Title
Approve and authorize the Contracts/Purchasing Officer or his designee to execute Amendment No. 2 to the Agreement with Choura Events (RFP No. 10703) for a Temporary Hospitality Structure at WeatherTech Raceway Laguna Seca reducing the annual lease payments from $775,000 to $387,000 for fiscal years 2021 and 2022.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
Approve and authorize the Contracts/Purchasing Officer or his designee to execute Amendment No. 2 to the Agreement with Choura Events (RFP No. 10703) for a Temporary Hospitality Structure at WeatherTech Raceway Laguna Seca reducing the annual lease payments from $775,000 to $387,000 for fiscal years 2021 and 2022.
SUMMARY/DISCUSSION:
This request supports the use of Choura Events, Inc., for the provision of the Temporary Hospitality Structure at WeatherTech Raceway Laguna Seca. The County previously entered into an agreement with Choura Events for the installation of a Temporary Hospitality Structure for five (5) racing seasons - 2019 through 2023 (the County has an option for a second such structure, which has not been exercised).
A&D Narigi Consulting LLC believes the use of this temporary structure is vital to WeatherTech Raceway's ability to sell hospitalities during premier race events and that such a structure is an expectation of the series and guests that attend premier events. In 2020-2022, the intent is to also utilize the structure for other events outside of major races. Projected estimated gross revenue based on revenues generated in 2019 would be in the $700,000- $800,000 range. Revenue is based on a full schedule of races and spectators allowed with no capacity restrictions.
The Agreement executed on April 24, 2019 was a five-year contract due to expire on October 30, 2024. The two major points of this Amendment No. 2 are the 50% reduction from the original lease terms of the agreement to be paid to Choura by the County, a savings of $387,000 annually, a...
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