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Raymond James Stadium A MESSAGE FROM THE CEO/PRESIDENT I am pleased to present the recommended biannual budget for fiscal years 2018 and 2019. This budget was developed with the involvement of staff members and included a review by the Authority finance committee. This budget was developed to provide the highest level of service, while continuing to be cognizant of our overall reliance on supporting government agencies, Hillsborough County and the City of Tampa. This budget includes assumptions and proposed costs for major renovations to Raymond James Stadium during the 2016/2017 fiscal years (extended to 2018 as explained below) which were agreed upon with as part of the Stadium Renovation Agreement approved in December 2015 by ERIC D. HART, CFE PRESIDENT/CEO the Tampa Sports Authority, Hillsborough County, and the City of Tampa. The Stadium Renovation Agreement outlines the plans for an $86.5 million renovation to Raymond James Stadium over the 2016 and 2017 NFL off-seasons. Pursuant to the Renovation Agreement the Buccaneer Stadium LLC (“BSLLC”) will be responsible for $57.7 million of the total renovation amount, and the Sports Authority will be responsible for $28.8 million, $25.8 million of which was already a contractual obligation of the Sports Authority in the original 1996 Stadium Agreement. Pursuant to the Renovation Agreement, the Sports Authority is responsible to reimburse BSLLC $14.5 million when BSLLC spends a minimum of $43.5 million for the 2016 projects and $14.3 million when BSLLC spends a minimum of $43 million for 2017 projects. These reimbursements will be funded with the previously secured $25 million of Bond refunding cash flow savings, as well as the 4th Cent Tourist Development Tax financing as is necessary. The 2016 projects, exceeded $75 million in costs (well above the Renovation Agreement contractual obligation), despite this, the Authority is only obligated for the amounts agreed upon in the Renovation Agreement, as outlined above. Additionally an agreement was reached in March of 2017, which grants BSLLC an additional year to complete the Schedule 2 projects, which will now extend into 2018. As part of this Renovation Agreement, BSLLC has agreed that the Sports Authority, Hillsborough County and the City of Tampa have satisfied and fully performed all requirements of the Stadium Agreement related to the Practice Area Allowance of $11.6 million. Additionally the Authority’s revenue split with BSLP was changed from 50/50 to 67/33 (of the revenues above $2,000,000 up to $3,500,000) in favor of the Authority. There were a multitude of projects completed with the 2016 Schedule 1 improvements; these included suite renovations, a replacement and expansion of the existing Video Boards, installation of a new distributed sound system, as well as the addition of the Hall of Fame Clubs, corner LED boards and LED ribbon boards. In 2017 the Schedule 2 improvements include a renovation and remodel of the West Club, Press Box, Hall of Fame Club and additional suites. The improvements will also include several items designed to enhance fan comfort and safety, including the upgrade of existing WiFi to NFL Standards, an upgrade of the chiller plant, the replacement of West Club bowl seats and cupholders, and the installation of magnetometers. In addition, the Buccaneers will be building a new Home Team Locker Room and the Buccaneer’s existing home team locker room will be refreshed with a USF Bulls color scheme. Additional improvements are scheduled for 2018. The Authority also entered into an agreement with the New York Yankees, for the renovation of George M. Steinbrenner Field and the Himes Player Development Complex. The Authority has been certified under the State of Florida Department of Economic Opportunity Retained Spring Training Facilities Program. Through this program, the Authority has secured $20 million of state funding that will be used to repay debt service for the $13,590,000 Florida State Sales Tax Payments Revenue Bonds which were issued in February of 2017. This will be an impact neutral budget item as the State revenues will cover the proposed debt service. As part of this agreement the Yankees have extended their license agreements on these facilities from 2026 to 2046. The improvements include new outfield concourses, a remodeled team store, concession area improvements, the addition of group and social gathering areas, addition of loge suites, new shaded areas, updated and expanded training areas and fields, and a vastly improved entrance to ease the access to the stadium. The Authority continues to modify its organizational structure and make modifications in operating and event staffing policies which are designed to reduce overall costs, improve efficiency, and better meet the needs of Authority clients and tenants. Authority management continually strives to attract new events to be held at Raymond James Stadium and find creative ways to operate similar to private enterprise. Respectfully, ABOUT US The Tampa Sports Authority, a government entity, is an independent special district created by the Florida Legislature in 1965, to construct and manage sports and recreational facilities in Hillsborough County. The Authority’s mission is to provide economic development and enhance the quality of life through sports and recreation. The Authority has no taxing power, but rather acts as an enterprise fund utilizing user-fees to subsidize its operating costs. As a result, all of its major capital construction projects, from the original Tampa Stadium, golf courses, Amalie Arena, George Steinbrenner Field and Raymond James Stadium have been accomplished by working closely with the approvals and financial support of Hillsborough County and the City of Tampa. Raymond James Stadium was constructed with funds from the Community Investment Tax (CIT). The CIT is a 30-year half-cent local option sales tax. The first 25% of the total projected CIT collections goes to build new schools. The next amount is applied to debt payments on the Stadium bonds (approximately 8% of the total), and the remaining 67% is divided between the County and the three cities in Hillsborough County for roads, sidewalks, buildings and public safety needs. (See Page 24) During the off season, the TSA and USF entered into a new six year License Agreement with a five year option to continue playing football at Raymond James Stadium. This new agreement provides a greater revenue share for USF based on additional games played at Raymond James Stadium, while still allowing the University to determine the feasibility of developing an on campus stadium over the long term. Over 1.25 million fans enjoyed the various events and functions held at Raymond James Stadium in 2017. In addition to hosting the Buccaneers and USF Football seasons, the Authority also hosted major events such as the College Football National Championship, the Outback Bowl, two Monster Jams, Sunset Music Festival, Stadiumlinks (golf event), CONCACAF Gold Cup Soccer (featuring the U.S. Men’s National Team), a sold out U2 Concert, along with more than 100 banquets, special events, festivals and parking lot events. The NFL Players Association continues to rank Raymond James Stadium as one of the best playing fields in the nation. MISSION STATEMENT To plan, develop, promote and maintain a comprehensive complex of sports and recreation facilities for the use and enjoyment of the citizens of Tampa and Hillsborough County. OUR ROLE To facilitate the construction and operations of needed, user-fee supported sports and recreational facilities. To encourage and not compete with the private sector. “User-fee supported” distinguishes us from a Parks and Recreation Department. VISION STATEMENT To provide economic development and enhance the quality of life through sports and recreation. TABLE OF CONTENTS ADMINISTRATIVE Tampa Sports Authority Board of Directors………………………………5A Tampa Sports Authority Organizational Chart……………………………6 EVENTS 2017 Year in Review……….………………………………..….……..…7-11 BUDGET REQUEST AND ASSUMPTIONS Contribution Requests…………………………………………………..12 Revenue & Expense Assumptions……………………………………… 13 Budget Notes……………………………………………………………14-15 Statement of Revenues and Expenses-Comparative……………..…… ..16-18 CAPITAL PROJECTS 2017 Capital Project Highlights……………………………………..…..19 Proposed Capital Project Budget (thru 2019)………………………..…. 20 Proposed Capital Projects FY 2018………………………………………21 Proposed Capital Projects FY 2019………………………………………22 Projected Capital Costs Overview (thru 2028)………………………….. 23 DEBT SERVICE Hillsborough County Community Investment Tax (CIT)…………….….. 24 Debt Service Requirements……………………………………………. 25 BOARD OF DIRECTORS 5 JOHN JAEB TONY MUNIZ HON. FRANK REDDICK KALYN K. BRANDEWIE CHAIRMAN VICE CHAIRMAN SECRETARY/TREASURER DON DEFOSSET HON. KEN HAGAN RANDY LARSON VINCENT MARCHETTI LUCIANO PRIDA, JR. ANDREW SCAGLIONE THOMAS SCOTT ERIC D. HART, CFE PRESIDENT/CEO TSA EXECUTIVE TEAM A STEVEN A. ANDERSON, P.L GENERAL COUNSEL TAMPA SPORTS AUTHORITY | EXECUTIVE TEAM (L-R) MICKEY FARRELL (SR. VP OF STADIUM OPERATIONS), BOBBY SILVEST (VP OF MARKETING & COMMUNICATIONS), ERIC HART (PRESIDENT/CEO), DAVID BYRNE (VP OF FINANCE/ADMINISTRATION), REBECCA SKYLES (EXECUTIVE ASSISTANT TO CEO), KENNIE SIMS (VP OF GOLF OPERATIONS) ORGANIZATIONAL CHART 6 BOARD OF DIRECTORS PRESIDENT/CEO ERIC HART VP/FINANCE & SR VP/STADIUM OPERATIONS VP/GOLF OPERATIONS VP/MARKETING & ADMINISTRATION MICKEY FARRELL KENNIE SIMS COMMUNICATIONS DAVID BYRNE BOBBY SILVEST HUMAN RESOURCES EVENT OPERATIONS CLUB HOUSE MARKETING
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