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11-28-2012, 02:17 PM
Tortious Beadicus
Join Date: Nov 2009
Location: Bay Area, CA
Country: United States
Posts: 3,119
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Originally Posted by rt View Post
I keep seeking clarification on this part, but I'm not sure I've got it.
Any ordinance passed by the city (except those with Emergency Clause) take effect and become operative thirty (30) days after the date of their passage. It doesn't matter if its an ordinance that assesses a fine of $10 for spitting on the sidewalk or an ordinance that gives $300MM to some unknown investment group. It's part of the checks and balances system. The public gets 30 days to organize a referendum petition to force a public vote on any ordinance enacted by the council. Since the JIG lease was not approved with an Emergency Clause, the ordinance is not operative for 30 days.

That is all apart and separate from JIGs effort to close a sale with the NHL. There is nothing to prohibit JIG from concurrently closing their transaction. However, the city manager is not legally able to execute the agreement until the 30 day period concludes.

Further, and also separate and apart, is the actual language of the lease agreement. The agreement that they are entering has "closing conditions". One of those conditions is that JIG must complete the purchase of the franchise on or before Jan 30, 2013. In order to get the AMF payment, JIG must own the team by that date.

So if you want to think of it as three separate tracks, that might help.

1) 30 day ordinance dormancy. The lease cannot be executed until this time period expires. Dec 28ish sounds good to me, give or take a day or two for the holiday observation, etc. That is the soonest completion may occur.

2) JIG buying team from NHL. That can happen at anytime. If JIG closes during the next 30 days, he just twiddles his thumbs waiting for the referendum clock to tick down to 0:00 then signs the lease. Logically, one would assume that JIG has no intention of purchasing the team until the 30 day period expires and he knows for sure that there is no referendum or legal challenge.

3) Closing Condition. JIG does not have to buy the team from the NHL in the next 30 days but they must get it done prior to Jan 30, 2013 or they do not meet the closing condition to enact the lease and the entire agreement becomes non-enforceable. The trick, if you will, there is the city can effectuate the lease after the referendum clock expires (Dec 28ish) which gives JIG a binding agreement to shop to potential investors. That is the difference between "the effective date" and the "closing date". Making the lease effective and binding helps JIG close.

In a vacuum, assuming there is no referendum or challenge, JIG will have from approx Dec 28, 2012 until Jan 30, 2013 to fully complete the purchase with the NHL.

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