To: Honorable Mayor and Members of City Council
From: John Coates, Parks & Recreation Services Director
Prepared By: Katrina Gregory, Recreation Manager
TITLE:
Title
License Agreement with Mad Dog Presents, LLC for Use of Oxbow Commons
LABEL
RECOMMENDED ACTION:
Recommendation
Authorize the City Manager to negotiate and execute an amendment to the License Agreement with Mad Dog Presents, LLC extending the term for an additional season, from June 2021 - October 2021, to allow the licensee to reschedule summer 2020 concerts that have been cancelled due to the COVID-19 pandemic to summer 2021 and reducing the monthly rent in 2021 from $2000 to $1700 and determine that the actions authorized by this item are exempt from CEQA.
Body
DISCUSSION:
In 2018, the City of Napa entered into a one-year license agreement with Mad Dog Presents (Licensee) to permit the Licensee to erect and maintain a stage on a 60’ x 60’ area at Oxbow Commons from June 1, 2019 through October 31, 2019 for a summer concert series. Licensee was permitted to produce up to fifteen (15) paid, ticketed music concerts and required to produce a minimum of five (5) free music concerts open to the public. Mad Dog Presents in partnership with Another Planet created the “Oxbow River Stage” brand and booked 6 concerts for the 2019 season.
At the November 5, 2020 meeting, City Council determined that Mad Dog Presents LLC’s Progress Report to the City documented compliance with the requirements of the License Agreement for use of the stage at Oxbow Commons for the term of June 1, 2019, through October 31, 2019 and authorized the City Manager to provide written notice to allow Mad Dog Presents LLC to exercise its option to extend the term of the License Agreement for the term of June 1, 2020 through October 31, 2020.
Due to the uncertainty created by the COVID-19 pandemic, many large concerts are being postponed and performing artists are choosing to reschedule their tours for either later in 2020 or for the same time of year in 2021. Mad Dog Presents is requesting to extend its License Agreement for an additional season, from June 1, 2021 to October 31, 2021, in order to reschedule many of the concerts that were previously scheduled for 2020. The amendment would also modify the monthly license fees for 2021from $2000/month to $1700/month consistent with the 2020 monthly license fee. If there are delays to the concert series due to the COVID-19 pandemic and the stage is installed later in the 2020 season or if the concert series is cancelled entirely, the Licensee will only pay the monthly fee for the months the stage is present at Oxbow Commons. The other license fees in the agreement will remain as stated, including the percentage of revenue from ticket sales. Mad Dog Presents will still be required to provide a Progress Report at the end of the season for 2020 to document compliance with the License Agreement requirements; however, the amendment will extend the Progress Report due date from September 1st to October 1st. All other terms of the License Agreement will remain unchanged.
FINANCIAL IMPACTS:
The revenue from the License Agreement for 2019 was $28,200 and is deposited into GL 45215 36201 to assist with expenses to maintain Oxbow Commons and other city parks. The revenue projections for 2020 is difficult to estimate at this given time due to the uncertainty of COVID-19 period and its longer-term impacts. However, Mad Dog Presents is able to hold several concerts at the end of the 2020 season the revenue projections will be similar to 2019 or approximately $25,000-$30,000 for FY2020-2021. There would be no additional revenue for FY2019-2020. The revenue in 2020 is estimated to be similar to 2019 and the revenue in 2021 is estimated to be approximately $65,000-$80,000.
CEQA:
City staff recommends that the City Council determine that the Recommended Action is exempt from CEQA pursuant to CEQA Guidelines Section 15303, which exempts the construction and location of small structures.
DOCUMENTS ATTACHED:
ATCH 1 - License Agreement
NOTIFICATION:
None