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City of Irwindale Agreement
On August 20, 1987, the Raiders and the City of Irwindale
(Irwindale) entered into the Irwindale MOA. The Irwindale MOA
provided that Irwindale would loan the Raiders $115 million to be
used in the construction of a stadium in Irwindale where the
Raiders would play their home games beginning with the 1992 NFL
season. Irwindale and the Raiders estimated that revenue during
the first year of the stadium’s operation would reach
approximately $24 million. The Raiders opened an Irwindale
office staffed with five to six people in 1987, and the office
remained open until some time in 1992.
On or about August 19, 1987, Irwindale advanced the Raiders
$10 million against the $115-million loan. The Raiders, in turn,
signed and delivered a $115-million nonrecourse promissory note
secured by a deed of trust. The note provided that the repayment
of the principal and interest was to be made exclusively from
stadium net revenue. In addition to the $10-million advance, the
Irwindale MOA required an additional $10 million:
to be placed in an escrow interest-bearing account
within seven (7) days on behalf of the Raiders and the
entire $10,000,000.00 plus interest will be paid to the
Raiders upon 1) passage of the G.O. [general
obligation] Bond Issue on November 3, 1987; and
2) assurance of mutually acceptable parking facilities
prior to November 3, 1987.
Irwindale never deposited the additional $10 million in an escrow
account.
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