City Agreements for
Preferred Access to TAMU
Facilities
Outline
• Purpose
• Review of Agreements
• Financial Summary
• Staff Recommendation
• Council Discussion and Action
Br Co TAMU CVB CoCS
Allocation of HOT fund
revenue and reserves
Establish preferred access to
Texas A&M University facilit...
Establish preferred access to
Texas A&M University facilities
Purpose
• Enhance tourism and the hotel and
convention indus...
Allocation of HOT fund
revenue and reserves
Purpose
• New Brazos County 0.75% Hotel Tax
• City of College Station Existing...
Agreements
1. Preferred Access
2. County Funding
3. City Funding
4. Assignment & Assumption
1 32
4
Br Co TAMU CVB CoCS
Agreements
1
TAMU CVB
1. Preferred Facilities Access
Agreements
1
TAMU CVB
1. Preferred Facilities Access
• Purpose – Secure for the CVB preferred
access to certain TAMU facil...
Agreements
1
TAMU CVB
1. Preferred Facilities Access
• Facilities
– Reed Arena
– Memorial Student Center
– Penberthy Rec S...
Agreements
1
TAMU CVB
1. Preferred Facilities Access
• CVB will manage.
• Scheduling within designated periods at least
on...
Agreements
1
TAMU CVB
1. Preferred Facilities Access
• Minimum Annual Payment
– Years 1-3 $1,000,000
– Years 4-6 $1,200,00...
Agreements
2. County Funding Agreement
2
Br Co TAMU
Agreements
2. County Funding Agreement
• Purpose – Secure funding from the new
0.75% hotel tax for consideration in the
Pr...
Agreements
2. County Funding Agreement
• Legislation approved this year
• 0.75% hotel tax is anticipated to initially gene...
Agreements
3
CVB CoCS
3. City Funding Agreement
Agreements
• Purpose – Provide City of College Station Hotel
Tax revenue to the CVB to secure preferred
access to certain ...
Agreements
• City will pay difference between what is
collected by the County and the minimum
annual consideration.
• Fund...
Agreements
• Current estimates for first 5 years.
– Year 1 $550,000
– Year 2 $530,000
– Year 3 $510,000
– Year 4 $690,000
...
Agreements
• CVB will remit payment to TAMU
• Total payment from City estimated to be
$14,000,000.
• Agreement does not ob...
Agreements
• Contingency
– Passage of legislation
– Execution of Preferred Access Agreement
– Execution of Brazos County A...
Agreements
4. Assignment &
Assumption Agreement
4
TAMU CVB CoCS
Agreements
4. Assignment &
Assumption Agreement
• Purpose – If funding agreement between
City and CVB is terminated or pay...
Agreements
4. Assignment &
Assumption Agreement
• Rights and responsibilities of the preferred access
agreement would tran...
Benefit to Community
CVB
COMMUNITY
Achieve HOT and SALES tax
revenue increases
Secure new large-scale events
from regional...
Financial Summary
• Minimum consideration totals $36,000,000
– Brazos County (Est.) $22 million
– City of College Station ...
Financial Summary
• Hotel Tax Forecast
– Funds available for this project
Agreements
1. Preferred Access
2. County Funding
3. City Funding
4. Assignment & Assumption
1 32
4
Br Co TAMU CVB CoCS
Staff Recommendation
• Council receive the presentation on the
agreements.
• Consider taking action on the final
agreement...
Council Discussion and Direction
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Preferred Access Agreements for Texas A&M Facilities

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Preferred Access Agreements for Texas A&M Facilities

  1. 1. City Agreements for Preferred Access to TAMU Facilities
  2. 2. Outline • Purpose • Review of Agreements • Financial Summary • Staff Recommendation • Council Discussion and Action
  3. 3. Br Co TAMU CVB CoCS Allocation of HOT fund revenue and reserves Establish preferred access to Texas A&M University facilities Purpose
  4. 4. Establish preferred access to Texas A&M University facilities Purpose • Enhance tourism and the hotel and convention industry. • TAMU receives funds to be used for the Kyle Field renovation project.
  5. 5. Allocation of HOT fund revenue and reserves Purpose • New Brazos County 0.75% Hotel Tax • City of College Station Existing Hotel Tax
  6. 6. Agreements 1. Preferred Access 2. County Funding 3. City Funding 4. Assignment & Assumption 1 32 4 Br Co TAMU CVB CoCS
  7. 7. Agreements 1 TAMU CVB 1. Preferred Facilities Access
  8. 8. Agreements 1 TAMU CVB 1. Preferred Facilities Access • Purpose – Secure for the CVB preferred access to certain TAMU facilities at preferred rates for the purpose of promoting tourism and the hotel industry.
  9. 9. Agreements 1 TAMU CVB 1. Preferred Facilities Access • Facilities – Reed Arena – Memorial Student Center – Penberthy Rec Sports Complex – The Zone Club – Rudder Conference and Events Center – Rudder Theatre Complex
  10. 10. Agreements 1 TAMU CVB 1. Preferred Facilities Access • CVB will manage. • Scheduling within designated periods at least one year prior to proposed use. • Cost will be at preferred rates. • CVB will enter into facility use agreements. • 30% reduction in parking rates as outlined in Parking MOU.
  11. 11. Agreements 1 TAMU CVB 1. Preferred Facilities Access • Minimum Annual Payment – Years 1-3 $1,000,000 – Years 4-6 $1,200,000 – Remaining Years $1,225,000 • New 0.75% County Hotel Tax • Existing City of College Station Hotel Tax
  12. 12. Agreements 2. County Funding Agreement 2 Br Co TAMU
  13. 13. Agreements 2. County Funding Agreement • Purpose – Secure funding from the new 0.75% hotel tax for consideration in the Preferred Access Agreement. – Payment received by TAMU to be used for the Kyle Field redevelopment project 2 Br Co TAMU
  14. 14. Agreements 2. County Funding Agreement • Legislation approved this year • 0.75% hotel tax is anticipated to initially generate $450,000 per year and grow over the 30 year period. – Year 1 $450,000 – Year 2 $470,000 – Year 3 $490,000 – Year 4 $510,000 – Year 5 $540,000 2 Br Co TAMU
  15. 15. Agreements 3 CVB CoCS 3. City Funding Agreement
  16. 16. Agreements • Purpose – Provide City of College Station Hotel Tax revenue to the CVB to secure preferred access to certain TAMU facilities at preferred rates. – To enhance and promote tourism and the convention and hotel industry. 3 CVB CoCS 3. City Funding Agreement
  17. 17. Agreements • City will pay difference between what is collected by the County and the minimum annual consideration. • Funding, as needed, will come from existing unallocated Hotel Tax funds 3 CVB CoCS 3. City Funding Agreement
  18. 18. Agreements • Current estimates for first 5 years. – Year 1 $550,000 – Year 2 $530,000 – Year 3 $510,000 – Year 4 $690,000 – Year 5 $630,000 • Actual amount will depend on revenue level from County Tax 3 CVB CoCS 3. City Funding Agreement
  19. 19. Agreements • CVB will remit payment to TAMU • Total payment from City estimated to be $14,000,000. • Agreement does not obligate General Funds. • Funds will be used by CVB to secure preferred access to facilities 3 CVB CoCS 3. City Funding Agreement
  20. 20. Agreements • Contingency – Passage of legislation – Execution of Preferred Access Agreement – Execution of Brazos County Agreement for County tax • Agreement void if the contingencies are not satisfied 3 CVB CoCS 3. City Funding Agreement
  21. 21. Agreements 4. Assignment & Assumption Agreement 4 TAMU CVB CoCS
  22. 22. Agreements 4. Assignment & Assumption Agreement • Purpose – If funding agreement between City and CVB is terminated or payment is withheld, the City assumes responsibilities of the preferred access agreement. 4 TAMU CVB CoCS
  23. 23. Agreements 4. Assignment & Assumption Agreement • Rights and responsibilities of the preferred access agreement would transfer to City. • City would assume the role of the CVB in regards to scheduling facilities under the agreement. • City would make payments directly to TAMU for facility use. • TAMU consents to this assignment. 4 TAMU CVB CoCS
  24. 24. Benefit to Community CVB COMMUNITY Achieve HOT and SALES tax revenue increases Secure new large-scale events from regional, national groups
  25. 25. Financial Summary • Minimum consideration totals $36,000,000 – Brazos County (Est.) $22 million – City of College Station (Est.) $14 million • If the County tax generates more than forecast the City contribution will decline.
  26. 26. Financial Summary • Hotel Tax Forecast – Funds available for this project
  27. 27. Agreements 1. Preferred Access 2. County Funding 3. City Funding 4. Assignment & Assumption 1 32 4 Br Co TAMU CVB CoCS
  28. 28. Staff Recommendation • Council receive the presentation on the agreements. • Consider taking action on the final agreements at the July 11 Council Meeting.
  29. 29. Council Discussion and Direction

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