Agenda Item Wording:
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Authorize City Manager to execute Operations and Management Agreement of the Plaza Park Raceway with Morse Racing Promotion LLC for one (1) year.
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Deadline for Action: 1/18/2022
Submitting Department: Community Services
Contact Name and Phone Number: Jeremy Rogers, 4042, Devon Jones, 4190
Department Recommendation:
Authorize City Manager to execute Operations and Management Agreement of the Plaza Park Raceway with Morse Racing Promotion LLC for one (1) year.
Background Discussion:
The City and Morse Racing Promotions (MRP) entered into an Operations and
Management Agreement effective January 2017 for Plaza Park Raceway. MRP operates, manages, and maintains the Raceway to provide racing events. The Agreement term was for three years with two additional one-year periods. That agreement expired at the end of 2021. Staff is recommending remaining with MRP for one more year as City staff evaluates the facility and options for use of the facility moving forward. The needed site analysis is being proposed as a 2022/23 CIP item.
The proposed contract calls for MRP to pay $975 to the City for each primary racing event, $100 for each practice event, and $500 for all non-racing events. Racing events shall be limited to 28 events per year.
The City of Visalia has been leasing Plaza Park Raceway to an outside vendor for over 18 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. Racing schedules are to be submitted to the City no later than January 5th of each year and shall be approved by
the Parks and Recreation Commission at a regularly scheduled meeting. Unless prior arrangements have been made with the City, the operator shall have the right to use the arena for racing and related activities only between the hours of 5:30 p.m. and 11:00
p.m. on scheduled race nights. Below is the 2022 schedule that was approved by Parks and Rec Commission on Jan 11, 2022
March 4th May 6th August 26th
March 5th (Sat.) May 13th September 9th
March 18th May 20th September 16th
March 25th June 3rd September 23rd
April 1st June 10th September 24th (Sat.)
April 8th June 24th
April 15th July 1st
April 22nd August 12th
April 29th August 19th
More race dates can be added with the approval of the Parks and Recreation Commission. The track operator may also schedule practice sessions for individual racers on Wednesdays between the hours of 5:30 p.m. to 8:30 p.m. during the racing season. The operator is expressly prohibited from providing any other service or producing any other event without obtaining the prior written consent of the City at least sixty days in advance of the proposed event.
Fiscal Impact:
Revenue from racing events for 2022 estimated at $22,425, additional revenue may be seen from practice events or the addition of more races or events.
Prior Council Action: 1.19.21 - approved one year contract amendment, 11.7.16 - authorized staff to negotiate a contract for the operation of Plaza Park Raceway
Other: N/A
Alternatives: Per Council direction
Recommended Motion (and Alternative Motions if expected):
recommendation
I move to authorize City Manager to execute Operations and Management Agreement of the Plaza Park Raceway with Morse Racing Promotion LLC for one (1) year.
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Environmental Assessment Status: N/A
CEQA Review: N/A
Attachments: Draft Operations and Management Agreement