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Committee advances changes to America's Cup lease; shifts security to city-funded collateral, insurance and liquidated damages
Summary
The committee approved amendments to the America's Cup Lease and Disposition Agreement that revise force majeure language, authorize a roughly $1,000,000 insurance procurement, and restructure security from $32 million in the host agreement to a proposed $9.8 million mix of cash collateral, insurable coverage and replenishment mechanisms; the committee required quarterly reporting and moved the item forward without objection.
The Budget and Finance Committee advanced a resolution amending the America's Cup Lease and Disposition Agreement (LDA), authorizing procurement of a specialized insurance policy and approving a revised security structure the city says will reduce its immediate exposure compared with the original host agreement.
Chair Carmen Chu explained the amendments of the whole before the presentation: the revisions narrow the list of force majeure excuses (removing unusually severe weather and fire as automatic excuses for delay under the original LDA) and add reporting requirements for the Port Director and America's Cup project managers to provide quarterly updates on fundraising, transfers and any draws on city cash collateral.
Mike Martin, the America's Cup project manager in the…
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