Title
Approve and authorize the Monterey County Laguna Seca Representative to execute Amendment No. 1 to the Sanction Agreement executed on June 14, 2021 between the International Motor Sports Association, LLC, and the County of Monterey for a race competition event at WeatherTech® Raceway at Laguna Seca with a 2024 sanction fee of $520,000 for an aggregate not to exceed sanction fee of $1,970,000 over the term of the Agreement.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
Approve and authorize the Monterey County Laguna Seca Representative to execute Amendment No. 1 to the Sanction Agreement executed on June 14, 2021 between the International Motor Sports Association, LLC, and the County of Monterey for a race competition event at WeatherTech® Raceway at Laguna Seca with a 2024 sanction fee of $520,000 for an aggregate not to exceed sanction fee of $1,970,000 over the term of the Agreement.
SUMMARY/DISCUSSION:
The International Motor Sports Association (IMSA) is a North American sports car racing sanctioning body based in Daytona Beach, Florida and has held an annual event at Weathertech® Raceway since 2018. The event has become an annual professional race event that brings competitors from all over the United States to the facility.
The Board of Supervisors (Board) authorized the execution of a Sanctioning Agreement (Attachment A) between IMSA and the County of Monterey (County) on June 8, 2021, for the 2021, 2022 and 2023 racing season. IMSA sanctioned a race competition for its series at WeatherTech® Racetrack at Laguna Seca (WRLS).
Major sponsors of Laguna Seca Recreation Area (LSRA), such as WeatherTech®, Hyundai, Mission Foods, and Motul, also sponsor or have teams that race for the IMSA organization. Attendance has grown over consecutive events, as seen with a 30% increase in 2023 vs. 2022. The 2024 race will air live on NBC network television.
Staff requests the Board approve and authorize the Monterey County Laguna Seca Representative to execute Amendment No. 1 for a one-year extension for the 2024 racing season (Attachment B) with a sanction fee not to exceed $520,000.
OTHER AGENCY INVOLVEMENT:
The Office of County Counsel and Auditor-Controller’s Office reviewed and approved the proposed Amendment No. 1 as to form and fiscal provisions, respectively.
FINANCING:
The amendment total sanction fees for the contracted services provided by IMSA for the 2021 to 2024 racing seasons is $1,970,000, including the $520,000 sanction fee for the extension of the term to include 2024 racing season, scheduled to happen in May 2024. Budget for this 2024 IMSA sanction fee is included in the FY 2023-24 Adopted Budget for Laguna Seca Recreation Area, Fund 453, Unit 8579, Appropriation Unit PFP067.
BOARD OF SUPERVISORS STRATEGIC INITIATIVES:
The recommended action supports the Board of Supervisors Strategic Initiative for Economic Development as this event continues to grow and gain national attention. This event will be nationally televised on NBC networks and will give the local area exposure so as to attract visitors to the County. Event revenue generated will finance WRLS operations and maintenance and promote economic development by attracting visitor dollars from across the county to help stimulate the local economy.
X Economic Development
Administration
Health & Human Services
Infrastructure
Public Safety
Prepared by: Ryan Bell, Administrative Operations Manager, (831) 755-8912
Reviewed by: Bryan Flores, Chief of Parks
Approved by: Randell Ishii, MS, PE, TE, PTOE, Director of Public Works, Facilities and Parks,
The following attachments are on file with the Clerk of the Board:
Attachment A - Sanction Agreement with IMSA
Attachment B - Amendment No. 1