Title
Approve and authorize the Monterey County Laguna Seca Representative to execute a three-year Sponsorship Agreement, effective May 15, 2023, between Hagerty Events LLC and the County of Monterey for the 2023-2025 Calendar Years, including sponsorship and marketing- specific rights as Official Classic Car Insurance Sponsor of WeatherTech® Raceway at Laguna Seca, in the amount of $200,000 for the year 2023, $210,000 in the year 2024, and $225,000 in the year 2025 with an aggregate total of $635,000 over the term ending December 31, 2025.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Approve and authorize the Monterey County Laguna Seca Representative to execute a three-year Sponsorship Agreement, effective May 15, 2023, between Hagerty Events LLC and the County of Monterey for the 2023-2025 Calendar Years, including sponsorship and marketing-specific rights as Official Classic Car Insurance Sponsor of WeatherTech® Raceway at Laguna Seca, in the amount of $200,000 for the year 2023, $210,000 in the year 2024, and $225,000 in the year 2025 with an aggregate total of $635,000 over the term ending December 31, 2025.
SUMMARY/DISCUSSION:
Hagerty Events LLC (Hagerty) is an automotive lifestyle and membership company and the world’s largest provider of specialty insurance for classic vehicles. Hagerty was founded in 1991 in Traverse City, Michigan and have since grown into a provider of specialty vehicle insurance with offices in the US, Canada and Germany. They have been a sponsor for events at Laguna Seca for the past 12 years.
Staff negotiated a three-year Sponsorship Agreement (Agreement) with Hagerty with a first right of refusal option to renew the Agreement for the 2026 race season. The initial term of the proposed Agreement begins May 15, 2023, and terminates December 31, 2025, unless sooner terminated in accordance with the Agreement. During the term of the Agreement, Hagerty shall be named Official Classic Car Insurance and Title Sponsor of the Lakebed Marketplace during all Events.
Hagerty shall pay the County an annual sponsorship fee prior to July 1st of each contracted year as follows: 2023 - $200,000.00, 2024 - $210,000, and 2025 - $225,000 for an aggregate total of $635,000 over the term of the Agreement.
Staff requests the Board of Supervisors approve and authorize the Monterey County Laguna Seca Representative to execute the Sponsorship Agreement with Hagerty.
OTHER AGENCY INVOLVEMENT:
The Office of County Counsel reviewed the Agreement and approved it as to form.
FINANCING:
In consideration of County obligations under the Agreement, Hagerty shall pay the County $200,000.00 in 2023, $210,000.00 in 2024, and $225,000.00 in 2025 for an aggregate total of $635,000
The Sponsorship Agreement will provide additional revenue which will be available to continue required capital improvements at LSRA. This annual sponsorship revenue will increase the revenue and available financing source in Fund 453, Unit 8536, and Appropriation Unit PFP067 in Fiscal Year 2023. There is no known direct cost to the County in fulfillment of 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, LSRA, (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
Attachment:
Attachment: Proposed Sponsorship Agreement with Hagerty Events LLC
(Attachment is on file with the Clerk of the Board)