I'm going to go to the meeting. Mr. Right. I'm going to go in. Are you ready? Good evening, everyone. And welcome to the special meeting. Or the city of Portland for September 23, 2024. It is now 7.08 p.m. And I'm going to call the meeting to order. I guess somebody, I need someone to call the role. Mr. Dillette probably was going to do that. He left the room. I'll just go ahead and call the role. Councilman Albrecht. Here. Councilman Sutton. Here. Councilman, they approach Tim Green. Here. And I'm here and Bill Wilson is here. We do have two council members that are out this evening with excused absences. As you may or may not be aware that this is a special meeting of the city council, so it does require supermajority of the council, which we do have here present tonight. Item number three is public comment. At this time, I'm not aware of anyone wanting to make public comment. I'm not aware of anyone wanting to make public comment. I'm not aware of anything that was received online, Mr. Wright. Nothing that we're aware of, Mayor. Thank you. In any time if there's anyone that would like to get public comment on any item on the agenda, we'll, you may do so. We will move on to item number four. As our formal announcements, recognition of presentations. the presentation tonight we have a proclamation declaring September 23rd 2024 as Constitution Day. I am going to ask the daughters of the American Revolution to come forward. Did I say that right? And we're gonna present a proclamation for the Constitution Day. Good. Welcome. You do two. We can do two and two, two on this side maybe? Okay, perfect. So actually Constitution is actually a whole week, but today is actually the last day of the week, so we're going to be claiming it Constitution Day in the City of Portland. Whereas September 17th, 2024 marks the 237th anniversary of the drafting of the Constitution of the United States of America by the Constitutional Convention. Whereas, it is fitting and proper to accord official recognition to this magnificent document and its memorable anniversary and to the patriotic celebrations which will commemorate the occasion. And whereas, Public Law 915 guarantees the issuing of a proclamation each year by the President of the United States of America, does a dating September 17th through September 23rd as Constitution Week. Now therefore, I, Kathy Scarrow, by virtue of the authority vested in me as Mayor of the City of Portland, Texas, do hereby proclaim September 23rd as Constitutional Day. And I encourage all citizens to reaffirm the ideals expressed by the framers of the Constitution in 1787 by village gently protecting the freedoms guaranteed to us through this the guardian of our liberties remembering that lost rights may never be regained. In witness whereof I have here on to set my hand and cause the seal of the city of Portland to be fixed this 23rd day of February of the year of our law of 2024. So I believe you are representing our group. So I will present that to you. I am the chapter region of the Corpus Christi chapter. I'm Penny P. Lack and I live over in Iowa, Dulcink and I have K and we have Hannah and we have Bridget and these three ladies all live here in Portland. We have members all over the coastal bin and all over the state and all over the nation that belong to the Carpice chapter because of family members. But DAR started in 1890 so it took a while after the proclamation time that we started and it was begun with four women and one of them happened to be the great niece of George Washington. And they wanted to have their own club because the men had won and they wanted to be able to honor their ancestors and the men and women who fought to keep us free as we are now today. So we love the Constitution and we love that you are honoring us today and thank you so much. Thank you very much. Thank you so very much. Thank you. We love you to with us. Well, thank you so much. We appreciate it. you I'm sorry. I always find the due proclamations into remember our history and I was just having a little conversation there that the city of Portland is actually by ordinance has established a new historic commission and that's what one of the positions we were interviewing for tonight for individuals that are interested in serving on that new commission. So we're real excited and we were hearing a lot about these candidates' ideas about preserving our history. And it was a good evening for us. All right, we are going to now move into ordinance number five. Item number five, ordinance number 2300 rezoning requests. The City Council will consider the second and final reading of ordinance number 2300 to rezoning approximately 1.91 acres of abstract 104 John Dennis Survey 1.909 acres located at 2000 more from R6 single family residential to CG General Commercial. Thank you Mayor. Robert and Kathy McCoy are proposing to rezone approximately 1.91 acres from the R6 single family residential zoning district to the C.G. General Commercial Zoning District. This is the second and final reading of ordinance number 2,300. No changes have been made since the first reading on September 17, 2024, and I'm available for any questions you may have. Any questions from staff? Here we know, entertain a motion. Motion to approve the second final reading of ordinance number 2, 3, 0, 0 that re zones approximately 1.91 acres of abstract 104 John Dennis survey 1.909 acres located at 2,000 more from our six single family residential to CG general commercial. I'll second. Motion made by Councilman Sutton, seconded by Mayor Pro Tem Green to approve the second and final reading of Ornus, 2300. Is there any discussion on this motion? Hearing now, we'll begin with Councilman Wilson. Against. Or. Or. Or. Or. Against or or or So can I have a clarification? Motion that motion fails mayor. Okay Okay motion fails All right, we will move on to item number six Ornus number 2301 amending 23, the 23, 24 fiscal year budget. The City Council will consider the second final reading of Ornus, number 2301 with amendments, the 23, 24 fiscal year budget. That's right. This is the second final reading of the ordinance. There have been no changes since the first reading. Any questions or staff? This is second final reading of the ordinance. There have been no changes since the first reading Any questions of staff Hearing now they're retained a motion I make the motion to approve the second final reading of ordinance 2301 Meaning fiscal year 2020 324 budget ending September 30th 2024 second in September 30, 2024. Second. So motion made by Councilman Wilson, seconded by Councilman Sutton to approve the second final reading of the morning of the 2301. It's during discussion on this motion. Hearing none, we'll begin the vote with Councilman Albrek. We're four. Four. Four. Okay. All right, That motion passes. And just to clarify for people that may be watching or confused about our last previous vote, because we're meeting in a supercorm tonight, we do have to have a super majority of, so in order to pass anything tonight, all five of us have to vote in the affirmative. And so that's why the previous ordinance did not prevail. So let's go Brian would you read the caption for 2301 into the record? Ornish number 2301. In ordinance amending and adjusting ordinance number 2286 passed on the 26th of September 2023 adopting the fund level budget for the City of Portland for the fiscal year ending September 30th 2024 and making supplemental appropriations and adjustments for said fiscal year repealing all ordinances in conflict here with providing for the publication of this ordinance in an effective date thereof. Thank you. Item number seven is ordinance number 2 3 0 2 adopting the 2024 2025 fiscal year budget. City Council will consider the second final arena of Ornus on March 23, 02, which adopts the 2024 2025 fiscal year budget. Mr. Raid. Yeah, this is the second final reading. There have been no changes since the first reading. Any questions? Hearing none, I'll entertain a motion. Motion approved. The second final reading ordinance number 2302, adopting the fiscal year 2024 or 2025. Budget in September 30th. 25th. Motion made by Councilman Sutton. Seconded by Councilman Albrecht. Second. Final reading of ordinance. 2302. Is there any discussion on this motion? Hearing none, we'll begin the vote with Councilman Wilson. Four. Four. Four. Four. Four. Four. Motion is approved. Mr. Delat, would you please read the caption into the record. Ordnance number 20302. In ordnance adopting a fund level budget for the ensuing fiscal year beginning October 1, 2024 and in September 30, 2025. In accordance with the charter of the city of Portland appropriating the various amounts thereof and repealing all ordinances or parts of ordinances and conflict therewith, providing for public hearings, providing for the publication of this ordinance and for an effective date thereof. Thank you. Item number 8, ordinance number 20303 adopting the 2024 ad warm tax rate. City Council will consider the second final reading of ordinance number 20303 which adopts the ad warm tax rate. City Council will consider the second final reading of morning, December 2303, which adopts the add warm tax rate and establishes a tax lobby for the year 2024. Mr. Wright. This is the second final reading of morning, 2303. There's been no changes since first reading. Any questions in staff? Hearing none, I'll entertain a motion. A motion to approve the second final reading of ordinance 2303 that sets the maintenance on the operation portion of the tax rate to 0.442381 and the debt service rate at 0.232071. For a total ed, the volume tax rate of 0.67452 per $100 valuation for the fiscal year 2024 to 2025 with an estimated 2024 tax levy amount $13,678,842. Second. So motion made by Mayor Pro Tem Green, seconded by Councilman Sutton to prove the second final reading on 2303. Is there any discussion on this motion? Hearing none, we'll be together with Councilman Albrecht. Four. Four. Four. Okay, motion is approved. Fornis number 2303, an ordinance-leaving taxes for the City of Portland, Texas for the Taxiure 2024, providing for a date for which such taxes become delinquent, providing for a lien in all real and personal property to secure the payment of taxes to do there on, providing for penalty and interest to an effective date thereof, providing for a 20% collection fee, providing for the publication of the caption of this ordinance, providing for an effective date thereof. Thank you. Hire number 9. Presentation from sports facility companies. The City Council will receive a presentation from sports facilities companies on the Post 2024 25 sports venues budget Thank you. We've been working hard to make this transition the city council approved Turn over to Brian. I think we introduce our guest today New New mayor and city council with us this evening from a sports facilities company is Mr. Dave Pritchett here in person as well as David Bounds from Tennessee on teams with us so he can hear us and see us and be able to talk with him and then Jonathan Bessonay as well. And so earlier this summer the City Council entered an agreement with sports facilities companies to manage our sports facilities being the sports complex, municipal park and the soccer complex and sports facilities have spent the last 60 days analyzing all facilities and prepared the seeding to deliver to the City Council plan for managing these facilities moving forward. As Mr. Wright has mentioned a number of times over the years, these facilities were constructed first and foremost for our local youth in Portland. And you'll hear throughout this presentation this evening that remains the priority. That is priority number one for these fields to be used by our local youth. Then secondly, as asset for our community, for members of the general public and then third for sports tourism. And then the fourth goal is for expansion of these facilities. They've been so successful since they were constructed in 2017. The sports facilities companies will develop a plan hopefully to expand these facilities into the future. And so this evening you're going to hear their analysis of the facilities. They're proposed budget not just for 2024, 2025, but also got a long range looking forward what can we expect out of these facilities. And so with that I'll turn it over to Dave Pritchett. Thank you, Brian. Evening Mayor, Council members, this is Brian Mitch, and my name is Dave Pritchett. I'm a partner in our firm and executive vice president and David Bounds, who is one of our vice presidents of venue operations is on a team's call. He's in Tennessee. And we've asked Jonathan to stand up with us because he's very quickly going to be a member of our team. He's been part of your team. He's going to come on board with us and so we're very excited about that. I'd like to just first intro just telling you what a great experience we've had so far. And we've been engaged with city management for 45 days, 35 days, and we have a really privileged opportunity to come into a number of municipalities across the country, and I can tell you that firsthand that this art experience with the City of Portland city management team entirety has just been a fabulous experience. It is a team that is well buttoned up, high standards, very professional, and it's been just been a wonderful experience. And so the city of Portland should be very proud of the city management team and the municipal park and the sports park that Jonathan has led has just been a great experience as well. Just really talented group of people. So we feel like we're really walking into a very, very talented group that has great potential and we look forward to participating and feel privileged to do so. We always like to start with a comment about our mission statement. So you see on the screen, we have a mission statement that is to improve the health and economic vitality of the communities we serve. That's something that if you ask any of our team members in our organization, we have about 3,000 team members across the country. We're managing about 60 venues across the country right now. And I would hope that if you say, what are you passionate about, what drives you, that it would be our mission. And we talk about our mission a lot organizationally and we talk about it with our team. And it's important, it's ingrained in us, it's part of our DNA. And improving the health of a community is a, in broad context, is significant. And health is a broad term. We use that term very broadly. And it's the health of children, the development of children through the power of sport. I mean, the power of sport is just incredibly powerful for kids and the development and families and bonding and the values that it teaches and the character it builds. It certainly teaches kids and families how to work together and participate in healthy activities. So it's incredibly important to us. We know the power of sport and what it brings to communities across the country. It's really important to us. And of course, the second half of our mission statement is to improve the economic vitality of the communities we serve and we know that that's certainly a priority here in the city of Portland so and we'll talk about that as we get further into the presentation so the agenda we have really six things that we'd like to talk about of course entertain any questions as well we have an internal update just to talk about what's happening internally with the team and with what we're doing organizationally internally. We've met with a number of external partners, some of the event rights holders as well as the local leagues. So in others, so we want to provide an update there. We think that we have some strategic priorities that are important. Prime mentioned those, we know that there are certain goals that the city has. We'd like to use the term your goals or our goals. So that's one of the things that's important to us that we understand what the goals and strategies and objectives are for the city. So we adopt those. So we want to speak to those. Proposed budget. So we have some numbers, so we have met with city finance team, received data from previous year, and tried to crunch that into a budget for the upcoming fiscal year. And then we want to speak about economic impact, and the economic development, economic impact, the dollars that sports doerism brings into a community and then we have some mobile analytics from visitation that the city management has asked us to present as well. So an internal update so we're prepared sports facilities companies is prepared to assume responsibilities October 1st. We have engaged in all of our disciplines in our Tampa office to bring the full force of the organization to be prepared to take the reins. So HR, IT, our legal department, you know, operations, programming, you know, marketing, we brought everybody together. So we feel like we're prepared a couple of weeks away. And so we feel like we're ready. October 1st, staff transition. I mentioned earlier, I'm really pleased with the staff. So the entire staff's coming in. Jonathan is going to be our general manager. He'll stay in the same role he's in. We call that position general manager in our organization. Emily and LaCretia will stay on board. We're going to talk in a little bit about how we add into that infrastructure for what we think is important for optimization of the venue, they're removing them in equal compensation. Some of them are different little different roles but moving the entire team in so we're really really happy and pleased about that. Our external partners so we met with the leagues when David Bounds and I were in town a month or so ago. We met with the leagues and we're going to maintain the No Fee's policy for league use. We know that's important. Community use is important. So we're maintaining the No Fee's policy. Event contracting negotiations is the second bullet here. So we're working with current event owners with Jonathan. And I'm gonna let David Bounds expand on this just a little bit. We're working with current event owners with Jonathan and I'm going to let David Bounds expand on this just a little bit. We're working with the current event owners to upgrade events and we're working with our industry partners, national industry rights holders to our best to impact 2025 fiscal year by bringing in some new events. We're kind of, we're into the season there. So those guys, a lot of those organizations have already planned out their large events but we're confident that we're going to be able as we move along to be able to bring some of those some of those in. New event opportunities plus what I just said engaging new national rights holders to David any additional comments sir? Oh David I appreciate first and foremost. Hello, everybody. It's good to see you guys and start, could make it in person, but I know you're in good hands with Dave and Jonathan there. And just to echo some of the same things that Dave's already said, it's been a pleasure working with the team up to this point. They're organized. They share a lot of same passions that we have. And so we know it's going to be a great fit. To speak to the current slide, I think it's really important to recognize that the relationship that the team has built on the ground with a lot of these events, rights holders is really important. It's about building those relationships. And so Jonathan and Emily and Lucretia and the rest of the team have done a fantastic job with that. And so as we look to, and we'll talk about later in the presentation some of the budget inputs, I think it's important to understand that we are in the process right now of having conversations with existing rights holders that the team has been working with already that the city of Portland is already working with. And that we're also going to expand upon those relationships. The folks that are doing a great job for us and driving the economic impact to the community. We want to find ways to give them some more events and if there's underperforming events, we're obviously going to look to replace some of those and we'll talk about that later in the presentation. And then Dave did hit the nail on the head is that when we talk about premier, let's just say week long events which on average are going to be 5.6 night stays as opposed to a two night stay or 1.5 night stay for individuals. We really want to start laying the foundation for 26 when we're having these conversations with the PG Nationals, your RIPK and baseballs, baseball nationals. So some of those larger organizations that have, when you have a higher price point event, it's a bigger financial commitment for families. And so there's a longer runway that they need to raise funds. And certainly we wanna be mindful of that. But we're not giving up on running some of those in 25. But hopefully we can get one or two and the goal would be to find some for sure for 2026 that are going to drive heads and beds for the city of Portland and certainly help drive the bottom line for the venue. So. Before you move on from this slide, just to be clear, then mean, at first point about leak arrangements, of being no fees to our local youth, you know, that is a city of Portland requirement to SFM. And so that's in stark contrast perhaps to the city of Corpus Christi, which is now recently announced, are going to be charging by the hour all of their leagues to be using their fields. So this is a city of Portland arrangement that SFM is doing on our behalf. Thank you, Brian. Okay, 2025 priorities. We put the sports venue department mission statement here and we could not be happier that we found this. Found this, it was already in place. So we couldn't agree more with enhancing the quality of life for the community and promoting economic growth through efficient fiscal or responsible management. So really excited about that. And we've heard the city loud and clear city management team loud and clear on the on the right side of the screen maintaining community and local use priority. Highest priority is maintaining a local community, getting the kids there, league play, no fee policy, loud and clear, 100% understand that and support that. Number two, growing tourism and economic impact. We've also heard loud and clear that, one of the reasons we're here is to help grow tourism, help grow economic impact, heads and beds, as David mentioned. So we're crystal clear on that. Find number three, financial, certainly, you know, reducing the subsidy is one of the things that we work hard to do. Optim optimization is not just driving heads and beds. That does drive economic impact, which is tax revenue. And we'll talk about that in a few slides here. But certainly understanding that where we can leverage in some of our relationships, in expense control, fender relationships and those sorts of things certainly Plan to do that as well. We've discovered some of those already and never for support the veneer expansion plans We know that the city has an appetite to expand We're anxious and want to have those conversations. It's one of the things we do in our portfolio of companies We have one of our divisions is all about expansion, new development, what works in a community, what the demographics are, what's propensity to play and those sorts of things, competitive landscape. We certainly want to do market opportunity research and those sorts of things and help the city participate in how we continue to grow sports venues to lead to tourism. So now we head into the budget conversation. So here are just some highlights of some of the things that are in the budget. So our tournaments plan, so we with Jonathan and the sports venue team have gone through line by line the previous events and the current events that have been booked. And what we found is, and we have some events that we want to replace, and we have some spots and locations in the calendar, and we can add some events. So for 2025, our plan, this is our current plan, is the Hold 40 events, which is up three from 37 in fiscal year 2024. This includes three new events events and four replacement events. So three new and four replacement. So we look at that as seven. So we think there's seven opportunities to add additional revenue and events. Number two is rental rates. What we have what we found is and I think the city knew this the city staff knew this that we were under under Charging for rent so we did competitive study and we feel like we can raise our rents We know we can raise our rents and I know Jonathan has already had some conversation with some of the rights holders and They seem to be agreeable generally with with what we're communicating at this point. So we think we can get more dollars out of rent. We have some additional revenue streams, number three. We know that pouring rights right now, the facilities use COPE, have a contract with COPE, but COPE and Pepsi can go at each other and we can get a pouring rights deal and With typically you'll get free goods you'll get sponsorship dollars you'll get rebate and you'll get sponsorship dollars Meaning that they'll participate in sponsor in sponsor so pouring rights is one opportunity other sponsorship MDR I know is engaged with the city so we look forward to working with them to try to understand and working with the city management team to identify inventory that we can sell sponsorship. And we know that there's sensitivity there. We want to make sure we don't want to have minor league stadium. We know that NASCAR. We know we've done this, so we know, I mean some cities want that. I think we don't want that in Portland. So we'll work very closely with city management so we won't go put a bunch of visual clutter up. So we'll work within the certain parameters there. City ordinance are lodging. You know, we have, we organizationally have an affiliate lodging, third party lodging platform called a wait team. So we plan on plugging that in. We've already met with them. We've had an internal meeting. They're planning to come in and meet with hotels and event rights holders. So there's dollars there. They're part of lodging and getting rebase and commissions. City ordinance fee. We plan on instituting the city ordinance fee that has not been put in place. Administrative services. We're going to get some fees for doing some work for the leagues. And that is work that our team is doing, that we feel like is an admin fee. It's a service fee. They're using our software platform. We're facilitating some of the work for them for their registration. So we think we can get some of those dollars. And we're adding a non-competing high school league in the fall. It's August September fall league. So those are a few. We haven't vetted all those out, but we plugged in what we think is some conservative projections for the 25 budget. But I wanted to spend some time on that because I think that's important to see and understand. Food and beverage number four. So we are plugging in a 13% increase in food and beverage sales. And we think we can get that. There's a number of ways we're going to get that. Number one is the new events. So new events and bigger events. So the seven events bigger and more. And we think we can find improvement in our pricing. We did a cost retail analysis, and there's looks like there's room as prices have increased. We can raise retail price, as cost prices have increased through inflation. We feel like there's room to raise our retail prices to get the gap back for our margin. And we think we can improve the menu and our purchasing practices with, we, right now the facilities have not used the third party supplier. So we have a relationship with a few. So we'll investigate what our route there is and try to get better purchasing. And I think just operational control. You know, the way we look at food activity and sales activity with cost, retail, shrink, loss, waste, those sorts of things, we really take a very close look at it, daily, really. So, we think food and beverage, there's the room there. I had mentioned earlier, number five here, five here management restructure so management teams coming in We're converting a couple of the hourly jobs one of those jobs was not filled from this current fiscal year because of The holding pattern that the city was in so we're gonna convert one of those to a salary position and we're bringing in a new salary manager to run events and facilities where it was previously an hourly position but in our organization that's a salary role for us and we feel it's very important. And we're going to manage the finances, uniquely from what we originally anticipated but so we restructuring the leadership team. We're confident we've had those discussions with city management. Number six, the financials. So we've heard in no that we want to have stand alone P&L. So the stand alone P&L means that everything's loaded in. And one of the things you'll see when we get, I think to the next slide, when the next slide is everything that from city finance team that they could get to us, we've loaded in to this budget. So I.T., some of the I.T. costs, some of the HR costs, the administration costs, those sorts of things, some of the facility costs from Park and Rec, those dollars, we've loaded that in. So it's a, our goal is to produce a stand-alone PNL. This is what we call four wall PNL for both of the three of the locations. And so that's where we are there. So the budget at high level is, we have a forecast for 2024. And it's a forecast because we're only really live through July, August and September, August, is we think is real close, but some things trickle in and September's an estimate. So we right now, where the city and Jonathan has led us is that the revenue is about 590,000 expenses, a million two so that puts the subsidy at 616,000. And you see two gray lines there and when we get to the proposed budget for 2025, we look at cost of goods sold, cogs, cost of goods sold, and anything that's associated with that relates to support sales, we categorize that separately as a cost. So food costs, hourly labor costs, other costs that are associated that produce sales, and those typically, as sales go up or down down those may go up or down because you need more inventory in food to do more sales. So inventory goes up that's a cog. So we separate that and our expenses include the salary managers and then all operate and direct operating expenses. So it may be a little wonky to look at. We feel in the expense line has our management fee in it. So it's included in that. So we felt like we're going to make pretty substantial progress in 2025 from 2024 when you add our costs. You can see the revenue jumps from 580 to 980, right? So it's pretty substantial, forecast for 2025. The expenses actually go down. That's because cogs go up. Again, the expense line has our fees in it. And then 2026 and 2027, You know, we know enough just to be a little bit dangerous. We know enough about 2025. We think that these are generally numbers that we can, that we should be able to look at. As we, and we'll know a lot more when we get into the, to the operating year. And, I mean, the way that the sports complexes were, not budgeted but reported has made it a little bit hard for us to kind of get in and really do it an accurate, as accurate as we'd like to projection, we feel good about 2025, 26 and 27. I wouldn't say we're, we feel confident but we need to know more. I'll spoil a lot of words for us but we need to know more. I'll just find a lot of words for us. We need to know more. This is the subcategories of our revenue, cogs, and expenses. So really, we just wanted to show you this to help you see that we budget each month. Each of these has sublines underneath them. But this is how detailed we get. And again, it's much deeper than this. It's actually probably 100 lines of budget lines, but we roll up to here. So that's in the handout. So you can. So that's the budget. We want to move the economic impact. So we know that's important. Economic impact sports tourism plays a crucial role in driving economic growth in cities. It's important. It's proven that it's a driver. And it creates job opportunities, increases tax revenue, boost the local businesses, attracts new investment into the area and it fosters long-term development. We know improvement in economic impact, driving tax generation, gives the city dollars to improve parks, improve schools, improve libraries, improve roads, helps local businesses grow, creates opportunities for you know, local citizens to open business, creates jobs. It's really big snowball, big snowball that rolls downhill once we get rolling. So we know the impact of economic sports tourism. We showed this to the city management and they felt like it was good, it was be a good slide to show you. Certainly don't need to ask you to digest this. The next slide we're gonna talk about the categories. But this is an example from another venue of how we, yeah, you don't need to digest this. It is an example from another venue of how we look at event by event by event and we record number of teams and you do something like this already. Number of teams, number of participants, number of attendees, you know, and you know, how many hotel nights it creates. So this is just an example. This is those header slides, those headers on the left hand side. So there's a calculator that we use. And it's a proprietary calculator that we've developed, sports facilities, companies has developed with our advisory team. And there's a number of inputs that are manual. And then we're using the Texas state inputs. What we found is that Portland doesn't have enough data. We don't want to use corpus. So we use state as we get rolling, we may change that. But the left hand side, you can see the number of inputs that are input and then the gray boxes where it says automatic, those are calculated in the formulas. So we put in the average length of stay, so number of days of tournaments, total number of teams, average participants, spectators, and then how many people per room night. So different events have different numbers of people that stay in a room. We don't do basketball here, but the whole team kind of loads in, believe it or not. And if it's a family, if it's a week-long family, typically it's fewer. If it's a short weekend, typically, you know, there may be, you know, few guys, few dads, maybe a mom and a dad, few kids. So we changed that. And then we changed it in the second line there, the are the excuse me the driving distance So we use a 30 to 90 mile and then a plus 90 and We can adjust that as we can certainly adjust that But we use a greater than 90 for overnight and then that Calculates and then there's a thing called induced spending which I don't think that we have an induced spending factor here. Induced spending is non-participant, non-specitor spending. And if you think of that as, if an umpire lived out of Portland and they drove in for the day, they're going to spend some money, right? Or vendors, like when vendors stay. So vendors, umpires, people like that, there's additional dollar spent and employees. So if employees live outside of Portland and they drive in, then they're gonna spend, right? So that's an induced calculator, typically that comes from a CVB or a destination organization. And so that's the calculator. And this will be something that we report regular to the city management. And we'll decide how that rolls up. So the calculator, as I mentioned on the upper right hand corner, we're using Texas inputs. So the hotel dollars, we're using per night as 107. And we can, these are, this is just what we are starting with. The overnight visitors 166 so it's a local visitor so which is food retail other spend $59. So those are the inputs and we put an example here just as a 50 team example. So if we have 50 teams and 40% of those teams are local and 20% of those teams are local. And 20% of those teams are 30 to 60, so they may not spend the night, but they stay longer. And 30% are plus 90. We have 50 teams at 12 players per team. We'd have 600 participants. We have two spectators per player. This is just a model. Two spectators, sometimes it's more, two days in market, two and a half people per hotel room, that one event, just that one event would have an economic impact of $213,000, $213,000, and it would produce 576 reunites. So that's how we look at economic impact and the calculator and we do that event by event and we project that as well. So when we book an event in our, what we call an event tracker, which is our plan, we'll plug in what we think is going to happen. So we'll be able to forecast economic impact and then we'll true it up when the event happens. Okay? Bustin is a outside service that we use. There are data analytics group. One of our sales, I think one of our guys has shown you some Bustin analysis, but there are a data analytics group that provides information about visitors, visitor data. And I just put a few, we put a few slides together here. This is a heat map for municipal park and the sports complex. And this is October through, I think last Thursday or Friday is when we ran this, so end of last week. And this is a heat map of where your visitors are currently coming from. So quite a few local, I mean, it's a lot from Houston, a lot from San Antonio and a lot from Dallas. So you already have quite a few people traveling in and then down at the border. So we'll run this periodically and we can do side by side of previous year and then down at the border. So we'll run this periodically and we can do side by side of previous year and then current year. So a goal is to, and I condense this down. There's others that are kind of sporadic. Sometimes there's just cell phone numbers that are relocations that have a cell phone that's another area code. But this is the heat map. So a couple of slides here, visitors by zip code. So you can see it's predominant. The 374 zip code. So this is visitors byip Code is a percentage. This is Visitors by Week. So it's interesting the different municipal park and sports complex and I think David and I we still have some learning to do here on the municipal park, you know, October is a busy, busy month and October and then there's must have a speed of bent in December out at the sports park. So these are visitors by week starts October through December and then this is visitors by day. So you you have quite a bit of day or weekday traffic because of the leagues, I'm sure, and other local play, which is good. Saturday and Sunday are clearly the bigger days. Monday at the sports complex must be a local play day. So, but this is percent of traffic by day of the week. I think our, you know, one of our goals in David mentioned is to get, you know, longer tournament, longer, you know, week-long-term tournaments. Typically in a sports tourism venue that doesn't have a lot of local play. The Saturday and Sundays off the chart. I mean Friday Saturday Sunday, it's off the chart. It's pretty level here for, I mean, you're not really a pass open park, passive open park from a playground. This may be the splash pad. This doesn't include the splash pad. I'm sure worth soccer. So I'm sure if we were in the splash pad, I'm sure, worth a soccer. So, I'm sure if we ran the splash pad would be different, right? Okay? And we're going to finish with our mission statement. So, that's our update and we'd be happy to entertain any questions or comments or thoughts. All right, and let Jonathan talk or David talk much. Let me give David balance a chance. David, any anything else you'd like to add? No, and I lost a guy there for about five minutes. So I just got back onto the tail end of the end of the end of the presentation. So, no, I think we would love to get thoughts and then have some open discussion from the Mayor and City Council and certainly want to, everyone to understand this is a partnership and we're here, as Dave mentioned earlier on, is that the city goals are our goals, and so we want to make sure we're staying in lockstep with city management but with this group as well. So, we'll open it up. Questions, comments? I just had one question about the kind of three-year economic projections there. It looked like after next year, the following year was 25 and then 15% year over year. And y'all's estimation are those conservative numbers kind of you know I guess is that like a stretch goal or is that what we think we're gonna hit or is that you know we're very very confident in this just so we understand I wouldn't I wouldn't say we're very very confident in order what I say it's a stretch I would say that from what we know now and what we would anticipate doing, you know, from our contribution in the parks, we think that's achievable. And we think so because, you know, we were, as I mentioned, we were pretty conservative in sponsorship, pouring rights, sponsorship, pouring rights, and I think food, I think food we were generally pretty aggressive in, but in that I think just getting bigger, better events, right? And my other question was just on the economic impact update, maybe on there, I didn't see all the categories, but just if you all had a breakout for like the hot taxes generated, because that is something that you know kind of a split out from the economic funds going into sales tax. It's a separate bucket just to kind of nice to see that. I don't think that's part of the the the economic impact calculators, but we can extrapolate that pretty easily just by checking the percentage of the hotel occupancy. Yeah, we would, I mean, we don't capture every single night for travel tourism. I mean, there's a certain number of parents that will book on their own and, you know, most, in most every circumstance, there's a term called state of play. I mean, for familiar with state of play. It's very difficult for event rights holders to really truly 100% enforce state of play. It's just hard. So we are going to do our very best to incentivize the event's rights holders so they can make some money. Because for events rights holders, lod can make some money. Because it's really, for events rights holders, lodging revenue is really number three. You know, right behind registration and gate, lodging can be number three in the rebate that they get. So if we can incentivize them and get them to, and persuade them to persuade their parents to stay in Portland hotels, then that certainly drives economic, you know, the hot tax. But we don't capture 100%. We know that. I mean, that should not be a realistic expectation, just because, you know, most rights holders don't do that. We do have, and from time to time, we have with event rights holders if we learn that they're not participating in the persuasion of getting their teams to stay in Portland. We can impose a number for them that they have to get somebody roommates per team and we can track that. And if they don't get that, we can penalize them. And we'll do that. I mean, certainly not going to come out of the box that way. I'll think with our event rights holders but that's something that we do that we require a certain number of nights per team and they can whoever stays but if they don't hit those you know nights per team then then we can have a penalty clause contractually because we know we want people to stay in Portland so I'm not sure if that entirely answered that. Through baseball, softball, as well as volleyball, a lot of the terms that we played across Texas and my children, that was the state of play. As being part of a certain tournament, it was a requirement that you had to have so many hotel rooms taken. So they'd knock out blocks for it. It's beneficial because sometimes there were discounts or so forth but also there was a guaranteed place to stay, especially on the larger tournaments where there weren't many hotel rooms. Yeah that's one of the the the the energies that we have time I can get into our lodging service at time. Yeah just at a hundred thousand of you that's one of the things that we've struggled with and we're really excited about sports facilities companies is a lot of these termed operators that are coming into town, their teams are staying over in Corpus Christi because the rooms are $5, $10 a night cheaper. And so all of a sudden if we can incentivize these termed operators to have their teams stay here in Portland where they get the incentive, they get the rebate, we get the hotel, the oxen tax that Councillor Marlborough was talking about. So 60 seconds on. We built the way team with purpose. And short story is that a lot of these event rights holders in a familiar with volleyball. I mean, it is a root, this third party lodging business is really ruthless. And these third party lodging platforms that are part of sports tourism industry have really kind of tarnished that portion of the business with hoteliers and CVBs and venues and facilities in communities. So we built this because we know that if we can control lodging and I say control in with real purpose that you know it's the hotels are so much happier when they only have to work with one person one group because the number if hotels are having to you know this group this week and this group next week and they're getting a call and those dollars are really leaving they're really leaving a lot of dollars are leaving the community. And if they can work with one group and facilitate that and not get beat up on, I mean, because we take a fair approach, there's dollars for everybody there. We know the rebate commission and the transaction booking fee. So we built it because we know that it advantages, you know, our relationship with our clients as well as the hotels just totally love it, right? Because it's just an easier relationship and they're paying it. It's very complicated when you have a number of different event owners that are coming in with different lodging groups and all that. I see positive head nods, so you know that. I can see it being a lot more manageable here. Running one of the volleyball clubs for my daughters, we'd play an annual tournament in Dallas. There were 1,600 volleyball teams. And it would have been just a nightmare trying to find our own rooms rather than going through a service like you're wanting to provide. Made it streamlined. Made it a lot more easy for it Yeah, so our away team our team We have full service team and we sent out RFPs to hotels for each event and we contract room blocks and we the RFPs Included here are so many teams and have so many room nights. We expect and we work very closely with the hotels and those relationships and You know contract room blocks. so teams can stay together. That's another big one. It's really important for teams, parents. I don't have one more comment. I just want to say I do like the way you put the priorities out there because I know we very vocal about what comes first and then from there and so I do appreciate you putting that in there and great. I'm excited to see that. stay with it. Thank you. Yeah we've heard that we've heard that. We're very passionate about that. We're the first part. Yeah. Mayor I just have a I just we probably won't be meeting again until after I told you first so this will be the really the last meeting that Jonathan's here as a city employee. And I just want to tell you that since Jonathan's been on board, we're here tonight largely because of his leadership through our sports complexes. If you go out there today, those areas are as pristine as there were five years ago, ten years ago. And that's really because Jonathan's put his heart into that. He's meticulous about taking care of things, and he's meticulous about making sure that there's good relationships between the city and our leagues. There's a lot of diverse interests amongst the leagues, and Jonathan has the ability to navigate those kinds of things and so He's been a great asset to the city We're glad he's still here because you're still gonna be a good asset to the community and a part of the community I just want to say thank you one more time to him I could not have said that better myself. On our behalf, honestly, Randy, I mean, Jonathan and the team, I mean, unbelievable talent, Jonathan here. I mean, I've told Brian and city management staff kind of, I've said it over and over again. We walk into a number of different types of circumstances. Sometimes, we get hired because it's a mess. Like, it's just like, I'd say half the time it's a mess and we have to, we're coming in. And we don't see the talent everywhere and we don't see the talent, you know, from the, from the current team. And it's a much bumpier road. It takes a little longer. And Jonathan has just, it's been incredibly impressive. I mean, you don't know me that well, I wouldn't say it if it wasn't true. Thank you. That was my comment. I wanna thank you for thanking our staff. Our staff is incredibly dedicated to what they do. They work very hard and we are very proud of our staff. Should have known about it from city manager down, you know, all the way till our last hire. And so many times we focus on, you know, Vincent complaints and it's kind of sucks the energy sometimes out of, you know, our, and again, we always want people to go. They have a complaint. Let's get it resolved because I know 100% that our staff will take care of any issue that comes before the city. But I just wanted to thank you for that validation that we already know. And it feels good to see somebody devalodate that. And I'm looking at your picture. And the next time you show this, I'm looking forward to see important texts as added on. I know we're not, you know, and started yet. But Mr. Wright, I do want to, we did take some questions when we rolled out the LED budget. And I know that people may be watching now or interested in the budget. And of course, you see a deficit in this. And I want you to kind of explain to why it might be a deficit on their budget, but not a deficit on our budget. Thank you for that opportunity. You know, the cities build parks and facilities not to make a profit. We do these things for the benefit of our citizens collectively. And the sports complexes have never, and we would never expect them to make a profit for the city. But the unique part about these sports facilities is that they draw in that element of sports tourism. And that's where the key is. And whereas we may be costing us a half a million dollars to operate these two large complexes each year, we're talking about 10 to 12 million dollars in financial, economic infusion into this community through our businesses, through our restaurants and our hotels. So our local businesses are benefiting that intern raises the entire economy. It makes it a better place for the community. Even though the city itself is not getting those dollars, they're being infused into it. We are, but the organization is not, but the city is. So we're getting a portion of that. Certainly, absolutely. And just looking at the economics of it, and by the time we're getting a portion of that. Certainly, absolutely. And it's looking at the economics of it. And by the time we're out a couple of years and we hone this, I see that there's going to be, if you start tracking sales tax, hotel occupancy tax, and then your budget, I could see that formal flip that pretty quickly. At least that's my hope. So I didn't want people to focus on your budget that that, or we'll flip that pretty quickly. At least that's my hope. So I didn't want people to focus on your budget that shows potential deficit, and that the way that budget was presented, because that doesn't give the full economic impact and the full picture of what's going on here. Thank you so much for coming down to any questions? Any other questions? Looking forward to the partnership. Yes. The future that it brings, we're pretty proud of our facilities as well as our staff. So, All of your support over the last couple of years, I think you did well with the members. Thank you. You're getting for that. WC manager. Yes. Thank you. Just for housekeeping, all the city employees will transfer over to SFM on October 1st. Have this revised budget back before the city council on November 5th for the budget amendment. That gives the finance department a daily time to transform this budget from a governmental accounting budget into a line on budget for sports venues. Thank you for that. And I know that you've been working on, I know I signed signature cards for the new bank accounts. Everything is being set up for a separate countable standalone operation. Anything else? Thank you so very much. We look forward to regular updates. Thank you. stand alone operation. Anything else? Thank you so very much. We look forward to regular updates. Thank you. Okay, item number 10 is an executive session, but we do not have any issues that we need to talk about in executive sessions. I so being no further items on our agenda, it is 8 10 PM, and we are going to call the council meeting adjourned.