Agenda Item Wording:
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Confirm Contract Approval - Confirm City Manager execution of the Operations and Management Agreement of the Plaza Park Raceway with One Four Promotions, LLC for one (1) year.
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Deadline for Action: 3/19/2024
Submitting Department: Administration
Contact Name and Phone Number: John Lollis, Assistant City Manager 713-4323; john.lollis@visalia.city
Department Recommendation:
Confirm the City Manager's execution of the Operations and Management Agreement of the Plaza Park Raceway with One Four Promotions, LLC for one (1) year.
Background Discussion:
The City has been leasing Plaza Park Raceway to an outside vendor for more than twenty (20) years to utilize the arena for the purpose of providing vehicular races on the dates and times set annually and at the sole discretion of the City. In 2023, the City issued a Request for Proposal (RFP) for use of the Plaza Park Venue for any purpose (not specifically racing). While three entities expressed interest and toured the facility, only One Four Promotions, LLC (OFP) submitted a proposal.
The City and OFP entered into an Operations and Management Agreement effective March 1, 2024, for Plaza Park Raceway. OFP will operate, manage, and maintain the Raceway to provide racing events. The Agreement term is for one year between March 1, 2024 and February 28, 2025, with provisions for reimbursement by the City to OFP for completed and documented project items that are considered permanent fixtures and subject to Prevailing Wages in the event that the Agreement is not extended for an additional four years (2025-2028). In lieu of an annual rental payment of $34,200, the Agreement calls for OFP to proceed with approved improvements to the Raceway as part of the Plaza Park Rebuild Project (Exhibit A).
Racing events shall be limited to nineteen (19) events for the 2024 year. The operator shall have the right to use the arena for racing and related activities only bet...
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