TITLE
Recommendation to authorize City Manager, or designee, to execute all documents necessary for a First Amendment to Amended and Restated Operating Agreement No. 34876 with Grand Prix Association of Long Beach, LLC, to amend certain provisions of the Agreement and facilitate an extension through June 30, 2028. (Districts 1,2)
DISCUSSION
The Long Beach Grand Prix (Grand Prix) is the longest-running major street race in North America. On April 15th, 1975, the City of Long Beach (City) and Grand Prix Association of Long Beach, LLC (Association) entered into the first Agreement to host the event in Downtown Long Beach. The Grand Prix, an IndyCar Series race (Race), encompasses three-and-half days of races and ancillary events and has a tremendous impact on local and regional economies and local hospitality and tourism industries. The Grand Prix is a large-scale regional event drawing more than 200,000 visitors to Long Beach annually. The event provides significant national exposure for Long Beach and generates significant economic benefits.
The current iteration of the Agreement is Amended and Restated Operating Agreement No. 34876 (Agreement), which the City Council approved on December 5th, 2017. The current term of the Agreement expires on June 30, 2023, and contains a City option for one additional five-year extension. To that end, staff from the Economic Development Department have negotiated an extension to the Agreement. For the past year, the City and Association worked toward an Amendment that addressed the City Council's priorities to reduce the impact of the Race on area residents and businesses and provide for future development of the area while maintaining the Association's ability to safely and viably conduct a world-class Race.
The proposed First Amendment to the Agreement will include the following significant modifications to the terms and conditions:
· Amended Term: Shall be extended through June 30th, 2028.
· City's Right to Remove De...
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