DEPARTMENT: Convention & Sports Facilities
DEPARTMENT HEAD: Patricia Muzquiz-Cantor
COUNCIL DISTRICTS IMPACTED: Council District 2
SUBJECT: Local Contribution related to Events Trust Fund
SUMMARY:
An Ordinance authorizing submission of a local contribution in the amount of $30,180.00 to the Office of the Texas Governor in anticipation of reimbursement up to $218,800.00 from the Events Trust Fund for the 2018 U.S. Army All-American Bowl held at the Alamodome. This Ordinance authorizes $30,180.00 from the Convention & Sports Facilities (CSF) State Reimbursement Fund to be used for the local contribution and authorizes reimbursement of up to $134,150.00 in event expenses to Sportslink - The Game, LLC ("Sportslink) from the Events Trust Fund award.
BACKGROUND INFORMATION:
Sportslink established the annual All-American Bowl in 2000, and celebrated its 15th anniversary at the Alamodome in 2018. With the United States Army as the title sponsor, the All-American Bowl is the nation’s premier high school national all-star football game featuring over 90 of the top senior football players across the country. Attendance at this year’s game on January 6th, 2018 was 26,576. As an element of the execution of the 2015-2020 U.S. Army All-American Bowl Multi-Year Lease Agreement, the City purchased Astroturf Game Day Grass in the aggregate amount of $125,000, with the intention that such cost be offset by a recovery from the Events Trust Fund. The outstanding Turf Recovery Fee balance is $54,470.00.
The Events Trust Fund Program created through statute, Vernon's Texas Civil Statutes 5190.14, provides municipalities and counties the opportunity to obtain reimbursement for eligible expenses related to hosting and attracting high-visibility, high-tax impact events to the State of Texas that could otherwise have taken place outside of the state. Events Trust Funds may be utilized to pay for eligible expenses incurred preparing for and conducting an event, such as equipment or security services.
The Events Trust Fund applies local and state gains from sales and use, auto rental, hotel and alcoholic beverage taxes generated over a 30-day period from the date of an event or series of events conducted no more than once annually. Reimbursable dollars for these sports events are based on anticipated tax gain for a particular event. In order to obtain reimbursement for eligible expenses, municipalities are required to match funds that are deposited in the Events Trust Fund on a ratio of 1:6.25.
ISSUE:
The annual All-American Bowl is one of the premier events that the City and the Alamodome hosts each year. In 2018, as in previous years, it attracted thousands of visitors.
The Convention & Sports Facilities Department will submit qualified expenses including advertising, staffing, and operational costs incurred by Sportslink related to the 2018 U.S. Army All-American Bowl which took place on January 6, 2018.
This event has been approved by the State as eligible under the Events Trust Fund program for reimbursement of up to $218,800.00 in qualified expenses related to hosting the event. This action will authorize payment of the $30,180.00 local share to the Events Trust Fund. Funds awarded from the program shall first be used to repay the City’s local contribution of $30,180.00, and then the balance of $54,470.00 for the Turf Recovery Fee. Under the existing Event Support Agreement, the City will use the remaining funds awarded to reimburse Sportslink for qualified operating costs up to $134,150.00 related to producing the 2018 U.S. Army All-American Bowl.
There are two years remaining in the 2015-2020 U.S. Army All-American Bowl Multi-Year Lease Agreement; however the U.S. Army has declined to continue as the title sponsor of the All-American Bowl moving forward. As a result, the 2019 and 2020 Bowl games will be played at the Alamodome with a new title sponsor. The Alamodome and the Office of Military Affairs are engaged in conversations with the U.S. Army to encourage them to reconsider maintaining their title sponsorship.
ALTERNATIVES:
If the matching funds are not deposited within the Events Trust Fund, the City loses its opportunity to obtain reimbursement for eligible expenses related to hosting this event. Lack of financial support for sporting or major events jeopardizes the City's ability to remain competitive in hosting these events in the future.
FISCAL IMPACT:
This Ordinance approves a local contribution in the amount of $30,180.00 to the Office of the Texas Governor in anticipation of reimbursement of up to $218,800.00 from the Events Trust Fund for eligible expenses related to hosting the 2018 U.S. Army All-American Bowl at the Alamodome. Upon receipt of the reimbursement from the Events Trust Fund, funds in the amount of $30,180 for the local share will be deposited back into the CSF State Reimbursement Fund, and the balance of the reimbursement is authorized to be paid to Sportlink, net of the event’s contractually required Turf Recovery Fee that will be deposited into the Alamodome Improvement & Contingency Fund to support the future replacement of the Alamodome’s artificial turf playing surface.
RECOMMENDATION:
Staff recommends approval of the local contribution in the amount of $30,180.00 to the Office of the Texas Governor to qualify for reimbursement of eligible expenses from the Events Trust Fund in an amount up to $218,800.00 related to the 2018 U.S. Army All-American Bowl and reimbursement to Sportslink of operating costs related to the event totaling up to $134,150.00 contingent on State award.