Report Prepared by: Stephanie R. Dietz, City Manager
Title
SUBJECT: Approval of a Form of Sponsorship Agreement with the San Jose Sharks, LLC and El Capitan, A JDV By Hyatt, Hotel to Establish a Teal Top Court at Applegate Park, a Junior Hockey Recreational Program and Provide for Marketing Opportunities for Merced with a Maximum Contribution of $83,250
REPORT IN BRIEF
Considers the approval of a form of Sponsorship Agreement with the San Jose Sharks, LLC and El Capitan, A JDV By Hyatt, Hotel to Establish a Teal Top Court at Applegate Park, a Junior Hockey Recreational Program and provide for marketing opportunities for Merced, with a maximum contribution of $83,250.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving the Form of Sponsorship Agreement with the San Jose Sharks, LLC. and El Capitan, A JDV By Hyatt, Hotel to establish a Teal Top Court at Applegate Park, a Junior Hockey Recreational Program, and provide for marketing opportunities for Merced with a maximum contribution of $83,250; and,
B. Directing staff to return to the City Council with a Memorandum of Understanding outlining the terms for sharing sponsorship advertising costs and benefits with El Capitan, A JDV By Hyatt; and,
C. Authorizing the City Manager or the Deputy City Manager to execute the necessary
documents; and,
D. Authorizing the Finance Officer to make the necessary budget adjustments.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Approve, subject to conditions other than recommended by staff; or,
3. Deny.
AUTHORITY
Charter of the City of Merced, Section 1104.
CITY COUNCIL PRIORITIES
Fiscal Year 2021/22 Adopted City Council Goals & Priorities, 3. Parks & Recreation, a. Recreation, iv. Enhanced Partnerships.
DISCUSSION
In August 2021, a letter was provided to the City Manager outlining a potential partnership between the San Jose Sharks Foundation, El Capitan Hotel, the Mainzer and the City of Merced (Attachment 1). The letter outlines a proposed youth hockey program with the San Jose Sharks Foundation, the first of its kind to be considered on public property and within the Central Valley.
The total cost to participate in the program is a one-time amount of $185,000. The partnership request proposes a 55% (El Capitan/Mainzer), 45% (City) split resulting in a funding request of $83,250. Staff will return to the City Council with a Memorandum of Understanding (MOU) outlining the terms of the participation for both the City of Merced and El Capitan for the Sponsorship Package.
In addition, the El Capitan/Mainzer team has worked to secure the necessary improvements to the existing Applegate Park facilities at no cost. City of Merced Public Works staff and other City personnel may be required to assist with prep work to accommodate installation and preservation of the Teal Top. The program would have a continued affiliation with the San Jose Sharks and provide access to a new recreation program for youth within the City.
In addition to the program, the City of Merced will be featured at a home game during the 2021-22 Sharks season, with local vendors invited to participate in concessions and Merced-focused material provided to those who attend.
During the September 7, 2021 City Council meeting, staff presented the proposed project for consideration. The Council voted 4-2 in favor of moving forward with the project.
The Sponsorship Agreement provided formalizes the financial contribution and program benefits to be provided to the City of Merced as previously presented.
IMPACT ON CITY RESOURCES
During the FY 2021/22 Budget, $100,000 was appropriated to provide a financial contribution to the El Captain, a JDV Hyatt, Hotel as previously approved by the City Council. In lieu of this contribution, El Capitan has requested that this funding be used to support providing the Teal Top program to the City of Merced. Should the Council choose to approve the use of this funding source, no additional funding would be required.
ATTACHMENTS
1. Sponsorship Agreement