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CITY OF VIRGINIA BEACH

AGENDA ITEM

ITEM: An Ordinance to Appropriate Fund Balance of the Tourism Investment Program

Fund and to Authorize the City Manager to Execute a Sponsorship Agreement
with Live Nation Worldwide, Inc.

MEETING DATE: February 7, 2023

Background: Country Nation- Live Nation is the country music festival division of
Live Nation Worldwide, Inc. The Country Nation- Live Nation team has produced 39
world class country music festivals throughout the United States over the last nine
years. They produce events in multiple markets around the country including in beach
destinations such as the Tortuga Music Festival in Fort Lauderdale and TidalWave
Music Festival in Atlantic City.

Country Nation- Live Nation is

currently developing a concert festival to be held in
Virginia Beach on June 23- 25, 2023. It is their intent to bring together emerging artists,
as well award winning and " A List" country
as music recording artists in the production
of this two- stage, three- day celebration of live music in the City' s south beach area. If
successful, Country Nation- Live Nation would like the City to be the home of " BEACH
IT!" for 2023 and future years.
The proposed City financial sponsorship will provide the " but- for" admissions taxes to
the Festival Additionally, the City will provide in- kind services to support the
promoter.
Festival. The Summary of Terms for the sponsorship is attached as Exhibit A.

In order to allow the City Manager to execute the sponsorship agreement there is an
appropriation of fund balance from the TIP Fund. The actual amount of the financial
sponsorship will be determined based on the actual admissions taxes generated by the
Festival. Therefore, the amount of funds appropriated in the attached ordinance,

1, 500, 000, represent a budgetary amount that will be adjusted when the actual
performance of the Festival is known.
Considerations:
The Beach IT Music Festival presents a unique opportunity to
provide positive social programming for visiting and local adults and elevate Virginia
Beach as a major music festival destination. The attached ordinance expresses the
Council' s support for the proposed Beach IT Music Festival in the form of a sponsorship
between the City and Live Nation Worldwide, Inc. This arrangement will provide
financial, public safety, and operational support for the Festival.

Public Information: Normal Council Agenda process.

Attachments: Ordinance; Exhibit A ( Sponsorship Agreement); Disclosure Form

Recommended Action: Approval

Submitting Department/ Agency: Convention and Visitors Bureau
City Manager:
MO
 1 AN ORDINANCE TO APPROPRIATE FUND
2 BALANCE OF THE TOURISM INVESTMENT
3 PROGRAM FUND AND TO AUTHORIZE THE CITY
4 MANAGER TO EXECUTE A SPONSORSHIP
5 AGREEMENT WITH LIVE NATION WORLDWIDE,
6 INC.
7
8 WHEREAS, the City wishes to provide a financial sponsorship for the Country
9 Nation- Live Nation Beach It Festival ( the " Festival");
10
11 WHEREAS, the Festival is scheduled for June 23- 25, 2023, and the City desires
12 to use such sponsorship to promote the City to residents and visitors;
13
14 NOW. THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
15 VIRGINIA BEACH, THAT:
16
17 1. $ 1, 500, 000 is hereby appropriated from the fund balance of the Tourism
18 Investment Program ( TIP) Fund to support the City' s financial sponsorship of the
19 Festival. The City Manager is authorized to transfer amounts previously
20 appropriated within the TIP Fund in the event the financial sponsorship exceeds
21 this appropriation notwithstanding the transfer limitation in the Annual
22 Appropriation Ordinance. Any such transfer shall be reported to the City Council
23 prior to the end of the month during which the transfer occurred.
24
25 2. The City Manager is hereby authorized to execute a sponsorship agreement
26 between the City and Live Nation Worldwide, Inc., in a form acceptable to the
27 City Manager and approved by the City Attorney, consistent with the attached,
28 Exhibit A, Summary of Terms. The City' s monetary sponsorship shall be tied to
29 the performance of the Festival and not the amount appropriated herein.

Adopted by the Council of the City of Virginia Beach, Virginia on the day
of 2023.

Requires an affirmative vote by a majority of all of the members of the City Council.

APPROVED AS TO CONTENT: APPROVED AS TO LEGAL SUFFICIENCY.

Budget aria- Management Services e o the ity Attorney

CA16026
R- 1

January 26, 2023

EXHIBIT A

SUMMARY OF SPONSORSHIP

BEACH IT! FESTIVAL 2023

Purpose: To have a country music festival ( the " Festival") on June 23- 25, 2023 at the
Oceanfront from 1st Street to 8th Street.

Parties: City of Virginia Beach (" City") and

Live Nation Worldwide, Inc. (" Producer")

City' s Financial Sponsorship:

City agrees to provide a financial sponsorship to the Promoter equal to the admissions taxes
within the footprint of the Festival. The" footprint" includes 1st Street to 8th Street at the
Oceanfront within the area subject to the Festival' s special event permit and online ticket sales.
The Producer will provide point of sale information to the City to assist in the calculation of
the sponsorship, and such amounts to be paid to Producer after the Festival is completed and
the Producer has delivered the agreed- upon program.

City' s In-Kind Contributions:

Use of agreed- upon public parking lots for direct Festival support and rideshare.
City Public Safety and Public Works personnel as City resources permit.
Waiver of City charges for certain goods and services, including a) rent for use of
beaches and the boardwalk; b) costs associated with traffic control, road closures, and
crowd and pedestrian control; c) establishment of a command center comprised of
various City employees; d) electrical power for vendors, but not power to the stages
for the concerts; e) waterboards for vendors and other water needs; f) Fire Department
services, including capacity determinations and inspections for
vendors; g) sand
fencing, cones, sand maintenance, and rail removal and replacement on the boardwalk;
and h) trash pick up and removal.

Producer' s Responsibilities:

Produce a professional country music Festival that highlights the City of Virginia
Beach.

Provide the City with the names of acts performing at the Festival by March 30,
2023.

Engage the Resort Area business community to activate and welcome participants.
Produce destination event marketing activities.
Provide fifty VIP passes to the City and access to VIP spaces for promotional
purposes.

Secure and pay for entertainment, permits, licenses, and insurance required for the
Festival.
Provide the City with point of sale information, attendance information and
sponsorship information for safety/ security and economic impact purposes within
sixty( 60) days of completion of the Festival.
Hire off-duty law enforcement and private security officers to supplement the City' s
Public Safety personnel.
 Disclosure Statemen
11/4/ 3
nning& Cof mm nt).
Development 11116;'°
411111. E.".---

The disclosures contained in this form are necessary to inform public officials who may vote on the application as to
whether they have a conflict of interest under Virginia law. The completion and submission of this form is required for
all applications that pertain to City real estate matters or to the development and/ or use of property in the Ciity of
Virginia Beach requiring action by the City Council or a City board, commission or other body.

AvolicantPlisOsurtt

tore Nation Entertainment Inc.

Applicant Name ..

Does the applicant have a representative? U Yes 0 No

a
If yes, list the name of the representative.
Jim Raid

is the applicant a corporation+,partnership, firm, business,, trust or an unincorporated business? © Yes 0 No

If yes, list the names of al officers,, directors, members, trustees, etc. below. ( Attach a It if necessary)
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If yes, list the businesses that have a parent- subsidiary' or affiliated business entity' relationship with theapplicant ( Attach
a list if necessary)

Parent- subsidiary relationship' means" a relationship that exists when one corporation directly or indirectly owns shares
possessing more than SO percent of the voting power of another corporation." See State and Local Government Conflict of Interests
Act, VA. Code§ 2. 2- 3101.

Affiliated business entity relationship" means" a relationship, other than parent- subsidiary relationship, that exists when( t) one
business entity has a contrdiir; g ownership interest in the other business entity,( ii) a controlling owner in one entity is also a
oontrt>loling owner in the other entity, or( ill) there is shared management or control between the business entities. Factors that
should be considered in determining the existence of an affiliated business entity relationship include that the same person or
substantially the same person own or manage the two entities; there are conflnan or commingled funds or assets; the business
entities share the use of the same offices or employees or otherwise share activities, resources or personnel on a regular basis; or
there is otherwise a close woridng relationship between the entities." See State and Local Government Conflict of interests Act, Va.
Code§ 2. 2- 3101.

3 $ Page
 1\

Statement
A
Planning + 31Tnunx

tizasatintstuatbyluldlLOWALatimabste

Does an official Or employee of the tlty of Virginia Beach have an Interest in the subject land or any proposed development
contingent on the subject public action? 0 Yes a No

if yes, what is the name of the official or employee and what Is the nature of the interest?

Applicant SeMces Disclosure

1.
Does the appbcant have any existing financing( mortgage, deeds of trust, cross- collate ralizat on, etc) or are they considering
any financing In connection with the subject of the application or any business operating or to be operated on the property?
0Yes Eallo
if yes, Identify the financial institutions.

2.
Does the applicant have a real estate broker/ egent/: eettor for current and anticipated future sales of the subject property?
0 Yes ONo
if yes, identify the real estate broker/ realtor.

3. Does the applicant have services for accounting and/ or preparation of tax returns provided in connection with the subject of
the application or any business operating or to be operated on the property? 0 Yes GO No
if yes, Identity the firm or individual providing the service.

4.
Does the applicant have services from an architect/ landscape archtted/ land planner provided in connection with the subject of
the application or any business operating or to be operated on the property? 0 Yes ill No
if yes, identify the firm or Individual providing the service.

S. Is there any other pending of proposed purchaser of the subject property? a Yes CO No
if yes, Identify the purchaser and purchaser' s service providers.

2jP ge
 Disclosure Statement
1113
Kan Sc Commit*
mit*
Devekpowid

6. Does the appdcant have a construction contractor in connection with the subject of the application or any business operating Of
to be operated on the property? 0 Yes El No
lives, identify the construction contractor.

7. floes the applicant have an engineer/ swveytwf agent in connection with the subject of the application or any business
operating or to be operated on the property? 0 Yes 0 No
If yes, Identify the engineer/ surveyor/ agent.

8. Is the app# tant receiving legal services in connection with the subject of the application or any business operating or to be
operated on the property? 0 Yes ® No

if yes, Identify the name of the attorney or firm providing legal services.

Aoofttt iligR, tre

f certify that all of the information contained in this Disclosure Statement Form is complete, true, and accurate. ! understand that,

upon receipt of notification that the application has been scheduled for public hearaig, I am responsible for updating the
information provided herein two weeks prior to the meeting of Planning Commission, City Coundl, 9r DA, CBPA, Wetlands Board
or any public body or committee In connection with this application.

Applicant Sigture

Jim Reid VP of Operations, Country Nation

Print Name and Tide

1/ 13/ 23

Date

Is the app# ant also the owner of the subject property? 0 Yes ® No

if yes, you do not need to fill out the owner disclosure statement.

FOR CITY USE ONLY/ All disclosures must be updated two( 2) weeks prior to any Planning Commission and City Council meeting
that pertains to the applications
sin
MQthw s at Per

31P ge
Disclosure Statement
MIA

Nanifts& Comniun'
Developmeitt
r..

a.

Continue to Next Page for Owner Disclosure

4JP ge
 Disclosure Statement 83

inning& Conurunity

Owner DiscIourr

Owner Name

Live Nation Entertainment Inc.

pp Name

Alicants the Owner a corporation, partnership, rant business, trust or an unincorporated business? 0 Yes 0 No

if yes, list the names of all offtcersr directors, members, trustees, etc, below. ( Attach a list if necessary)

If yes, list the businesses that have a parent- subsidiary' or affiliated business entity' relationship with the Owner. ( Attach a

list if ner Cary)

l r oiyp Otelehlitv Pub*, Officlolor Emplavet

Does an official or employee of the City of Virginia Beech have an interest in the subject land or any proposed development
contingent on the subject public action? 0 Yes 0 No

If yes, what is the name of the official or employee and what is the nature of the interest?

Parent-subsidiary relationship' means" a relationship that exists when one corporation directly or indirectly owns shares
possessing more than SO percent of the voting power of another corporation." See State and Local Government Conflict of interests
Act, VA. Code§ 2. 2-3101.

4" Affiliated business entity relationship" means" a relationship, other than parent- subsidiary relationship, that exists when 4i) one
business entity has a controlling ownership Interest in the other business entity, ill) a controlling owner in one entity Is also a
controlling owner in the other entity, or( Ili) there Is shared management or control between the business entitles. Factors that
should be considered In determining the existence of an affiliated business entity relationship Include that the same person or
substantially the same person own or manage the two entitles; there are common or commingled funds or assets; the business
entitles share the use of the same offices or employees or otherwise share activities, resources or personnel on a regular basis; or
there is otherwise a close working relationship between the entities." See State and Local Government Conflict of Interests Act, Va.
Code§ 2,2-3101.

51Page
 Disclosure Statement

Plarming& Community
Development ';

ibtauritodsesStublium

1. Does the Owner have any eodsdng finandng( mortgage, deeds of trust, cross- colbaterailsdon, etc) or are they considering any
financing in connection with the subject of the application or any business operating or to be operated on the property?
CiYes 0No
If yes, identify the financial institutions.

2. Does the Owner have a real estate brofcer/ agent/ reattor for current and anticipated future sales of the subject property?
0 Yes 0 No
if yes, identify the real estate broker/ reactor.

3. Does the Owner have services for acroounting and/ or preparation of tax returns provided In connection with the subject of the
application or any business operating or to be operated on the property? 0 Yes 0 No
if yes, Identify the firm or individual providing the service.

4. Does the Owner have senrkes from an architect/ landscape archlteaf land planner provided in connection with the subject of
the application or any business operating or to be operated on the property? 0 Yes 0 No
if yes, Identify the firm or individual providing the service.

5. Is there any other pending or proposed purchaser of the subject property? 0 Yes 0 No
1f yes, identify the purchaser and purchaser' s service providers.

6. Does the Owner have a constriction contractor In connection with the subject of the application or any business operating or
to be operated on the property? 0 Yes 0 No
If yes, Identify the construction contractor.

7. Does the Owner have an engineer/ surveyor/ agent In connection with the subject of the application or any business operating
or to be operated on the property? 0 Yes 0 No
if yes, identify the engineer/ surveyor/ agent.

6 Page
 DI$ CLO$11,R.E5TATEMENT FORM

The completion and submission of this form is required for all applications
wherein such applicant may utilize certain service providers or financial
institutions, and the City seeks to know of the existence of such
relationships in advance of any vote upon such appikatlon.
SECTION 1 / APPLICANT DISCLOSURE
Organization name: Gauntry Nation

SECTION 2. SERVICES DISCLOSURE

Are any of the following services being provided in connection with the applicant? If the
answer to any item is YES, please identify the firm or Individual providing the service:
YES]
IN° I SERVICE PROVIDER tusc. saiuoesal sheets t1

pupas
tat Mira o
Financial Services( include
lending/ banking institutions and
current mortgage holders as
applicable

D] Legal Services

J Stoker/ Contractor/ Engineer/ Other

Service Providers

CERTIFICATION:

Icomplete,
certify that all of the information contained in this Disclosure Statement Form is
true, and accurate.

I understand I am responsible for updating the Information provided herein if it

changes prior to the Council action upon this Application,

Jim Reid 1/ 13/ 23

HUNT NAME DATE