HomeMy WebLinkAbout2020-09-22 - AGENDA REPORTS - CONSIDERING A SPONSORSHIP AND NAMING RIGHTS AGMT O (2)Agenda Item: 11
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CITY OF SANTA CLARITA AGENDA REPORT
NEW BUSINESS
CITY MANAGER APPROVAL:1
DATE: September 22, 2020
SUBJECT: CONSIDERATION OF A SPONSORSHIP AGREEMENT TO
INCLUDE NAMING RIGHTS OF THE NEW SANTA CLARITA BIKE
PARK
DEPARTMENT: Community Development
PRESENTER: Jason Crawford
RECOMMENDED ACTION
City Council approve and authorize the City Manager or designee to execute a Sponsorship
Agreement with Trek Bicycle Corporation for naming rights and financial contributions for the
newly -opened City of Santa Clarita Bike Park.
BACKGROUND
The City of Santa Clarita (City) now has a seven -acre site dedicated solely to bike riders. The
bike park is part of the George A. Caravalho Santa Clarita Sports Complex and is located
southwest of the Aquatic Center. It includes several single-track mountain bike trails, a pump
track with 330 yards of combination jumps, and a BMX track will soon be added. The bike park
is open 365 days a year and is free for use by visitors of all ages.
The City's Business Sponsorship Program began in 2007 as a marketing program designed to
strengthen partnerships with the business community. Through this program, the City partners
with local, regional, and national business brands to enhance and improve the user's experience
and to provide value through integration into City events, programs, or facility naming rights.
The Business Sponsorship Program partners with more than 60 local organizations each year
including:
• The Santa Clarita Marathon, presented by Parkway Motorcars
• Concerts in the Park, presented by Logix Federal Credit Union
• The Santa Clarita Cowboy Festival, presented by California Resources Corporation
• The Youth Sports Mouth Guard Program, provided by Snow Orthodontics
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Staff met with representatives from Trek Bicycle Corporation (Trek) about establishing a
partnership that revolves around the City's newly established bike park. Trek is a global leader in
bicycle manufacturing and distribution, headquartered in Waterloo, Wisconsin. They have had a
strong local presence in the City for nearly 15 years through their suspension research and
development facility (facility). Trek's mission statement is, "We build only products we love,
provide incredible hospitality to our customers, and change the world by getting more people on
bikes."
The Trek facility was founded in September 2006, and was originally located next to the Santa
Clarita Sports Complex and in the area of the new bike park. Santa Clarita was specifically
chosen as the home for their facility and two Trek Bicycle retail stores, located at 24727 Railroad
Avenue and 26625 Bouquet Canyon Road, due to the year-round favorable weather, business -
friendly incentives, local riding opportunities, and access to other nearby world class riding.
Facility staff has been deeply engrained in the local mountain biking community since its
establishment. Over the past four years, Trek staff has provided over 600 hours of work on trails,
primarily spent on City open space trail development. Trek was an early adopter and strong
supporter of the SCV Trail Users Association and has been an advocate for the SCV National
Interscholastic Cycling Association (NICA) High School mountain bike teams since their
inaugural season in 2010.
Trek expressed interest in a long-term partnership consisting of both cash and in -kind benefits
for the City. Through this proposed partnership, Trek will directly invest in the City's bike park
by funding projects that benefit riders' experience at the park. In -kind contributions include
volunteering staff hours to maintain trails and funding additional features to be added to the bike
park, such as Progressive Wooden Ramps. Requested sponsor benefits for Trek include naming
rights for the bike park, specifically the "Trek Bike Park of Santa Clarita," as well ancillary
marketing benefits and exclusivity within their sponsor category. From the City's perspective,
co -branding with one of the nation's premier bike manufacturers is a win for both the City and
Trek.
The Business Sponsorship Program currently has agreements in place for facility naming rights
of the Central Park softball fields with organizations such as UCLA Health and Kind Snacks. It
has also developed proposals for naming rights agreements for City facilities that would be large
in size and scope, like the Santa Clarita Skate Park.
The proposed sponsorship agreement between the City and Trek for the naming rights of the bike
park is the first of its kind for both parties, and will generate a total of $30,000 for the City's
General Fund over the next three fiscal years. The proposed agreement will also result in the City
receiving in -kind contributions valued at $45,000 towards bike park improvements for the same
period. After the third year, both parties agree to evaluate the partnership to determine how best
to continue the relationship for future benefit.
ALTERNATIVE ACTION
Other action as determined by the City Council.
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FISCAL IMPACT
If approved by the City Council, a Sponsorship Agreement will be drafted that will result in a
fiscal benefit to the City of $75,000 over a period of three fiscal years, consisting of a
Sponsorship Revenue increase of $30,000, and in -kind contributions valued at $45,000.
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