95-89 w
Resolution No. 95-89
RESOLUTION
ACKNOWLEDGING ACQUISITION OF CERTAIN INTERESTS IN
ELGIN RIVERBOAT RESORT BY CIRCUS CIRCUS
WHEREAS, the City of Elgin and Elgin Riverboat Resort
have entered into a ( i) Development Agreement dated June 24,
1992 (the "Original Development Agreement" ) , (ii) Ground Lease
Agreement dated as of January 20, 1994 (the "Ground Lease" ) ,
(iii) Amendment to Development Agreement dated as of June 23,
1993, (iv) Second Amendment to Development Agreement and
Ground Lease Agreement dated as of January 20, 1994, and
(v) Third Amendment to Development Agreement and Ground Lease
dated as of June 9, 1994 [the Original Development Agreement
together with all amendments thereto are herein referred to
collectively as the "Development Agreement" ] ; and
WHEREAS, consistent with a resolution adopted by the City
Council of the City of Elgin on December 16, 1992, the City of
Elgin has acknowledged and agreed, pursuant to Section
4 . 02(a) (8) of the Third Amendment to Development Agreement and
Ground Lease dated as of June 9, 1994 , that the Developer is
Elgin Riverboat Resort, a joint venture consisting of Nevada
Landing Partnership as a 50% joint venture partner, and RBG,
L.P. , an Illinois limited partnership which is an affiliate of
Hyatt Development Corporation, as the other 50% joint venture
partner; and
WHEREAS, by means of a merger transaction involving
corporations wholly owned by them, Messrs . Ensign, Richardson,
Belding and Simon have agreed to exchange their respective
ownership interests in the corporations comprising Nevada
Landing Partnership to Circus Circus Enterprises, Inc. , a
publicly held Nevada corporation ( "Circus Circus" ) , in
exchange for equity interests in Circus Circus; and
WHEREAS, the City has determined that it is in the best
interest of the City of Elgin to acknowledge the acquisition
of the ownership interests in the corporations comprising
Nevada Landing Partnership by Circus Circus .
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF ELGIN, ILLINOIS, that the City of Elgin hereby
approves and consents to the acquisition, subject to approval
of such acquisition by the Illinois Gaming Board, of the
ownership interests in the corporations comprising Nevada
Landing Partnership by Circus Circus and that the City of
Elgin accordingly hereby acknowledges that upon such
acquisition, the application of Section IV.A. of the Original
Development Agreement henceforth shall require that no less
than an aggregate 51% controlling ownership interest in Elgin
Riverboat Resort be held at all times by either Hyatt
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Development Corporation or its affiliates, or by Circus Circus
or its affiliates, or by any combination of the same.
s/ Kevin Kelly
Kevin Kelly, Mayor
Presented: April 26, 1995
Adopted: April 26, 1995
Vote: Yeas 7 Nays 0
Attest:
s/ Dolonna Mecum
Dolonna Mecum, City Clerk