Agenda Item No.: F.1.a. Amendment to City of Edmonton Facility Name Sale Policy C477 Recommendation: That Community Services Committee recommend to City Council: That the Facility Name Sale Policy C477 be amended to allow Administration to actively seek proposals from companies who may potentially be interested in purchasing facility naming rights as a means of recognizing their sponsorship support, as outlined in the April 18, 2006, Community Services Department report 2006CSR011. Report Summary This report recommends an amendment to Facility Name Sale Policy C477 as a result of an increasing demand on the City and its partners to generate new revenues and alternative resources to assist in the construction, support, redevelopment and/or provision of City of Edmonton facilities. public consultation if appropriate, and funding implications. Report This report reflects Administration’s desire to be proactive in securing facility sponsors. Previous Council/Committee Action At the January 17, 2006, City Council meeting (Business Driver Review – Process to Review Key Result Areas), the following motion was passed: 3. That after Council approves the overall key result areas to be reviewed, Administration develop individual policy review plans, for Committee’s consideration, that includes the outcomes, processes for Routing: Delegation: Written By: April 18, 2006 File: 2006CSR011 The purpose of amending Facility Name Sale Policy C477 (Attachment 1) would be to allow Administration to be proactive in securing corporate sponsors for facilities with the ability to potentially include naming rights as a means for recognizing the sponsorship. While the current Facility Name Sale Policy C477 provides a consistent process, criteria and guidelines related to securing a corporate namesake for a City of Edmonton facility, it clearly states “The City of Edmonton will not actively seek proposals.” The existing policy requires Administration to seek concept approval from Council prior to entering negotiations with a company or agency that approaches the City. The contemplated policy amendment would still require that Council approve any name sale agreements, but would allow Administration or its agent to solicit (contact or approach) potential sponsors as opposed to waiting for them to approach the City. This policy amendment would support alternative approaches currently being explored for securing funding to aid in the development of new facilities, as identified in the Recreation Facility Master Plan. Should this report’s recommendation be approved, the policy amendment would be brought forward for consideration at the June 12, 2006, Community Services Committee meeting. Community Services Committee, City Council L. Cochrane/D. Prefontaine G. Dewar Community Services Department (Page 1 of 2 Amendment to City of Edmonton Facility Name Sale Policy C477 General Principles The sale of City of Edmonton facility naming rights to an appropriate organization is a source of new and alternative funding to assist in the construction, support, redevelopment and/or provision of City of Edmonton facilities. The sale of a municipal facility’s naming rights is a means of offsetting taxpayer costs, ensuring maximum value for tax dollars, and increasing the involvement of and fostering co-operation and goodwill with the community. Name sale agreements shall be established in a manner that is organized, consistent and proactive, that safeguards the City’s assets and interests, that enhances access and fairness, and that result in the optimal balance of overall benefits to the City and the community. A corporation or external organization may become the namesake of a new or existing municipal facility as recognition for its financial support, where such support is mutually beneficial to the City, corporation or external organization and community, and consistent with all aspects of existing City guidelines and policies. City facilities must be linked only with external organizations that are compatible with, complementary to, and reflective of the City’s values and its mandate. The City’s profile and responsibility as owner/operator of the facility must be ensured through the agreement. Concept approval for each name sale opportunity must be obtained from City Council before negotiations with potential partners are initiated. Background Information Attached 1. Facility Name Sale Policy (C477) (Page 2 of 2