ITEM R1

OFFICE OF THE CITY MANAGER

(910) 341-7810 | FAX (910)341-5839
TDD (910)341-7873

10/17/2017

City Council
City Hall
Wilmington, North Carolina 28401

Dear Mayor and Councilmembers:

Attached for your consideration is a resolution awarding a ten year contract to Live Nation Worldwide,
Inc. for Venue Management Services at North Waterfront Park.

The development of North Waterfront Park is a project included in the 2016 Wilmington Parks Bond.
A master plan for the park was adopted by Wilmington City Council on March 21, 2017. The master
plan was developed based upon a planning process that included a review of previously adopted plans,
research of other successful urban parks, an assessment of current needs and a six month public input
campaign. A performance venue is identified as a program in the master plan.

Live Nation was selected through a Request for Proposals (RFP) advertisement. Three firms
responded to the RFP. One firm was disqualified due to missing the submission deadline. The other
two firms were interviewed by a staff committee from the Community Services, Budget and Finance
Departments.

Firms were evaluated based upon:

Their business plan

Qualifications and experience of the proposed team members for the requested services
References
Financial proposal
Diversity plan

The interview committee agreed that the selected firm submitted a superior business plan and financial
proposal and has the qualifications and experience to effectively manage the performance venue.

Management activities will include:

Booking event and scheduling services

Venue consulting
Facility management
Food and beverage concessions

R1-1
Live Nation proposed two contract options. Option one is for a two year term with a ten year option
which was based upon the guidelines of the RFP. With a two year term, the City will receive $200,000
annually in fixed rent from Live Nation. Additionally, the City will receive a $2.00 per-ticket rent.
Option two is a ten year term with a ten year option. It provides the same fixed rent and ticket rent
conditions. Additionally, Live Nation will also provide an initial in-kind capital investment of two
million dollars to be utilized to provide necessary furniture, fixtures and equipment to maximize the fan
and artist experience and $700,000 of in-kind maintenance expenditures over the prescribed term of the
contract. Staff recommends option two.

Adoption of this resolution is aligned with City Councils Focus Areas: Promote Culture, Art and Public
Spaces and Foster a Prosperous and Thriving Economy.

Passage of the attached Resolution is recommended.

Respectfully submitted,

Sterling B. Cheatham,
City Manager

R1-2
 City Council
Resolution City of Wilmington
North Carolina

Introduced By: Sterling B. Cheatham, City Manager Date: 10/17/2017

Resolution Authorizing a Professional Services Contract with Live Nation Worldwide, Inc.
for Venue Management Services at North Waterfront Park
LEGISLATIVE INTENT/PURPOSE:

The development of North Waterfront Park is a project included in the 2016 Wilmington Parks
Bond. A master plan for the park was adopted by Wilmington City Council on March 21, 2017
and includes a performance space.

This resolution authorizes the award of a professional services contract to Live Nation
Worldwide Inc. for venue management services at North Waterfront Park. The agreement is for
ten years with a ten year option. The City will receive $200,000 annually in fixed rent from
Live Nation and $700,000 for in-kind value of maintenance expenses over the prescribed term
of the contract. Additionally, the City will receive a $2.00 per-ticket rent. Live Nation will
also provide an initial capital investment of $2,000,000 dollars for equipment, fixtures and
furnishings.

Management activities will include:

Booking event and scheduling services

Venue consulting
Facility management
Food and beverage concessions

Live Nation Worldwide, Inc. was selected through a competitive proposal process to manage the
performance venue operations.

THEREFORE, BE IT RESOLVED:

THAT, the City Manager is hereby authorized to execute an agreement with Live Nation
Worldwide, Inc.

Adopted at a ________________ meeting

on ____________________ 2017 Bill Saffo, Mayor
ATTEST: APPROVED AS TO FORM:

Penelope Spicer-Sidbury, City Clerk City Attorney

R1-3
R1-4
R1-5
R1-6
R1-7
R1-8
R1-9
R1-10
R1-11
R1-12
R1-13
R1-14
R1-15
R1-16
R1-17
R1-18
R1-19
R1-20
R1-21
R1-22
R1-23
R1-24
R1-25
R1-26
R1-27
R1-28
R1-29
R1-30
R1-31
R1-32
R1-33
R1-34
R1-35