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what it has meant to the game of baseball. Their plans will honor, respect, and elevate the history of Dodgertown. Staff believes that MLB is the best partner to ensure that the next chapter of Historic Dodgertown is a success. The existing Facility Lease Agreement between Verotown, LLC (Verotown) and Indian River County will expire on April 30, 2019. County staff, along with our outside counsel, has worked with MLB to reach terms of an Amended and Restated Facility Lease Agreement between the two parties wherein MLB is purchasing the ownership interest in Verotown. The proposed initial term of this agreement is ten years and eight months with three successive renewal options of five years each. I am comfortable recommending that the Board approve the amended lease agreement based on these terms as being in the best interest of the residents of Indian River County. The agreement represents a partnership where the County and MLB, operating as Verotown, share in the cost of facility improvements. In broad summary, the County will be responsible for initial repairs on items consisting mostly of roof replacements and concession stand replacements/repairs where maintenance had been deferred during the economic downturn. Verotown will be responsible to make some initial facility improvements such as an indoor training facility. Additionally, Verotown will make some facility repairs such as replacing the entire Holman Stadium seating bowl. The County will reimburse Verotown for 50% of these costs within the limits of the Capital Reserve Account as set forth in the lease agreement. Other than the County -funded initial improvements, the County's annual contribution will be its only obligation for facility improvements and maintenance. Verotown will be responsible for all other capital improvements and maintenance for the duration of the initial term and any renewal term. The agreement will essentially transition from the County funding the initial deferred maintenance items, to Verotown and the County sharing Verotown's initial improvement costs on a 50%/50% basis, to Verotown fully funding any facility costs beyond the amount approved in the Capital Reserve Fund. Per the term sheet, the County will be responsible to fund the deferred maintenance items mentioned above (as detailed in the funding section below) over the first (3) three years. The estimated cost of these repairs and/or replacements is $4.9 million. It is important to note that these repairs would be necessary for any tenant to continue operating Historic Dodgertown. Staff believes it is highly unlikely that any party interested in operating the facility would not require these improvements to be completed by the County. Simultaneously, Verotown will make initial improvements mentioned above (as detailed in the funding section below) during the first three (3) years. County staff has estimated the cost of these improvements at approximately $10 million. Verotown will be eligible to receive reimbursement for 50% of these costs during the term of the lease. Based upon these cost estimates, this will exhaust the Capital Reserve Account dollars for most of the initial 11 -year term. The Capital Reserve Account will be funded by the County in the amount of $800,000 for the first five years, then $400,000 beginning in Year 6 for the remainder of the lease (adjusted for inflation beginning in Year 7). Once those funds are exhausted, any future facility improvements, repairs, and maintenance will be solely the responsibility of Verotown. Staff anticipates that during the initial 11 -year lease term, Verotown's facility expenses will exceed the County's contribution. In order to expedite the roofing repairs mentioned above, Verotown will manage these projects (subject to oversight by the County), with funding provided by the County. County staff requests that the Board of County Commissioners waive the requirements for bids in order to allow for this procedurally, per the County Purchasing Code. 2IPage 139