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HomeMy WebLinkAbout10/17/2007 - STAFF REPORTS - 2.M. OF PALM s City Council Staff Report C"q[lF00.N�P, DATE: October 17, 2007 Consent Calendar SUBJECT: AMENDMENT TO AGREEMENT WITH PALM SPRINGS POWER FROM; David H. Ready, City Manager BY: Department of Parks and Recreation SUMMARY Palm Springs Power is requesting an amendment to its Agreement to Use Facilities at Palm Springs Stadium to include an Arizona Winter League expansion team known as the Palm Springs Chill beginning January 28, 2008. RECOMMENDATION: Approve Amendment 1 to Agreement 5282 with Palm Springs Power for use of Palm Springs Stadium by the Palm Springs Chill from January 28, 2008 through February 24, 2008. STAFF ANALYSIS: Palm Springs Power (PSP) has entered into an Agreement to Use Facilities with the City for use of Palm Springs Stadium. The term of this agreement is for three years, beginning May 1, 2006 and ending December 31, 2009, with an option to renew for an additional two year term- PSP has reached an agreement with the Arizona Winter League (AWL) to bring an expansion team to Palm Springs for the 2008 season beginning January 28, 2008. The new team will be known as the Palm Springs Chill (PSC) and is owned by Andrew Starke, the owner of Palm Springs Power. The PSC will play every weekend during the 35-day season from January 28 to March 2, 2008, The AWL is an off-season league for professional baseball players and prospects to improve and showcase their skills as they prepare for the upcoming summer season. Formed in 2006, the AWL is considered the premier winter league in the United States and had over 50 players last year signed to professional contracts. AWL managers, coaches, and instructors are all former major league players. ITEM NO. - City Council Staff Report October 17, 2007—2 AMENDMENT TO AGREEMENT WITH PALM SPRINGS POWER PSP is requesting an amendment to their existing agreement with the City to extend their use of the Stadium for eight (8) additional dates to accommodate the Winter League. A copy of this request is attached. The proposed amendment modifies the existing agreement with PSP to allow use the Stadium from January 28, 2008 to March 2, 2008. In addition, the amendment adjusts the daily rental fee paid by PSP from $350 to $362 per day to coincide with the rates currently charged under the City's Comprehensive Fee Schedule for use of the Stadium. All other terms and conditions remain the same. At its September 10th meeting, the Parks and Recreation Commission unanimously voted (8/0) to recommend that the City Council approve an amendment to the existing agreement with PSP to facilitate a Winter League Baseball Team at the Palm Springs Stadium from January 28 to March 2, 2008. FISCAL IMPACT: The revenue to the City through the fixed rental of the stadium will be $2,896 ($362 per game x 8 games). In addition, depending on the success of the Winter League, the City would be entitled to additional revenue through the percentage of gross gate and concession receipts revenue sharing clauses in the agreement. Sharon Heider, Director ro ButzlaftI's Pi ant City Manager Department of Parks and Recreation m nistrativces David H. Ready, ity er Attachments: 1.Request from Palm Springs Power dated October 1, 2007 2.Amendment No. 1 to Agreement A5282 Dear Mayor and Members of Council, Let me first thank each one of you for your support of the POWER organization over the past four years. It has been with great pride that we have represented this city on and off the field, and we look forward to continuing this for many years to come. Along with this letter, I assume that you have received the RFP I submitted to the City Managers office for this Wednesday, October 17ih council meeting. I must apologize for my inability to attend the meeting as this Saturday, the 20`h of October, I will be getting married in Los Angeles and need to be out there from Wednesday moming on to help with final plans and greeting of our out of town family members. however,my organization will have two representatives there that will be able to answer any questions you might have_ If during your review of the RFP there are any questions I can answer please call me directly day or night as I would be happy to answer any and all of your questions. My request from council is that you grant city management the ability to make an amendment to the current lease agreement my organization has with the city. This amendment would allow us to rent the stadium for baseball purposes outside the summer months at the same rate we do during the summer baseball season. My goal is to create a new winter baseball team called the Palm Springs Chill that would play on Friday's, Saturday's, and Sunday's in the month of February_ This team would be comprised of professional players with an ex Major League Baseball player as the team manager. Thank you very much for your time and service to our community, 1!( R3—,V,— Andrew Starke President Palm Springs POWER Baseball Club Inc. Palm Springs POWER Baseball 1901 East Baristo Rd. Q I e �• Palm Springs,CA 92262 U Ph(760)864-6278.Fax(760)325-7206 Palm Springs Power Request 10/1/07 1. Executive Summary The Palm Springs Power has been a successful baseball franchise playing at Palm Springs Stadium since 2004 and the only team to play all of their home games their since 1997. We are also the only sports organizations of this caliber that resides throughout the Coachella Valley and surrowrding areas. With these facts in mind, we would like to request the City of Palm Springs amend our current lease agreement to allow us to create additional baseball games at Palm Springs Stadium other than from the first POWER home game of each season through the last POWER home game of each season as stated in the current lease agreement. The Palm Springs POWER would like to create a separate division of our business called the Palm Springs Chill, and have that franchise compete in the Arizona Winter League run by the Golden Baseball League. All of the players on the Chill team will be professional players competing in this one month league with a divided schedule of games between Palm Springs and Yuma Arizona. The keys to success for the Paltn Springs Power organization and the Palm Springs Chill franchise will be three fold. (1) The ability for the Chill to utilize Palm Springs Stadium for eight dates on Fridays, Saturday's, and one Sunday in the month of February. (2) Continue to create a fun enjoyable environment for our fans across the Coachella Valley who would like to continue to come to Palm Springs Stadium for entertainment- (3) Effectively market the Palm Springs Chill in conjunction with the POWER to local and national businesses within Palm Springs Stadium along with our local press and media market. The force behind this organization will continue to be the Palm Springs POWER summer collegiate baseball team. However, creating a team with professional players that plays in the heart of"peak season" for our community will crease an additional entertainment opportunity that our community can provide the entire valley and continue to utilize the historic Palm Springs Stadium. 2. Mission To continue to build an organization within Palm Springs that remains a major part of the community for many years. To help the City of Palm Springs remain the leader of the valley while providing other city's residents an opportunity to enjoy Americas past time in a clean, fun, family environment. Finally, to bring more guests to our city that creates additional tax dollars while showing off our great community during the most appealing time of year. dQd®ui;r 3. Objectives The objectives of this organization will be: 1. Continue to grow throughout the Coachella Valley as a leader in the business and entertainment communities. 2_ Provide an additional February alternative entertainment value for the community which is safe, fun and wholesome. 3. Continue to involve Not-For Profit organizations throughout the valley while helping them with fundraising. 4. Bring teams, groups, families, and individuals to Palm Springs for short and long term visits that would otherwise not come to the valley. 5. Continue to grow the organizations employment to add to the cities workforce. 6. Grow our first class baseball organization that provides exceptional players a platform to display their talents to potentially realize their dreams of playing in the Major Leagues. 4. Request 1. The Palm Springs POWER request that the city of Palm Springs amends the current lease agreement between the City and the POWER to allow us to rent the stadium for additional baseball games not during the summer collegiate season. 2. Rental of the stadium and electricity usage be at the same rate of the current contract. "Non-profit status" $350 per night plus electricity costs. 3. Dates: 2/1/08, 2/2/08, 2/8/08, 2/9/08, 2/15/08, 2/16/08, 2/22/08, 2/24/08. 4. Time: Friday's 6:05pm Saturday's 4:05pm Sunday 4:05pm a. The date of 2/22/08 currently is scheduled to be used for set up for a separate group utilizing the stadium on 2/23/08. We are willing to incur the additional labor costs for overtime (within reason) for the set-up of the following day's event. This will insure the Saturday event will be ready to go on 2/23/08. 5.0 Team Structure The players on the team will be current professional players that played this past summer for professional franchisees across the globe. With the timing of this leagues schedule beginning and ending in February which is one month before MLB (Major League Baseball)teams open up spring training, this allows each of these men to prepare themselves mentally and physically to play for a MLB organization or the opportunity to earn a roster spot in an independent professional league. The team will consist of a few former POWER players that have moved on to professional baseball but most of the 0000 roster will be formed the last week in January as the AWL Managers, officers, and I will draft our respective teams. 6.0 Scheduling The Palm Springs Chill will be playing in Palm Springs on the date's list section 4.3 while also competing in Puma Arizona the other five days per week. The idea of only coming to Palm Springs on the listed dates is so that we can maximize the attendance on the most heavily attended days of the week. 8.0 Players & Coaches Each of the players & coaches in the AWL will be housed, fed and transported from game to game by the league along with given instruction by ex MLB players and coaches. The Palm Springs team would be managed by 16 year MLB veteran Gary Templeton who spent 10 years with the San Diego Padres_ Prior to February 2007 there were no such leagues or place for these men to train and compete in the United States before the March MLB spring training workouts begin. With professional sports athletes being paid such high salaries today, a league like this is essential to their development as players. Now that the AWL is in its second year, I am confident this league will have long term success and allow us to utilize our stadium for baseball during the best time of year for weather. 9.0 City Benefits • Each Friday night, hotel rooms For the Chill Players and coaches will be booked in the City of Palm Springs at a premium. • Both home and visiting teams will be eating and putnpin; gas in the city before and after each game. • Fans of the Palm Springs Chill that follow the team in Arizona will most certainly travel for a weekend getaway to Palm Springs to see them play. • Baseball fans that live in California will travel to Palm Springs to see these games since we will be the one and only winter baseball team with professional player in the state. • Advertising, because the team will have the Palm Springs name, it will be promoting our city five days per week in Yuma AZ, a comparable market that basis its economy on the winter tourist community along with all the marketing that will be taking place here in the Coachella Valley. The local marketing will continue to add credibility to our city as the leader throughout the valley. 10.0 Pricing All ticket prices will be $6 for senior and student and SS for adults with all general admission seating. All concessions will be moderately priced just as they are in the QQf9 ©�l� i� summer with the POWER along with the merchandise. The financial success of the business will not be based on generating a high profit margin, but one of success through larger numbers of fan attendance. 11.0 Market Segmentation 1. During the month of February the entire Coachella Valley is the home to almost 500,000 residents in thirteen cities. These cities include Indio, Palm Desert, Cathedral City, Rancho Mirage, Coachella, La Quinta, Desert Hot Springs, Indian Well's, Xuka Valley, Marengo Valley, Joshua Tree, Twenty Nine Palms, and Palm Springs. 2. Families of the Coachella Valley are a strong marketing segment because our prices allow a family of four to attend a baseball game i'or less than $50 including tickets, concessions, programs, parking, and travel_ 3. Visitors of Palm Springs and the Coachella Valley are another segment for the franchise_ With February being peak season for tourists and conventions, our city will be able to offer everyone inexpensive fun entertainment that appeals to a wide range of people. 4. Senior Citizens are a strong segment because they are always looking for different forms of inexpensive entertainment within their community. They enjoy the opportunity to be outdoors when it is so pleasant and the price is affordable. 12.0 Marketing the Chill throughout the Coachella Valley as a division of POWER Baseball The Palm Springs POWER and Palm Springs Chill will be working with the AWL to not only promote games in our community but also in Arizona. Here in the Coachella Valley we will be marketing the franchise in all Voris grocery stores as they are corporate partners with the AWL. Additionally, the Palm Springs POWER has continued to increase our advertising dollars throughout local Television, Radio, and Print ads here in the Valley each year since 2004, (Time Warner Cable, CBS2, The Desert Sun, Travel. IIost, Desert Entertainer, Palm Springs Life, City of Palm Springs, Morris Desert Media, R&R Radio, ilnivision, Kuna Radio, KPLM) are all forms of our marketing campaign that will promote the city of Palm Springs. 13.0 Community Relations The Palm Springs Power organization focuses each year to not only be the Home Torun Teatn and organization of the Coachella Valley but to build our relationships with the citizens, businesses, and government agencies. Our donations, camps, and involvement are what set our organization apart as we are constantly bringing players to special events, fundraisers, and community programs_ �Ql��617 Conclusion Since the Palm Springs POWER organization was created in the fall of 2003 I have been asked when or why don't we bring a winter franchise to the city? Prior to this fall,there had not been a successful winter league that we could participate in on the west coast. This is the first opportunity that I feel will have long term success and not be a franchise that leaves town with miss set expectations. With the POWER being an established business in the community the Palm Springs Chill will have instant credibility for fans and business sponsors. Along with the prior success of the AWL and the Golden Baseball League the Chill team will continue to grow each year and build a loyal following just like the POWER has. Andrew Starke President Palm Springs POWER Baseball Club Inc. TIN 20-0367869 Chairman Palm POWER Foundation TIN 20-1878059 Op®Q� n FIRST AMENDMENT TO AGREI MENTTO USE FACILITIES This First Amendment to the Agreement to Use Facilities with Palm Springs Power Baseball ("First Amendment" or "Amended Agreement") is made and entered into this 17°i day of October, 2007, by and between the CITY OF PALM SPRINGS, a municipal corporation ("City") and Palm Springs Power Baseball, a California Corporation ("PSP") and amends that certain "Agreement to Use Facilities" (the "Agreement") dated May 3, 2006 between the sarne parties. RECITALS A. On or about May 3, 2006, City and PSP entered into an"Agreement to Use Facilities" pursuant to which PSP was granted non-exclusive use of the Palm Springs Stadium (`'Stadium"), located at 1901 East Baristo Road, for the purpose of holding a series of collegiate all-star baseball games during the baseball season for the Pacific Southwest League. B. PSP would like to participate in a Winter Baseball League known as the Arizona Winter League and has requested additional use of the Palm Springs Stadium, C. The existing Agreement to Use Facilities with PSP does not allow additional use of the Stadium without the consent of the City. D. City and PSP desire to amend the Agreement to extend the use of the Stadium to acconuuodate the additional dates needed for the new winter baseball league. AGREEMENT The Agreement is hereby amended as follows: 1. "1B.8 In addition to the foregoing, PSP shall have nonexclusive use of the entire Stadium for its approximately eight (8) home games of the professional baseball team owned by PSP, known as the Palm Springs Chill ("Team") during the baseball season for the Arizona Winter League ("Season") conunencing at either 6:05 p.m. for Friday evening games or 4:05 pan. for Saturday and Sunday 900062 afternoon games from February 1, 2008 throubh Sunday, February 24. and ending three (3) hours after the completion o f each home game." 2. "3.1 Fixed Rental. PSP shall pay to the City an arnount equal to Three Hundred Sixty-Two Dollars ($362), or such amount as the Council may adopt by resolution within the Comprehensive Fee Schedule, for each home game of PSC. Rent shall be paid to the City on or before the first of each month, in advance." 3. Except as expressly provided herein, all other terms and conditions of the Agreement shall remain in full force Lund effect. [Sibnnature Block on Next Pade] �n�� :; IN WITNESS WHEREOF, the parties hereto executed this First Amendment to be effective as o( the Date first written above. CITY OF PALM SPRINGS, a municipal corporation By: City Manager ATTEST: City Clerk APPROVED AS TO FORM: Palm Springs Power Baseball City Attorney Name: Title: