Subject: GUIDELINES FOR USE OF ARENA CITY AND COMMUNITY EVENTS PROGRAM FUND
It is recommended that the City Council approve guidelines for use of the City and Community Events Program Fund as approved by the Arena Authority Board of Directors.
The amended and restated Management Agreement between the City and San Jose Arena Management now provides that, effective August 1, 2001, a fund in the amount of $100,000 will be established each year with a portion of the revenues received pursuant to the naming rights agreement with Compaq Computer, Inc. This fund has been established to offset event expenses, other than rent, which community organizations must pay to Arena Management for event support services for use of Compaq Center at San Jose. These expenses include, among others, set-up, dismantling, cleaning, event staff and other expenses over and above normal operation and maintenance of Compaq Center at San Jose.
In addition to this newly created fund, the Agreement continues to provide that up to ten (10) event days will be approved annually for City events, rent free.
The Attached memorandum proposes establishment of guidelines for use of the Community and City Event Fund that would be followed in the decision-making process of the Arena Authority Board to allocate proceeds of the Fund among requesting community organizations.
In essence, these guidelines would provide that ½ of the estimated event support expenses for use of Compaq Center be funded from the Community and City Event Fund, while the remaining ½ of those expenses would be funded by the community organization as the program matures. It is estimated that up to ten City events will be held annually, plus an unknown number of events for community organizations. The amount of support required for each event will vary depending on the nature of Arena use contemplated. Total event support costs range from approximately $5,000 to $10,000 for use of the Concourse to approximately $50,000 for a full concert using the upper and lower bowls. Accordingly, the Board will review applications for use of the Fund in light of the funding available and the need to ensure fairness to as many organization/events as possible.
The Arena Authority Board will make recommendations to the City Council for uses of the Fund on an event-by-by event basis. Elsewhere on the City Council Agenda for the meeting of October 23, 2001 is a recommendation from the Board that the Council approve three events that would be supported from the City and Community Events Fund in accordance with the guidelines recommended in the attached memorandum.
This memorandum has been coordinated with staff of the Arena Authority.
No additional costs would result from this action. Expenditures from the City and Community Events Fund would be fully funded from existing revenues received pursuant to the naming rights agreement with Compaq Computer, Inc.
Darrell Dearborn
Senior Deputy City Manager