HomeMy WebLinkAboutCOR-18-001 - Sponsorship Agreement - RBJ Schlegel ParkREPORT TO: Special Council
DATE OF MEETING: April 30, 2018
SUBMITTED BY: Colleen Collins, Interim Director, Corporate Communications and
Marketing, 519-741-2200 x7094
PREPARED BY: Colleen Collins, Interim Director, Corporate Communications and
Marketing, 519-741-2200 x7094
Dylan Matthews, Policy & Program Advisor (OSP), 519-741-2200 x 5269
WARD (S) INVOLVED: Ward 5
DATE OF REPORT: April 26, 2018
REPORT NO.: COR-18-001
SUBJECT: SPONSORSHIP AGREEMENT FOR RBJ SCHLEGEL PARK,
1955 FISCHER-HALLMAN ROAD
RECOMMENDATION: That the Mayor and Clerk be authorized to execute a Sponsorship
Agreement with Schlegel Urban Developments Corp. regarding their sponsorship and
-Hallman Road in south
Kitchener; said agreement to be to the satisfaction of the City Solicitor.
BACKGROUND:
In 2013, Council approved a Municipal Partnership Program (MPP) in order to take a
comprehensive and proactive approach to sponsorship and advertising opportunities as a
means of generating new revenues for the city. In 2016, the Office of Strategic Partnerships
(OSP) was created to provide support and advice to staff across the corporation and deliver on
the MPP by developing policies, guidelines and training to support the C
approach towards sponsorship opportunities. Council, at that time, also approved a list of
assets available for future sponsorship opportunities. Since 2016, the OSP has successfully
negotiated a number of sponsorship agreements that have generated new revenue to support
investments that contribute to the high quality of life Kitchener residents enjoy.
REPORT:
The City of Kitchener is looking for ways to minimize financial impacts on taxpayers by
generating new non-tax based revenue. City-owned assets, like the South Kitchener District
Park, offer revenue-generating opportunities through private sector partnership agreements,
which may include advertising, sponsorship (of programs/initiatives/services/events) and
naming rights.
In accordance with the Municipal Sponsorship Policy, the City has negotiated a sponsorship
agreement with Schlegel Urban Developments Corp., valued at $2.3M, for the naming rights of
the park currently referred to as the South Kitchener District Park.
*** This information is available in accessible formats upon request. ***
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With this agreement, the City agrees to officially name
the park the RBJ Schlegel Park for a term of 40 years from the park opening date. In addition
to the official park name, the agreement also includes the naming of two outdoor artificial turf
soccer fields and one outdoor natural turf field for a term of 10 years. Payment of the
sponsorship will occur over a 10-year period, beginning with the park opening.
Financial details:
Allocation of the funding will be determined by council through either the 2019 budget process
or a future staff report. As per the Municipal Sponsorship Policy, revenue generated can be
allocated towards one or more of the following:
Improving the sponsored program and/or audience experience
Direct servicing costs of partnership arrangements
A reserve account for future investments in the community
Administrative costs associated with the Office of Strategic Partnerships
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
The recommendation of this report supports the achievement
through the delivery of core service.
FINANCIAL IMPLICATIONS:
The sponsorship agreement is for $2.3M (+HST) payable to the City of Kitchener. The total
sponsorship value will be paid out with annual payments of $230,000 over 10 years, beginning
with the park opening date.
COMMUNITY ENGAGEMENT:
INFORM
council / committee meeting. ity
Address on April 17 and included in a media release following the event.
ACKNOWLEDGED BY: Victoria Raab, General Manager, Corporate Services
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