City of Alexandria, Virginia
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MEMORANDUM
DATE: APRIL 21, 2021
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: MARK B. JINKS, CITY MANAGER /s/
DOCKET TITLE:
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Consideration of a License Amendment between the City of Alexandria and Hornblower Cruises & Events (Potomac Riverboat Co.) for a License Fee Repayment Plan in response to the COVID-19 Pandemic.
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ISSUE: Consideration of a License Amendment between the City of Alexandria and Hornblower Cruises & Events (Potomac Riverboat Co.) for a License Fee Repayment Plan in response to the COVID-19 Pandemic.
RECOMMENDATION: That City Council:
(1) Receive this report and schedule the proposed License Amendment Two (Attachment 1) for public hearing on May 15, 2021; and
(2) After the public hearing, authorize the City Manager to execute the attached License Amendment Two with Hornblower Cruises & Events.
BACKGROUND: In response to VA Governor Executive Orders Phases One & Two, Hornblower Cruises & Events suspended all commercial operation in the City of Alexandria from mid-March through late June 2020. In late June through approximately early September 2020, Hornblower Cruises & Events resumed reduced capacity operations consistent with VA Governor Executive Order Phase Three. Due to continued concerns with the pandemic and reduced use resulting from ongoing health guidance issued by the Virginia Governor, operations were suspended. Commercial Operations resumed in April 2021 consistent with current guidelines.
DISCUSSION: Staff is recommending a repayment of $202,522 in license payments for the period between April 1, 2020 through June 30, 2021 in 36 equal payments from January 1, 2022 through December 1, 2024. The deferred annual fee amount shall be amortized and paid by Hornblower Cruises & Events in 36 equal monthly installments of $5,626 beginning January 1, 2022 and continuing through December 1, 2024. Hornblower Cruises & Events’ obligation to pay equal monthly installments of the deferred annual fee amount shall be in addition to its obligation to make regular installments of the Guaranteed Annual Fee in accordance with the Original License Agreement beginning July 1, 2021.
FISCAL IMPACT: None. The City will receive all non-paid license fees of $202,522 in 36 equal payments from January 1, 2021 through December 1, 2024.
ATTACHMENTS:
1. Hornblower Cruises & Events Proposed License Amendment Two
2. Hornblower Cruises & Events Executed License Agreement
STAFF:
Debra Collins, Deputy City Manager
James Spengler, Director, Recreation, Parks & Cultural Activities (RPCA)
Jack Browand, Acting Deputy Director, RPCA
Faye Maslaki, Division Chief, Administrative Services, RPCA
Karen Snow, Senior Assistant City Attorney
Randy Burns, Purchasing Agent