Item #04
Date: May 17, 2022
To: Mayor and City Council
From: Dan Flores, Community Development Director
Jim Schaad, City Manager
Subject: Agreement for the Off-Highway Vehicle Concession at Riverfront Park (Extension) Recommendation:
Pass a Motion to approve a 60- day extension to the Agreement for the Off-Highway Concession at Riverfront Park.
Discussion & Analysis:
Armstrong Racing, LLC have been long standing concessionaires of the City of Marysville. They have held an agreement with the City for Off-Highway Vehicle Concessions since February 12, 2012. Their current 5- year extension expires on June 1, 2022. Armstrong Racing is interested in extending the term of their lease. The City and Armstrong Racing are currently negotiating specific terms for an extension.
The current agreement allows for a “Right of First Negotiation”. “Prior to the expiration of the Additional Term, The City will negotiate with the Concessionaire for the execution of a new agreement on mutually acceptable terms. The right of first negotiations shall last no more than 60 days, beginning no more than 30 days before the expiration of the Additional Term.”
The extension of 60 days will allow adequate time for negotiations for an additional term.
Alignment with City Council Goal(s):
Goal #1: Increase Fiscal Sustainability
Goal #2: Expand Economic Development Opportunities Goal #5: Support Parks & Recreation Fiscal Analysis:
This extension is 60 days with a monthly rent of $5,000 for a total value of $10,000 in addition to reimbursement of utilities and maintenance as outlined in the contract.
There is an additional benefit in sales tax revenue, however, this is difficult to quantify. Sports events can bring a lot of people to the community that will stay overnight, eat at the local restaurants and purchase gas and supplies from the local stores.
Attachment(s):
1) Copy of Current Agreement
2) Copy of 60 Day Extension