Driving past Sacramento’s ARCO Arena, Orland City Manager Paul Poczobut got an idea to raise some funding.
“Why not lease naming rights to Orland’s new recreation center to a business?” he said.
Poczobut brought the proposal to the City Council Monday night and received permission to explore the option.
He and city staff will develop some requests for proposals and see if there are any local companies interested in getting their name on the center.
“We would not be selling the name, but leasing it to a business or individual for five years,” he said. “It also has to do significant business in Orland.”
The fee could run about $25,000 for five years ,with the option of renewing the lease another five years at a higher rate, Poczobut explained.
Council members liked using the requests for proposals method rather than going out to bid.
The bidding process would mean giving the lease to the highest bidder, Poczobut said, whereas asking for proposals broadens the field so points could be awarded for being a company in town, for paying the $25,000 up front and so on.
“It gives us more latitude and allows the respondents more latitude,” Councilman Paul Barr said.
Mayor Wade Elliott asked how the leasing revenue would be spent.
Poczobut said it would be earmarked to the recreation center for needed improvements, to supplement program costs and so forth.
He added the lease money could be put in a separate fund with some saved for future needs.
“Its use should take its natural course with the Parks Commission and (Recreation Director) Joe Fenske to decide where it should go,” Councilman Bruce Roundy said.
Poczobut said the city got permission to lease the name from the state since a California Community Development Block Grant paid for half of the center’s construction costs.
“I think a local company should have preference,” Vice Mayor Jim Paschall said. “I would lean toward that rather than a state or national company.”
The successful applicant also will pay for the design and placement of the sign on the center behind Lely Park off Hambright Avenue, city officials said.
Roundy added it comes down to the bucks who would get the naming rights. If they are offering $25,000 up front versus $10,000 that impacts the decision, he said.
This issue will come back for more discussion at a future council meeting.
This article was printed with the permission of Tri-County Newspapers