6/4/2024 Item # 6
City of Santa Clara
City Council Meeting
Item # 6: RTC 24-591
Initial Grant Funding
Agreement with Forty Niners
1852
THE MISSION CIN SC Stadium Company LLC
DOC0O:
June 4, 2024
City of
Santa Clara
The Center of What's Possible
Background
POST MEETING MATERIAL
1 6/4/2024 Item # 6
City of
Santa Clara
Naming Rights Agreement
• On May 9, 2013, Santa Clara
Stadium Authority (Stadium
Authority) and Levi Strauss & Co.
(Levi's) signed a 20-year Naming LEVIS STADIUME
Rights Agreement
• Levi's pays an annual fee for
exclusive naming rights and
branding at the Stadium
City of
Santa Clara
The Center of What's Possible
Naming Rights Agreement (cont.)
• On January 30, 2024, the parties
agreed to extend the Naming Rights
Agreement for an additional 10 years
through a First Amendment
• Extension is expected to bring in an
LeVI's
additional $119M in revenue over
the course of the extension
• Extension requires new signage by
December 31, 2025
2 6/4/2024 Item # 6
City of
Santa Clara
The Center of What's Possible
Implementation Agreement
• Concurrently, the Stadium Authority and Forty Niners SC Stadium Company LLC (StadCo) StadCo entered into the Levi's® Stadium Naming Rights Extension and Enhanced Signage Project Implementation Agreement ("Implementation Agreement")
• Addresses cost-sharing for design, construction, and installation of Enhanced Signage Project, and formalizes StadCo's commitment to donate $200,000 annually for 20 years
• Funds allocated to support non-profit organizations and community projects in Santa Clara
City of
Santa Clara
The Center of What's Possible
Types of Agreements
Already Executed Pending
• Naming Rights Agreement • Individual Grant Agreements • Naming Rights Agreement - First (Yrs. 1-3)
Amendment - Parties: City and Beneficiary
- Parties: Stadium Authority, Levi's
• Future Community Grant
• Implementation Agreement Funding Agreement (Yrs. 4-20) - Parties: Stadium Authority, StadCo - Parties: City and StadCo Today's Action • Future Individual Grant
Agreements (Yrs. 4-20)
• Initial Grants Funding Agreement - Parties: City and Beneficiary (Year 1-3)
- Parties: City, StadCo 6
3 Item #6
6/4/2024
City of
Santa Clara
The Center of What's Possible
Initial Grant Funding Agreement
City of
Santa Clara
The Center of What's Possible
Initial Grant Funding Agreement
• Aimed to benefit non-profit organizations and projects in Santa Clara • Allocates $200,000 annually for Years 1-3
• Establishes key terms for Years 1-3 of StadCo's commitment to provide $200,000 annually for 20 years,
• Process outlined to develop program for subsequent years, Yrs. 4-20, during StadCo's 20-year commitment term, through a future Community Grant Funding Agreement
4 6/4/2024 Item # 6
City of
Santa Clara
The Center of What's Possible
Initial Grant Funding Agreement (cont.)
• StadCo is required to provide the $200k annually through 2044 by the Implementation Agreement
• Funds allocated through StadCo's related companies or charitable affiliates
• Initial Funding Agreement differs from original January 30, 2024 agenda item
→ The Initial Funding Agreement and budget amendments
required to implement the Agreement are being presented to Council for its consideration and approval
City of
Santa Clara
The Center of What's Possible
Initial Grant Distribution: Years 1-3
Year timeframe: April 1-March 31
Year 1(24/25) Year 2(25/26) Year 3(26/27)
Santa Clara Swim Club $100k Santa Clara Swim Club $100k Santa Clara Swim Club $100k Santa Clara Beneficiary Santa Clara Beneficiary
Bill Wilson Center $50k (TBD) $50k $50k
(TBD)
City Community Grants $50k City Community Grants $50k City Community Grants $50k 5 6/4/2024 Item # 6
City of
Santa Clara
The Center of What's Possible
Santa Clara Swim Club
• Founded in 1951, by legendary
coach George Haines
*arena
• Part of USA Swimming,
recognized globally as a
premier training center
• Produced more International CLARA
Swimming Hall of Fame WE DREAM, WE TRAIN, WE ACHIEVE
SWIM CLUB
swimmers than any other club
City of
Santa Clara
The Center of What's Possible
Bill Wilson Center
• Nonprofit founded in 1973 by 3490 THE ALAMEDA
Bill Wilson, Santa Clara BILL WILSON CENTER
councilman and mayor from
1963-1971
• Provides services to children,
young adults, and families
through their housing,
education, counseling, and
advocacy programs
6 6/4/2024 Item # 6
City of
Santa Clara
The Center of What's Possible
Qualified Santa Clara
Beneficiary (TBD)
• City distributes funds
designated for "Qualified Santa
Clara Beneficiary To Be
Determined"
• As selected by StadCo or its
designee, following
consultations and
approval from City staff
City of
Santa Clara
The Center of What's Possible
City's Community Grant Program
• Grants are provided to qualifying nonprofit community organizations, athletic groups, educational groups, or individuals for events, activities, and competitions benefiting Santa Clara and its residents. • Initial Grant Funding Agreement requires City Community Grant beneficiaries to be selected by City staff after consultations with StadCo, following City's Community Grants Program guidelines. 7 6/4/2024 Item # 6
City of
Santa Clara
The Center of What's Possible
City's Community Grant Program
(cont.)
• Proposed amendments to the Community Grant Policy will be presented at the June 3, 2024 Governance and Ethics Committee meeting.
• Amendments will detail grant focus areas, expand and clarify permissible uses of grant funds, among other provisions. • Any recommended changes to the Community Grant Policy will be brought forward to the full Council for approval.
City of
Santa Clara
The Center of What's Possible
Future Grant Funding Agreements
• Initial Grant Funding Agreement mandates City and StadCo to meet and confer before April 1, 2026, to develop a Community Grant Funding Agreement for Years 4-20
• Efforts will be made to finalize the agreement for at least Year 4 by October 31, 2026, to select Year 4 beneficiaries; subsequent funding agreements will be presented to the City Council
• Grants for Years 4-20 will be distributed according to Future Grant Funding Agreements between the City and StadCo
8 6/4/2024 Item # 6
City of
Santa Clara
The Center of What's Possible
Fiscal Impact
City of
Santa Clara
The Center of What's Possible
Fiscal Impact: Yrs. 1-3
• City will be responsible for General Fund Current Increase Revised distributing funds to the
Revenue
beneficiaries and through
the Community Grant > Other Revenue $183.6k $200k $383.6k Program for Years 1-3** Expenditure
> Non-Departmental:
→ Recommended budget Community Grants $94.2k $200k $294.2k amendments for FY 2023/24 Program
**Year 1 grants may not be disbursed before the end of the City's fiscal year (6/30/24). If this occurs, Staff will bring to Council additional budget amendments to carryover the Year 1 grant appropriations. 9 6/4/2024 Item # 6
City of
Santa Clara
The Center of What's Possible
Staff Recommendation
City of
Santa Clara
The Center of What's Possible
Staff Recommendation
• Authorize City Manager to enter into an Initial Grant Funding Agreement with Forty Niners SC Stadium Company LLC (StadCo) to provide for:
- The distribution of $200,000 annually over three years (Years 1-3) to non- profit organizations and community projects serving the Santa Clara community, as further described in the report and agreement - A process to develop a program, to be formalized through subsequent funding agreement(s) with StadCo, for the remaining grant distribution, in the amount of $200,000 annually for the subsequent years during StadCo's 20-year commitment term, in a final form approved by the City Attorney 10 6/4/2024 Item # 6
City of
Santa Clara
The Center of What's Possible
Staff Recommendation (cont.)
• Approve the FY 2023/24 budget amendments in the General Fund to recognize other revenue in the amount of $200,000 and increase the Non-Departmental Community Grants Program allocation in the amount of $200,000 (five affirmative Council votes required to appropriate additional revenue)
11