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Home My WebLink About2011-10-25 - AGENDA REPORTS - TOURISM PARTNERSHIP (2)CONSENT CALENDAR DATE: SUBJECT: DEPARTMENT Agenda Item: 4 CITY OF SANTA CLARITA AGENDA REPORT City Manager Approval: Item to be presented by: October 25, 2011 NP -1 _; -A &VA.. Mifj Jason Crawford STRATEGIC TOURISM PARTNERSHIP WITH WILLIAM S. HART BASEBALL City Manager's Office RECOMMENDED ACTION 1. City Council approve the letter of agreement between the City of Santa Clarita and William S. Hart Baseball; 2. Authorize the Fiscal Year 2011-12 expenditure of $50,000 from account 11305-5161.001; 3. Authorize City Manager or designee to renew the expenditure for up to three (3) years, through Fiscal Year 2014-15; 4. Authorize City Manager, or designee, to execute any contract documents, subject to City Attorney's approval. BACKGROUND The City Council approved the formation of the Tourism Marketing District (TMD) in June 2010. The TMD's functions are to increase and improve Santa Clarita's brand awareness, attract visitors to the region, and look for ways to increase the amount of tourism -related economic impact in the City. The TMD board was presented with a partnership opportunity by William S. Hart Baseball (WSHB) at the September 13, 2011, TMD meeting that will increase the amount of tourism -related economic impact in the City. The TMD board unanimously supported the partnership proposed. Since 1954, WSHB has provided an opportunity for children to participate in youth sports in Santa Clarita. Currently, over 3,000 children participate in their baseball and softball teams on an annual basis. The organization prides itself on striving for success, with their Mustang'team having won three of the last four world series in Texas. D In 2010 and 2011, Hart Baseball hosted two tournaments with a majority of the participating teams coming from the Santa Clarita and San Fernando valleys. Hart Baseball would like to host larger Pony tournaments, sanctioned events such as Super Regionals, and travel team tournaments, but require additional funding to cover bid fees and event production costs. With these funds, WSHB will work to attract approximately eight new, larger tournaments by 2014, with participating teams traveling from distances that necessitate staying in a hotel for one or more nights. Many of these tournaments could have upwards of 50 teams participating. Measurable goals will be- put in place for each year of the partnership, and a total of 900 annual room nights in the City of Santa Clarita are expected by 2014. The letter of agreement between the City of Santa Clarita and WSHB outlines a partnership that allocates matching funds, while requiring that WSHB meets certain goals related to hosting future tournaments that generate economic impact. Assuming that the goals of the agreement are met, funds would.be dispensed in $50,000 increments for each fiscal year. WSHB would be required to match those funds with $50,000 of their own, or from other public or private agencies, to continue to receive the funds. The City agrees to assist WSHB with the grant while WSHB works towards the following goals: WSHB will work towards bringing in a minimum of one new tournament generating a minimum of 150 hotel room nights at TMD hotels by June 30, 2012, (end of the current Fiscal Year). Each of the next three (3) Fiscal Years should see an increase in new sporting events taking place at the facility. A goal of 250 additional hotel room nights at TMD Hotels should be achieved in each of the following Fiscal Years: 2012/2013, 2013/2014 and 2014/2015. There will be proven and trackable increases in new tournaments held at the WSHB facility. An annual goal of a minimum of 900 room nights at TMD Hotels is expected on an ongoing basis after 2014/15. ALTERNATIVE ACTIONS Other action as identified by City Council. FISCAL IMPACT For Fiscal Year 2011-12,$50,000 is budgeted in account 11305-5161.001. The total project cost is up to $200,000 over Fiscal Years 2011-12, 2012-13, 2013-14, and 2014-15. ATTACHMENTS William S. Hart Baseball Letter of Agreement �� Agreement between the City of Santa Clarita and Wm. S. Hart Baseball & Softball League, Inc. for Event Attraction Campaign I. Purpose. Pursuant to the recommendation of the Tourism Marketing District ("TMD") and the direction of City Council, the City of Santa Clarita ("City"), a municipal corporation, will provide Wm. S. Hart Baseball & Softball League, Inc. ("WSHB"), a 50I(c)(3) corporation, a grant in the amount of up to $200,000. WSHB will utilize grant funds to attract and host future baseball and softball tournaments. Attracting these sports tournaments to their facility in turn will attract visitors to Santa Clarita and generate additional hotel nights for TMD hotels. II. Term. This one-time grant will be provided in multiple payments as follows: $50,000 upon the approval of this Agreement by the City Council and demonstration of matching funds by WSHB or other public and private entities and persons toward the event attraction campaign. An additional $150,000, for a total of $200,000, upon demonstration of matching funds by WSHB or other public and private entities and persons and upon the completion of each annual performance measure as outlined in Article III ("Performance Measures"). Notwithstanding the above, installments of the grant shall be in increments of not more than $50,000.00 each City fiscal year, provided that installments may be accelerated at the discretion of the City upon the early accomplishment of one or more of the goals set forth in Article III below or upon the occurrence of such other event(s) as the City may deem appropriate. III. Performance Measures. The City agrees to assist WSHB with the grant while WSHB works towards the following goals: • WSHB will work towards bringing in a minimum of one new tournament generating a minimum of 150 hotel room nights by June 30, 2012, (end of the current Fiscal Year). • Each of the next three (3) Fiscal Years should see an increase in new sporting events taking place at the facility. A goal of 250 additional hotel room nights should be achieved in each of the following Fiscal Years: 2012/2013, 2013/2014 and 2014/2015. • There should be proven and trackable increases in new tournaments held at the WSHB facility. An annual goal of a minimum of 900 room nights is expected on an ongoing basis after 2014/15. IV. WSHB Responsibilities. • Only hotel reservations with the following five (5) City of Santa Clarita TMD Hotels will count towards the room night goals as stated above: • Hyatt Regency • Embassy Suites • Courtyard by Marriott • Holiday Inn Express • Best Western Valencia Inn • WSHB, the City, and the TMD Hotels will work jointly to properly track hotel bookings made by each visiting team. 3 WSHB will work with the City to facilitate an economic impact analysis at each tournament held at the WSHB facility. WSHB will work with the City to hold specific dates for tournaments that the City can pursue on an annual basis that do not conflict with WSHB current goals and events. V. City Responsibilities. The City will assist WSHB with the following: ® Solicitation of new sporting events ® Group booking engine via VisltSanta(.]arita.com to easily make hotel room reservations Visitor Guides made available to tournament attendees VI. Termination. The City has the right to terminate this agreement at any time should the goals or matching contributions, as specified in the "Term," Performance Measures," and "WSHB Responsibilities" sections of this agreement be unsuccessful. The City will formally notify WSHB via written correspondence should it choose to exercise this right. All grant funds will be allocated from the TMD budget, and thus this agreement is also contingent on City Council's renewal of the TMD each year that this agreement is in place. Termination of the agreement constitutes an end to all other duties as outlined. VII. Indemnification. WSHB agrees to indemnify and hold the City harmless from and against any claim, action, damages, costs (including, without limitation, attorney's fees), injuries, or liability, arising out of WSHB's operation of the WSHB facility or performance of this Agreement (the "Services"). Should the City be named in any suit, or should any claim be brought against it by suit or otherwise, arising out of the Services, WSHB will defend the City (at the City's request and with counsel satisfactory to the City) and will indemnify the City for any judgment rendered against it or any sums paid out in settlement or costs incurred in defense otherwise. VIII. Insurance. All insurance shall be primary insurance and shall name City of Santa Clarita as an additional insured. The naming of an additional insured shall not affect any recovery to which such additional insured would be entitled under the policy if not named as an additional insured, and an additional insured shall not be held liable for any premium or expense of any nature on the policy or any extension thereof solely because they are an additional insured thereon. (SIGNATURES ON NEXT PAGE) IN WITNESS WHEREOF, the parties hereto have executed this contract the day and year first hereinabove written. FOR WM. S. HART BASEBALL & SOFTBALL LEAGUE, INC.: Print Name & Title Date: FOR CITY OF SANTA CLARITA: KENNETH R. PULSKAMP, CITY MANAGER go City Manager Date: ATTEST: By: City Clerk Date: APPROVED AS TO FORM: JOSEPH M. MONTES, CITY ATTORNEY By: City Attorney Date: