12-073.00 Splash-Down ConcessionsOFFICE OF THE CITY ATTORNEY
SMY OF Okane GARY P. DRISKELL —CITY ATTORNEY
pKELLY E. KONKRIGHT — DEPUTY CITY ATTORNEY
Valley®
11707 East Sprague Avenue Suite 103 ♦ Spokane Valley WA 99206
509.720.5105 ♦ Fax: 509.688.0299 ♦ cityattorneyC�spokanevalley.org
May 16, 2012
Geoff and Melissa Kellogg
Splash -Down Concessions, Inc.
2922 South Manito Boulevard
Spokane, WA 99203
Re: Letter agreement regarding 2012 Amendment to Splash -down Concessions, Inc.
Agreement executed May 19, 2 -Pl.
Dear Geoff and Melissa:
As discussed on May 16, 2012, we will present proposed revisions of the Splash -Down
Concessions, Inc. Agreement to the City Council, and request that the Council authorize
staff to execute a document entitled "2012 Amendment to the Splash -Down Concessions,
Inc. Agreement" (the Agreement) consistent with the following:
1. Section 5. Fee. The annual lease payment for 2012 would be changed from $43,000 to
$20,000, which shall be paid in three equal payments of $6,666.67 due on July 5, August
5 and September 5, 2012. Failure to do so will result in the immediate termination of the
Agreement. Additionally, Splash -Down shall pay $8,166.84 of the arrearage from 2011
($16,333.67) no later than 4:00 p.m. on Friday, November 30, 2012. Failure to do so will
result in the immediate termination of the Agreement.
The annual lease payment for 2013 would be changed from $46,000 to $20,000, which
shall be paid in three equal payments of $6,666.67 due on July 5, August 5 and
September 5, 2013. Failure to do so will result in the immediate termination of the
Agreement. Additionally, Splash -Down shall pay $8,166.84 of the arrearage from 2011
($16,333.67) no later than 4:00 p.m. on Friday, November 29, 2013. Failure to do so will
result in the immediate termination of the Agreement.
The City will elect to not collect interest on the arrearage so long as it is paid in
compliance with this Amended Agreement. In the event Splash -Down fails to comply
with these terms, all of the interest that could otherwise be charged from the date of
execution of this Amendment at an annual rate of 12% shall immediately become due and
owing along with the entire remaining 2011 arrearage.
The annual lease payment for 2014 through 2018 will be $25,000.
I2 -01-3
2. Section 8. Termination. By City: Add language in the first paragraph to reflect that
the City has the right to immediate termination of the Agreement for non - compliance
with the revised annual lease and arrearage payment requirements as set forth above for
2012 and 2013. Beginning in 2014, the existing termination language is reinstated.
3. All remaining sections of the Agreement remain in effect.
4. The parties shall execute the Amendment to the Agreement by 4:00 p.m. on May 25,
2012.
5. This Agreement is contingent on approval by the Spokane Valley City Council. Final
terms subject to change.