HomeMy WebLinkAbout14 SPONSORSHIP OF THE CHAMBER'S HALF MARATHON AND 5K4 AGENDA
1 REPORT
MEETING DATE: DECEMBER 6, 2016
TO: JEFFREY C. PARKER, CITY MANAGER
FROM: ECONOMIC DEVELOPMENT DEPARTMENT
Agenda Item 14
Reviewed:
City Manager
Finance Director
SUBJECT: CITY OF TUSTIN SPONSORSHIP OF THE TUSTIN CHAMBER
OF COMMERCE'S TUSTIN HANGAR HALF MARATHON AND 5K
SUMMARY:
City Council approval is requested for the City of Tustin to sponsor the Tustin Chamber
of Commerce's Tustin Hangar Half Marathon and 5K on March 12, 2017.
RECOMMENDATION:
It is recommended the City Council take the following actions:
1. Authorize the City of Tustin's $50,000 sponsorship of the Tustin Chamber of
Commerce's Tustin Hangar Half Marathon and 5K; and
2. Authorize the City Manager to execute the Tustin Hangar Half Marathon and 5K
Sponsorship Agreement, and authorize the City Attorney to make non -substantive
changes to the agreement as deemed necessary; and
3. Authorize a $50,000 appropriation from Fund 189 — Tustin Legacy Marketing.
FISCAL IMPACT:
The $50,000 sponsorship will seed the Chamber of Commerce's efforts to operate and
market the inaugural Tustin Hangar Half Marathon and 5K. The Chamber will be
responsible for paying City expenses associated with permitting, traffic plans, and law
enforcement. In reviewing economic and fiscal impact analysis conducted on marathon
and half marathon races throughout the United States, a conservative economic impact
estimate for the projected 6,000 runners and affiliated spectators is $500,000.
CORRELATION TO THE STRATEGIC PLAN:
Sponsoring the Tustin Hangar Half Marathon and 5k supports Goal A — Economic and
Neighborhood Development enabling business opportunities and enhancing the
vibrancy and quality of life in our community.
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Agenda Report
Ducember 6, 2016
Page 2
BACKGROUND:
Destination road racing is growing in popularity in the United States. As of 2013, the
annual growth rate over the last 23 years was 12.5% per year. Female participation has
grown from 25% of all finishers in 1990 to 57% of all finishers in 2013. Female finishers
now make up more than 10.8 million of U.S. road race participants.
Half marathons and 5Ks account for 61.8% of all people who finished a U.S. road race
in 2013. Participation in half marathons grew 12.5% annually from 2006 to 2012.
The 2016 National Runner Survey conducted by Running USA during the first quarter of
2016 surveyed over 10,000 runners. The highest percentage of 2016 Survey
respondents identified the half marathon as their favorite race — 40%, confirming it
continues to be the most popular event in terms of participation and favored distance.
Three in four runners have travelled overnight in the previous 12 months and planned to
do so in the next 12 months. Half of those surveyed claimed they were always looking
for a new event experience.
Locally, the 2016 Surf City Half Marathon had 14,195 finishers and the 2016 OC Half
Marathon had 9,391 finishers. There were approximately four -to -five times more
finishers in each half marathon race as opposed to the respective marathon race.
Given the popularity and growing interest in half marathons, the Tustin Chamber of
Commerce is holding the Inaugural Tustin Hangar Half Marathon and 5K on Sunday,
March 12, 2017. Building on their success with the Leprechaun Leap, the half marathon
has the potential to be another destination event in Tustin and one that can successfully
market Tustin and Tustin Legacy. Half marathon runners will follow a race route that
showcases three shopping and dining destinations in Tustin: The District; The Market
Place; and Old Town Tustin.
Both races are structured to raise funds for local nonprofits and charities. A minimum of
15% of all race registration fees is guaranteed to go directly to the nonprofits and
charities that the race registrants choose when they register for either the half marathon
or 5K. It is believed there is no other large race which allows the racer to designate the
nonprofit or charity they want to benefit from their race fee. While there are races which
allow runners to raise funds for a race -approved charity, the Tustin Hangar Half and 5K
makes it easy for the runner to contribute to their favorite nonprofit through the
registration fee and it encourages nonprofits to make the race their own fundraiser by
recruiting runners for either the half marathon or 5K.
Both races will start at The District. Runners in both races will proceed through the
City's historic blimp hangar. The Half Marathon continues from the hangar, through the
Tustin Auto Center, to The Market Place, and then proceeds to historic Old Town
Tustin. The Half Marathon then returns to The District for the finish line celebration.
Agenda Report
December 6, 2016
Page 3
The 5K will continue the fun whimsical tradition of the Leprechaun Leap, which was
enjoyed by thousands of Tustin residents who enjoyed the St. Piatrick Day event,
jogging through the historic Hangar while wearing green. The 5K also concludes at The
District.
The Chamber is projecting 3,700 half marathon runners and 2,300 5K runners at the
inaugural Hangar Half Marathon and 5K. The number of 5K runners is conservative
considering the growth the race has experienced over the last five years. As of
November 29, 2016, 292 runners had registered for the half marathon and 173 runners
had registered for the 5K.
To date, the Chamber has secured Primo Fitness to be the presenting sponsor. In
addition, The District is an in-kind sponsor and The Market Place has also indicated
interest in being involved. There are numerous Chamber member businesses who are
in-kind sponsors.
The Tustin Hangar Half and 5K can become a destination event, attracting runners from
all over the country. According to the 2016 National Runner Survey, 79% of the runners
will have a college degree and a majority have an annual household income of at least
$75,000. Considering the demographic of the runners and spectators, a conservative
estimate of the economic impact of the inaugural race is $500,000. Considering the
Surf City and OC Half Marathons are three to five times larger than projected size of the
inaugural Tustin Hangar Half Marathon and 5K, the economic impact —job creation and
spending on hotels, food, retail, transportation and entertainment, can grow significantly
in the years to come. In addition to the economic impact, the race offers an easy
fundraising opportunity for local nonprofits while promoting exercise and health. Given
the economic and social impact, staff is recommending the City of Tustin sponsor the
inaugural Tustin Hangar Half Marathon and 5K.
Staff is available to respond to any questions the City Council may have
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