Item 16 ClfY OMHCH REPORT Meeting Date: April 10,2018 General Plan Element: Economic Vitality General Plan Goal: Sustain Scottsdale as a tourist destination ACTION Support Arizona's Bid to Host Super Bowl LVIl in 2023. Adopt Resolution No. 11072 outlining the City of Scottsdale's intent to support Arizona's Bid to the National Football League for selection as the site of its Super Bowl LVIl in 2023 at the University of Phoenix Stadium in Glendale, Arizona and its Official Events to take place in various cities throughout Metropolitan Phoenix. BACKGROUND Cities throughout metropolitan Phoenix have cooperated effectively with the National Football League and each other to successfully host Super Bowl XXX in 1996, Super Bowl XLII in 2008 and Super Bowl XLIX in 2015. With each of these successful experiences in mind, the City of Scottsdale and cities throughout Metropolitan Phoenix once again could showcase our region as an anchor venue for one of the world's most prestigious sporting events. The Arizona Bid Committee is in the process of preparing its final bid this month and will present to the NFL in May. As part of the formal bid package, the NFL has requested a declaration of support from the City of Scottsdale (and various municipalities within Maricopa County) concerning the performance of reasonably necessary government services within its jurisdiction in connection with Super Bowl LVIl and related Official Events. The direct economic impact, goodwill generated, creation of temporary jobs, extensive television coverage, worldwide media exposure, and first-hand experiences of out-of town attendees, are generally regarded among the greatest benefits of hosting an event of this magnitude. During the most recent Super Bowl XLIX in 2015, Scottsdale hosted 16 NFL major events, several Host Committee events including the Media Party, and received extensive media coverage. Many corporate events and parties were also held throughout Scottsdale including ESPN's VIP party and A Taste of NFL at our WestWorld facilities. Additionally, the city provided event development funds for the Scottsdale Fan Fest that included live coverage by ESPN. The widespread exposure of Scottsdale's appealing lifestyle, its tourist attractions and activities, and favorable business climate also provided potential longer-term opportunities for increased tourism and business development. Action Taken _ City Council Report | Support Arizona's Bid to Host Super Bowl LVIl in 2023 ANALYSIS & ASSESSMENT As noted earlier, among the greatest benefits of hosting an event of this magnitude are direct economic impact, extensive television coverage, worldwide media exposure, creation of temporary jobs, and first-hand experiences of out-of-town attendees. Staff reviewed the results of studies completed based on Super Bowl XLIX and related Official Events; a few of the highlights include: • A study completed by the Seidman Research Institute, W.P. Carey School of Business at Arizona State University determined that Super Bowl XLIX, the 2015 Pro Bowl and related events produced a direct spend of $295 million in the region. The expanded gross economic impact of $719.4 million within the region is the most impact of any special event ever held in Arizona. Also, according to the ASU study, more than 1 million people visited downtown Phoenix and 500,000 visited Scottsdale during the week leading up to Super Bowl XLIX. • According to a Super Bowl XLIX media tracking study by Repucom, which was commissioned by the Tourism & Events department, Scottsdale received extensive media coverage with a media value of $6.3 million. More than 83% of this value was due to exposure delivered through the Scottsdale Fan Fest via ESPN coverage, an event that was separately supported by bed tax funds. • As noted in Table 1 below, tourism related tax collections in January 2015 show an incremental fiscal impact of $1.3 million i.e. direct tax revenues to the City treasury over and above what was realized the year prior during the same month. Table 1. Tourism Indicators as reflected in January 2015 Tax Collections FY 2013/14 FY 2014/15 +/(-) YOY January Tax January Tax Change Additional Collections Collections Collection Bed Tax $1,461,090 $2,271,778 55% $810,698 Misc. Retail Tax $2,033,160 $2,179,813 7% $146,653 Restaurant Tax $1,226,489 $1,570,451 28% $343,962 $1,301,313 RESOURCE IMPACTS The initial support by the City of Scottsdale for the bid proposal to the NFL has no financial impact and requires no additional staffing. However, if Arizona's bid is selected to host Super Bowl LVIl and related events, the resolution states that the City Council would appropriate additional funds through the operating budget process for the fiscal year in which city services or support are to be provided. Page 2 of 3 City Council Report | Support Arizona's Bid to Host Super Bowl LVIl in 2023 OPTIONS & STAFF RECOMMENDATION The Tourism and Events Department recommends the adoption of Resolution No. 11072 outlining the City of Scottsdale's intent to support Arizona's Bid to the National Football League for selection as the site of its Super Bowl LVIl in 2023 at the University of Phoenix Stadium in Glendale, Arizona and its Official Events to take place in various cities throughout Metropolitan Phoenix. Responsible Department Tourism and Events Department STAFF CONTACT Karen Churchard, Tourism & Events Director, 480-312-2890, [email protected] APPROVED BY >^le, Budget/Dir4ctor Date ido\^[email protected] >A7//f Brent Stockwell^Sis^tant City Manager Date 480-312-7288, bstockweliPscottsdale.gov 3^7//r C-Jim Thompson, City Manager Date 480-312-2811, [email protected] ATTACHMENTS 1. Resolution No. 11072 Page 3 of 3 ATTACHMENT 1 RESOLUTION NO. 11072 A RESOLUTION OF THE COUNCIL OF THE CITY OF SCOTTSDALE, MARICOPA COUNTY, ARIZONA, IN SUPPORT OF THE BID TO HOST SUPER BOWL LVIl IN 2023 AT THE UNIVERSITY OF PHOENIX STADIUM IN GLENDALE, ARIZONA; AND PROVIDING ASSURANCES IN SUPPORT OF SAID BID WHEREAS, the National Football League (the “League”) owns, produces and controls the annual professional football championship game known as the “Super Bowl”, NFL Properties LLC (“NFLP” or, together with the League, the “NFL”) owns, produces and controls the “Super Bowl Experience” and along with other NFL Affiliates, including On Location Experiences (“OLE”) owns, produces and controls certain other events (“Official Events”) associated with the Super Bowl including the Pro Bowl; and WHEREAS, the City of Scottsdale, Arizona (the “City”) has within its jurisdiction facilities, access roads, thoroughfares and other areas which may be used for the purposes of organizing, financing, promoting, accommodating, staging and the conducting Super Bowl and its related Official Events and activities; and, WHEREAS, hosting the Super Bowl and its Official Events will generate goodwill, enhance the worldwide renown and prestige of the State of Arizona and City of Scottsdale, create temporary jobs and create significant beneficial economic, tourism, and fiscal activity; and, WHEREAS, the NFL has requested a declaration of support from the City of Scottsdale and certain guarantees concerning the performance of reasonably necessary governmental services in connection with the Super Bowl and related Official Events as part of a bid made by the State of Arizona to be designated as the site for Super Bowl LVIl; and, WHEREAS, the City of Scottsdale Police Department and City of Scottsdale Fire Department are officially charged with the responsibility of providing public safety services throughout the City's jurisdiction; and, WHEREAS, the City Manager is officially charged with executing any number of License Agreements for the non-exclusive, limited duration, temporary use of city-owned or controlled property upon a finding that it is in the City’s best interest to do so and would have the ability to execute said License Agreements in support of the Super Bowl or Official Events; and, WHEREAS, in order to ensure the health, welfare, and safety of the public in conjunction with national and international events taking place in our jurisdiction, the City routinely cooperates with the Department of Homeland Security and the Federal Aviation Administration (“FAA”) to enact appropriate temporary flight restrictions (“TFRs”) applicable to aircraft in the city’s jurisdiction and to restrict the air space controlled by the general aviation tower at Scottsdale Airport; and, WHEREAS, as part of the formal bid of the State of Arizona to be designated as the site for Super Bowl LVIl and its related Official Events and in anticipation of accommodating arriving Super Bowl visitors in Arizona, the City Council of the City of Scottsdale hereby expresses its support for Super Bowl LVIl and its Official Events; NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Scottsdale, Maricopa County, Arizona, as follows: Resolution No. 11072 Page 1 of 2 Section 1. The City of Scottsdale welcomes Super Bowl LVIl and related Official Events to its jurisdiction and to that end declares its full support of the efforts of the Host Committee to have the University of Phoenix Stadium in Glendale, Arizona selected as the site for Super Bowl LVIl. Section 2. The City Manager is authorized and directed to work cooperatively and proactively with the State of Arizona and other regional agencies for the provision of governmental services that are reasonably required for the success of Super Bowl LVIl and its Official Events within the City’s jurisdiction including any services required for the protection of people and property as required by regional mutual aid agreements related to security, traffic operations, other police services, fire, emergency medical services, and building/fire codes. Section 3. That notwithstanding any provision above that may be construed to the contrary, any and ail services or other support to be provided by the City of Scottsdale shall be subject to the appropriation of funds by the City Council, either through the budget for the fiscal year in which such services or support are to be provided or otherwise acted upon.