RECOMMENDATION

That the City Council and Redevelopment Agency Board approve following revisions to the contribution agreement with the Rotary Club of San José regarding the banquet facility at the new 4^th Street Garage:

Reduce Rotary’s contribution to the Agency by $500,000;

Create a $500,000 Rotary endowment obligation to disburse funds over a number of years to community organizations or projects serving Redevelopment Project areas;

Agree that “Rotary” will not be in the facility name unless or until the City Council attempts to name the facility after an individual or organization, at which time Rotary will be able to secure the Rotary name with a $1000 contribution;

Locate two Rotary emblems on the exterior of the facility subject to City approval and any sign code ordinance amendments that may be necessary.

BACKGROUND

The Rotary Club of San José had agreed several years ago to make a $1 million contribution over the next ten years toward the banquet facility located on top of the 4^th and San Fernando garage that opened earlier this year. In exchange, the Club would guarantee use of the facility as a permanent home for its regular meetings.

The Rotary Club had also indicated its desire to include the Rotary name within the name of the banquet facility. The City Attorney, however, has advised that there may be consequences from using a private name for a public facility that would impair the “public” requirement of the public activity bonds issued for constructing the building.

The recommended revisions to the contribution agreement with the Rotary Club reflect the changes necessary to deal with these legal concerns and to ensure that the funding arrangements remain secure.