Informational Meeting

MINUTES Informational Meeting Tuesday, November 1, 2022 at 4:00 PM Carnegie Town Hall, 235 West 10th St., Sioux Falls, SD 57104 1. Call To Order Council Members Present: David Barranco, Sarah Cole, Alex Jensen, Rich Merkouris, Greg Neitzert, Marshall Selberg, Curt Soehl, Pat Starr Council Members Absent: None Council Chair Curt Soehl called the meeting to order at 4 p.m. 2. Councilor Remarks There were none. 3. Presentations A. Events Center Planning, Sioux Falls Stadium Lease, and Public Facilities Fee Update by Shawn Pritchett, Finance Director Presentation: Approximately 30 minutes followed by discussion Pritchett opened the presentation with an overview of past development discussions about the Events Center Complex. The Events Center Complex Advisory Board was formed in early 2022 as a result of a recommendation from the 2019 Event Center Complex Advisory Group (Study Group). The purpose of the current board is to provide for strategic visioning and advice and guidance on master planning for the complex and surrounding area. The Board has also been in the process of reassessing recommendations from the 2019 Study Group. The primary recommendations from that Study Group were to: remove the Arena and repurpose the location for expansion of the Convention Center; expand the Convention Center by 60,000 square feet; and, eliminate any plans for future investment in the baseball stadium and identify a new location outside Events Center Complex footprint; repurpose the existing location for benefit of the campus. Additional considerations include: completing an Events Center Complex Master Plan; expanding on-site parking; providing additional hotel rooms on the campus; providing connectivity to downtown and transit options; lending support to off-site and downtown convention space; investing in green space and a new entrance to the Convention Center; and, purchasing any adjacent property to the campus when it becomes available. To the last point, the board has identified land acquisition opportunities adjacent to the Events Center property. The two properties are owned by Minnehaha County and include the former CCC and 908 buildings. Thus far, the County has agreed to exchange the properties to the City in exchange for the City taking over the County's financial responsibility for the PSAP equipment as part of the Public Safety Campus construction project. An exchange agreement and/or a revised PSAP agreement will appear before the Council for approval in November or December. Overall Master Planning considerations include: a long-term approach & vision; creativity in conceptualizing future development; leveraging opportunities relative to the Sanford Sports Complex and Westport corridor; the need for additional residential density to support the development of complementary amenities to the campus; changes in the post-COVID environment; consideration of other hospitality and convention space development; and, connectivity to the Sanford Sports Complex and downtown. Next steps include, in addition to the land acquisition noted above, a market study in the first two quarters of 2023 and master planning in the latter two. Discussion followed about: the proposed land acquisition from the County; plans for the CCC building; value of the PSAP investment; and parking at the complex. Pritchett next discussed the Sioux Falls Stadium Lease. The current lease dates back to 1999 and has been amended several times. The original 20 year agreement includes two additional five-year extensions at the tenant's option and limitations on use during the year. He discussed several reasons for updating the lease now: the current lease lacks a lot of the typical language we find in more current agreements; the lease has become confusing due to prior amendments; it would protect City interests when subleased by establishing certain standards; it does not contemplate a relationship with third party facility manager (ASM Global); it needs to reflect capital contributions made by Canaries (True North Sports); and, confusion with the lease credit and changes to Public Facility Ticket Fees. As a result, Pritchett stated that the key changes to the proposed lease are: a five year agreement with two one-year extension options (same end date as original lease); reducing the lease payment in recognition of capital improvements; eliminating the Public Facility Ticket Fee credit; providing full year control to Canaries; providing for an opportunity for City or Facility Manager sponsored events; shifting certain expenses to the tenant (vs. City); and, retaining title naming and sponsorship rights (similar to prior lease). He concluded this portion of the presentation by discussing several capital improvements by the Canaries in the recent past. Discussion followed about: the tenant's response to the proposed lease; the role of the Council in determining the future of the stadium; how outside rentals are handled; and, other terms of the lease. The last portion of the presentation included a discussion about updates to public facility ticket fees. The current ordinance imposes a ticket fee ranging from $0.50 to $1.00 for the Canaries and up to $3.00 for all other applicable venues. The ordinance was last amended in 2015 and provides for remittance to the City unless otherwise directed in the management agreement. Pritchett explained that the forthcoming proposal to ticket fees reflects a more simplified structure that eliminates the separate fee exclusive to the Canaries and instead puts all applicable venues under one structure. The proposed fee is up to $5.00 per ticket and is flexible based on the facility, event, and price points. Such fees would apply to the Events Center Complex, Sioux Falls Stadium, Washington Pavilion, and the Orpheum Theater. The fees would be used in part to allocate new revenue to support a key facility partner, the Sioux Falls Sports Authority. He discussed the role the Sports Authority plays in attracting high quality sporting events and the  impact their work has on the City. Discussion followed about: how the fees are determined per event; the likelihood of also including parking fees; how the present fee structure has worked in the past year; flexibility of the fee structure; and, inclusion of the Sports Authority on the Events Center Complex Advisory Board. 4. Public Comment There was none. 5. Executive Session A. Consulting with legal counsel or reviewing communications from legal counsel about proposed or pending litigation or contractual matters pursuant to SDCL 1-25- 2(3) There was no executive session. 6. Adjournment Council Chair Curt Soehl adjourned the meeting at 5:12 p.m. Thomas M. Greco, City Clerk