STRATEGIC PRIORITY: Economic Development
AGENDA DATE: December 11, 2024
COUNCIL DISTRICT(S): 2
DEPARTMENT: Department of Convention and Event Services
EXECUTIVE: Robin Bentley
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SUBJECT
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A resolution authorizing (1) the final terms of the City’s joinder to the Kay Bailey Hutchison Convention Center Dallas (KBHCCD) use contract between Global Spectrum LP (dba OVG360), the City’s operator of the KBHCCD, and FWC2026 US, INC (FIFA) to facilitate an eight-month user agreement for use of the KBHCCD and other City spaces in 2026; and (2) the approval for the City Manager to join in the KBHCCD use contract, approved as to form by the City Attorney, and to provide for capital improvements - Not to exceed $15,000,000.00 - Financing: Convention Center Construction Fund
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BACKGROUND
In February 2024, the KBHCCD was shortlisted to host a larger economic development initiative related to FIFA World Cup for potentially eight months in 2026. OVG360 has been negotiating with FIFA on the terms of a use contract for the KBHCCD. Some of the items requested as part of the negotiations fall outside of OVG360’s contract with the City of Dallas. As such, the City must enter into a joinder agreement to deliver those capital, perimeter and other needs requested by FIFA. On June 26, 2024, the City Council authorized the City manager to participate in the negotiations and negotiate a joinder to the use contract, and to submit the final terms of the City’s joinder to the City Council for approval.
Negotiations have been completed and the City Manager is seeking City Council approval of the final terms of the City’s joinder to the use contract for the City to perform some of the federation’s additional requests that are not within OVG360’s KBHCCD Management Contract. These additional requests include: ensuring a watertight roof and related drainage projects; any modifications required to ensure adequate climate control for Parking Level G if utilized as an exhibit hall; installation of temporary cargo lifts to expediate the setup and movement of equipment between levels 1 and 2 of the KBHCCD; any modifications required regarding power sourcing; and any other infrastructure improvements to meet the IBC Site Fundamentals, if not covered by the OVG360.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On January 10, 2018, the City Council authorized the City Manager to enter into a Host City Agreement with FIFA as part of the United Bid Committee’s proposal to host the soccer federation matches in North America by Resolution No. 18-0101.
On February 13, 2019, the City Council authorized a contract with Global Spectrum LP dba OVG360 for OVG360 to manage the operations of KBHCCD (KBHCCCD Management Contract) by Resolution No. 19-0281.
The Ad Hoc Committee was briefed on the “Professional Sports Recruitment and Retention” was briefed on March 26, 2024.
On June 26, 2024, the City Council authorized the City Manager (i) to participate in the negotiations between OVG360, the KBHCCD operator, and FIFA to facilitate FIFA’s use of the KBHCCD under a proposed nine-month use contract in 2026, and (ii) to negotiate a joinder to the use contract for the City to perform some of FIFA’s additional requests that are not within OVG360’s KBHCCD Management Contract by Resolution No. 24-2099.
The Economic Development Committee was briefed by memorandum regarding this matter on August 5, 2024. <https://cityofdallas.legistar.com/gateway.aspx?M=F&ID=650bb20f-3185-43e5-a72e-023245895ab3.pdf>
The Ad Hoc Committee on “Professional Sports Recruitment and Retention” was briefed on December 2, 2024.
FISCAL INFORMATION
|
Fund |
FY 2025 |
FY 2026 |
Future Years |
|
Convention Center Construction Fund |
$7,000,000.00 |
$7,000,000.00 |
$0.00 |