Loading...
HomeMy WebLinkAboutContract 26998 CITY CON R CTENO Y_ b PROFESSIONAL SERVICES AGREEMENT CITY OF FORT WORTH AND THE FORT WORTH BRAHMAS HOCKEY CLUB Tnis ' greement is made and entered into this the _ day of fili 2001, by and between the CITY OF FORT WORTH, a home rule mumcil& corporation of the State of Texas, located within Tarrant and Denton Counties, Texas (Hereinafter referred to as the "CITY") and the TEXAS BRAHMAS L.P. currently d/b/a FORT WORTH BRAHMAS HOCKEY, a minor league professional hockey team of the Western Professional Hockey League (Hereinafter referred to as the "BRAHMAS"), both parties acting herein by and through their duly authorized representatives. 1. SCOPE OF SERVICES. In accordance with the highest professional standards, BRAHMAs agrees to diligently prepare and submit to the CITY, for its consideration, complete plans and specifications for corporate marketing proposals relating to the designation of a Naming Sponsor and the acquisition of the right to name the arena located at the Fort Worth Convention Center. (Hereinafter referred to as the "Arena") Any marketing proposal presented to the CITY must include a corporate Naming Rights Sponsor that demonstrates a history and practice of financial stability along with a strong record of good corporate citizenship. The selected Naming Rights Sponsor shall have the right, subject to the approval of the City Council, to designate the name of the Arena. By naming the Arena, the Naming Rights Sponsor will not obtain exclusive merchandising right or the use right for commercial purposes or exploitation of the Arena, name or image, its use, publication or reproduction in any form. The City shall have the exclusive merchandising right for all commercial marketing and merchandising of goods and activities displaying or using the name of the Arena. The selected Naming Rights Sponsor must be willing to execute a Naming Rights Agreement with the CITY for a term of three (3) years with two (2) one year renewal options. The Naming Rights Sponsor must agree to honor the terms of the Agreement with the CITY regardless of whether the BRAHMAs hockey team continues to use the Arena. The CITY agrees not to pursue any Naming Rights Sponsor during the term of this Agreement. The CITY shall have the right upon either termination or expiration of this Agreement to pursue any Naming Rights Sponsors not presented to the CITY by the BRAHMAs. If the City rejects any Naming Rights Sponsor presented by the BRAHMAs, the CITY agrees not to pursue the Naming Rights Sponsor for a period of one (1) year from the date of presentation to the CITY of the Sponsor Proposal for the naming of the Arena ROE`% VU. e 2. TERM. The BRAHMAS shall have 120 days from the date of the signing of this Agreement to present the corporate marketing proposals to the CITY If the BRAHMAS fail to present any corporate marketing proposals to the CITY within 120 days from the signing of this Agreement or the CITY rejects all presented proposals, then this Agreement and all its terms hereunder will immediately terminate with no obligation to the CITY, other than the CITY agrees not to pursue any Naming Rights Sponsor proposal for the naming of the Arena presented to the CITY for a period of one (1) year from the date of presentation to the CITY 3. COMPENSATION. As full and complete compensation to the BRAHMAS for services rendered under the terms of this Agreement, conditioned on the CITY choosing and executing a final Agreement with a Naming Rights Sponsor presented by the Brahmas, the CITY agrees to pay to the Brahmas as follows: 1. Forty (40) percent of the net naming receipts collected for the first 12 months from the date of the signing of the Naming Rights Agreement between the CITY and the Naming Rights Sponsor shall be paid to the BRAHMAS. 2. Thirty (30) percent of the net naming receipts collected for the second 12 months of the Naming Rights Agreement between the CITY and the Naming Rights Sponsor shall be paid to the BRAHMAS. 3. Twenty (20) percent of the net naming receipts collected for the third 12 months of the Naming Rights Agreement between the CITY and the Naming Rights Sponsor shall be paid to the BRAHMAS. 4. If applicable, twenty (20) percent of the net naming receipts collected for any months during the renewal period of the Naming Rights Agreement between the CITY and the Naming Rights Sponsor shall be paid to the BRAHMAS. "Net naming receipts" shall be defined as the value of the Naming Rights Sponsor Agreement minus the Naming Rights Sponsor's expenses, including, but not limited to, the cost of new or replaced arena signage, new city employee uniform shirts or any other items requiring the Naming Rights Sponsor name and/or logo to be displayed on any property belonging to the City. It is agreed and understood that the Naming Rights Sponsor shall be responsible for all costs incurred under the Naming Rights Sponsor Agreement and such costs shall not be included when determining the net naming receipts. I I� Payment of any net naming receipts by the CITY to the BRAHMAs is conditioned on actual collection of said receipts by the CITY. If for any reason said net naming receipts are not collected due to either the termination of the Agreement between the CITY and the Naming Rights Sponsor for just cause or for any other reason that is due to no fault of the CITY, no payment will be due and owing the BRAHMAS. Payment of the net naming receipts to the BRAHMAS will be made within thirty (30) days upon receipt by the CITY from the Naming Rights Sponsor. If for any reason the BRAHMAs fail to exercise their remaining two one—year lease options with the CITY for the use of the Arena for a minimum of thirty professional hockey games per year, all compensation owed to the BRAHMAS for services rendered under the terms of this Agreement shall immediately terminate and all monies collected under the remaining net naming receipts and other terms of the Agreement between the CITY and the Naming Rights Sponsor will be paid directly and in full to the CITY. In the event the CITY chooses a Naming Rights Sponsor not presented to the CITY by the BRAHMAS under the terms of this Agreement, no compensation will be owed to the BRAHMAS. The CITY agrees not to pursue any Naming Rights Sponsor during the term of this Agreement, however, the CITY shall have the right upon either the termination of expiration of this Agreement to contact and pursue any Naming Rights Sponsor not presented to the CITY by the BRAHMAS. In the event that the CITY rejects, for any reason whatsoever, all corporate proposals for a Naming Rights Agreement,no compensation will be owed to the BRAHMAS 4. INDEMNITY. Approval by the CITY of this Agreement or any Naming Rights Agreement shall not constitute or be deemed to be a release of the responsibility and liability of the BRAHMAs, its officers, agents or employees for the accuracy and competency of the services performed under this agreement, including, but not limited to, representations made in any proposed Naming Rights Agreement. BRAHMAS, its officers, agents or employees agree to reimburse, indemnify and hold harmless the CITY from all costs, liabilities, claims and expenses, including, without limitation, attorneys' accountants and consultants fees, costs and disbursements, arising out of or incurred in connection with any claim pertaining to an alleged breach by the CITY or any type claim by a Naming Rights Sponsor under this Agreement. 5. DESTRUCTION. In the event that the Arena is so damaged or destroyed by fire or any other casualty, regardless of the cause, so as to render the Arena unfit for its accustomed uses, this Agreement shall terminate and the parties shall have no further obligations under this Agreement. The determination of whether the Arena is unfit for its accustomed uses shall be in the sole discretion of the CITY. 6. TERMINATION. The CITY may terminate this Agreement at any time and for any cause prior to the signing of a contract with a proposed Naming Rights Sponsor presented by the BRAHMAS by giving notice in writing to the BRAHMAS. Upon receipt of such notice, the BRAHMAS shall immediately discontinue all services and work in connection with the performance of this Agreement. In the event that the CITY chooses, in its discretion, to terminate the use of the Arena for any reason, then this Agreement shall terminate and the parties shall have no further obligation under this Agreement. The determination of whether to continue the use of the Arena shall be in the sole discretion of the CITY. If the CITY terminates this Agreement under the foregoing paragraph, no payment for any services or other work will be paid to the BRAHMAS. BRAHMAS understand and agree that any payment due and owing the BRAHMAS is contingent upon the CITY accepting, executing and continuing with a satisfactory Naming Rights Sponsor Agreement with a Naming Rights Sponsor and the continued use of the Arena by the CITY. If the CITY terminates this Agreement under the terms of this Section, the CITY agrees not to pursue any proposed Naming Rights Sponsor presented to the CITY for the CITY's consideration for the naming of the Arena for a period of one (1) year from the date of presentation to the CITY. 7. ASSIGNMENT. Neither part hereto shall assign or transfer its interest herein without prior written consent of the other party and any attempted assignment or transfer of all or any part thereof without such prior written consent shall be void. 8. INDEPENDENT CONTRACTOR. BRAHMAS shall operate hereunder as an independent contractor and not as an officer, agent, servant or employee of the CITY. BRAHMAS shall have the exclusive control of, and the exclusive right to control the work designated to the BRAHMAS to be performed hereunder, and all persons performing the same, and shall be solely responsible for the acts and omissions of .its officers, members, agents, servants, and employees. Neither CITY nor BRA14MAS shall be responsible under the Doctrine of Respondeat Superior for the acts and omissions of its officers, mem' s a ents, servants, 0 Mc.G)g "°° NCO, Q?Sr�o employees, or officers of the other. It is understood and agreed that the CITY is not involved as a party to any activities that may be carried on by BRAHMAs pursuant to this agreement. Provided, however, that no provision of this Agreement shall operate or be construed as a waiver by either party of any immunity from liability which it has or could be asserted under the doctrine of governmental immunity or any other immunity which it has under law. 9. NOTICES. All notices required or permitted under this Agreement may be given to a party personally or by mail, addressed to such party at the address stated below or to such other address as one party may from time to time notify the other in writing. Any notice so given shall be deemed received when deposited in the United States mail so addressed with postage prepaid: CITY: CITY MANAGER, CITY OF FORT WORTH 1000 THROCKMORTON STREET FORT WORTH, TEXAS 76102 BRAHMAS: 1314 LAKE ST., SUITE 200 FORT WORTH, TEXAS 76102 10. PARTIES BOUND. This Agreement shall be binding upon the successors and assigns of both parties in like manner as upon the original parties. This agreement will be binding upon the CITY in like manner in the event that the BRAHMAS change or alter the name under which it does business. 12. APPLICABLE LAW. This Agreement is entered into subject to the provisions of all applicable federal, state and local laws or ordinances and the requirements of any and all governmental regulatory agencies having jurisdiction over the subject matter and venue shall be in Fort Worth, Tarrant County, Texas or the Federal court of the Northern District of Texas. 13. SEVERABILITY OF PROVISIONS. If any of the Provisions contained in this Agreement shall be held, for any reason, to be invalid, illegal, or unenforceable in any respect, such invai' illegality, or unenforceability, shall be construed as if such invalid, illegal, y� 1 4iVILi CNN l"""llll���t,U'tSU^fG�'i// provision had never been contained herein. 14. SOLE AGREEMENT. This Agreement constitutes the sole and only agreement of the parties hereto and supersedes any prior understanding or written or oral agreements between the parties respecting the subject matter. EXECUTED this the day of , 2001. CITY OF FORT WORTH FORT WORTH BRAHMAS By: flcnab Ac4-1 By: Mik Gro r MIKE BarrtCl� Ass tan it anager I' EST: ATTEST: City Se e . �Av APPROVED AS TO FORM AND LEGALITY David Yett, City Attorney Assista Cit Attorney -�i— 1pe �,� Contract Authorization Date RUN City of Fort Worth, Texas 4"11yor and Council Communication DATE REFERENCE NUMBER LOG NAME PAGE 7/31/01 C-18692 25NAMING 1 of 2 SUBJECT EXECUTION OF A PROFESSIONAL SERVICES AGREEMENT WITH THE FORT WORTH BRAHMAS HOCKEY CLUB TO MARKET THE NAMING RIGHTS SPONSORSHIP FOR THE FORT WORTH CONVENTION CENTER RECOMMENDATION: It is recommended that the City Council authorize the City Manager to execute a professional services agreement with the Fort Worth Brahmas Hockey Club to market the naming rights sponsorship for the Fort Worth Convention Center Arena. DISCUSSION: A strategic goal of the Public Events Department is to reduce the General Fund subsidy required to operate the Fort Worth Convention Center (FWCC) and Will Rogers Memorial Center (WRMC). Selling the naming rights sponsorship to the FWCC Arena is one option that is available to reduce the subsidy. The City Council would retain the sole authority to approve or reject any naming rights sponsorship opportunity that is presented. The Fort Worth Brahmas Hockey Club (Brahmas) is a professional minor league hockey team of the Central Hockey League. Since 1997, the Brahmas have played their home games in the FWCC Arena and the WRMC Coliseum, with the majority of games in the FWCC Arena. The Brahmas approached the City for permission to market the naming rights for the FWCC Arena. The Public Events Department and the Legal Department have negotiated a professional services agreement with the Brahmas to market the sponsorship, in exchange for the Brahmas receiving a percentage of the fee for the naming rights. A professional services agreement would grant the Brahmas, 120 days to market the naming rights. The proposal of the naming rights sponsor must be approved by the City Council. The sponsor would be required to sign an agreement with the City for a term of three years, with two one-year renewal options. The naming rights agreement would grant the sponsor the right to designate the name of the WRCC Arena, subject to approval by the City Council. The naming rights sponsor would be responsible for any and all costs associated with the name change, including new signage, employee uniform shirts, letterhead, etc. requiring the sponsor name and/or logo. The City would receive 60% of the net naming receipts collected for the first 12 months, 70% of the net naming receipts collected for the second 12 months, and 80% of the net naming receipts for the third 12-month period, and fourth and fifth, if any 12-month periods. The Brahmas would receive 40%, 30% and 20%, respectively, of the net naming receipts collected as compensation for the marketing services of the naming rights. City of Fort Worth, Texas "agar and Council 4:0mmunication DATE REFERENCE NUMBER I LOG NAME PAGE 7/31/01 C-18692 25NAMING 2 of 2 SUBJECT EXECUTION OF A PROFESSIONAL SERVICES AGREEMENT WITH THE FORT WORTH BRAHMAS HOCKEY CLUB TO MARKET THE NAMING RIGHTS SPONSORSHIP FOR THE FORT WORTH CONVENTION CENTER The Brahmas must continue to play a minimum of thirty home games per year in the City's public event facilities to be eligible for compensation under the professional services agreement, and the naming rights sponsor must agree to honor the terms of the naming rights agreement regardless of whether the Brahmas hockey team continues to use the WRCC Arena. FISCAL INFORMATION/CERTIFICATION: The Finance Director certifies that the Public Events Department is responsible for the collection and deposit of naming rights fees. MG:n Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY Office by: (to) GG01 443443 0252000 APPROVED Dale Fisseler(Acting) 6140 CITY COUNCIL Originating Department Head: JUL 31 2001 Kirk Slaughter 2501 (from) Additional Information Contact: l7rtu�a� City Secretary of the City of Fort Worix Tom Kirk Slaughter 2501