| | | | | | | |  | ITEM 1.
WALK ON AGENDA |
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| | | | | | | | | DATE: | May 15, 2018
| | DEPARTMENT: | Visitor and Convention Bureau
| | REQUESTER: | Tamara Pigott
| | TITLE: | Approve 2019 Hobie 16 World Championships Sponsorship Agreement |
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| | | | | | | | | I. | MOTION REQUESTED | | | A) Approve sponsorship in the amount of $250,000 for the 2019 Hobie 16 World Championships ($125,000 payable in advance of the event with the $125,000 balance paid within seven days of event conclusion).
B) Authorize Chair to execute the sponsorship agreement on behalf of the Board of County Commissioners. |
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| | | | | | | | | II. | ITEM SUMMARY | | | Lee County would sponsor and host the 2019 Hobie 16 World Championships from November 1-16, 2019. The sponsorship fee is $250,000 and would be funded by the Tourist Development Tax revenue. |
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| | | | | | | | | III. | BACKGROUND AND IMPLICATIONS OF ACTION |
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| | | | | | | | | | A) | Board Action and Other History | | | | Since 1972, Hobie 16 World Championships have been held at various locations throughout the world:
2016 Dapeng, China
2014 Dervis Bay, Australia
2010 Weihai, China
2007 Suva, Fiji
2005 Nelson Mandela Bay, South Africa
2004 Rivera Maya, Mexico
2002 Nouméa, New Caledonia
2000 Guadeloupe, French West Indies
1998 Airlie Beach, Australia
1997 Sotogrande, Spain
1996 Dubai, United Arab Emirates
1995 Huatulco, Mexico
1993 Guadeloupe, French West Indies
1991 Langebaan, South Africa
1988 Scheveningen, Holland
1986 Suva, Fiji
1984 Fort Walton Beach, FL
1982 Papeete, Tahiti
1980 St. Croix, U.S. Virgin Islands
1974 Mataval Bay, Tahiti
1972 Honolulu, Hawaii
Hobie Cat Company traces its history back to 1950, when Hobie Alter began crafting surfboards in his parents’ garage. Headquartered in Oceanside, California, with subsidiaries in Australia and France, Hobie produces a wide collection of watercrafts for worldwide distribution – from sailboats to standup-paddle boards, kayaks and boats for both recreation and fishing.
International Hobie Class Association (ICHA) was founded in 1991 to promote Hobie racing under uniform rules around the world. With more than 2,059 members, this organization works closely with Hobie to conduct World Championships and other international sailing events. |
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| | | | | | | | | | C) | BoCC Goals | | | | Strategic Priority - Tourism |
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| | | | | | | | | | D) | Analysis | | | | This would be the first Hobie 16 World Championship held in the United States since 1984. Past events have had participants from 25+ countries and have reached attendance of more than 7,000. Between 500 to 600 sailing participants are expected to attend, along with another 1,300 -1,500 accompanying family members (spectators).
Lee County Visitor & Convention Bureau and Lee County Sports Development will work closely with Hobie and IHCA to generate strong attendance and significant PR coverage. Additionally, Hobie will provide giveaways and promote the event at domestic and international boat shows in advance of the event. All photography and video assets shot by Hobie and ICHA during the event will be shared with the VCB.
Sponsorship fee payments cross 3 fiscal years and are proposed as follows:
• $50,000 due and payable upon the signing (FY2017-18) of the agreement
• $75,000 due and payable by November 2018 (FY2018-19)
• $125,000 due and payable 7 days after the last day of competition (FY2019-2020)
NOTE: $125,000 of the $250,000 sponsorship fee is payable in advance of the event. The Sponsorship Agreement does contain a clawback provision that provides for a refund of advance payments in certain situations. HOWEVER, it is important to note that Lee County would be an unsecured creditor. Further, as a privately held company, Hobie Cat Company does not publish its financial statements or make them available to the public.
Utilizing the Florida Sports Foundation’s economic impact model, it is estimated that this event will generate direct expenditures of $2.45 million. Additionally, the attendees will likely generate more than $54,000 in tourist development tax revenue and the marketing and public relations benefits will total approximately $195,000. |
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| | | | | | | | | | E) | Options | | | | 1) Approve
2) Decline
3) Request agreement modifications
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| | | | | | | | | | A) | Current year dollar amount of item:
| $50,000 | | | B) | Is this item approved in the current budget? | Yes | | | C) | Is this a revenue or expense item? | Expense | | | D) | Is this Discretionary or Mandatory? | Discretionary | | | E) | Will this item impact future budgets?
If yes, please include reasons in III(D) above.
| Yes | | | F) | Fund: Tourist Development Tax
Program: VCB
Project:
Account Strings: HB5520317400.504811 | | | G) | Fund Type? | Enterprise Tourist Development Tax | | | H) | Comments:
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| REVIEWERS: | | Department | Reviewer | Action | Date | | Visitor and Convention Bureau | Tucker, Mary | Rejected | 5/4/2018 - 3:24 PM | | Visitor and Convention Bureau | Pigott, Tamara | Approved | 5/4/2018 - 3:36 PM | | Visitor and Convention Bureau | Turner, Nicole | Rejected | 5/7/2018 - 7:18 AM | | Visitor and Convention Bureau | Auer, Amanda | Approved | 5/7/2018 - 8:39 AM | | Visitor and Convention Bureau | Turner, Nicole | Approved | 5/7/2018 - 1:06 PM | | Visitor and Convention Bureau | Pigott, Tamara | Approved | 5/7/2018 - 3:51 PM | | Budget Services | Henkel, Anne | Approved | 5/7/2018 - 4:02 PM | | Budget Services | Winton, Peter | Approved | 5/7/2018 - 4:04 PM | | County Attorney | Fraser, Andrea | Approved | 5/11/2018 - 4:39 PM | | County Manager | Salyer, Glen | Approved | 5/11/2018 - 4:41 PM |
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