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Approve a management agreement between Solano County and the Solano County Fair Association for management of the fairgrounds and for delivery of the annual Solano County Fair
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Published Notice Required? Yes ___ No _X_
Public Hearing Required? Yes ___ No _X_
DEPARTMENTAL RECOMMENDATION:
The County Administrator’s Office recommends the Board of Supervisors approve a management agreement between Solano County and the Solano County Fair Association for management of the fairgrounds and for delivery of the annual Solano County Fair.
SUMMARY:
The Solano County Fair Association (SCFA) has operated the County Fair on behalf of the County beginning in 1946 and has additionally managed portions of the 152-acre fairgrounds property, located at the intersection of I-80 and Highway 37. The County and the SCFA’s current contract for operations of the fairgrounds and for provision of the annual fair expires December 31, 2024. Both the County and the SCFA desire a new management agreement, adding language to expand management of the property to additional areas in order to attract larger events, to increase the term of the agreement to allow for longer sublease opportunities, and to provide additional clarity regarding subleases to allow the SCFA the ability to generate additional revenues.
FINANCIAL IMPACT:
The SCFA is an enterprise fund and must operate within the operating revenues generated by the annual Solano County Fair, year-round activities, and available resources. The costs associated with preparing the agenda item are nominal and absorbed by the Department’s FY2024/25 Working Budget.
DISCUSSION:
First executed on January 25, 2011, the current agreement between Solano County and the Solano County Fair Association has been amended seven times, as follows:
• January 31, 2014 Amendment No. 1 (extend term)
• November 25, 2014 Amendment No. 2 (extend term and modify certain terms)
• February 10, 2015 Amendment No. 2 (extend term and modify certain terms)
• February 5, 2019 (Board agreement to extend agreement to January 31, 2021)
• December 15, 2020 Amendment No. 3 (extend term and modify certain terms)
• December 14, 2021 Amendment No. 4 (extend term and modify certain terms)
• June 14, 2022 Amendment No. 5 (extend term and modify certain terms)
• June 27, 2023 Amendment No. 6 (extend term)
• June 11, 2024 Amendment No. 7 (extend term)
Amendments contained various language to extend terms and to allow for early termination of this Agreement at any point with notice to coincide with any future development of the Solano360 project, anticipating the potential for changes to the approved 2013 Solano360 Specific Plan along with any potential additional environmental review necessitated by any proposed modifications to the Plan. Additional changes included allowance for the SCFA to enter into lease agreements for events to be held onsite, generating revenues to site management and for underwriting the cost to put on the fair.
At the time of these amendments, it was anticipated that negotiations with the proposed master developer, Industrial Realty Group, LLC (IRG), for the redevelopment of the fairgrounds property would have progressed to the point of having a ground lease agreement and development agreement ready for the Board’s consideration. Currently, negotiations have not advanced and the agreement with IRG has since expired.
ALTERNATIVES:
The Board may choose not to approve the agreement at this time. This is not recommended, however, because the Board has indicated a desire to maintain a management partner to operate the fairgrounds property and to deliver an annual county fair, which the Solano County Fair Association has performed.
OTHER AGENCY INVOLVEMENT:
Staff have been actively involved in discussions with the Solano County Fair Association to develop this new management agreement.
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION