To: HONORABLE MAYOR AND From: Paul Krutko
CITY COUNCIL
SUBJECT: AGREEMENT WITH THE SAN JOSE SPORTS AUTHORITY
RECOMMENDATION
Approval of an Agreement with the San Jose Sports Authority for the period of July 1, 2003 to June 30, 2007 in an amount not to exceed $610,817 for FY 2003-04.
BACKGROUND
The San Jose Sports Authority (SJSA) is a nonprofit corporation formed in
1991 to promote San Jose as a site for high profile state, national and
international sporting events and to develop and support existing sporting
events and organizations in San Jose and the Bay Area. Under contract with the City SJSA engages in
the following activities:
1)
contacts national
governing bodies, institutions and professional organizations, sports promotion
and domestic and international sports organizations to solicit high profile
sporting events for San Jose;
2)
solicits funds
through fund raising activities to support the SJSA and to underwrite events;
3)
provides
information to local residents on sports activities taking place in the
community;
4)
markets San
Jose as a host city for sporting events; and
5)
coordinates
SJSA sponsored or sanctioned events with relevant City offices and departments.
Examples of events the SJSA was instrumental in bringing to San Jose
include the 1999 and 2000 NCAA Women’s College Cup, 1997 and 2002 Men’s NCAA
West Regional Basketball Championships, 1999 NCAA Women’s Basketball Final
Four, 1996 U.S. Figure Skating Championships, 1997 NHL All-Star Game and the
2003 Women’s Pac-10 Basketball Tournament.
In the Sports Authority’s first ten years it generated $124 million in
direct and indirect economic benefit to the City of San Jose. An analysis conducted by an independent
consultant and reviewed by two San Jose State University professors determined
that the Sports Authority from 1991 to 2001 was responsible for 78 events
coming to San Jose. These events helped
generate $80 million in direct spending and $45.7 in indirect spending. In 1999 the San Jose Sports Authority was
selected as the Sports Authority of the Year by the International Sports
Summit, the largest and most prestigious gathering of leaders from the sports
industry in the United States.
Under the most recent contract between the City and SJSA, covering the
period from July 1, 1998 to June 30, 2003, annual funding was $641,590.
ANALYSIS
Under terms of the Agreement, the SJSA will continue to promote San Jose as a site for high profile state, national and international sporting events as well as support existing supporting events and organizations through June 30, 2008. Funding for FY 2003-2004 is being reduced to $610,817 to reflect the City’s budgetary issues and to be in line with the reductions made to other non-profit community based organizations that receive funding from the City.
The Agreement describes City participation on the SJSA Board and Executive Committee. It also requires the establishment of a reserve account to be used to fund activities to attract or support major events.
Attachment B to the Agreement sets out goals and performance measures for the SJSA over the term of the agreement as follows:
Attracting/Hosting Sporting Events
· During the next five years attract/host six major spectator sporting events. A major sporting event is one that is defined as having an economic impact of a minimum of $1.5 million and is broadcast on national television. During FY 2003-04 attract one major spectator sporting event.
· Attract/host eight minor spectator sporting events. A minor sporting event is one that is either broadcast on regional cable sports television and/or has an economic impact of a minimum of $100,000. During FY 2003-04 attract one minor spectator sporting event.
· Attract/host seven major participatory sporting events. These events are defined as those that are for amateur or recreational athletes and have an economic impact of a minimum of $500,000. During FY 2003-04 attract one major participatory sporting event.
· Attract/host seven minor participatory events that have an economic impact of a minimum of $50,000. During FY 2003-04 attract one minor participatory event.
Youth/Community Sports
- Inner
City Games and Programs - Reach a goal of serving 7,500 disadvantaged
youngsters by 2007. During FY
2003-04 the goal is 7,100 disadvantaged youngsters. This goal would increase by 100
additional each year (currently serve 7,000).
Eagles Youth Golf Program – Develop an intermediate program to compliment the beginners program. Reach a goal of serving 200 participants a year by 2004 (the beginners program currently serves 120 – 150 a year) and 225 by 2007. - REACH Youth Scholarship – Scholarship goal for FY 2003-04 is $12,500, growing to $20,000 in Year 5. The program currently offers approximately $10,000.
- San Jose Sports Hall of Fame Induction Dinner – Continue at existing level of attracting approximately 600 to 800 attendees and break even financially.
PUBLIC OUTREACH
The Office of Economic Development held discussions with the San Jose Sports Authority.
COORDINATION
The San Jose Sports Authority Agreement has been coordinated with the City Attorney’s Office.
COST IMPLICATIONS
The activities of the San José Sports Authority under this agreement are consistent with the Mayor’s Budget Strategy memo by promoting activities that provide a direct and indirect benefit to the local economy.
BUDGET REFERENCE
Fiscal Year 2003-04 Proposed Operating Budget, Page 688
CEQA
Not a project.
PAUL KRUTKO
Director, Office of Economic Development