Tee Management Agreement Major Issues at 11/2/2012
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Differences in 2007 and 2009 Commission Approvals and theseDocuments. No cost cap. Unlimited conduit to Augusta General Fund.
Cost shifting between agreements. Electric utility example. Beer inventoryexample. $300,000 a year for 50 years = $15,000,000
s Laney WalkerImprovement cost calculation method)
Kitchen built under Tee Agreement where ARLLC supplies equipmentswitches to 50 year Conference Agreement where Augusta supplies andrepairs kitchen equipment with no revenue from Conference Center.4.
No accounting provisions for backcharged labor to Hotels or any othercredits, refunds, rebates, or other benefits going to Augusta.5.
Cross indemnification between Tee and Conference Center
severabilityissues. WHO IS LIABLE?6.
Too many ways to circumvent Annual Plan, including that an unknown,
unknowable “Standard” trumps ever
ything, including Annual Plan.7.
Fringe benefits and bonuses, including for LLC PRINCIPALS, are unlimited.8.
Accounting and auditing envision most of the accounting off TEE Centerbooks, without rights of audit to ALL HOTEL ACCOUNTING records on areal time basis.9.
Conventions can be booked using Tee Exhibition Hall while usingConference Center where Augusta gets no revenues.10.
When Augusta signs these contracts, it assumes extraordinary indemnityprovisions immediately so that it would have to advance payments to theManager to defend the Manager from actions by Augusta
Page by Page Primary and Secondary Issues
Page 1Augusta's Agreements are with Augusta Riverfront LLC. How can there be an assignment to this newACCMLC entity without the contract between Augusta and ARLLC existing first?
Who are the members of ARLLC and ACCMLLC?Why does the 2007 Term Sheet reflect duties of ARLLC to BUILD, but the Management Agreement citesthat only Augusta is "to construct"?Page 2