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HomeMy WebLinkAbout2022-03-08 - AGENDA REPORTS - FIVEPOINT SPONSORSHIP FOR THE CUBEO Agenda Item: 4 1. CITY OF SANTA CLARITA AGENDA REPORT NEW BUSINESS CITY MANAGER APPROVAL: A,1 A11�44-1) DATE: March 8, 2022 SUBJECT: CONSIDERATION OF A SPONSORSHIP AGREEMENT WITH FIVEPOINT FOR THE CUBE - ICE AND ENTERTAINMENT CENTER DEPARTMENT: Community Development PRESENTER: Jason Crawford RECOMMENDED ACTION City Council approve and authorize the City Manager or designee to execute a Sponsorship Agreement with Five Point Operating Company, LP, for the Presenting Level sponsorship of The Cube - Ice and Entertainment Center, subject to City Attorney approval. BACKGROUND The City of Santa Clarita's (City) Business Sponsorship Program (Program) began in 2007 as a marketing program designed to strengthen partnerships with the business community. Through the 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. As the City introduces new amenities and events, there is additional opportunity to forge new partnerships through the Program and deliver meaningful benefits to the City. The Program partners with more than 60 local organizations each year for various events and facilities, as exemplified below: Events Facilities The Santa Clarita Marathon, presented by Parkway Motorcars Concerts in the Park, presented by Logix Federal Credit Union The Youth Sports Mouth Guard Program, provided by Snow Orthodontics Trek Bike Park • Central Park softball fields (UCLA Health, Henry Mayo Newhall Hospital) Page 1 Packet Pg. 16 O On August 25, 2020, the City Council approved the acquisition of real property located at 27745 Smyth Drive, which was subsequently rebranded as The Cube — Ice and Entertainment Center (The Cube). Since taking ownership of the facility, staff has been in discussion with Five Point Operating Company, LP (FivePoint), about establishing a long-term sponsor partnership consisting of both cash and in -kind benefits for the City. Through these discussions, staff developed a Presenting Level Sponsorship Agreement (Agreement) that will generate $50,000 annually to the City over the course of seven years, for a total amount of $350,000. In turn, FivePoint will receive Sponsor Benefits in affiliation with the facility as "The Cube — Ice and Entertainment Center, powered by FivePoint." Key sponsor benefits are enumerated below: • Sponsor marks featured regularly on the LED screen at the front of the facility • Permanent, exterior displays as depicted in the attachment • Interior signage, including dasher boards, wall banners, and in -ice sponsor marks • Digital advertisements throughout the facility and on the facility website As specified in the Agreement, FivePoint would bear all reasonable costs associated with fabricating and installing mutually agreed -upon permanent signage. Visualizations of the proposed exterior displays are provided as an attachment to this item. FivePoint has a long history of supporting events and activities within the City. Examples include past sponsorship of City events, such as the Santa Clarita Marathon and River Rally Cleanup. FivePoint has also played an integral role in protecting Santa Clarita history by contributing toward the restoration efforts at Heritage Junction. 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 Henry Mayo Newhall Hospital. It has also executed agreements for City facilities that are large in size and scope, like the Trek Bike Park of Santa Clarita. ALTERNATIVE ACTION Other action as directed by City Council. FISCAL IMPACT If approved, the Agreement will increase revenues in account 120-456611 (Sponsorship Revenue) by $50,000 per year, for seven years consecutively. This will result in a total impact of $350,000, directly to the City. ATTACHMENTS Exterior Display of Sponsor Marks Page 2 Packet Pg. 17 4.a Exterior Display of Sponsor Marks pc,r¢v I L 7 VTACLARtTA L A ICE AND ENTERTAINMENT CENTER POWERED BY FIQ) EPOINT. COLOR LOGO ON WHITE BG CONCRETE BASE a 0' 0 c 0 0. r c 0 a m ii WHITE LETTERIN v Ul Y L C� G L 0 N C O M co 4- 0 ca A L 0 •L x W E t� r Y Q Packet Pg. 18