DEPARTMENT: San Antonio Convention & Visitors Bureau
DEPARTMENT HEAD: Casandra Matej
COUNCIL DISTRICTS IMPACTED: City-Wide
SUBJECT:
Reimbursement Agreement with San Antonio Local Organizing Committee regarding NCAA 2nd and 3rd Round Basketball Games - Reimbursable Event
SUMMARY:
This ordinance is authorizing a reimbursement agreement with San Antonio Local Organizing Committee (SALOC) in an amount not to exceed $144,582.40 for eligible expenses incurred by SALOC associated to the National Collegiate Athletic Association (NCAA) 2014 Men’s Basketball 2nd and 3rd Round Games.
BACKGROUND INFORMATION:
The City of San Antonio partnered with San Antonio Local Organizing Committee (SALOC) to solicit, secure and host the 2014 NCAA Men’s Basketball 2nd and 3rd Round Games scheduled during March 21-23, 2014. San Antonio was selected through a competitive process by the NCAA with the AT&T Center identified as the venue.
The Events Trust Fund legislation (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 take place outside of the State. Reimbursable dollars are based on the 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 1:6.25.
The City of San Antonio has participated in this program for both convention and sporting events and has received tax reimbursement from the Events Trust Fund related to various sporting events including the 2013 U.S. Track & Field Championships, 2011 U.S Trampoline and Tumbling Junior Olympic Championships, and the Big 12 Football Conference Championship. The same process was followed in obtaining the reimbursement for the 2014 NCAA Men’s Basketball 2nd and 3rd Round Games.
ISSUE:
The 2014 NCAA Men’s Basketball 2nd and 3rd Round Games took place on March 21-23, 2014 and were held at the AT&T Center. The Convention and Visitors Bureau (CVB) partnered with SALOC on this event which afforded the San Antonio community a great opportunity to see and host NCAA Division I Men’s Basketball while receiving national exposure as the host city. In addition, hosting this event continued to afford San Antonio the opportunity for ongoing consideration of future NCAA Division I Men’s Basketball Regionals and/or Final Fours.
In December 2013, the Texas State Comptroller of Public Accounts notified the City and SALOC of this event’s eligibility.
The Convention & Visitors Bureau worked with SALOC to submit qualified expenses in an amount sufficient to meet the reimbursement requirements set forth by the statute and authorized by the State Comptroller. The expenses incurred by SALOC included volunteer coordination and management, visiting teams coordination and logistics, game management, marketing and community outreach, media services, medical services, and consulting services.
The expenses that were incurred by SALOC that were deemed eligible for reimbursement sum to $144,582.40 and when matched with the City’s contribution of $23,133.18 affords the reimbursement from the Events Trust Fund totaling up to $167,715.58. The City has since been reimbursed its local match portion.
ALTERNATIVES:
If the reimbursement agreement is not approved, the City may lose its opportunity to successfully solicit future events and partnership opportunities with SALOC.
FISCAL IMPACT:
There are no associated expenses to this agreement incurred by the City. The City did provide a local match of $23,133.18 which is a requirement of the Events Trust Fund program. However, these funds have since been fully reimbursed back to the City by the Trust Fund. The remaining funds of $144,582.40 received by the City from the State are for expenses incurred by SALOC on City’s behalf to host the event. There are no other direct expenses or obligations incurred by City.
RECOMMENDATION:
Staff recommends approval of the reimbursement agreement with SALOC to assist in ensuring San Antonio continues to be a premier host city in attracting major sporting events.