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Economic Development, Placemaking, and
Branding/Marketing Committee
November 2, 2023
PHASE 1 REPORT: NAMING RIGHTS SPONSORSHIP
ASSET INVENTORY, AND VALUATION FOR THE CITY
OF RIVERSIDE
Office of the City Manager
RiversideCA.gov
2 BACKGROUND
• May 5, 2020 the City Council approves a Citywide Partnership (Naming Rights) Policy.
• March 21, 2023 City approved RFP 2203 with Superlative Group, Inc., to assist in developing a comprehensive naming rights program, including a market analysis for potential Riverside naming rights.
• Structuring a naming rights program in terms of implementation market best practices and potentially guiding the City in initial naming rights negotiations.
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3 • Broad Outline of Deliverables:
A. Market Analysis
B. Review of Existing City Contracts, site data, visitor information, etc.
C. Onsite site evaluations (April)
Comprehensive analysis of Major buildings (Convention Center, Fox Theater) and other assets that could be packaged for naming rights (parks facilities, trails, etc.) and also the potential to brand festivals and events.
D. Guidance on new partnerships, agreements, and naming rights management.
E. Potential sales.
DISCUSSION
RiversideCA.gov
4 Some California Examples:
• City of Sacramento – SAFE Credit Union Convention Center – Approximately $920,000 annually for 25 years.
• City of San Diego – Toyota Motors donation of 34 lifeguard vehicles – Approximately $245,000 in value annually.
• City of Santa Monica - Bikeshare Program sponsor – Approximately $700,000 annually for 5 years.
• City of Irvine – Multiple sponsorship packages for the Great Park – Approximately $650,000 annually for 20 years.
• City of Huntington Beach – Toyota Motors donation of 24 water safety trucks - $960,000 net cost savings.
NAMING RIGHTS IN CALIFORNIA
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5 • “Impressions Based Valuation” - Placement of naming rights and the valuation specific to the placement itself:
– More visibility (e.g., placement adjacent to a freeway)equals a higher valuation because larger number of views received,
– Naming a building placed on a quiet side street would be valued lower. • Cost-Per-Thousand criteria based on number of views and pricing with regional market, economic, and consumer data. • Some large assets are partnered separately, whereas others are bundled.
REPORT FINDINGS
RiversideCA.gov
6 Revenue
Potential
(Ceiling)
Revenue
Potential
(Floor)
Term (Years)Value
Range
(Ceiling)
Value
Range
(Floor)
Fair Market
Value (FMV)
Asset
$10,937,779$9,114,81625$300,000$250,000$283,046Riverside Convention Center Naming Rights $4,375,112$3,645,92625$120,000$100,000$119,309Main Library Naming Rights $2,292,776$1,719,58210$200,000$150,000$163,540PRCSD System Corporate Partnership $1,834,221$1,490,30410$160,000$130,000$155,080Fox Theater Presenting Sponsorship $1,719,582$1,375,66610$150,000$120,000$140,387Library System Corporate Partnership $584,005$477,8225$110,000$90,000$102,217Mission Inn & Spa Festival of Lights Presenting Sponsorship
$573,194$343,91610$50,000$30,000$39,882Box Theater Presenting Sponsorship $159,274$106,1835$30,000$20,000$21,453Riverside Aerial Fireworks Show Presenting Sponsorship
$22,475,942$18,274,216$1,120,000$890,000$1,024,914TOTAL
REPORT FINDINGS
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7 • Based on best current market data;
• No guarantee that every asset can be named;
• Existing agreements can change or make partnerships
impossible;
• Does not take into account philanthropic and
foundation naming rights potential for some buildings.
REPORT LIMITATIONS
RiversideCA.gov
8 STRATEGIC PLAN ALIGNMENT
Envision Riverside 2025 Strategic Plan Priorities
High performing government - 5.4 Achieving and maintaining financial health by maximizing funding opportunities.
Cross-Cutting Threads
Community Trust
Equity
Fiscal Responsibility
Innovation
Sustainability &
Resiliency
Sets a standard for all City
departments to maximize
sustainable naming projects .
Sustains the municipal budget by
utilizing external sources of
capital. Sustains the City’s financial
present, while also tackling
projects and programs that can
position the City for future growth.Policy encourages levering naming investment that can benefit all
neighborhoods in the City.
Addresses new policy related
activities and technology.
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9 That the Committee:
1. Receive and file a report on Phase 1 Sponsorship Asset Inventory and Valuation for potential naming rights of Riverside municipal buildings and other assets; and
2. Advise staff regarding the next phases of a naming rights program for the City of Riverside.
Recommendations
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