
• Peak Entertainment LLC will conduct a minimum of 55 events at the Event Center each year.
• Peak Entertainment LLC is obligated to specific marketing and community relations requirements.