Board of Directors Meeting Agenda


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Meeting Date: 06/21/2018  

SUBJECT MATTER:
Receive, consider and act upon a proposal to  amend  the Host Venue Sponsorship Agreement with The Woodlands Marathon Management (C-2016-0340A); 
FISCAL IMPACT:
The Woodlands Township, per the terms of the current Host Venue Sponsorship Agreement (Attachment A) with The Woodlands Marathon Management, LLC, (TWMM) waives the reservation fees related to the use of Town Green Park, provides a magazine article in the Community Magazine of The Woodlands, and provides 40 tents and other in-kind services in support of The Woodlands Marathon. The total value of Township support is approximately $3,500. In exchange, TWMM is required to donate no less than $25,000 on an annual basis to not-for-profit organizations.  TWMM is required to guarantee 400 hotel room nights related to the event with hotels within The Woodlands. Additionally, TWMM is to provide the Township with an Economic Impact Study at the conclusion of the 2017 and 2019 events.

Visit the Woodlands Convention and Visitors Bureau  has provided $4,500 in advertising support of the event for the past three years.

The estimated fiscal impact related to the proposed Amendment  (Attachment B) to the Host Venue Sponsorship Agreement includes: up to $16,000 in revenue for the use of the Township's Event Center/Ice Rink located at the Cynthia Woods Mitchell Pavilion; waiver of fees to install and remove 50 streetlight banners equates to $1,250 per year;  the additional  year of in-kind support services will amount to approximately $3,500. 
BACKGROUND:
In July 2016, The Woodlands Township renewed the Host Venue Sponsorship/Partnership Agreement with The Woodlands Marathon Management, LLC. (TWMM) to host The Woodlands Marathon (Attachment A). The eighth event was held March 3, 2018, and the Race Director Willie Fowlkes presented a report on the event to the Board of Directors on .April 19, 2018.  At that time Mr.Fowlkes indicated a desire to extend the term of the Agreement and requested certain additional considerations be included in a renewal amendment, such as, use of the Township's Ice Rink/Event Center for the Marathon's Health Expo, use of the park and ride for event equipment staging, ability to conduct the 5k race on the Saturday before the marathon race. The Board requested Mr. Fowlkes to submit his proposed changes in writing for future consideration.  The proposed amendments to the agreement have been received (Attachment B). 

The  Township and TWMM first entered a Host Venue Sponsorship Agreement  in 2011. The Agreement established a major marathon running competition in The Woodlands for which the Township provides the park facilities as venues for the event as well as equipment and in-kind support.  The event brings approximately 25,000 athletes, media, staff and spectators to the community and has become a qualifying race for the prestigious Boston Marathon.  The term of that agreement was for five years and expired on March 31, 2016. The agreement was modified and renewed by the Board of Directors in July 2016, for  three (3) years through March 2019 with two options to extend for one year periods - up to five (5) years total.  The dates for the 2019 event is defined as  March 2, 2019.  Any additional events will be mutually agreed  in writing.   The agreement places a maximum number of participants for each Event as follows:
  • Marathon - 2,000
  • Half-Marathon - 5,000
  • Five-Kilometer race - 1,500
  • Marathon Relay - 1,500
  • Two-kilometer fun run walk - 1,000
The  Agreement contains the same terms and conditions as the original agreement with provisions for Township approval of the race routes and schedules, penalties for non-compliance on timely traffic control sign removal and a limit on the maximum number of participates for each race. In addition, TWMM is to guarantee 400 hotel room nights related to the event each year and donate no less than $25,000 on an annual basis to not-for-profit organizations.  

The proposed amendments include:
A) Set the 2k Family Fun run and 5k run to the Saturday prior with the utilization of Town Green Park for post race festivities and the trolley path for course start and finish lines:
B) Granted access to area Park & Ride lots for staging of Electronic message Boards after the event.
C) Granted use of the CWMP Event Facility for the Health & Fitness Expo the Thursday prior to the event for setup, Friday prior to the event for hosting the health & Fitness Expo and breakdown Friday evening for a reasonable fee to be agreed up not to exceed $16,000.
D) Extend the current agreement to include the 2020 event..
E) Proposed marathon and half marathon routes for the 2019 event to be the same as the 2018.
F) The Woodlands Marathon Management to lead coordination of annual event, "Global Running Day" at Town Green Park the first Wednesday in June;
G) Provide The Woodlands Marathon Management limited event light post banners to promote the event and inform residents of the event. 
 
In addition, the proposal offers to provide the Township Sponsorship Amended Benefits to include naming the Township as the "Presenting Sponsor" of the Houston Methodist Health & Fitness Expo.
 
In response to the proposed amendments:
A) As the proposed routes for the 2k and 5k runs are to be on the trolley path along the Waterway, there would be little impact to public roads and traffic.  Moving the 5k to the weekend prior to the marathon and to be on the Waterway reduces the number of runners on the public roadways;
B) Use of the park and ride lots for equipment staging would have little to no impact to the Township's public transit operations;
C) As the Marathon and related Expo would be scheduled during the Township's exclusive use of the Event Center/ Ice Rink, the Township has the authority to use the facility for any purpose.  The Waterway Marriott has indicated no concern with the Expo hosted by the Township.  Rental fees have not been established by the Board for the facility.  
D) The current Host Venue Sponsorship Agreement provides the ability to extend the agreement for additional one year terms;
E) As there were few issues or public complaints about the 2018 race routes, Township staff is comfortable recommending the same routes for the 2019 event and proposed 2020 event.  However, per the terms of the ILA with Montgomery County Precinct 3, the County Commissioner has final approval of the race route. 
F) TWMM assisted the Township's Parks and Recreation Department with the recent 2018 Global Running Day and the arrangement worked well for all parties; 
G) Streetlight banners are used by several organizations to promote their event and to bring awareness an upcoming event to the general public.   Similar terms are included in the Host Venue Sponsorship Agreements for the Memorial Herman Ironman Texas and  the Woodlands Waterway Arts Festival.  It is recommended to include up to 50 banners in the amended agreement. 
 




RECOMMENDATION:
It is recommended to authorize the President/General Manager to prepare an Amendment to the Host Venue Sponsorship Agreement with The Woodlands Marathon Management as presented herein and return to the Board for final approval. 
Attachments
Attachment A - Host Venue Sponsorship Agreement Woodlands Marathon
Attachment B - Woodlands Marathon Proposed Amendments


    

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