DATE: August 13, 2019
SUBJECT:
Title
RESOLUTION AUTHORIZING AMENDMENT NO. 1 TO AGREEMENT WITH STAY CLASSY SAN DIEGO, LLC FOR SPONSORSHIP OF A FESTIVAL ON THE DOWNTOWN SAN DIEGO WATERFRONT, ADDING $150,000 IN FUNDING, AND ASSIGNING ALL RIGHTS AND OBLIGATIONS OF STAY CLASSY SAN DIEGO, LLC TO WONDERLUST EVENTS, LLC. FY 2020 EXPENDITURES ARE BUDGETED.
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EXECUTIVE SUMMARY:
At the July 24, 2019, Board of Port Commissioners Meeting, the Board asked the Waterfront Arts & Activation department to follow up with additional details regarding the value of the District's sponsorship for the 2019 Wonderfront Festival, an inaugural three-day arts and music festival to be held on seven locations on District tidelands from November 22-24, 2019.
Based on staff's analysis, the Wonderfront Festival is estimated to generate $236,000-$422,000 in revenue to the District through tenant concession and ticket sales revenue. Additionally, in exchange for the District sponsorship, the organizer will provide 3,000 free tickets to underserved communities nearby and host 14.5 hours of free live music programming during the festival, with an estimated value of over $1 million. The District's sponsorship -- in the amount of $150,000 direct cash under this proposed agenda item and up to $350,000 in in-kind services previously approved on July 17, 2018 -- represents 5% of the total 2019 Wonderfront Festival cost and is equal to the contribution from the San Diego Tourism and Marketing District.
The Board action under this agenda item will amend the existing agreement (Attachment A) to add $150,000 in funding, assign the rights and obligations of Stay Classy San Diego, LLC (SCSD) to Wonderlust Events, LLC-an entity wholly owned and operated by SCSD-and provide licensing of the name Wonderfront by the District to define its usage by the event organizers. The amendment also explicitly requires that the Wonderfront Festival performance venues be on District-owned land.
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