BY COUNCILOR REINERT:
RESOLVED, that the proper city officers are authorized to enter into an agreement with Duluth economic development authority, Lake Superior center authority and Secret Service Entertainment providing for the production, promotion and management of special events at Bayfront Festival Park, said agreement to be substantially in the form of Public Document No. ____________ on file in the office of the city clerk, and providing for the payment of $98,500 in 2007 and $48,500 per year in any subsequent years, payment of $48,500 to be made from the Special Projects and Events Fund 100-700-1410-5408, and payment of $50,000 to be made from Fund 237-015-5441.
STATEMENT OF PURPOSE: The agreement authorized by this resolution provides for professional entertainment management services for special events that occur at the Bayfront Festival Park. The agreement replaces and supercedes the contract previously entered into and terminated by the city council. Major changes include the removal of any right by the contractor to revenue streams from the Bayfront Blues Festival as well as revenues from alcohol sales at other third-party promoted events. The contractor remains responsible for the management and promotion of special events sponsored by the city. The contractor also remains responsible for management of the park during special events promoted by other entities except as specified in the agreement. The contractor is also given the right to promote its own events at the park. Due to the loss of anticipated revenue streams in 2007, the fee to the contractor has increased from $48,500 to $98,500 in 2007 only. This includes the base fee of $48,500 and a fee for promoting Fourth Fest in 2007 of $50,000.