SUBJECT/RECOMMENDATION:
Title
Approve a Naming Rights Agreement between the City of Clearwater and BayCare Health System, Inc., a Florida not-for-profit corporation located at 2985 Drew Street, Clearwater for naming rights of the amphitheater at Coachman Park to be called The BayCare Sound and that the appropriate officials be authorized to execute same. (consent)
Body
SUMMARY:
On March 3, 2022, Council approved the issuance of a purchase order to The Superlative Group, Inc., pursuant to RFP 50-21, Asset Inventory, Valuation and Naming Rights Services for Phase I of professional services to identify sponsorship opportunities following completion of the Imagine Clearwater Project.
On October 2, 2022, Council approved entering Phase II with The Superlative Group, Inc. to develop a strategic sales campaign for the sponsorship and naming rights of approved assets for potential sale to national and regional corporate partners located at within Coachman Park.
Since this approval, Superlative has been working diligently on all naming opportunities within Coachman Park, but focusing mainly on getting a quality naming sponsor for The Sound. They have been successful in completing an agreement with BayCare Health Systems for naming rights of The Sound.
In this process, Superlative has worked with Ruth Eckerd Hall (REH), BayCare and the City to arrive at an agreement of which we all can be proud. Superlative recommends that the City approve this agreement.
The term of the agreement is for ten years. BayCare will compensate the City in the amount of $475,000 during the first year of the sponsorship. This amount will escalate 3% every year until the end of the ten-year term. By the conclusion of the ten-year term, the City will have received approximately $5,445,339 due to this sponsorship.
The agreement will expire at the conclusion of the ten-year term, requiring the City to identify a new Venue sponsor in the calendar year 2034. However, the agreement allows BayCare to request a ten-year extension of the current contract instead of allowing the agreement to expire in 2034. If BayCare makes this request, and if acceptable to the City at that time, BayCare will remain as the Venue sponsor beyond 2034. The parties anticipate that the 3% escalators will continue from year 11 through year 20 in the event that BayCare requests the extension. If the extension is requested, and if the 3% escalator remains acceptable to both parties at that time, the extended term will provide an additional $7,318,081 altogether during the extended term.
This same process can, if requested by BayCare and if acceptable to the City, repeat itself in years 21 through 24. This second extension will, if it occurs, provide the City with $9,834,895 in total revenue during the second extension.
If approved by Council “The BayCare Sound” name and logo will become a mainstay of the City of Clearwater and used throughout the park as well as on directional signs, websites, social media, and public media both locally and nationally and known by all who visit Clearwater.
APPROPRIATION CODE AND AMOUNT:
N/A
USE OF RESERVE FUNDS:
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STRATEGIC PRIORITY:
Adopting BayCare Health Systems as a naming rights partner for the Sound Amphitheater aligns with the following City of Clearwater Strategic Plan Objectives:
• 2.1: Strengthen public-private initiatives that attract, develop, and retain diversified business sectors;
• 2.2: Cultivate a business climate that welcomes entrepreneurship, inspires local investment, supports Eco-friendly enterprises, and encourages high-quality job growth;
• 2.3: Promote Clearwater as a premier destination for entertainment, cultural experiences, tourism, and national sporting events; and
• 2.5: Facilitate partnerships with educational and research institutions to strengthen workforce development opportunities.
