Title
a. Approve and authorize the Monterey County Laguna Seca Representative to execute a Hyundai Sponsorship and Official Automotive Partner Agreement, effective April 1, 2023 through March 31, 2024, between INNOCEAN AMERICAS USA, LLC on behalf of Hyundai Motor America and the County of Monterey for the 2023 International Motor Sports Association Motul Course de Monterey, Rolex Monterey Motorsports Reunion and Firestone Grand Prix of Monterey, and replace Lexus as the Official Automotive Partner at WeatherTech® Raceway at Laguna Seca, for total Sponsorship fee of $460,000.
b. Execute up to one (1) future amendment to the Agreement to offer an option to extend the term for one (1) additional year for total Sponsorship fee of $470,000.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Approve and authorize the Monterey County Laguna Seca Representative to execute the Hyundai Sponsorship and Official Automotive Partner Agreement, effective April 1, 2023, between INNOCEAN AMERICAS USA, LLC on behalf of Hyundai Motor America and the County of Monterey for the 2023 IMSA Motul Course de Monterey, Rolex Monterey Motorsports Reunion and Firestone Grand Prix of Monterey, and replace Lexus as the Official Automotive Partner at WeatherTech® Raceway at Laguna Seca, in the amount of $460,000.
b. Execute up to one (1) future amendment to the Agreement to offer an option extend the term for one (1) additional year for total Sponsorship fee of $470,000.
SUMMARY/DISCUSSION:
Staff negotiated a new Sponsorship (Agreement) with Hyundai Motor America (Hyundai) and agreed to the entitlement of Presenting Sponsor for IMSA Motul Course de Monterey, Rolex Monterey Motorsports Reunion and Firestone Grand Prix of Monterey, and replace Lexus as the and Official Automotive Partner at WeatherTech® Raceway at Laguna Seca. Under the Agreement Hyundai will be the weekend Presenting Sponsor for the IMSA event and the Official Automotive Partner providing eight (8) Hyundai vehicles for day-to-day use and two (2) fully equipped current model pace cars for race activities for the 2023 race season. The term of the Agreement is April 1, 2023, through March 31, 2024, in the amount of $460,000. Hyundai will have an option to extend the Agreement for one (1) additional year term (Renewal #1) which includes a Sponsorship fee of $470,000. The Agreement allows Hyundai a First Right of Negotiation beginning August 1 - October 31, 2024, for event years 2025-2027.
Staff requests the Board of Supervisors approve and authorize the Monterey County Laguna Seca Representative to execute the Sponsorship Agreement with Hyundai.
OTHER AGENCY INVOLVEMENT:
The Office of County Counsel reviewed the Agreement and approved it as to form.
FINANCING:
In consideration for County obligations under the Agreement, Hyundai shall pay the County $460,000.00 in 2023 and $470,000.00 in 2024, if Hyundai decides to take Renewal #1 option. There is no known cost to the County with this Agreement.
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 improved County Parks’ facilities and provide popular recreational venues for the public.
X Economic Development
X Administration
Health & Human Services
X 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 & Parks
Attachment:
Attachment A-2023-2024 IMSA Weekend Presenting Sponsor and Official Automotive Sponsorship Agreement