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HomeMy WebLinkAboutReso 2025-044RESOLUTION NO. 2025-044 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A CARD ROOM OPERATING AGREEMENT WITH STONES SOUTH BAY CORPORATION WHEREAS, Stones South Bay Corporation, a California Corporation dba: Seven Mile Casino (“Operator”) holds a consolidated cardroom license (“License”) issued by the City that allows it to operate a cardroom within City limits subject to any and all requirements imposed by state law, the Chula Vista Municipal Code (“CVMC”), Gaming Plan, and local land use permits; and WHEREAS, Pursuant to the terms of the License and local and state law, Operator currently owns and operates a cardroom known as Seven Mile Casino located at 285 Bay Boulevard, Chula Vista California (“CV Cardroom”); and WHEREAS, City and Operator previously entered into a cardroom operating agreement on July 1, 2019; such agreement was extended through April 14, 2025; and WHEREAS, City and Operator have negotiated terms for a new Operating Agreement including (1) increasing the Table Rate Fee to $10,952 effective January 1, 2026, (2) confirming a Gross Revenue Fee effective October 1, 2025, and (3) allowing the City Manager, in consultation with the Director of Finance, the authority to implement an interim License Fee arrangement during a Force Majeure Event or Material Law Change absent a new agreement approved by City Council. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it approves the Card Room Operating Agreement with Stones South Bay Corporation, in the form presented, with such minor modifications as may be required or approved by the City Attorney, a copy of which shall be kept on file in the Office of the City Clerk, and authorizes and directs the City Manager to execute same. [SIGNATURES ON THE FOLLOWING PAGE] Docusign Envelope ID: 25C5FD9D-5EE1-4332-95AF-F2664ED88695 Resolution No. 2025-044 Page No. 2 Presented by Approved as to form by Maria V. Kachadoorian Marco A. Verdugo City Manager City Attorney PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 1st day of April 2025 by the following vote: AYES: Councilmembers: Chavez, Preciado, and McCann NAYS: Councilmembers: None ABSENT: Councilmembers: None ABSTAIN: Councilmembers: Fernandez and Inzunza John McCann, Mayor ATTEST: Kerry K. Bigelow, MMC, City Clerk STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) CITY OF CHULA VISTA ) I, Kerry K. Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 2025-044 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 1st day of April 2025. Executed this 1st day of April 2025. Kerry K. Bigelow, MMC, City Clerk Docusign Envelope ID: 25C5FD9D-5EE1-4332-95AF-F2664ED88695