Authority approves operating agreement with Hay Day, removes indemnity language and adds reimbursement and insurance safeguards

Seminole authority members voted to approve an operating agreement with Hay Day’s operator on terms that staff said will preserve the project’s tax-exempt bond status while giving the city more oversight of budgeting, reimbursements and insurance.

The authority’s staff described a base management fee in the draft and a sliding performance fee tied to gross revenue. Under the approved framework, the operator would receive a 4% base management fee in the current draft and an additional performance-based share starting at roughly 5% if gross revenue meets a conservative target staff and the operator estimated near $1.7 million. Performance tiers discussed ranged to 10% for higher revenue bands, 12% at certain thresholds and 15% for revenues at about $3.6 million, with performance periods aligned to semiannual calendar periods.

Why it mattered: the authority issued tax-exempt bonds to finance the facility, and legal staff cautioned that…