HomeMy WebLinkAbout028224 RES - 06/30/2009RESOLUTION
APPROVING THE ESTABLISHMENT OF THE AMERICAN BANK
CENTER ARENA MARKETING/CO-PROMOTION FUND AND THE
GUIDELINES FOR THE AMERICAN BANK CENTER ARENA
MARKETING/CO-PROMOTION FUND ADOPTED BY THE CORPUS
CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION
WHEREAS, the FY 2009-2010 Budget of the Corpus Christi Business and Job
Development Corporation ("4A Board") provides for the appropriation of $500,000 to
establish adopted Guidelines for the American Bank Center Arena Marketing/Co-
Promotion Fund; and
WHEREAS, the 4A Board adopted Guidelines for the American Bank Center Arena
Marketing/Co-Promotion Fund, which control how the funds may be used to support the
operation of the American Bank Center Arena; and
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
CORPUS CHRISTI, TEXAS:
SECTION 1. Subject to the final approval of the FY 2009-2010 Budget of the Corpus
Christi Business and Job Development Corporation by the City Council, the City Council
approves the establishment of the American Bank Center Arena Marketing/
Co -Promotion Fund.
SECTION 2. The City Council authorizes the 4A Board to use the Guidelines for the
American Bank Center Arena Marketing/Co-Promotion Fund, as adopted by the 4A
Board on June 15, 2009.
ATTEST:
THE CITY OF CORPUS CHRISTI
Armando Chaps Joe Adrabil 11�
City Secretary Mayor
APPROVED: 23rd day of June, 2009.
R. JfR ning
First A sistant City Attorney
For City Attorney
28224
Resolution -- Arena Marketing & Co -Production Fund 06182009
2
Corpus Christi, Texas
of
,2009
The above resolution was passed by the following vote:
Joe Adame
Chris N. Adler
Brent Chesney
Larry Elizondo, Sr.
Kevin Kieschnick
Priscilla G. Leal
John E. Marez
Nelda Martinez
Mark Scott
)28224
Resolution -- Arena Marketing & Co -Production Fund 06182009
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, 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
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
not necessary to secure business nor will funds be paid directly to any event
organizer or tenant.
Arena%20Marketfng%20%20%2000%2DProduction%2oFund%200601200911 ]
A standard SMG Pro Forma will be submitted to City officials 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 SMG to
identify risks, and mitigate the risks that are within management's control.
Fund Authorization --
The board of the Corpus Christi Business and Job
Development Corporation will have the authority to approve
funding when a request meets all specified guidelines. A
majority vote is required to approve any expenditures from
the fund.
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 4-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 initial fund level will be
$500,000. 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
these funds until reimbursement is made to American Bank Center
Arena.
Arena%20Marketlng%20%28%20Do%2DProduction%20Fund%200801200911 ]
Evaluation — Every three years after the initial execution of this agreement the
signatories to this agreement shall evaluate the adequacy of the current
funding levels to accomplish the mission and objectives stated above.
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