Title
Formation of the Phoenix Sports & Events Commission (Ordinance S-51108)
Description
Request to approve the formation of the Phoenix Sports & Events Commission, as outlined in this report. Further request to authorize the City Controller to disburse all funds related to this item. The total amount is not to exceed $240,000 over a three-year period.
Report
Summary
In 2022, the City of Phoenix entered into a pro-bono consulting services agreement with Bloomberg Associates to create short- and long-term initiatives, build public-private partnerships and develop actionable data-driven best practices that align with the City’s goals and objectives. Bloomberg Associates (BA) is the philanthropic municipal government consulting arm of Bloomberg Philanthropies.
One of the priority projects identified within this engagement with BA included working with City staff and the destination marketing organization Visit Phoenix to develop a framework to evaluate the economic and social impacts of hosting major events and to identify opportunities and strategies to expand and diversify Phoenix’s portfolio of events.
BA conducted extensive research by surveying current and potential event hosting partners and interviewing a variety of relevant stakeholders. In addition, they reviewed existing ordinances and operating agreements and researched best practices from other domestic and international destinations.
As a result of this research and subsequent evaluation, it is the recommendation that the City work with Visit Phoenix to establish an industry-leading sports and events commission. Phoenix is currently the largest big city in the country without an events-focused commission. The commission would proactively attract a diverse roster of sports and major events that would deliver meaningful economic and social outcomes to Phoenix’s residents, businesses and organizations.
The proposed commission would be formed as a 501(c)(3) non-profit organization under the management of Visit Phoenix. Upon creation, the commission will hire an Executive Director to oversee its operations. Additionally, the City of Phoenix will have representation on the Board of Directors of the proposed commission. Visit Phoenix will provide the commission with office space in addition to legal and administrative support for the next three years as well as a commitment of $250,000 on an annual basis.
At this time, Visit Phoenix is seeking a $50,000 annual commitment from the City for three years through non-general fund sources and $30,000 in funding annually for three years from Tourism and Hospitality Advisory Board (THAB) funds to support the formation of the commission.
Financial Impact
The anticipated annual expenditure is $80,000, comprised of $50,000 from the Phoenix Convention Center Department's Operating fund and $30,000 from the THAB fund, with the total amount not to exceed $240,000 over the three-year period.
Funding is available in the Phoenix Convention Center Department Operating budget and the Tourism and Hospitality Advisory Board fund.
Concurrence/Previous Council Action
The Economic Development and Housing Subcommittee:
• Recommended approval of this item at the June 12, 2024, meeting, by a vote of 4-0.
The Tourism and Hospitality Advisory Board:
• Recommended approval of this item at the May 28, 2024, meeting, by a vote of 11-0.
Department
Responsible Department
This item is submitted by Deputy City Manager John Chan and the Phoenix Convention Center Department.