Stadium Draft
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A message from the CEO/President I am pleased to present the recommended biannual budget for fiscal years 2017 and 2018. 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 which were agreed upon with as part of the Stadium Renovation Agreement approved in December 2015 by 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. The Buccaneer Stadium Limited Partnership (“BSLP”) will be responsible for $57.7 million of the total renovation amount, and the Sports Authority will be responsible for ERIC D. HART, CFE PRESIDENT/CEO $28.8 million, $25.8 million of which was already a contractual obligation of the Sports Authority in the original 1996 Stadium Agreement. The Sports Authority will be responsible to reimburse BSLP $14.5 million when BSLP spends a minimum of $43.5 million for the 2016 projects and $14.3 million when BSLP 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. As part of this Renovation Agreement, BSLP 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 are a multitude of projects scheduled as a result of the Renovation Agreement; to name a few: a more than 400% expansion of the existing Video Boards, a revamp of the sound systems, the addition of corner LED boards, main concourse improvements, the addition of LED ribbon boards, and suite renovations. 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 applied to the State of Florida Department of Economic Opportunity under their Retained Spring Training Facilities Program, and is working to seek certification. Through this Program the Authority is applying for $20 million of state funding that will be used to repay debt service related to the project. 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, concession area improvements, the addition of group and social gathering areas, new shaded areas, 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 more like private enterprise. ABOUT US ABOUT THE AUTHORITY 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 9% of the total), and the remaining 66% is divided between the County and the three cities in Hillsborough County for roads, sidewalks, buildings and public safety needs. (See Page 22) Almost a million fans enjoyed the various events and functions held at Raymond James Stadium in 2015. The NFL Players Association continues to rank Raymond James Stadium as one of the best playing fields in the nation. The Buccaneers had an exciting year welcoming the number one draft pick, and Rookie of the Year Jameis Winston to the team. The Buccaneers added four additional wins to their record in 2015, and are hopeful to continue the positive momentum into 2016 and beyond. USF Football has enjoyed a resurgence over the past year. The Bulls enjoyed a 6-2 conference record and their 8-5 overall record earned them an invitation to the Miami Beach Bowl. In addition to hosting the Buccaneers and USF Football seasons, the Authority also hosted major events such as the Outback Bowl, two Monster Jams, Sunset Music Festival, SheBelieves Cup (US Women’s Soccer), a Beyoncé Concert, a Taylor Swift Concert, along with more than 100 banquets, special events, festivals and parking lot events. TAMPA SPORTS AUTHORITY | EXECUTIVE TEAM (L-R) DAVID BYRNE (VP OF FINANCE/ADMINISTRATION), JANICE HOSEY (EXECUTIVE ASSISTANT TO CEO), MICKEY FARRELL (SR. VP OF STADIUM OPERATIONS),ERIC HART (PRESIDENT/CEO), KENNIE SIMS (VP OF GOLF OPERATIONS), BOBBY SILVEST (VP OF MARKETING & COMMUNICATIONS) TABLE OF CON TEN TS ADMINISTRATIVE Tampa Sports Authority Board of Directors…………………………..….. 4 Tampa Sports Authority Organizational Chart……………………….……5 EVENTS 2015-2016 Event Highlights………………………………..….………6-9 BUDGET REQUEST AND ASSUMPTIONS Revenue & Expense Assumptions…………………………………… 10-11 Budget Notes…………………………………………………………12-13 Statement of Revenues and Expenses-Comparative…………..…… ..14-16 CAPITAL PROJECTS 2016 Capital Project Highlights……………………………………..…..17 Proposed Capital Project Budget (thru 2018)………………………..…. 18 Proposed Capital Projects FY 2017………………………………..…..…19 Proposed Capital Projects FY 2018………………………………..……. 20 Projected Capital Costs Overview (thru 2029)………………………….. 21 DEBT SERVICE Hillsborough County Community Investment Tax (CIT)…………….….. 22 Debt Service Requirements……………………………………………. 23 BOARD OF DIRECTORS VINCENT MARCHETTI JOHN JAEB TONY MUNIZ KALYN K. BRANDEWIE CHAIRMAN VICE CHAIRMAN SECRETARY/TREASURER DON DEFOSSET HON. KEN HAGAN RANDY LARSON LUCIANO PRIDA, JR. HON. FRANK REDDICK ANDREW SCAGLIONE THOMAS SCOTT ERIC D. HART, CFE PRESIDENT/CEO 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. 4 ORGANIZATIONAL CHAR T 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 & SALES OPERATIONS FINANCIAL PLANNING MERCHANDISE SALES COURSE & FACILITY COMMUNICATIONS MAINTENANCE RISK MANAGEMENT/ CAPITAL PROJECTS GRAPHIC DESIGN INSURANCE FOOD & BEVERAGE FACILITIES SOCIAL MEDIA PAYROLL/ AP/R MANAGEMENT MERCHANDISE SALES BOND OVERSIGHT AND FOOD & BEVERAGE MANAGEMENT PURCHASING BUDGETING COORDINATION CASH HANDLING 5 YEAR IN REVIEW The 2016 season is being greatly anticipated on many fronts- new head coach, franchise quarterback and a major stadium renovation. Dirk Koetter replaces Lovie Smith and hopes to continue to move the Buccaneers forward. There are high hopes for Rookie of the Year quarterback Jameis Winston, as he continues to improve in his second year and become the franchise quarterback for the team. The Buccaneers reached an agreement in the fall of 2015 with the Tampa Sports Authority that will result in a comprehensive renovation of Raymond James Stadium. The multi-stage renovation plan is expected to exceed $100 million and will be completed in two stages. The first stage is scheduled to be completed for the Buccaneers’ 2016 season and is highlighted by the installation of new, state-of-the-art HD video boards in each end zone and four HD tower video displays in each corner of the lower bowl, giving the stadium a total video display area of 28,416 feet – the third- largest in the NFL. Also included will be a new, comprehensive