Agenda Item Wording:
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Amendment and extension to the operations and management agreement for Plaza Park Raceway - Authorize the City Manager to execute an amendment and extension to the Operations and Management Agreement with One Four Promotions for Plaza Park Raceway.
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Agenda Date: 3/16/2026
Prepared by:
John Lollis, Assistant City Manager, John.Lollis@visalia.gov, (559)713-4323
Department Recommendation:
Staff recommends the City Council authorize the City Manager to execute an amendment and extension to the operations and management agreement of Plaza Park Raceway with One Four Promotions, LLC for three (3) years.
Summary:
Authorize the City Manager to execute an amendment and extension to the operations and management agreement of Plaza Park Raceway with One Four Promotions, LLC for three (3) years, effective March 1, 2026 to February 28, 2029. The contract is still in draft form and maybe subject to changes as Staff and legal counsel works with the promotor on a final scope.
Background Discussion:
For more than twenty (20) years, the City had been leasing the Plaza Park Raceway to an outside vendor 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 Proposals (RFP) for use of the Plaza Park venue for any purpose (not specifically racing), which three (3) entities expressed interest, however, only One Four Promotions, LLC (OFP) submitted a proposal.
At its meeting on March 18, 2024, the City Council approved a one-year operations and management agreement between the City and OFP effective March 1, 2024, for Plaza Park Raceway effective March 1, 2024 through February 28, 2025, and was subsequently extended an additional year through February 28, 2026. Pursuant to the Agreement, OFP operates, manages, and maintains the Raceway to provide racing events, 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 (4) 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 twenty (20) events per year, and OFP shall have the right to use the arena for racing and related activities only between the hours of 4:00 P.M. and 10:00 P.M. Mondays through Thursday and 4:00 P.M. and 11:00 P.M. on Friday and Saturday scheduled race nights.
OFP may also schedule practice sessions for individual racers on Wednesdays between the hours of 5:30 P.M. and 8:30 P.M. during the racing season, and 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 (60) days in advance of the proposed event.
Over the past two (2) years, OFP reports that racing spectator attendance has increased and the raceway has proven to be a draw for drivers, with almost 200 racers competing, mostly from California (136) and Arizona (24), but also from as far away as Australia (5) and New Zealand (1). OFP reports that approximately eighty (80) of the drivers reside within the Central Valley, including eighteen (18) in the Visalia area.
In the two (2) years that they have served as the Raceway operator, OFP has made significant non-permanent improvements to the venue and demonstrated good care and maintenance of the facility, reflected in the updated Exhibit A, with a valuation of over $750,000. OFP has stated that they have made sufficient improvements to the raceway to provide an above average racing experience for the next several years. While OFP had originally hoped to enter into a five-year agreement with the City with the option to extend up to twenty (20) years as operator of Plaza Park Raceway and continue too make major permanent improvements in the ensuing years,, the uncertainty around the plans for Plaza Park given the on-going Parks and Recreation masterplan does not make that a viable option at this time. The Company has requested that their current investment and on-going maintenance be accepted in lieu of rent for the next three years. In addition, the contract also relieves the City from making the improvements noted in the Exhibit for the same reasons. After the completion of the masterplan, the City and OTP can evaluate the feasibility of a longer-term agreement.
Staff believes that having a quality promoter that has made significant improvements to the facility, offers a different form of recreation and entertainment to the community, and attracts participants and spectators from outside the area is an attribute, and it is preferable to have the facility occupied and maintained over the next several years rather than left vacant and the City’s responsibility to maintain, during the assessment process and future planning that is occurring as part of the Parks and Recreation masterplan.
Fiscal Impact:
In lieu of an annual rental payment of $35,247 increased annually using the California Consumer Price Index for All Urban Consumers (CCPI-U) over the three (3) year term of the Agreement, staff is recommending accepting the previous significant improvements and on-going maintenance as payment.
Prior Council Action:
March 18, 2024: Confirm Contract Approval (24-0101)
Alternatives: Per Council direction
Recommended Motion (and Alternative Motions if expected):
recommendation
I move to authorize the City Manager to execute an amendment and extension to the operations and management agreement of Plaza Park Raceway with One Four Promotions, LLC for three (3) years with the understanding that the proposed contract is subject to changes.
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Environmental Assessment Status: N/A
CEQA Review: N/A
Deadline for Action: 3/16/2026
Attachments:
1. Draft Operations and Management Agreement
2. Draft Operations and Management Agreement - Exhibit A
3. Operations and Management Agreement (2024)
4. Plaza Park Raceway Proposed Schedule (2026)
Strategic Goal: Indicates which City Strategic Goal(s) this item supports. Check all that apply.
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