PARTNERSHIP-THE NEW NORMAL UTILIZING THE PRIVATE SECTOR TO ADDRESS THE NEEDS OF YOUR COMMUNITY Arizona Parks and Recreation Association Annual Conference August 29, 2013

DEFINITION OF A PARTNERSHIP  A legal contract entered into by two or more persons in which each agrees to furnish a part of the capital and labor for a business enterprise, and by which each shares a fixed proportion of profits and losses.  A relationship between individuals or groups that is characterized by mutual cooperation and responsibility, as for the achievement of a specified goal.

TYPES OF PARTNERSHIPS  With other public sector agencies  With the non-profit sector  With the private sector

PRIVATE SECTOR FOCUS  The difference between the public sector and the private sector  Timing – they move more quickly  Attitude – profit and loss  Don’t understand or appreciate government process  Want what you have – need you

DEVELOPING A PARTNERSHIP  Solicited – RFP  Unsolicited – potatoes from the sky  Do you need an RFP with a potato?  Inventory of assets  Analysis of needs  Community relationship building  Alignment with mission and organizational values  Economic justification  Credible economic studies

WHAT IS NEEDED TO SUCCEED?  Shared vision  Governing body  Top Management  Clarity on desired outcomes  Strong Agreements  Good agreement administration  Impactful difference  Metrics  Trust/Credibility/Fairness  Relationship with Agency departments-Team effort  Relationship with partner  Entrepreneurial/innovative organizational culture  Assets  Courage

TYPES OF AGREEMENTS  Use Permit  License  Lease  MOU  Partnership  Customized

AGREEMENT PITFALLS  Timing (use period)  Accountability/Penalty  Conflict of use  Use Area  Insurance and liability  Staff resources  Attitude of partnership – quid pro quo  PUBLIC BENEFIT

BENEFITS  Revenues  Direct to department  Direct to organization  Indirect - Regional Economic impact  Capital improvements at no cost to tax payer  Marketing/branding of public facilities at no cost to the tax payer  Recreational opportunities for the public  Benefit to the organization to maximize assets on behalf of the public

RELATIONSHIPS  Oftentimes no template – need to work together  Need to create an environment to make it profitable for the partner  Constant vigilance and agreement administration  Establish mutual trust  Success breeds success

CASE STUDY: 3 PUBLIC/PRIVATE PARTNERSHIPS IN COCONINO COUNTY  Pepsi Amphitheater  Flagstaff Extreme  North Pole Experience

 County owned facility at Fort Tuthill County Park – 3000 capacity  First performance: 2006  Season: May - October  Management company: R Entertainment North  Contracted with Management Agreement in 2011 for 5 years  County receives contracted minimum plus % of tickets, merchandise, concessions, liquor

2012 Numbers # of Events AttendanceDirect $ to County Job Creation % Non- Local Visitation Economic Impact 2621,245$88, %$2M Economic Impact Source: NAU AZ Rural Policy Institute

 12 acres within 413-acre Fort Tuthill  Opened to the public May 2012  Season: March-December  Proprietary engineering uses compression rather than piercing any trees  In $43/per person  CCPR receives 3% of ticket, food, beverage, merchandise revenue

AttendanceDirect $ to CCPR Job Creation % Non- Local Visitation Economic Impact Capital Improvements 14,743$17, %$4M$450,000 Economic Impact Source: Economic Collaborative of Northern Arizona 2012 Numbers

NORTH POLE EXPERIENCE

NORTH POLE EXPERIENCE  Use of County owned building at Fort Tuthill County Park  Previous operation in Greer  Proven business model  Opened in 2012 at Fort Tuthill  26 event days, November and December  Trolley from Little America Hotel  Operation from 4PM-10PM  CCPR receives flat rate from ticket revenue tiered with attendance, 3% of merchandise revenues on and off site.

NORTH POLE EXPERIENCE # of Events AttendanceDirect $ to CCPR Job Creation % Non- Local Visitation Economic Impact Capital Improvements 26 days17,000$27, %$3M$469,000

SUCCESS BREEDS SUCCESS 2012AttendanceCapital Improvements Direct Revenues to County/CCPR Job Creation Non- Local Visitation Economic Impact Pepsi Amp21,245$88, %$2M Flag X14,743$450,000$17, %$4M NPX17,000$469,000$27, %$3M TOTAL52,988$919,000$133, %$9M Pending: Outsourcing of the campground at Fort Tuthill Public/Private Partnership – Snow Play at Fort Tuthill

PARTNERSHIP-THE NEW NORMAL UTILIZING THE PRIVATE SECTOR TO ADDRESS THE NEEDS OF YOUR COMMUNITY Arizona Parks and Recreation Association Annual Conference August 29, 2013