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14 THE CITY OF -•• b'°°°''~=~ ~ "" CITY COUNCIL AGENDA REPORT ~L~~S~NTON~ April 21, 2009 Economic Development TITLE: CONSIDERATION OF A LICENSE AGREEMENT WITH SAN JOSE ARENA MANGEMENT TO OPERATE AN OUTDOOR HOLIDAY ICE RINK IN DOWNTOWN PLEASANTON SUMMARY San Jose Arena Management (SJAM) is proposing to operate an outdoor ice rink during the holiday season for the next five years. Recognizing that an outdoor holiday ice rink is a recreational amenity and will attract both residents and visitors to the downtown, the City will jointly participate by providing a location in the downtown and the necessary infrastructure for SJAM to operate the ice rink. RECOMMENDATION Staff recommends City Council consider the attached license agreement with San Jose Arena Management to operate an outdoor holiday ice rink and authorize the City Manager to execute the agreement. FINANCIAL STATEMENT There is no cost to secure the selected location. The initial cost to provide infrastructure to the location is estimated to be up to $15,000 for the extension of electrical power, water and voice/data lines to the site. Potential additional expenses to ensure visitors' safety and enjoyment while visiting the ice rink may include the lease and lighting of the 3-acre vacant parcel for parking, temporary signage and other related measures; those will be defined as staff develops a formal logistics plan. The expenses associated with the daily operation of the holiday ice rink are to be covered by revenues from ticket sales and sponsorships. Per the license agreement, the City will pay up-front costs for electricity and security, to be reimbursed from net operating profits. Corporate sponsorships are a key funding source, and account for approximately 50% of the budgeted revenues. In the event that expected sponsorship revenue targets are not reached, the City will commit either financial or in-kind sponsorship support of up to $40,000.