Title
RATIFY LICENSE AGREEMENT WITH INWINDOW OUTDOOR, LLC FOR SUPER BOWL ADVERTISING ON THE GLENDALE MEDIA CENTER
Staff Contact: Jean Moreno, Program Administrator, Office of Economic Development
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Purpose and Recommended Action
Recommendation
This is a request for City Council to ratify a License Agreement with InWindow Outdoor, LLC for Super Bowl advertising on the Glendale Media Center located at 9494 W. Maryland Avenue in exchange for a $50,000 license fee and replacement of the existing City of Glendale window graphic valued at $11,000. body
Background
The City of Glendale owns the Glendale Media Center located immediately north of the University of Phoenix Stadium and controls outside advertising on the property. The property currently has a City of Glendale vinyl window graphic on the large south facing window bank, providing a unique signature signage opportunity for the City of Glendale. This window graphic was installed prior to the 2008 Super Bowl and is in need of replacement.
Within the last 30 days, the City was contacted by representatives of InWindow Outdoor, LLC on behalf of their client, Pepsi Co. who was seeking to place a building wrap on the south facing exterior wall of the Media Center facility. The building wrap as shown in Exhibit B of the license agreement was proposed to cover a large portion of the exterior wall in addition to both banks of windows on the facility which would require the removal of the City's window graphic.
Although a commercial building wrap has never been used on the facility, staff was able to negotiate terms that provided a significant opportunity to generate revenue while maintaining Glendale's brand recognition; and, provided for the replacement of existing signage which had visible signs of wear.
The timing of the request from InWindow Outdoor, LLC did not allow for this item to be placed on a City Council agenda in advance of the required installation date of January 19, 2015. The City Manager has administrative authority to execute License Agreements of this nature and due to the urgent timing that was beyond the City's control, this License Agreement was executed in accordance with that authority.
Analysis
The License Area is located within the one-mile radius of the University of Phoenix Stadium and is subject to temporary restrictions on commercial activity if they are not directly associated with the Pro Bowl and Super Bowl. Staff worked directly with the National Football League to allow the use as it is directly associated with promoting the Super Bowl. The following are the terms that were negotiated and are included in the License Agreement:
· Glendale, Arizona is included prominently in the ad to ensure the City maintained brand recognition during the national events.
· InWindow Outdoor, LLC paid a total sum of $50,000.00 for the use of the License Area for their signage for a two week period, the funds have already been received and will be used to off-set operational expenses for Super Bowl.
· InWindow Outdoor, LLC will arrange and pay for any and all goods and services necessary to replace the City's existing window graphic in accordance with the current specifications. The replacement signage must be installed before close of business on February 6, 2015, failure to do so will result in financial penalties to InWindow Outdoor, LLC.
Budget and Financial Impacts
No expenditure was required by the City to enter into this agreement. The net effect is $50,000 in fee revenue to be deposited into the General Fund.