City of Stockton Consent to Transfer Stockton Thunder

Lease History and Current Transaction • March 2, 2004 lease assigned to IFG-Stockton Franchise

New Ownership Structure Adirondack Flames Canada is an affiliate of Calgary Flames, Limited Partnership

Conditions for Transfer • Lease permits transfer with City’s prior consent as long as

Additional Commitments Offered • Represents a higher level of commitment and financial security for

Staff Recommendation It is recommended that the City Council consent by motion to the

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City of Stockton Consent to Transfer Stockton Thunder Team Lease January 13, 2015 City Council Meeting

Lease History and Current Transaction • March 2, 2004 lease assigned to IFG-Stockton Franchise Group. • April 6, 2010 lease assigned to SC Hockey Franchise Corporation. • December 2014 Adirondack Flames Canada, LP entered into a stock purchase agreement for 100% ownership of SC Hockey.

New Ownership Structure Adirondack Flames Canada is an affiliate of Calgary Flames, Limited Partnership which owns and operates the Calgary Flames National Hockey League Club.

Conditions for Transfer • Lease permits transfer with City’s prior consent as long as the transferee possesses the financial capability and management expertise to operate the team. • Staff worked with industry consultant and legal advisor who reviewed owner documentation and confirmed that new owners fulfill conditions for transfer.

Additional Commitments Offered • Represents a higher level of commitment and financial security for the City. • A first priority lien over all stocks and assets of SC Hockey. • A lien over all of the assets of Adirondack Flames US Limited Partnership.

Staff Recommendation It is recommended that the City Council consent by motion to the transfer of the team lease at the Stockton Arena to Adirondack Flames Canada, LP, an affiliate of Calgary Flames Limited Partnership.