SENATE JOINT RESOLUTION 10

55th legislature - STATE OF NEW MEXICO - second session, 2022

INTRODUCED BY

Mimi Stewart

A JOINT RESOLUTION

PROPOSING TO EXTEND THE LEASE FOR THE DOWNS AT ALBUQUERQUE, INCORPORATED.

     WHEREAS, Section 13-6-3 NMSA 1978 requires ratification

and approval by the legislature of a lease for a period

exceeding twenty-five years in duration of real property

belonging to a state agency, which lease shall be for a

consideration of one hundred thousand dollars ($100,000) or

more; and

     WHEREAS, the Downs at Albuquerque, incorporated, has,

since January 11, 1985, leased from the New Mexico state fair

the racetrack, grandstand and casino area of the state

fairgrounds, which is operated by the lessee as the Downs at

Albuquerque, incorporated, at 300 San Pedro drive NE, Albuquerque, New Mexico; and

     WHEREAS, the consideration paid for the lease by the

Downs at Albuquerque, incorporated, since January 11, 1985,

has been one hundred thousand dollars ($100,000) or more; and

     WHEREAS, the current lease between the parties commenced on January 12, 2012, for a term of three hundred months, or twenty-five years; and

     WHEREAS, as a result of the public health orders issued by the department of health in response to the coronavirus disease 2019 pandemic, the Downs at Albuquerque, incorporated, was required to cease all operations effective March 16, 2020; and

     WHEREAS, on April 1, 2020, the Downs at Albuquerque, incorporated, served formal notice of a force majeure event pursuant to the terms of the lease; and

     WHEREAS, the parties desire to enter into an agreement and release of claims to address issues arising under the lease due to the cessation of the operations of the Downs at Albuquerque, incorporated, during the coronavirus disease 2019 pandemic; and

     WHEREAS, as a term of the agreement and release of claims, the parties agree that fifty percent of the April 2020 rent, including rent paid under Sections 2.2, 4.3, 4.3.3, 6.1 and 6.2 of the lease, will be abated and the remaining fifty percent of the rent will be deferred; rent will be deferred for the additional months that the Downs at Albuquerque, incorporated, remained closed; rent will also be deferred for six months after the Downs at Albuquerque, incorporated, was allowed to reopen; and all deferred rent will be paid by the Downs at Albuquerque, incorporated, in equal monthly installments over the extended term of the lease; and

     WHEREAS, as a term of the agreement and release of claims, the parties agree to release and discharge each other from any and all outstanding liabilities, obligations, claims, rights, demands, damages, suits or causes of action relating to matters addressed within the agreement and release of claims; provided that the matters are resolved as provided for in the agreement and release of claims; and

     WHEREAS, as a term of the agreement and release of claims, the parties desire to extend the current lease for an additional one hundred twenty months to February 28, 2047;

     NOW, THEREFORE, BE IT RESOLVED BY THE LEGISLATURE OF THE

STATE OF NEW MEXICO that an extension of the lease between the New Mexico state fair and the Downs at Albuquerque, incorporated, for the racetrack, grandstand and casino area of the state fairgrounds, which is operated by the lessee as the Downs at Albuquerque, incorporated, until February 28, 2047 be hereby ratified and approved; and

     BE IT FURTHER RESOLVED that a copy of this resolution be

transmitted to the state fair commission.

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