City of Alexandria, Virginia
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MEMORANDUM
DATE: MARCH 7, 2023
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
THROUGH: JAMES F. PARAJON, CITY MANAGER /s/
FROM: JAMES SPENGLER, DIRECTOR
RECREATION, PARKS & CULTURAL ACTIVITIES
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Public Hearing and Consideration of a License Agreement Renewal Between the City of Alexandria and City Experiences, by Hornblower for Use of the City’s Marina.
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ISSUE: City Council consideration of a License Agreement Renewal between the City of Alexandria and City Experiences, by Hornblower.
RECOMMENDATION: That City Council:
1. Receive this report recommending a License Agreement Renewal between the City of Alexandria and City Experiences, by Hornblower; and
2. Schedule a public hearing for Saturday, March 18, 2023, and after the public hearing is concluded authorize the City Manager to execute the License Agreement Renewal (Attachment) substantially in the form attached between the City of Alexandria and City Experiences, by Hornblower.
BACKGROUND: The current License Agreements between City Experiences, by Hornblower and the City of Alexandria was authorized to operate a water taxi service, site seeing tours and charter vessel rentals from the City of Alexandria Marina. The current License Agreement expires on March 31, 2023.
DISCUSSION: In March 2017, the City issued a Request for Proposal for the sole purpose and intent to obtain competitive proposals from licensed commercial passenger boat operators for use of the commercial dock space at the City Marina. The City’s intention is to award a license or licenses for an initial period of five (5) years with the mutually agreed license extensions of one (1) additional five (5) year period. The City’s commercial boat operation utilizes the commercial dock space, which is located at the foot of Cameron Street, and is adjacent to the Chart House Restaurant at the City’s Marina (C/D Pier).
The proposed license agreement requires City Experiences to undertake certain activities to market the City, to assist in developing a cooperative events and marketing agreements with other riverboat destination/origins, and to assist in the City’s annual Potomac River holiday boat parade.
FISCAL IMPACT: The City will receive a guaranteed payment of $1,077,080 over the five-year period. In addition to the guaranteed annual payments, the City will receive an additional payment equal to five percent (5%) of Gross Revenue in excess of $2,500,000. Gross revenues are determined by all charter, dinner cruise, water taxi, sightseeing or other operations for passengers departing from the City of Alexandria Marina.
ATTACHMENT: City Experiences, by Hornblower License Agreement Renewal
STAFF:
Emily A. Baker, Deputy City Manager
Jack Browand, Deputy Director, Recreation, Parks & Cultural Activities
Faye Maslaki, Division Chief, Recreation, Parks & Cultural Activities
Karen Snow, Senior Assistant City Attorney