TITLE:
title
ONE YEAR USE AGREEMENT FOR JACK HAMMETT SPORTS COMPLEX WITH RAIDERS FOOTBALL CLUB, LLC, FOR 2024 PRE SEASON TRAINING CAMP
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DEPARTMENT: CITY MANAGER’S OFFICE
PRESENTED BY: ALMA REYES, DEPUTY CITY MANAGER
CONTACT INFORMATION: ALMA REYES, DEPUTY CITY MANAGER, (714) 754-5328
RECOMMENDATION:
recommendation
Staff recommends the City Council approve and authorize the City Manager to execute a Use Agreement for the City's Jack Hammett Sports Complex for a portion of the Raiders Football Club’s 2024 Summer Training Camp and related community benefits.
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BACKGROUND:
The Raiders Football Club, LLC, a Limited Liability Company, located in Nevada, has approached the City of Costa Mesa regarding the use of Jack Hammett Sports Complex (Complex) for a portion of their 2024 Summer Training Camp (Camp). Each year, National Football League (NFL) teams operate summer training camps to prepare their teams for the upcoming season. After exploring various location options, the Raiders requested the use of the City's Complex for a portion of their 2024 pre-season Training Camp operations.
Throughout the year, the City reviews Special Events Permits and Use Agreements for many different parks and facilities for non-profit groups, businesses, and individuals. In the past, the City's Jack Hammett Sports Complex has been used for various tournaments, events and practices.
In 2010, the University of Alabama football team had exclusive use of the site for their preparations for the national championship game that was played at the Rose Bowl. In addition, the Complex hosted the University of Florida State football team in 2014 when they were playing in the national championship game. Both of these teams became the national champions in those respective years.
In 2017, the City entered into a 10-year Use Agreement with the Los Angeles Chargers to conduct their annual Summer Training Camps through 2026 at the Complex at an annual cost of $150,570. The Chargers also invested approximately $1 million into the fields to bring them to NFL standards, among other community benefits. In 2022, the Chargers notified the City that their 2023 Summer Training Camp would likely be its last year at the Complex as they would be transitioning to a new training facility in El Segundo, California.
In March of 2024, the Los Angeles Chargers confirmed they would not be utilizing the City’s Complex to conduct its 2024 Summer Training Camp. As the Chargers organization has an Agreement with the City for use of the Complex through 2026, if they choose to exercise the option, the City can only enter into a one-year Use Agreement with another sports team at this time.
ANALYSIS:
The proposed Use Agreement (Attachment 1) outlines the terms and conditions for the Raiders’ use of the Complex. The Agreement includes the following key provisions:
• Use of Fields: The Raiders will have use of the Complex for a portion of their pre-season summer training camp from approximately July 19, 2024, through August 11, 2024. The investments they plan to make into the fields to bring them to current NFL standards will commence in June.
• Fees for Use: The Raiders will pay the City $165,00 for its use of the fields which is a negotiated one year price based on field use rates and the level of community benefits (itemized below), as well as, the overall economic benefit to the local community.
• Community Benefits: In addition to the field use rate, the Raiders have agreed to the following community benefits:
• $600,000 in improvements to Fields 3 and 4 to current NFL standards
• Team Junior Training Camp for kids ages 6 to 12
• 100 tickets for local students to attend an NFL pre-season game in southern California
• Replacement of fitness and weight training equipment for Costa Mesa High School
• A Mobile Recreation Van for recreation programs in underserved areas
• A $10,000 donation to a local youth sports group
• Training Camp: The Raiders would be allowed to utilize the Complex to support open practices during the camp. Details of the training camp dates and all related information will be coordinated through the City’s Special Events Permitting process, as with all major events at the City. The City will work closely with the community, neighborhoods surrounding the Complex and other community institutions and partners as needed in the discussions of parking, traffic, and other impacts to ensure that parking and traffic needs continue to operate as smoothly as possible. The Raiders will be responsible for the costs related to the development and implementation of all plans and for the rental of necessary equipment. Any requested public safety (Police and Fire) or other City staff necessary to support security, traffic/parking management, or any other activity will be charged per the City's event rate schedule.
In addition to the community benefits outlined above, the City will also reap the overall economic benefits from increased hotel stays and multiplier effects from hosting an NFL team, thereby increasing the City’s hotel and sales tax revenues.
Since the fields at the Jack Hammett Sports Complex are not used and instead are refurbished during the summer months, no youth sports teams will be displaced during the Training Camp period.
ALTERNATIVES:
The City Council may elect not to authorize this use agreement. There are no other considerations for alternatives as no other city facilities could adequately accommodate this use.
FISCAL REVIEW:
The proposed Use Agreement with the Las Vegas Raiders for the rental of the City's Jack Hammett Sports Complex for a portion of their annual summer training camp, and related events, would provide the City $165,000 in revenue for the duration of use, and other community benefits. The revenue from this agreement would be deposited into the Jack Hammet Sports Complex Capital Improvement Fund (Fund 417) for future improvements at the Complex benefitting the Costa Mesa community and youth sports groups that regularly use the facility.
LEGAL REVIEW:
The City Attorney has reviewed and approved the Agreement as to form.
CITY COUNCIL GOALS AND PRIORITIES:
This item supports the following City Council Goal:
• Improve the Quality of Life
• Achieve Long-Term Fiscal Sustainability
CONCLUSION:
Staff recommends the City Council approve and authorize the City Manager to execute a Use Agreement for the City's Jack Hammett Sports Complex for a portion of the Raiders Football Club’s 2024 Summer Training Camp and related community benefits.