FROM:
Development Services
SUBJECT:
Title
Authorize Operating funding to the Stage Red Enterprise Fund.
End
RECOMMENDATION:
Recommendation
Approving funding to the Stage Red Enterprise Fund for operating expenses to ASM Global.
End
COUNCIL GOALS:
• Promote economic development by pursuing business attraction, retention, and expansion.
• Practice sound fiscal management by living within our means while investing in the future.
DISCUSSION:
The City of Fontana has undertaken an expansive and comprehensive revitalization of Downtown Fontana. A primary component of this revitalization effort will be creating an entertainment district as a draw for consumers to enjoy as they discover the new downtown area. Stage Red is the keystone to the creation of this new entertainment district for the city.
On April 30,2024 the City entered into an agreement for the management and operation of Stage Red with ASM Global. Since the execution of the operating agreement, ASM Global has taken all aspects of daily operations and management of the venue. The City remains responsible for structural repairs and major maintenance items.
To increase programming at Stage Red, ASM Global will require additional funding to carryout upcoming events and operating expenses. The City shall advance funds to ASM Global as a Cash Flow Shortfall and shall advance funds as follows:
• $450,000 upon City Council approval.
• Additional funding will be disbursed on a monthly basis, as needed, after review by city staff of monthly expense and income statements.
Such funds shall be deposited by ASM Global in the operating or payroll account(s) and used only to pay Operating Expenses.
FISCAL IMPACT:
The cost associated with the approval of this item is included in the FY 2024/2025 Q3 budget allocated to Fund 720 - Stage Red account 72030104.8130 for $1,000,000.
MOTION:
Approve staff recommendation.