Title
Approve and authorize the Monterey County Laguna Seca Representative to execute a Facility Use Agreement between Velocity International, LLC and the County of Monterey for a racing event to be held at WeatherTech® Raceway at Laguna Seca on October 14-16, 2022, with limited access to the facilities beginning October 2, 2022, for a revenue of $238,000.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors approve and authorize the Monterey County Laguna Seca Representative to execute a Facility Use Agreement between Velocity International, LLC, and the County of Monterey for a racing event to be held at WeatherTech® Raceway at Laguna Seca on October 14-16, 2022, with limited access to the facilities beginning October 2, 2022, for a revenue (consideration or cost) of $238,000.
SUMMARY/DISCUSSION:
Velocity Invitational, LLC (Velocity) held its first event at WeatherTech® Raceway at Laguna Seca (WRLS) on November 11-14, 2021. The focus of the 2021 event was vintage car racing as a lifestyle experience and attendance achieved between 10,000-12,000 over the four-day 2021 event. Velocity previously held events at Sonoma Speedway in Northern California.
Velocity’s 2022 planned event is scheduled for October 14-16, 2022, with an optional additional day (October 13th) should Velocity wish to add a day. The event will focus on a “racing event” rather than a “vintage racing event,” attracting additional unique automobiles. The event will be supported by lifestyle amenities and hospitality similar to the 2021 event.
The proposed Facility Use Agreement (FUA) requires Velocity (also named Series in the FUA) to pay the County an Event Fee of $238,000, plus $25,000 in Gate Revenue, in four installments. All expenses incurred by County for Velocity’s use of the Laguna Seca Volunteer Association and/or Service Organizations will be billed back to Velocity, as well as all labor costs for any non-exempt WRLS staff required to work the event dates. Designated WRLS facilities will be available to Velocity as early as 7 p.m. on October 2, 2022, and Velocity is required to return the facilities to pre-event condition by no later than 10 p.m. on October 21, 2022.
Staff requests the Board of Supervisors approve and authorize the Monterey County Laguna Seca Representative to execute the proposed FUA with Velocity.
OTHER AGENCY INVOLVEMENT:
The Office of County Counsel and Auditor-Controller’s Office reviewed and approved the proposed FUA as to form and fiscal provisions, respectively. Risk Management reviewed and approved the insurance coverage and limits. The Laguna Seca Manager reviewed and approved the proposed FUA.
FINANCING:
Velocity, shall pay the County $238,000 for the FUA, plus $25,000 in gate revenue, for a total amount of $263,000, in four (4) installments. Per the FUA terms, Velocity shall also reimburse the County for all other expenses incurred during this event. There are sufficient appropriations in Fund 453-Laguna Seca, Budget Unit 8579, Appropriation Unit PFP067, to cover event expenses that the County will incur prior to reimbursement by Velocity.
BOARD OF SUPERVISORS STRATEGIC INITIATIVES:
The recommended action supports the Board of Supervisors Strategic Initiatives for Economic Development, Administration, and Infrastructure by proactively seeking funding sources to enhance the County’s ability to offer quality events at Laguna Seca facilities. The proposed event will generate revenue to help finance WRLS operations, maintenance, and capital improvements and also promote economic development by attracting domestic and international visitor dollars that stimulate the local economy.
X Economic Development
X Administration
Health & Human Services
X Infrastructure
Public Safety
Prepared by: Dona Luna, Management Analyst II (831) 755-5455
Reviewed by: Ryan Bell, Administrative Operations Manager-LSRA
Reviewed by: Bryan Flores, Chief of Parks
Approved by: Randell Ishii, MS, PE, TE, PTOE, Director of Public Works, Facilities, & Parks
Attachment:
Attachment A-Proposed Facility Use Agreement-Velocity
(Attachment is on file with the Clerk of the Board)