07-25-2006 New Hall of Fame Contract a Win Win!

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Page 2. The purpose of the Interim Agreement is to more specifically outline the support for the ongoing operations of the facility. The City remains responsible for the bond payments that cover the original construction and build-out of the Hall of Fame. In addition,the City also provides an allocation dedicated to Hall operations. Under the new agreement,this allocation is capped at $600,000 for the next two years and is reduced by $100,000 over the next five years. Funding for this support comes from Hotel/Motel tax revenues and Professional Sports Development Fund revenues,not from local property taxes. The PSDF allows the City to capture state tax revenues that otherwise would not be returned to the area. Century Center has been a key player in the success of the Hall of Fame. Utilizing the synergy and connectivity of the two facilities, Century Center has provided many services to the Hall with more cost effectiveness and efficiency than by separate contract. Last Wednesday,July 19th, the Century Center Board of Managers formally approved the Second Interim Agreement. The agreement outlines the City's responsibilities as landlord including the services provided by Century Center. The City Administration will budget $100,000 of Professional Sports Development Funds to Century Center as compensation for those services. Century Center, in turn will use these dollars for capital improvements. Again, the City is leveraging new, non- property tax funds and retaining state tax dollars for local enhancements and improvements. The new agreement also establishes a dedicated fund for major capital improvements at the Hall. Recognizing the responsibility of effectively maintaining this facility,the priority for use of these funds is first for building repairs or replacements, second for replacement or rebuilding of exhibitry, and third, expansion or enhancement of exhibitry or new exhibitry (the latter requires a 25% match by the NFF). Initially funded in 2006 at $500,000,by the City, from its current Hall of Fame reserves,the City will use the PSDF to add $150,000 in 2007 and $200,000 per year thereafter until the Capital Reserve Fund reaches $1,000,000. Recognizing the importance of continued investment in an important facility, Mayor Luecke noted that the new Sprinturf covering on the gridiron is a welcome addition that attracts even more users to get up close to the Hall. "This project is a great example of the renewed partnership between the NFF and the City. The Hall developed a sponsorship relationship for the turf, which saved the City over $150,000. These are the kinds of positive relations that we expect to continue to grow during the course of our agreement." -more-