8.1 SR 04-05-2021Request for Action
To
Item Number
Mayor and Ci T Council
8.1
Agenda Section
Meeting Date
Prepared by
General Business
April 5, 2021
Cal Portner, City Administrator
Item Description
Reviewed by
Sponsorship Agreement with Cornerstone
Reviewed by
Automotive for Arena #1 of the Furniture and
Things Community Event Center
Action Requested
Approve, by motion, a sponsorship agreement with Cornerstone Automotive for Arena #1 of the Furniture and
Things Community Event Center.
Background/Discussion
The City Council engaged Front Burner Sports and Entertainment to create a marketing sponsorship program
and to solicit partners for the multipurpose facility.
Over the past few months, Front Burner Sports has secured a facility naming rights agreement with Furniture and
Things as the exclusive Community Event Center naming partner. More recently, an agreement was secured with
Serrano Brothers Catering to brand the facilities' cafe and provide catering services.
We are excited to announce our newest partner, Cornerstone Automotive, who will sponsor Arena #1. The
agreement is for a term of seven years at $28,500 per year. Cornerstone Automotive marketing staff worked with
Blue Tricycle, Inc. to develop a logo for the arena which incorporates their brand.
Chris Potenza of Front Burner Sports will be on hand to introduce the partnership.
Financial Impact
N/A
Mission/Policy/Goal
The Elk River Vision
Attachments
■ Agreement
■ Cornerstone Branding PowerPoint
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional
service, and community engagement that encourages and inspires pi ospei ly.
M
TUREJ
Updated.• August 2020
ELK RIVER MULTIPURPOSE FACILITY RINK ONE
SPONSORSHIP AGREEMENT
THIS SPONSORSHIP AGREEMENT ("Agreement") is made as of this _2a day of
•A , 2021 (the "Effective Date"), by, between and among the CITY OF ELK
RIVER, a Minnesota municipal corporation ("City"), and CORNERSTONE AUTOMOTIVE,
1
aMinnesota ,- The following recitals form the basis for this Agreement
and are made a part hereof.
RECITALS
A. The City of Elk River owns the Elk River multipurpose facility ("Facility") with a street
address of 1000 School Street, Elk River, NW 55330.
B. Sponsor is an automotive dealership located at 17219 U.S. Hwy 10, Elk River, MN 55330
with the intent of sponsoring certain facilities and/or spaces within the Facility.
C. The City and Sponsor enter into this Agreement whereby in exchange for Sponsor's
agreement to make initial and annually recurring Contributions (as hereinafter defined) to the City
for deposit to the Facility fund, the City agrees to grant to Sponsor certain sponsorship recognition
rights and assets for the Facility, as set forth and agreed to in this Agreement.
D. Other than the sponsorship rights, the City is not giving Sponsor anything of value for the
Contributions.
AGREEMENT
NOW, THEREFORE, IN CONSIDERATION OF THE FOREGOING RECITALS, THE
MUTUAL PROMISES AND CONSIDERATIONS SET FORTH BELOW, AND OTHER
GOOD AND VALUABLE CONSIDERATION, THE RECEIPT AND SUFFICIENCY OF
WHICH ARE HEREBY ACKNOWLEDGED, THE CITY AND SPONSOR AGREE AS
FOLLOWS:
Article I
Sponsorship Rights and Assets
Facility Signage and Related Sponsorship Rights and Assets.
Sponsor shall be the primary sponsor of the westerly ice rink (Rink One) located
within the Facility and will be permitted the Facility signage and promotional assets
listed in Exhibit A.
The City will fabricate and install the signage and related sponsorship rights and
assets and will own, maintain, and replace (if required due to normal wear and tear)
them during the term of this Agreement.
The City will pay the first Twelve Thousand Five Hundred Dollars ($12,500.00) in
costs for the initial fabrication and installation of the signage and additional assets.
Sponsor will be responsible for any costs more than Twelve Thousand Five
Hundred Dollars ($12,500.00).
d. Sponsor will also be responsible for any future costs for signage or other
Sponsorship assets related to a request by Sponsor to modify or change the name
or logo of the Sponsor.
Article II
Exclusivity
1. Exclusivity. Sponsor will have category exclusivity for all other advertising within the
Facility. The City will not make agreements with any Sponsor competitor. Competitor
("Competitor") is defused as any car dealership, or other business, that sells new or used car$` at
the retail level.
2. Additional Partners. The City reserves the right to sell advertising and entitlement to
additional partners ("Add.itional. Partners"), excluding Competitors, as set forth herein for naming
of other current or future physical spaces within the Facility, including the easterly ice rink (Rink
Two), the turf field house facility, the senior center, locker rooms, conferences rooms, the second -
level event center, and such other areas as may be delineated or added in the future. The City also
reserves the right to sell entitlement to Additional Partners for naming of other Facility assets
located in Rink One, including, but not limited to, dasher board signs, ice resurfacer wraps, etc.
Article III
Contribution
Sponsor hereby agrees to make an annual contribution ("Contribution") to the City of Twenty -
Eight Thousand Five Hundred dollars ($28,500.00). In year one of this agreement, sponsor agrees
to pay Ten Thousand Dollars ($10,000.00) on the Effective Date of this Agreement with the
remaining Eighteen Thousand Five Hundred Dollars ($18,500.00) due on June 1, 2021. Thereafter,
on or before June 1, each year during the term of this Agreement, Sponsor shall make an annual
contribution of Twenty -Eight thousand Five Hundred dollars ($28,500.00).
Article IV
Relationship of Parties; No Property Interest
1. Relationship of the Parties. Under this Agreement, the parties shall at all times be acting
and performing as independent contractors. Nothing contained in this Agreement shall be
construed to create a joint venture, principal, and agent, or any similar legal or equitable
relationship between the parties. Neither party shall have or exercise any control or direction over
the methods by which the other party provides services contemplated by this Agreement. Nothing
in this Agreement shall be construed to give Sponsor any control over or responsibility for
operation of the Facility.
2. No Property Interest. Nothing in this Agreement shall be construed as granting to Sponsor
any property interest in any City -owned property. The City maintains all its rights as the fee owner
of the Facility and all improvements thereon on behalf of itself and the public.
Article V
Term and Termination
1. Fixed Term. The Term of this Agreement shall commence on the Effective Date and
remain in effect May 31, 2028.
2. Early Termination.
a. Early Termination for Cause. Either party may terminate this Agreement for
good cause shown. The terminating party shall give a written "Notice of Intent to
Terminate" the Agreement. The Notice of Intent to Terminate the Agreement shall
set forth the reason(s) for termination of the Agreement and shall allow for a "Cure
Period" during which time the non -terminating party shall have the opportunity to
cure the purported breach or default. If either party fails to cure and Good Cause
continues to exist following the applicable cure period, the other party shall be
entitled to terminate the Agreement or seek specific performance, and in any event,
may sue for damages. In any action for damages under this Agreement, neither
party shall be liable or responsible Linder any circumstances for consequential,
incidental, indirect lost profit, or punitive damages of any kind.
b. "Good Cause" for the City to terminate includes, but is not limited to, the following:
Any material breach of the terms, conditions, and obligations of this
Agreement by Sponsor;
ii. Failure by Sponsor to deliver the contributions provided for in Article III
hereof, the Opt -out fee provided for in Article V(2)(a) hereof, or any
required payment as set forth herein;
in. Any crime by Sponsor or any principal or owner of Sponsor that causes
Sponsor to come into disrepute in the greater Elk River Area;
iv. Occurrence of insolvency or bankruptcy of Sponsor, or upon the general
assignment by Sponsor for the benefit of creditors, or upon the consent of
Sponsor to the appointment of a receiver, trustee, or liquidator of all or
substantially all of its property; or
V. Occurrence of a Transfer Event which the City has not consented to, as
provided in Article VII of this Agreement.
C. "Good Cause" for Sponsor to terminate includes, but is not limited to, the
following:
i. Any material breach of the terms, conditions, and obligations of this
Agreement by the City.
3
3. Removal of Signs, Logos, and Marks. Upon termination or expiration of this Agreement,
City shall have the right to remove all signs, logos, and marks in all locations throughout the
Facility.
Article VI
Indemnification; Insurance
I. Indemnification. Without a waiver of the City's statutory immunities pursuant to
Minnesota Statutes Chapter 466 or other applicable law, each party agrees to defend, hold harmless
and indemnify the other party against any and all claims, liabilities, damages, judgments, costs,
and expenses (including reasonable attorneys' fees and costs) asserted against, imposed upon, or
incurred by the other party that arises out of, or in connection with, the party's default under or
failure to perform any contractual or other obligations, commitment, or undertaking under this
Agreement, or any other act or omission of a party or its employees, agents, or representatives to
the extent allowed by the law. Each party further agrees that it shall be responsible for its own acts
and results thereof to the extent authorized by law and shall not be responsible for the acts of the
other party and results thereof. The provision of this Article shall survive the termination of the
Agreement with respect to any claim, action, or proceeding that relates to acts or omissions during
the term of this Agreement.
2. Insurance. The City shall maintain such insurance as is customarily maintained by owners
of comparable facilities.
Article VII
Assignment
1. The City shall be free to assign any of its rights or obligations under this Agreement to any
successor in interest to the City -owned property.
2. In the event Sponsor shall propose to undergo a change in control, sell, assign, merge,
reorganize, consolidate, or otherwise dispose of its business (any of the foregoing being a
"Transfer Event"), Sponsor shall notify the City of such fact within thirty (30) days prior to such
proposed Transfer Event. The notice shall state whether the Transfer Event will or could affect the
exercise of Sponsor's rights hereunder.
3. If, as a result of the Transfer Event, Sponsor would not be the holder of rights under this
Agreement, or Sponsor is not the successor in the Transfer Event, then the City's written consent
to the Transfer Event shall be required. If the City consents, the successor in the Transfer Event
shall assume all the obligations of Sponsor under this Agreement and shall have all the rights and
obligations of Sponsor under this Agreement.
4. In the event that a proposed Transfer Event will result in a Sponsor whose business
conflicts with a sponsorship agreement the City has with respect to the Facility, or a company
whose business practices could be detrimental to the public image or reputation of the City or the
Facility, in the sole discretion of the City, then the City shall have the right to terminate this
Agreement by written notification within sixty (60) days after receiving notice of such proposed
Transfer Event. In the event of such termination, Sponsor shall be obligated to pay all funds
contemplated by this Agreement to be due and payable through the Expiration Date.
4
5. No Transfer Event shall relieve Sponsor and any successor entity from being jointly and
severally liable for payment and performance of all obligations of Sponsor under this Agreement
if the City does not exercise its right of termination as provided in Section VII(4).
Article VIII
Notices
All notices hereunder by either Party to the other shall be in writing. All notices, demands, or
requests shall be deemed given when mailed, postage prepaid, registered, or certified mail, return
receipt requested.
If to the City If to Sponsor:
City Administrator
City of Elk River
13065 Orono Parkway
Elk River, MN 65330
Article IX
General Provisions
1. Amendments. Neither this Agreement nor any term or provision hereof may be changed,
waived, discharged, or terminated, except by a written instrument signed by the parties hereto.
2. Interpretation of Agreement. The captions preceding the articles and sections of this
Agreement have been inserted for convenience of reference only and such captions shall in no way
define or limit the scope of intent of any provision of this Agreement. Unless otherwise provided
herein, whenever the consent of the City is required to be obtained, the City may give or withhold
such consent in its sole and absolute discretion.
3. Severability. If any provision of this Agreement or the application thereof to any person,
entity, or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this
Agreement shall not be affected thereby, and each other provision of this Agreement shall be valid
and be enforceable to the fullest extent permitted by law.
4. Attorneys' Fees. In the event of a dispute regarding any provision of this Agreement, the
party not prevailing in such dispute shall pay any and all costs and expenses incurred by the other
party in enforcing or establishing its rights hereunder (whether or not such action is prosecuted to
judgment), including without limitation, court costs and attorneys' fees.
5. Time of Essence. Time is of the essence with respect to all provisions of this Agreement
in which a definite time for performance is specified including, but not limited to, the expiration
of the term.
6. Cumulative Remedies. All rights and remedies of either party hereto set forth in this
Agreement shall be cumulative, except as may otherwise be provided herein.
7. Survival of Indemnities. Termination of this Agreement shall not affect the right of the
City or Sponsor to enforce any and all indemnities and representations and warranties given or
made to the other party under this Agreement, nor shall it affect any provision of this Agreement
that expressly states it shall survive termination hereof.
8. Entire Agreement; Exhibits. This Agreement, including exhibits, shall constitute the
entire agreement of the parties. Any and all prior agreements or understandings of the parties shall,
upon execution of this Agreement, be null and void.
9. Waiver.
Any term or condition of this Agreement may be waived at any time by the party
entitled to the benefit thereof. The waiver of any term or condition shall not be
construed as a waiver of any other term or condition of this Agreement.
The failure of either party to give notice or demand strict, performance by the other
of any of the terms, obligations, covenants, or conditions set forth herein shall not
be construed as a waiver or relinquishment of the other party's right to seek a
remedy for or demand strict performance of said terms, obligations, covenants and
conditions.
The failure to terminate this Agreement for default shall not constitute a waiver of
any remedies the non -defaulting party would otherwise be entitled to demand.
All waivers shall be done in writing to be valid.
10. Force Majeure. If the performance by any party of any obligation set forth in this
Agreement (other than the payment of money) is prevented by an act of God, force majeure or
similar contingency or unexpected event beyond the control of any party, such occurrence shall be
considered a valid excuse for non-performance or delay in the performance of the obligations
hereunder.
11. Compliance with Laws. In performing its obligations under this Agreement, each party
will comply with all local ordinances, state and federal statutes, orders, by-laws, regulations, and
other laws of any applicable governmental entity or agency.
12. Costs and Expenses. Each party must pay its own legal costs and expenses for the
negotiation, preparation, and execution of this Agreement.
13. Governing Law and Jurisdiction. Any and all matters in dispute between the parties
arising from or relating to this Agreement shall be governed by, construed, and enforced in
accordance with the laws of the State of Minnesota and the exclusive jurisdiction for any claim or
action arising out of or relating to this Agreement shall be the state or federal courts located in
Sherburne County, State of Minnesota.
14. Section Headings. Section headings are for reference purposes only and are not intended
to create substantive rights or obligations.
IN WITNESS WHEREOF, the parties have executed this agreement to be effective on
the Effective Date noted above.
City of Elk River
M
M-
John J. Dietz, Mayor
Tina Allard, City Clerk
0
Sponsor
By
1A
IN WITNESS WHEREOF, the parties have executed this agreement to be effective on
the Effective Date noted above.
City of Elk River
M
John J. Dietz, Mayor
Spo
M
By By
Tina Allard, City Clerk
'e4';"//-
IN WITNESS WHEREOF, the parties have executed this agreement to be effective on
the Effective Date noted above.
City of Elk River
m
John J. Dietz, Mayor
Sponsor
r .00 0o
By
By By
Tina Allard, City Clerk
Exhibit A
Sponsorship Signage and Promotional Assets
EXTERIOR BRANDING:
• Sponsor to receive one (1) logo placed above the entry doors to the facility on the middle
left panel.
o Design of all graphic treatments shall be in the spirit of the images found in Exhibit
B, Item A.
• Sponsor to receive inclusion in a rotation of advertising messages displayed on a video
wall located between the Rink One viewing windows.
Sponsor to receive opportunities to display marketing material on all Facility brochure
racks and message boards.
• Sponsor to be recognized as the Naming Rights partner for Rink One in the Facility.
• Sponsor to receive graphic treatments at both the lower and upper entrances. These graphic
treatments will include:
o Etched vinyl window graphics located on the lower level center windows outside
Rink One. (approximate size of these graphics to be 145" x 88.5")
o Vinyl logo door graphics placed on four (4) lower and four (4) upper entry doors.
(approximate size of the graphics to be 18" x 18")
o Etched vinyl word decal graphics installed adjacent to entry doors on both lower
and upper levels (approximate size of these graphics to be 55" x 36")
o Design of all graphic treatments shall be in the spirit of the images found in Exhibit
13, Items 13(l), 13(2), 13(3).
• Sponsor to receive clear vinyl graphic treatments printed in a step and repeat pattern
installed on the exterior of the rink glass. These graphics will be installed on approximately
thirty glass panes extending along the goal line of Rink One. (approximate size of each
individual vinyl graphic to be 46" x 10").
o Design of all graphic treatments shall be in the spirit of the image found in Exhibit
B, Item C.
• Sponsor to receive two (2) sponsor logos printed on ice in Rink One. Position of logos to
be as pictured in Exhibit B, Item D. (approximate size of each logo to be 8' x 8')
Sponsor to receive one (1) graphic treatment installed along center wall located in the
seating area on the penalty box side of Rink One above the third row of seating.
(approximate size of graphic treatment to be 583" x 50")
o Design of all graphic treatments shall be in the spirit of the image found in Exhibit
B, Item E with primary imaging to include a mixture of Elk River therned ice
hockey, ice skating, historical and lifestyle automotive photos.
• Sponsor to receive one (1) graphic treatment installed along center wall located in the
seating area on the player bench side of Rink One abqve the third row of seating.
(approximate size of graphic treatment to be 149" x 50")
o Design of all graphic treatments shall be in the spirit ofthe image found in Exhibit
B, Item F with primary imaging to include a mixture of Elk River therned ice
hockey, ice skating, historical and lifestyle automotive photos.
• Sponsor to receive one (1) graphic treatment installed along far upper -level wall of Rink
One. (approximate size of graphic treatment to be 672" x 91 ")
o Design of all graphic treatments shall be in the spirit of the image found in Exhibit
B, Item G with primary imaging to include a mixture of Elk River therned ice
hockey, ice skating, historical and lifestyle automotive photos.
• Sponsor to receive large graphic treatments installed on four (4) corner walls on Rink One.
These corner walls are located adjacent to arena seating staircases.
o Design of all graphic treatments shall be in the spirit of the image found in Exhibit
B, Item H with primary imaging to include a mixture of Elk River therned ice
hockey, ice skating, historical and lifestyle automotive photos.
• Sponsor to receive additional wall graphic logos placed at Rink One exits and in lower -
level Rink One hallways.
o Design of all graphic treatments shall be in the spirit of the image found in Exhibit
B, Item I with primary imaging to include a mixture of Elk River therned ice
hockey, ice skating, historical and lifestyle automotive photos.
• Sponsor to receive eight (8) dasher boards on Rink One. Dasher boards will be installed in
pairs with two (2) dasher boards placed at each side of center ice and two dasher boards
placed at the center of each end of Rink One.
• Sponsor to receive two (2) dasher boards on Rink Two. Placement of dasher boards on
Rink Two to be mutually agreed upon by Sponsor and City however subordinate to dasher
board placement for Rink Two Sponsor (approximate size of dasher boards to be 33" x
96").
9
• Sponsor to receive the following additional exposure on the four-sided center hung video
display board in Rink One:
o Logo placement on two (2) corner apex panels. (approximate size of apex panels
graphic to be 40" x 96")
o Logo placement on the ten -foot by ten -foot (I Ox10) Sponsor panel on the exterior floor
panel.
o Additional logo exposure and/or video exposure in an advertising rotation displayed on
the video screens throughout events.
o Design of all graphic treatments shall be in the spirit of the images found in. Exhibit B,
Item J.
• Sponsor to receive one (1) vinyl wall graphic installed within the Facility field house.
(approximate size of wall graphic to be 168" x 132").
o Design of all graphic treatments shall be in the spirit of the image found in Exhibit
B, Item K with primary imaging to include a mixture of Elk River themed sports,
historical and lifestyle automotive photos.
ON -SITE ACTIVATION:
• Sponsor to receive the opportunity to activate at up to five (5) building events per year.
Scope and dates of activations subject to the approval of City.
* Sponsor to receive use of all or part of the Facility for up to five (5) hours per year for
private events. Scope and dates of activations subject to the approval of City. This usage
shall be subject to availability.
DIGITAL ACTIVATION:
Sponsor to receive inclusion on the official website and social media pages of the Facility.
• Sponsor to receive inclusion in e-newsletters and other digital communication distributed
by City in connection with the Facility.
CITY-WIDE EXPOSURE:
• Sponsor to receive two (2) outfield wall signs at Lion John Weicht Park.
• Sponsor to receive one(]) outfield wall sign at the Elk River Youth Athletic Complex.
IN
Exhibit B
Branding Images
Item A: Logo placed above the entry doors to facility:
Item B(I): Rink entrance graphics: Lower -level lobby center windows:
Item B(2): Rink Entrance Graphics: Vinyl logo door graphics:
Item B(3): Rink Entrance Graphics: Etched vinyl word decal graphics:
Item C: Step and repeat pattern installed on the exterior
of the rink glass:
"
WFU "j, t", a""j , F,',77 77T - 1 Wk,
Item D: Sponsor logos printed on ice in Rink One:
12
Item E: Graphic treatment installed along center wall located in the seating area on the
penalty box side of Rink One above the third row of seating:
Item F: Graphic treatment installed along center wall located in the seating area on the
player bench side of Rink One:
Item G: Graphic treatment installed along far upper -level wall of Rink One:
13
Image H: large graphic treatments installed on four (4) corner walls on Rink One:
Image 1: Additional wall graphic logos:
Rink One Hallways:
Rink One Exits:
14
Image J: Exposure on the four-sided center hung video display board in Rink One:
Corner Apex Panels:
Sponsor panel on exterior floor panel:
Image K: vinyl wall graphic installed within the Facility field house:
15
CORNERSTONE ARENA
Presentation 01/15/21
0
0 202 1 Co VYriB lit All Rights Reserved.
BRANDING OPPORTUNITIES
Brands the Arena
Cornerstone Logo Inclusion
Sport/Hockey Logo Feel
Contrasts Red/Black
Souvenir Opportunities for
Elk River Additional Income
ELK
RIVER
A
EST.
2021
JUG
Showcases Cornerstone Logo / Cornerstone Colors / Hockey Puck Movement / Sport Letters / Elk River / Multi -Versatile Usage Graphically
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PROUD
SPONSOR
April 5, 2021
Dear Mayor and City Council,
Cornerstone is thrilled to become the main sponsor for rink one at the
Furniture and Things Community Event Center. From the moment we
stepped in, we were completely wowed by the scope, scale and ambition of
this project. This Event Center represents a big leap forward for Elk River
entertainment, athletic, and recreation space.
The Cornerstone Family has been a proud member of this community since
1972. We indent to continue our support and advocacy for all things Elk
River.
Since! e ,
(Ia6
Rob Powell
Vice President
Cornerstone Auto Group
17219 Hwy 10 NW I Elk River, MN 55330 1 763.441.2300
www.cornerstoneauto.com