2. Outline
• Purpose
• Review of Agreements
• Financial Summary
• Staff Recommendation
• Council Discussion and Action
3. Br Co TAMU CVB CoCS
Allocation of HOT fund
revenue and reserves
Establish preferred access to
Texas A&M University facilities
Purpose
4. Establish preferred access to
Texas A&M University facilities
Purpose
• Enhance tourism and the hotel and
convention industry.
• TAMU receives funds to be used for the Kyle
Field renovation project.
5. Allocation of HOT fund
revenue and reserves
Purpose
• New Brazos County 0.75% Hotel Tax
• City of College Station Existing Hotel Tax
8. Agreements
1
TAMU CVB
1. Preferred Facilities Access
• Purpose – Secure for the CVB preferred
access to certain TAMU facilities at
preferred rates for the purpose of
promoting tourism and the hotel industry.
9. Agreements
1
TAMU CVB
1. Preferred Facilities Access
• Facilities
– Reed Arena
– Memorial Student Center
– Penberthy Rec Sports Complex
– The Zone Club
– Rudder Conference and Events Center
– Rudder Theatre Complex
10. Agreements
1
TAMU CVB
1. Preferred Facilities Access
• CVB will manage.
• Scheduling within designated periods at least
one year prior to proposed use.
• Cost will be at preferred rates.
• CVB will enter into facility use agreements.
• 30% reduction in parking rates as outlined in
Parking MOU.
11. Agreements
1
TAMU CVB
1. Preferred Facilities Access
• Minimum Annual Payment
– Years 1-3 $1,000,000
– Years 4-6 $1,200,000
– Remaining Years $1,225,000
• New 0.75% County Hotel Tax
• Existing City of College Station Hotel Tax
13. Agreements
2. County Funding Agreement
• Purpose – Secure funding from the new
0.75% hotel tax for consideration in the
Preferred Access Agreement.
– Payment received by TAMU to be used for the
Kyle Field redevelopment project
2
Br Co TAMU
14. Agreements
2. County Funding Agreement
• Legislation approved this year
• 0.75% hotel tax is anticipated to initially generate $450,000 per
year and grow over the 30 year period.
– Year 1 $450,000
– Year 2 $470,000
– Year 3 $490,000
– Year 4 $510,000
– Year 5 $540,000
2
Br Co TAMU
16. Agreements
• Purpose – Provide City of College Station Hotel
Tax revenue to the CVB to secure preferred
access to certain TAMU facilities at preferred
rates.
– To enhance and promote tourism and the
convention and hotel industry.
3
CVB CoCS
3. City Funding Agreement
17. Agreements
• City will pay difference between what is
collected by the County and the minimum
annual consideration.
• Funding, as needed, will come from existing
unallocated Hotel Tax funds
3
CVB CoCS
3. City Funding Agreement
18. Agreements
• Current estimates for first 5 years.
– Year 1 $550,000
– Year 2 $530,000
– Year 3 $510,000
– Year 4 $690,000
– Year 5 $630,000
• Actual amount will depend on revenue level from
County Tax
3
CVB CoCS
3. City Funding Agreement
19. Agreements
• CVB will remit payment to TAMU
• Total payment from City estimated to be
$14,000,000.
• Agreement does not obligate General Funds.
• Funds will be used by CVB to secure preferred
access to facilities
3
CVB CoCS
3. City Funding Agreement
20. Agreements
• Contingency
– Passage of legislation
– Execution of Preferred Access Agreement
– Execution of Brazos County Agreement for County tax
• Agreement void if the contingencies are not satisfied
3
CVB CoCS
3. City Funding Agreement
22. Agreements
4. Assignment &
Assumption Agreement
• Purpose – If funding agreement between
City and CVB is terminated or payment is
withheld, the City assumes responsibilities
of the preferred access agreement.
4
TAMU CVB CoCS
23. Agreements
4. Assignment &
Assumption Agreement
• Rights and responsibilities of the preferred access
agreement would transfer to City.
• City would assume the role of the CVB in regards to
scheduling facilities under the agreement.
• City would make payments directly to TAMU for facility
use.
• TAMU consents to this assignment.
4
TAMU CVB CoCS
25. Financial Summary
• Minimum consideration totals $36,000,000
– Brazos County (Est.) $22 million
– City of College Station (Est.) $14 million
• If the County tax generates more than
forecast the City contribution will decline.
28. Staff Recommendation
• Council receive the presentation on the
agreements.
• Consider taking action on the final
agreements at the July 11 Council Meeting.
