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Consider a memorandum/resolution approving an agreement with First National Bank Texas awarding naming rights for the Family Recreation Center.
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DATE: May 6, 2025
TO: Kent Cagle, City Manager
FROM: Antonio Murphy, Executive Director of Parks and Recreation
SUBJECT: Award naming rights to First National Bank Texas for the Family Recreation Center.
BACKGROUND AND FINDINGS:
On January 21, 2025, the City Council awarded RFP-25-03, Consultant for City Park Facilities Sponsorship agreements, to Sportsman Solutions. The scope of services includes evaluating the City's facilities to determine their naming rights values and documenting the methodology used for these assessments. A flat commission pricing structure applies to all service phases, with 20% of the gross commission allocated to Sportsman Solutions and 80% to the City. All agreements proposed by Sportsman Solutions would be submitted for a vote and must receive approval from the City Council.
Sportsman Solutions engaged in discussions with First National Bank Texas about securing naming rights for the Family Recreation Center. The proposed agreement entails a commitment of $60,000 per year for seven years, with the option for two additional seven-year terms. The City would retain $48,000 annually, potentially totaling $1,008,000 after the commission to Sportsman Solutions is deducted. Additionally, the estimated cost for signage is $40,000, which will be shared equally between the City and First National Bank Texas, resulting in a cost of $20,000 for the City.
After careful review, the staff has concluded that this initiative will generate valuable revenue for the Parks Department. It will facilitate enhancements to facilities and parks, enabling upgrades and the development of new projects. Additionally, these funds can be used to expand community programs and services.
THE ALTERNATIVES CONSIDERED:
N/A
Which alternative is recommended? Why?
N/A
CONFORMITY TO CITY POLICY...
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