HomeMy WebLinkAboutCSD-08-018 - Sponsorship Agreement with Activa Group1
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Community Services
REPORT
Report To: Community Services Committee
Date of Meeting: March 31, 2008
Submitted By: Keith Baulk, Director, Enterprise Division, 2393
Prepared By: Keith Baulk, Director, Enterprise Division, 2393
Ward(s) Involved: all
Date of Report: February 11, 2008
Report No.: CSD-08-018
Subject: SPONSORSHIP AGREEMENT WITH ACTIVA GROUP
RECOMMENDATION:
That subject to the satisfaction of the City Solicitor, the Mayor and Clerk be authorized to
enter into a sponsorship agreement with the Activa Group for naming of the City's new
Sportsplex as outlined in CSD Report 08-018, and;
That Council Policy "Reserve Fund -Activa Group Sportsplex" as appended to this
report be approved, subject to the execution of the sponsorship agreement.
BACKGROUND:
The Places to Play fundraising campaign team was directed by Council to raise a minimum of
$2 million for the new Athletic Complex on Hanson Avenue. The team has campaigned for the
past 8-10 months raising funds and assigning donor recognition based on the pre-approved
naming schedule.
During the campaign, a local developer, the Activa Group expressed interest in a naming
opportunity at a higher dollar value that was not part of the original pre-approved schedule.
REPORT:
The Activa Group expressed interest in naming the City's new Athletic Complex the "Activa
Group Sportsplex". Staff and the Places to Play Campaign Chair supported Activa Group's
proposal in principle and began dialogue about the sponsorship opportunity. Since the naming
opportunity and proposed contribution amount is both significant and not incorporated in the
pre-approved naming schedule, staff are suggesting the City enter into an agreement with the
Activa Group to define the terms of the arrangement. An overview of the main terms are as
follows:
• Activa Group pays the City $100,000 in 2008 and $50,000 for each of the following 8
years for a total of $500,000
CSD-08-018
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• The City will call the new Athletic Complex the "Activa Group Sportsplex" for the lifespan
of the building
• If necessary, the fund will be used first to "top up" the Places to Play fund to ensure the
campaign target of $2 million is achieved and the balance will be held in a reserve fund
for future capital purchases for the building and for sports partners chattels. Details of
the fund distribution conditions and process will be provided in the future.
The Places to Play Campaign Chair, Activa Group and City staff including Legal, have been
involved in establishing the proposed agreement terms and all are in support of moving forward
with the agreement.
FINANCIAL IMPLICATIONS:
The Activa Group will pay at total of $500,000 as follows:
2008 $100,000
2009 $50,000
2010 $50,000
2011 $50,000
2012 $50,000
2013 $50,000
2014 $50,000
2015 $50,000
2016 $50,000
Attached is a reserve fund policy which outlines how the funds will be maintained to serve their
ultimate purpose over time.
CONCLUSION:
The Activa Group has come forward with a substantial contribution and the "Places to Play
Campaign Team" and City staff feel the naming recognition -Activa Group Sportsplex - is both
appropriate and beneficial in the long term to the City and its main sports users through the
development of a capital legacy fund.
Due to the scope of the contribution, entering into a formal agreement is prudent.
Keith Baulk
Director Enterprise Division, Community Services
COUNCIL POLICY RESOLUTION
POLICY NUMBER DATE:
POLICY TYPE: FINANCIAL
SUBJECT: RESERVE FUND-
ACTIVAGROUP SPORTSPLEX
POLICY CONTENT:
1. That the Activa Group Sportsplex Reserve Fund be established subject to
the following guidelines:
(a) Revenue for the Reserve Fund shall be generated through the sale
of naming rights for the new athletic complex on Hanson Avenue as
well as contributions to the Places to Play campaign in excess of
the $2 million goal, if any;
(b) Interest income shall be credited to the Reserve Fund in
accordance with the City's interest allocation process;
(c) The Reserve Fund shall be used to "top up" the Places to Play
campaign to achieve the $2 million goal in the event it is not
achieved or future pledges do not materialize;
(d) The balance in the Reserve Fund shall be used to fund future
capital expenditures for the building and for sports partners
chattels, as approved by Council from time to time; and
(e) This Reserve Fund policy shall be automatically repealed after all
contractual payments have been received by the City and the
Reserve Fund balance has been expended
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