ADMINISTRATIVE REPORT
MEETING DATE: February 12, 2025 AGENDA CATEGORY: Consent - Agreements TO: Honorable Mayor and City Council
FROM: Christian Clegg. City Manager
DATE: January 31, 2025
SUBJECT: Naming Rights Agreement with Dignity Health for the Arena, Theater and Convention Center.
(Ward 2)
RECOMMENDATION:
Staff recommends approval of the agreement.
BACKGROUND:
The naming rights for the Mechanics Bank Arena, Theater, and Convention Center expired on January 31, 2025. Since September of 2019, the Arena, Theater, and Convention has gone by Mechanics Bank Arena, Theater, and Convention Center and prior to that , dating back to February of 2005, as Rabobank Arena, Theater, and Convention Center.
The term of this Naming Rights Agreement with Dignity Health will commence on March 1, 2025, and will continue for the initial agreement year and the ten (10) additional agreement years thereafter, expiring on December 31, 2035.
FISCAL IMPACT:
As the new naming rights partner of the Arena, Theater, and Convention Center, Dignity Health will pay a fee each year of the Naming Rights Agreement and the initial name of the Arena, Theater, and Convention Center will be “Dignity Health Arena, Theater, and Convention Center”.
Contract Year Fees
1 $400,000.00
2 $590,000.00
3 $601,800.00
4 $613,836.00
5 $626,112.72
6 $638,634.97
7 $651,407.67
8 $664,435.83
9 $677,724.54
10 $691,279.03
11 $705,104.62
TOTAL: $6,860,335.38
COUNCIL GOAL:
Community Character & Quality of Life
Innovative and Efficient City Government
ATTACHMENTS:
1. Agreement