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HomeMy WebLinkAbout07-25-2006 New Hall of Fame Contract a Win Win! .rte C9 Office of the Mayor NEWS RELEASE Tuesday,July 25,2006 Contact: Mikki Dobski, Director of Communications& Special Projects, 235-5855 or 876-1564 Phil Marwill, NFF Director of Communications 973-829-1933x118 New Hall of Fame Contract a Win Win! The City of South Bend and the National Football Foundation have finalized a new five- year agreement for the operation of the College Football Hall of Fame. The new agreement is retroactive to January 1, 2006 and will extend through December 2010. Mayor Luecke announced, "I am delighted that we have signed a Second Interim Agreement with the National Football Foundation for management of the College Football Hall of Fame in South Bend, IN. This agreement strengthens the partnership between the City, the NFF, and the Century Center Board of Managers. It secures the College Football Hall of Fame as an enduring asset at the core of downtown South Bend." "We are thrilled to formally extend our relationship with the City of South Bend," said Ron Johnson, Chairman of the National Football Foundation and College Hall of Fame. "The Hall stands as one of the finest facilities in the country, and it has become a focal point for honoring the game's greatest players and coaches. I want to thank the Mayor,the City Council, and the people of South Bend for their leadership, continued support, and friendship." The College Football Hall of Fame has helped to spur other development, from the Chocolate Cafe to Gameday's new $40 million condominium project in the heart of the city. "This unique facility has brought national attention to South Bend and is a key attraction for visitors and convention goers," commented Mayor Luecke. -more- 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- Page 3. Hall of Fame Executive Director Rick Walls reiterated, "The next five years provide the opportunity for the Hall to continue to expand its programs and strengthen relationships with the City of South Bend, its residents, and all of our corporate partners." With the signing of the Interim Agreement, the City and the National Football Foundation have scored the extra point in continuing the success of the College Football Hall of Fame. This is a win for everyone!