FROM:
Development Services
SUBJECT:
Title
Resolution of the City Council of the City of Fontana, California, Approving an Amendment to the Naming Rights Agreement and Approving the Addition of a Merchandising Addendum Between the City of Fontana and Red Head Inc.
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RECOMMENDATION:
Recommendation
Staff recommends that the City Council adopt Resolution No. 2026-080, approving an amendment to the Naming Rights Agreement between the City of Fontana and Red Head Inc., approving the addition of a Merchandising Addendum to the Naming Rights Agreement, and authorizing the City Manager, or designee, to enter into the amended agreement, addendum, and any related documents necessary to implement the agreements.
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COUNCIL GOALS:
• Promote economic development by concentrating on job creation.
• Promote economic development by pursuing business attraction, retention, and expansion.
• Promote economic development by being business friendly at all levels and striving to constantly improve the city's competitiveness.
• Practice sound fiscal management by emphasizing capital formation.
DISCUSSION:
On September 30, 2022, the City entered into a Naming Rights Agreement with Red Head Inc. concerning naming rights associated with the Stage Red Venue.
On December 5, 2023, Red Head Inc. (the “Company”) submitted an application with the United States Patent and Trademark Office to register the mark “STAGE RED” (the “Trademark”). The Trademark has since been approved and duly registered, and the Company is the current owner of all right, title, and interest in and to the Trademark.
The City and the Company desire to amend the Naming Rights Agreement to provide for the assignment and transfer of the Trademark from the Company to the City, while also establishing licensing rights allowing the Company to continue using the Trademark in accordance with the terms of the amended agreement.
The amendment also expands the scope of the Naming Rights Agreement to include provisions governing the development, production, marketing, distribution and sale of merchandise bearing certain approved intellectual property, including: (1) the intellectual property “SAMMY HAGAR” which is the subject of the existing Naming Rights Agreement; (2) the Trademark; and (3) other City intellectual property identified in the agreement.
These provisions are intended to clarify ownership rights, establish authorized uses of the applicable intellectual property, and provide a framework for merchandise opportunities associated with the Stage Red Venue and related branding.
FISCAL IMPACT:
Approval of the amended Naming Rights Agreement and Merchandising Addendum will result in a one-time expenditure of $16,749.15 for the acquisition of the Stage Red trademark from Red Head Inc. Funding for this expenditure is available in the Fiscal Year 2026-2027 Development Services Department budget, Org 72030100.8130.
MOTION:
Approve staff recommendation.