The Interlocal Agreement sets forth the agreement between the City and Orange County for the capital improvements to the Kia Center. The capital improvements to be incurred by the City are set forth in Exhibit A of the Interlocal Agreement and are designed to ensure the arena’s long-term functionality, sustainability, and competitiveness with similar arenas. The County has agreed to provide tourist development tax revenues in the amount of Two Hundred Twenty-Six Million Dollars ($226,000,000) to finance the cost of the capital improvements. The financing mechanism is the City’s issuance of bonds whose debt service will be paid from sixth cent tourist development tax revenues. The Interlocal Agreement memorializes the rights and obligations of the City and County. The terms of the Interlocal Agreement are summarized in the attachment.

Bonds will be issued later, and debt service will be paid by sixth cent tourist development taxes.

Approving the Interlocal Agreement and authorizing the Mayor and City Clerk to execute same, subject to review by the City Attorney’s Office.