09-09-04 Personnel & Finance - Laserfiche WebLink

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eomnzitt c.REflott of tfiz„ zzlOnne.L and 9inana eOmmittE of thE S outp BEn (Common. eoune / Mayor Luecke then gave a brief summary of the events leading up to the Hall of Fame being located in South Bend. He stated that the NFF was looking for a new location. South Bend gave a proposal where they believed that they could get corporate sponsorships and that attendance and special events would generate adequate money. The city was wrong on both. He noted that corporate sponsorships changed from marketing to philanthropy. Attendance projections were optimistic but not realistic. Mayor Luecke noted two (2) new sources of revenue were pursued namely: hotel/motel @ 1% on top of the 5%; and the professional sports development fund which collects money which would otherwise go to the state. The boundaries for the development fund include the Cove,Morris,Palais and the Century Center. Fund# 313 is the financing which is on the property rolls. It covers bond payments of $ 1,421,619, with bond payments being required through 2018. The agreement has been amended which gives the operations over to the NFF. $350,000 from hotel/motel and $150,000 from the Professional Sports Development Fund. Dr. Varner asked if the Common Council was a signatory to the agreement where the city guaranteed payments. Mayor Luecke stated it was not, and added that there is no cap put on the amount. Mayor Luecke stated that he sequestered 1% because when the agreement was signed the rate was 5%. The Mayor noted that 2005 is the end of the amended agreement. The Mayor's goal is to put caps on both funds and have them decrease in amounts due over time. He noted that Fund # 377 is a pass through of monies. Mayor Luecke stated that the College Football Hall of Fame is an asset to the city. Council Member Puzzello asked if the city has ever fallen short in its payments,to which the Mayor stated it has not. He added that Bernie Kish is an employee of the Hall and not of the city. Dr. Varner stated that he believes the agreement should be re-negotiated, noting that what"the city won and what the city got are two different things". It was noted that the NFF is a not-for-profit corporation. Dr. Varner suggested that the city would save monies if it paid for the scholarships instead. He noted that Mr. Fallon stated it was our problem and that he has no intention to participate. Dr. Varner stated that in the redevelopment budget he sees that the $500,000 as a contractual obligation, but that the $335,000 is a supplemental appropriation. If the $335,000 is not provided then the NFF would have to lower its expenses or raise revenues. Dr. Varner stated that he is pleased that Mr. Kish will show up at the next Committee meeting. He believes that it is prudent the the amount does not go higher,and that the NFF should come back to the table. Personnel and Finance Committee Meeting of September 9,2004 Page 7