DEPARTMENT: Convention & Sports Facilities
DEPARTMENT HEAD: Patricia Muzquiz Cantor
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
Lease Agreement with San Antonio Sports
SUMMARY:
This ordinance authorizes a Lease Agreement between the City of San Antonio and San Antonio Sports for 6,650 square feet of office space at the Alamodome and twenty (20) parking spaces for a period of six (6) years commencing January 1, 2020, and expiring December 31, 2025, with one additional two-year renewal option. Revenues generated from this lease agreement will be deposited in the Community and Visitor Facilities Fund.
BACKGROUND INFORMATION:
San Antonio Sports is a nonprofit organization founded in 1984 with a mission to transform the community through the power of sport by creating sports opportunities for the community and youth through: 1) targeting sports as a growth industry by bringing sporting events with a positive economic impact to the city; 2) developing fitness programs for all ages, especially disadvantaged youth, and; 3) supporting the development of quality athletic facilities. San Antonio Sports is supported financially from event sponsors, individual and corporate donors, grants from corporations and private foundations. San Antonio Sports are in 290 local elementary schools with sports and fitness training programs with KIDS ROCK and GO! Kids Challenge, to promote children and their families to live active and healthy lives.
San Antonio Sports has assisted in attracting and hosting some of San Antonio’s premier events, including NCAA Championships in 2018 and Rock ‘n’ Roll San Antonio Marathon, which have put San Antonio on the global stage and delivered more than $853M in local economic impact. In 2020, SA Sports will host its annual All-Star High School Football Game showcasing athletes committed to play for top universities. Upcoming premier events will be NCAA Division I Women’s Basketball in 2021 and NCAA Division I Men’s Basketball Final Four that will take place in 2025.
San Antonio Sports offices are conveniently located in the Alamodome where it has been a tenant since October 1, 2004. The benefit of having San Antonio Sports within the Alamodome creates synergy among the Alamodome and the San Antonio Sports staff. Working together on bids, events and discussing ideas is convenient and has led to new events for San Antonio and the Alamodome. Additionally, having the Valero Alamo Bowl Offices, San Antonio Sports, and the Alamodome Offices all on the same level of the Alamodome creates a very unique consolidation of three of the leading and primary Sports and Entertainment organizations of San Antonio.
ISSUE:
The Lease Agreement with San Antonio Sports expires on December 31, 2019 with no renewal options. This ordinance authorizes a Lease Agreement between the City of San Antonio and San Antonio Sports for 6,650 square feet of office space at the Alamodome and twenty (20) parking spaces for a period of six (6) years commencing January 1, 2020, and expiring December 31, 2025, with one additional two-year renewal option.
ALTERNATIVES:
Should this agreement not be approved, Convention & Sports Facilities Department may encounter difficulty preparing the development of bids for premier events.
FISCAL IMPACT:
This ordinance approves a Lease Agreement with San Antonio Sports for 6,650 square feet of office space at the Alamodome and twenty parking spaces for a period of six years commencing January 1, 2020, and expiring December 31, 2025, with one additional two-year renewal option. If approved, this action is expected to generate approximately $79,628.03 in revenue annually, and approximately $486,367.71 over the renewal term. These revenues are based on the recovery of current monthly fees including $2,756.25 for utilities, $550.00 for cleaning services, and $3,305.53 for telecommunications.
Revenues generated from this lease agreement will be deposited in the Community and Visitor Facilities Fund.
RECOMMENDATION:
Staff recommends authorizing an agreement with San Antonio Sports for a Lease Agreement at the Alamodome for a 6-year term and one 2-year renewal option.