HomeMy WebLinkAbout031991 RES - 01/14/2020 Resolution approving the amended guidelines for the American Bank
Center Arena Marketing/Co-Promotion Fund granting the City
Manager approval authority for the annual amount of $650,000 as
approved by the Corpus Christi Business and Job Development
Corporation (Type A).
WHEREAS, on June 30, 2009, the City Council of the City of Corpus Christi
authorized the creation of the American Bank Center Arena Marketing/Co-Promotion
Fund;
WHEREAS, the resolution that authorized the creation of the American Bank
Center Arena Marketing/Co-Promotion Fund also approved the guidelines for the use of
the fund as approved by the Corpus Christi Business and Job Development Corporation
Board (the "Type A Board");
WHEREAS, on December 9, 2019, the Type A Board approved amended
guidelines for the American Bank Center Area Marketing/Co-Promotion Fund, which
authorize the City Manager to approve all individual uses of the fund; and
WHEREAS, City Council approval is required before the amended guideline can
go into effect.
Be it resolved by the City Council of the City of Corpus Christi, Texas:
Section 1. The City Council authorizes the amendment to the Guidelines for the
American Bank Center Arena Marketing/ Co-Promotion Fund, as adopted by the Type A
Board on December 9, 2019. A copy of the amended guidelines is attached hereto as
Exhibit A and incorporated herein.
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SCANNED
PASSED AND APPROVED this / day of jj vxua , 2020:
Joe McComb / e
Roland Barrera
Rudy Garza
Paulette M. Guajardo
Gil Hernandez
Michael Hunter 4i.e.
�
Ben Molina die
Everett Roy &
Greg Smith
WL ' . nJ�� CITY •F CORPUS CHRISTI
WAN Atari
Re ecca Huerta Joe S omb
City Secretary Mays
031991 Page2of5
EXHIBIT A
AMERICAN BANK CENTER ARENA
MARKETING/CO-PROMOTION FUND
MISSION -- The Marketing/Co-Promotion Fund is designed to assist the Corpus Christi
American Bank Center in promoting, retaining, securing, and hosting sport
related tenants, concerts, attractions, and other events at the American
Bank Center Arena ("Arena") that generate a positive economic impact for
the City of Corpus Christi.
Objective -- To provide funding to the American Bank Center Arena to offset event
related expenses incurred for the purpose of attracting business to the
Arena, such as: tenant leases, conventions, concerts, and other events
and business opportunities.
The Marketing/Co-Promotion Fund allows the Arena to actively create
events. The creation of these events can be achieved in several ways:
1) Creating Events- Example: Summer Concert Series
2) Buying Talent and serving as the promoter of the event- 100%
Risk/Reward
3) Co-Promoting an event with an event promoter-50% Risk/Reward
4) Providing additional financial incentives to attract an event-not to
exceed $50,000.00 per event
Fund Uses --Potential use of these funds may vary. Some of the anticipated uses for
this fund assistance include, but are not limited to:
• Underwriting/subsidy for rental space at the Arena.
• Underwriting/subsidy for additional services at the Arena, e.g.,
security, parking, audio/visual equipment.
• Financial support for requirements in the bidding process e.g.
sporting events, special events, etc.
• Marketing support.
• Underwriting/sponsorship of special FAM trips or site visits for
potential clients for the Arena.
• Assisting in defraying the cost of shuttle bus service between hotels
and the Arena for appropriate business.
Fund assistance will be offered only when trying to secure new, and retain
existing, future business for the Arena. Fund assistance will NOT be offered if
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not necessary to secure business nor will funds be paid directly to any event
organizer or tenant.
A standard ASM Global Pro Forma will be submitted to City Manager, or designee, prior
to Marketing/Co-Promotion Fund dollars being committed. This document will attempt
to indicate the "Worst Case" and "Best Case" financial outcomes of the proposed event.
Under no circumstances is this document meant to be a guarantee of the success of the
event. As with any business venture, there will be risks involved. It is the intent of ASM
Global to identify risks, and mitigate the risks that are within management's control.
Fund Authorization -- The annual funding will be approved by the City Council and
the Corpus Christi Business and Job Development
Corporation as part of the annual budget process. Additional
funding requested after the budget is approved will require
approval of the Corporation and the City Council. The City
Manager, or designee, shall approve the funding of each
individual use request when it meets all specified guidelines.
Payment Disbursements —Fund assistance payments will be monitored and disbursed
by the City of Corpus Christi to the American Bank Center.
Qualifying for Funds -- To qualify for funds the following must be considered:
• The group considered for funding must hold an event
and catering functions at the Arena.
• The event must cause a significant or positive
economic impact in Corpus Christi.
• The level of support approved will take into account
type of business: new, repeat, weekend, holiday,
future meeting potential, etc.
• Any unpaid invoice balance for the related service
(difference between Marketing/Co-Promotion Fund
contribution and vendor's total bill) is the responsibility
of the client.
• Both parties of this agreement must endorse approval
of an event's application for the Marketing/Co-
Promotion Fund for the funds to be dedicated.
Funding Source -- The funding source for Marketing/Co-Promotion Fund will come
from the Type-A Board annual contribution to the City, and may not
be considered separate and apart from any other City funding
allocated to the American Bank Center. The annual fund level will
be $650,000 until changed with the approval of the Board and City
Council. Unused funds from the prior fiscal year will, if financially
feasible, be rolled over into the Marketing/Co-Promotion Fund
account. The City of Corpus Christi shall retain fiscal control of
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these funds until reimbursement is made to American Bank Center
Arena.
Reporting -- A report on how the funds have been used will be provided to the
Board bi-annually.
Evaluation —The adequacy of the current funding levels needed to accomplish the
mission and objectives stated above shall be evaluated every three years
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