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COUNCIL AGENDA REPORT
City of Anaheim
CONVENTION, SPORTS & ENTERTAINMENT
DEPARTMENT
DATE: AUGUST 23, 2022
FROM: CONVENTION, SPORTS & ENTERTAINMENT DEPARTMENT
SUBJECT: FIFTH AMENDMENT TO THE CONCESSIONS AGREEMENT
AND THE FIFTH AMENDMENT TO THE PARKING LICENSE
AGREEMENT BETWEEN NEDERLANDER-GROVE, LLC AND
THE CITY OF ANAHEIM FOR MANAGEMENT OF THE CITY
NATIONAL GROVE OF ANAHEIM AND USE OF THE
COMMON AREA PARKING IN SUPPORT OF THE CITY
NATIONAL GROVE OF ANAHEIM
ATTACHMENT (Y/N): YES ITEM # 10
RECOMMENDATION:
That the City Council, by Motion,
1. Approve the Fifth Amendment to the Concessions Agreement between the City of Anaheim and Nederlander-Grove, LLC to extend the term of the Agreement for one additional year through December 31, 2023, and add a one-year optional extension to the Agreement at the City’s sole discretion; and
2. Approve the Fifth Amendment to the Parking License Agreement between the City of Anaheim and Nederlander-Grove, LLC to extend the term of the Agreement for one additional year through December 31, 2023, and add a one-year optional extension to the Agreement at the City’s sole discretion; and
3. Authorize the Executive Director of the Convention, Sports & Entertainment Department to execute any other related documents, and take any and all actions as are necessary to implement and administer the Concessions and Parking License Agreements.
DISCUSSION:
In September 2002, City Council approved a Purchase and Sale Agreement between the City of Anaheim and SMG for the purchase of the City National Grove of Anaheim, then called the Sun Theatre. In October 2002, following a comprehensive Request For Proposal process, City Council approved a Concessions Agreement with Nederlander- Grove for the management and operation of the City National Grove of Anaheim. In May 2009, City Council approved Amendments to the Concessions Agreement and the Fifth Amendment to the Concessions Agreement and Fifth Amendment to the Parking License Agreement Between the city of Anaheim and Nederlander-Grove, LLC
August 23, 2022
Parking License Agreement (the Agreements) to extend the base term of the Agreements through December 2015, and provided for an extended term through December 31, 2020. In June 2015, the City Council extended the term of the Agreements through December 31, 2020, and in May 2020, City Council extended the term of the Agreements through December 31, 2022.
Staff recommends that a management company operate the City National Grove of Anaheim on behalf of the City; however, with the expiring of the Agreements and no available extensions, due to the timing of the Anaheim Stadium land sale cessation, there is insufficient time to issue a Request for Proposals for those services before the expiration of the Agreements.
Extending the Agreements will ensure the continuity of bookings, staffing, operations, as well as sponsorship revenues, and allow the City to continue to financially benefit from Nederlander-Grove’s team of industry veterans bringing extensive experience in talent, marketing, production, and venue management. Nederlander-Grove’s strong relationships with talent, agents, and their managers permits them to book a wide range of headline entertainment; create great routing leverage; and offer artists unique touring opportunities. The proposed Fifth Amendments will allow Nederlander-Grove to continue to contract for business through December 31, 2023.
IMPACT ON BUDGET:
The revenues from this Agreement are included in the Convention, Sports and Entertainment Department’s FY 22/23 Enterprise Fund budget.
Respectfully submitted,
Thomas Morton
Executive Director
Convention, Sports & Entertainment Department
Attachments:
1. Fifth Amendment to the Concessions Agreement
2. Original Concessions Agreement with Amendments 1 - 4
3. Fifth Amendment to the Parking License Agreement
4. Original Parking License Agreement with Amendments 1 - 4