TO: Board of Supervisors
FROM: Ryan J. Alsop, Chief Executive Officer
REPORT BY: Becky Craig, Assistant Chief Executive Officer
SUBJECT: VNV Napa Valley Standard Food and Wine Festival Agreement
RECOMMENDATION
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Approve and authorize Amendment No. 2 to Agreement 220095B with Visit Napa Valley to increase the cost $425,000 over three years through June 30, 2028 for administration of The Napa Valley Standard Food and Wine Festival; and approve a Budget Amendment to increase appropriations by $100,000. (Fiscal Impact: $425,000 Expense; Napa Valley Tourism Improvement District-Unincorporated Fund; Not Budgeted; Discretionary)
[4/5 vote required]
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BACKGROUND
The Napa Valley Tourism Improvement District-Unincorporated (NVTID-U) committee meets quarterly to review marketing and promotion of overnight tourism in the unincorporated area of the County. The committee has been seeking sponsorship of a multi-day event that attracts hotel stays during the off-peak period. Visit Napa Valley contracted with A21, an event planning company, to produce a food and wine festival like those occurring in New York City and Pebble Beach. The proposed event, The Napa Valley Standard Food and Wine Festival, will kick-off this November 2025 with a limited introduction before developing into a complete event in fall 2026 and subsequent years. The event will eventually be self-sustaining through revenue production; however, breakeven is not anticipated until the fourth year.
The NVTID-U committee supported the event’s initiation costs of $50,000 in FY 2024-25 and recommends the County appropriate tourism assessment funds totaling $425,000 for the event’s operational costs for the next three fiscal years:
FY 2025-26 $200,000
FY 2026-27 $150,000
FY 2027-28 $ 75,000
The County appropriated $100,000 for a community grant and the committee recommends the Board increase the appropriation by $100,000 from available fund balance this fiscal year to support this attraction event. This restricted fund has an accumulated fund balance totaling $670,000 available to weather economic uncertainty and to support an attraction event.
Requested Actions:
1. Approve and authorize Amendment No. 2 to Agreement 220095B with Visit Napa Valley to increase the cost $425,000 over three years through June 30, 2028 for administration of The Napa Valley Standard Food and Wine Festival; and
2. Approve a Budget Amendment to increase appropriations in Napa Valley Tourism Improvement District-Unincorporated Community Grants (2070000-54805) by $100,000 from available fund balance.
FISCAL IMPACT
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Is there a Fiscal Impact? |
Yes |
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Is it currently budgeted? |
No |
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Where is it budgeted? |
NVTID-U Community Grants appropriated $100,000 for an event and an additional $100,000 appropriation is necessary for year one. |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
Attract visitors to a multi-day festival that will increase hotel stays in the unincorporated area. |
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Is the general fund affected? |
No |
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Future fiscal impact: |
Future years’ obligations totaling $225,000 will be budgeted. |
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Consequences if not approved: |
The events will not occur and hoteliers will continue to seek an off-peak attraction. |
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Strategic Initiative: |
Preserve Napa County’s Agricultural Legacy |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.