Staff Report to Council: Advertising Agreement for Starlight Stadium with REMAX and Pacific FC Inc.

Staff Report to Council

t 250.478.7882
e administration@langford.ca
2nd Floor, 877 Goldstream Avenue
Langford, BC V9B 2X8

DATE: Monday, December 5, 2022
DEPARTMENT: Administration
SUBJECT: Advertising Agreement for Starlight Stadium with REMAX and Pacific FC Inc.

BACKGROUND

Under the Stadium Use Agreement the City has with Pacific FC Inc. (“PFC”), contract number CON19-0045, dated April 17, 2019, PFC is entitled to sell advertising for display at the Stadium. If PFC sources advertising, the gross profit for “non-camera visible” advertising locations is split between PFC and the City, allocated as 85% to PFC and 15% to the City.

COMMENTARY

PFC has discussed an advertising arrangement with REMAX Productions, Inc. for the Stadium. Under this agreement, REMAX would install two advertisements on the stadium, one on the side of the building facing the arena pitch and one above the ticket booth. Renderings of the design and location are included as Schedule “A” to the proposed agreement.

Under the Agreement, REMAX would pay $40,000.00, plus GST, paid over the 3-year term in equal installments for the advertisement. The $40,000.00 would be split between PFC and the City as per the Stadium Use Agreement of 85% to PFC and 15% to the City. The cost of designing, producing and installing the agreement would be split between REMAX and PFC. After the three years, REMAX would have to remove the advertisements and restore the Stadium space to its original condition at its sole cost.

FINANCIAL IMPLICATIONS

The City would receive $6,000.00 over three years for the advertisements. The City has no upfront costs.

LEGAL IMPLICATIONS

The City would be party to and bound by the proposed Advertising Agreement, CON22-0234, included in this report.

OPTIONS

Option 1

THAT Council instruct the Mayor and the Chief Administrative Officer to execute the Advertising Agreement in substantially the proposed form, subject to minor edits and modifications.

OR Option 2

THAT Council instruct staff to amend the proposed Agreement.

OR Option 3

THAT Council not enter into an Agreement with REMAX and PFC at this time.

SUBMITTED BY

Jordyn Dryden, J.D., B.A., Manager of Legal Services

Concurrence

• Donna Petrie, Senior Manager of Business Development and Events
• Will Ying-udomrat, Manager of Legislative Services
• Matthew Baldwin, MCIP, RPP, Director of Planning and Subdivision
• Michelle Mahovlich, P.Eng, P.Geo, Director of Engineering and Public Works
• Yari Nielsen, Director of Parks and Recreation
• Michael Dillabaugh, CPA, CA, Director of Finance
• Marie Watmough, Deputy Director of Corporate Services
• Braden Hutchins, Director of Corporate Services
• Darren Kiedyk, Chief Administrative Officer