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Monday, March 05, 2007

City of Dallas’ Regional Super Bowl Bid Participation - Dallas City Council Briefing

This is the text of the February 7th, 2007 presentation to the Dallas City Council. I found it online as a PDF file. You can access it with a click here.

2/2/2007 1
City of Dallas’ Regional Super Bowl Bid Participation
Dallas City Council Briefing
February 7, 2007
2/2/2007 2
To provide information on a regional bid for Super Bowl XLV.
2/2/2007 3
• City of Dallas’ support for the Super Bowl XLV regional bid effort.
• Full recovery of the City of Dallas incremental expenses in support of Super
Bowl regional bid.
2/2/2007 4
The North Texas Super Bowl XLV Bidding Committee, Inc., is a Texas non-profit corporation with the following
initial directors:
Mike Baggett –Winstead, Sechrest & MinickDenis Braham –Winstead, Sechrest & Minick
George Bayoud –President of Bayoud & Company
The corporation will seek to persuade the NFL to choose the new Dallas Cowboy stadium in Arlington and the
North Texas region as the site for the 2011 Super Bowl.
2/2/2007 5
Background (cont)
The Corporation is aided by various individuals, as members, to help in its efforts. These members have no voting or other legal or equitable rights in thecorporation, and include:
Rodger Staubach - Chairman Chairman and CEO of the Staubach Company
Dan Petty –Secretary and Treasurer President and CEO of the North Texas Commission
Charlotte Anderson –Executive Vice-President of the Dallas Cowboy Football ClubRobert Cluck –Mayor of Arlington
Michael Eastland –Executive Director of the North Texas Council of GovernmentsBob Estrada –Chairman of Estrada Hinojosa
Dan Farell –Chairman of the North Texas CommissionRon Kirk –Partner, Vinson Elkins
Wendy Lopez –CEO Lopez Garcia GroupRosie Moncrief –Civic Leader
Norma Roby –Co-Founder of Texas Star Quality Foods
Upon award of Super Bowl XLV to the region, a Host Committee will be established in February 2009.
2/2/2007 6
Background (cont)
• The Bidding Committee submission date to the NFL is April 2, 2007.
• The NFL Team Owners will award Super Bowl XLV on May 23, 2007.
2/2/2007 7
Background (cont)
The Bidding Committee has solicited six cities to participate in the regional effort:
Dallas Arlington Ft. WorthIrving Grapevine Grand Prairie
Four counties are also being solicited to participate:
Dallas DentonCollin Tarrant
2/2/2007 8
The First Ask
The Bidding Committee is seeking from the City of Dallas:
• Its participation, as an endorsing municipality, to initiate the
establishment by the Texas Comptroller of Public Accounts of an
Other Events Trust Fund, pursuant to State law.
2/2/2007 9
Signature Events
As an endorsing municipality, the City of Dallas is eligible for several key events:
– NFL Headquarters Hotel which requires a 900 room block in a single hotel
– NFL Experience with an estimated attendance of 200,000 will require an estimated 850,000 square feet of exhibit space
– Friday night Commissioners’ party with an estimated VIP attendance of 5,000 will require 125,000 square feet of space
– Saturday night event with an estimated attendance of 10,000 willrequire an outdoor venue for a concert and fireworks
2/2/2007 10
Other Events Trust Fund
• Tarrant County, Dallas County and the City of Dallas are the endorsing counties and endorsing municipality for an
Event as currently defined under Article 5190.14 Vernon’s Texas Civil Statues, Section 5A.
• An endorsing municipality must have a population of one million or more and be selected as a site for a qualifying
special event.• The purpose of the Other Events Trust fund is to access
the incremental state and local sales and use tax, hotel occupancy tax, and mixed beverage tax revenues that
are attributable to a qualifying special event within the State of Texas.
2/2/2007 11
Other Events Trust Fund(cont)
• The use of the funds as provided by state statute require:
–Each endorsing municipality must enter into a event support contract with the Host
Committee to authorize the disbursement of the funds.
2/2/2007 12
Other Events Trust Fund (cont)
• An economic study is submitted to the State Comptroller that estimates the incremental tax
revenues to result from holding the Event in the City and County, and the State Comptroller
accepts the results and determines that the market area consists of the endorsing
municipalities.• The State may deposit the lesser of (1) the
estimated incremental State tax revenue or (2) 6.25 times the total City/County estimated
incremental tax revenue.
2/2/2007 13
Other Events Trust Fund(cont)
State vs. Local Money
• As an example, if the total estimate City/County taxes is $150,000 and the estimated State tax is
$110,000, then• 6.25 times $150,000 = $937,500
• The State Comptroller will deposit the lesser amount of $110,000
• The total City/County deposit required to maximize the state deposit is $17,600
($110,000[maximum state dollars] divided by 6.25)
2/2/2007 14
The Second Ask
• The Bidding Committee is requesting of the City of Dallas governmental assurances to ensure
that all services for Super Bowl XLV activities held within the City of Dallas are provided at no
cost, expense, or liability to the NFL or the Host Committee.
2/2/2007 15
Governmental Assurances
• Ambush MarketingTo provide a one-mile anti-ambush marketing “Clean
Zone”around the stadium and around area airports, and a 6-block radius “Clean Zone”around the
headquarters hotel and NFL Experience.• Public Safety
To provide all law enforcement and fire and medical services during Super Bowl activities within the City of
Dallas.• Airport Authority
To provide cooperation to the NFL in establishing information booths, providing meeting space and
responding to special service requests.
2/2/2007 16
Governmental Assurances (cont)
•Tax ExemptionsGross receipts derived from official NFL
activities will be exempt from all state, county, city and other local taxes.
•Vehicle LicensingAll fees for special licensing of official NFL
vehicles be waived.•Temporary Flight Restrictions
Airspace above and around the Stadium must be protected by restricting access to all aircraft,
with the exception of aircraft used for television and security.
2/2/2007 17
Governmental Assurances (cont)
• Transportation –Rates for buses and limousines may not
exceed existing tariff rate as June 1, 2010.–Governmental authorities must commit to
providing variable message signs for the purpose of traffic management and public
messaging.–Park and Ride shuttle must be operated
during the NFL Experience and day of Super Bowl at no cost to the NFL.
2/2/2007 18
Governmental Assurances (cont)
• Venue Reservation Agreement
–Venues with a seating capacity of 1,000 seats or greater agree to honor a reservation period
which ends September 1, 2010 for activities held in conjunction with the Super Bowl.
–Venues agree not to solicit, negotiate, act upon or entertain in any way any offers to lease
any part of the venue during the reservation period.
2/2/2007 19
Governmental Assurances (cont)
• Venue Rental Requirements
–NFL retains rights to designate the food and beverage provider and retain 100% of all
proceeds from sales.
–NFL to retain 100% of proceeds from admission ticketing, novelty, signage and
advertising sales.
–NFL permitted to select security personnel.
2/2/2007 20
• Per NFL estimates, hosting a Super Bowl will generate an estimated $400 million of economic
impact to the region. • Global exposure from media broadcasts will
allow the City of Dallas to showcase the investment in its image and infrastructure.
• The City of Dallas will benefit by providing the majority of the required hotel room nights. A
large portion of the visitors to the region will visit the city’s restaurants and other entertainment
2/2/2007 21
• Authorize the City Manager to enter into negotiations with the Bidding Committee to
address the following:–City of Dallas’ participation as an endorsing
city to initiate the Other Events Trust Fund.–City of Dallas’ contribution of its incremental
sales and excess mixed beverage tax revenue to the Other Events Trust Fund.
Note: The hotel occupancy tax is restricted by bond covenants and contractual requirements. The mixed beverage is also restricted by bond covenants to the extent needed for operation
and maintenance of the convention center complex.
2/2/2007 22
Recommendation (cont)
–City of Dallas’ requirement to enter into an event support contract with the Super Bowl Host Committee
which provides that the City of Dallas has first priority position for payment of its incremental expenses from
the Other Events Trust Fund.
–City’s full recovery of its incremental expenses in support of Super Bowl XLV in 2011.
–To modify the reservation requirements to comply with existing facility contracts and fee structures.


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