STRATEGIC PRIORITY: Economic Development
AGENDA DATE: April 24, 2024
COUNCIL DISTRICT(S):|910|DEPARTMENT: Department of Convention and Event Services
EXECUTIVE: Majed Al-Ghafry
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SUBJECT
Title
Authorize a fifteen-year resident use and incentive agreement for the Dallas Memorial Auditorium ("Arena" and "primary facility") and ancillary meeting rooms ("secondary facility") with three five-year renewal options with a professional sports team, for a minimum of 70 days per year for the primary facility and 365-days per year for organizational needs including but not limited to office and training space for the secondary facility with a $19,000,000.00 incentive payable over three fiscal years and offsetting revenues as detailed in the Fiscal Information section - Not to exceed $19,000,000.00 over three years - Financing: Convention Center Construction Fund (subject to annual appropriations); Estimated Revenue: Convention Center Operating Fund $23,250,000.00 over 15 years
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BACKGROUND
The City Council has designated the Kay Bailey Hutchison Convention Center Dallas ("KBHCCD") Master Plan as an economic development initiative and as a strategic priority for downtown Dallas and the southern sector. As such, each component of the project, including the Dallas Memorial Auditorium (primary facility), is considered integral to the success of the overall KBHCCD Master Plan. In alignment with this strategy, the Department of Convention and Event Services (CES) began negotiations with a professional sports team in late calendar year 2022, coming to agreement in calendar year 2023.
The agreement proposes a 15-year resident use and incentive agreement, with three five-year renewal options with a professional sports team to relocate to the primary facility and ancillary meeting rooms (secondary facility), for a minimum of 70 days per year for the primary facility and 365-days per year for organizationa...
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