,
CI"tyof 1~'
Meml2his
TEN:-<£SSEE
A C WHARTON, JR. - Mayor
GEORGE M. UTILE - Chief Administrative Officer
DIVISrOi'l' OF HOUSING & COl\IMUNITV IlEVELOrMEi'ff
ROBERT LIPSCOMB·
0;"""
-..;.;;;;;------------------------
April 22, 2010
Mr. Johnny Morris
Founder
Bass Pro Shops, Inc.
2500 E. Kearney
Springfield, MO 65898
Mr. Jim Hagale
President/COO
Bass Pro Shops, inc.
2500 E. Kearney
Springfield, MO 65898
Re:
McmphislBass Pro Pyramid Redevelopment Project
Dear JoluU1)' and Jim:
Thank you again for joining
LIS
on Tuesday to finalize our joint agreement and
understanding of the MemphislBass Pro Pyramid Redevelopment Project. During the
meeting, our discussions included:
•
•
_
All major significant project issues have been resolved.
High-level business tenns, in general:
o Lease Term - Twenty (20) year initial term with seven (7) option periods
of five (5) years each.
o Key financial terms - Annual Percentage Rent will be equal to two percent
(2%) multiplied by all Gross Sales, as defined. Bass Pro shall pay
Landlord a minimum of Eight Hundred Eighty Thousand Dollars
($880,000.00) during the first Lease Year and One Million Dollars
($1,000,000.00) during each and every additional Lease Year as
percentage rent (the "Minimum Percentage Rent") and as further defined
under tile terms and conditions of the Lease.
o Investment - Prior to the execution of the Lease, the Total Project Cost
will be finalized. Bass Pro's "Work" will be defined and Bass Pro's
investment will be quantified. The City of Memphis will invest a total of
Fifty Million Dollars ($50,000,000) into the Project. Twenty Mill inn
Dollars ($20,000,000) will be used tn fund the agreed upon "Wann Lit
Shell" Task List and Thirty Million Dollars ($30,000,000) will be used to
fund the agreed upon "Landlord Contribution" Task List.
Suite 100' 701 North Main Street· r'>'lcmphis, Tennessee 38107-2311 • (901) 576-7300' (901) 576-7444