A.G. Gancarski
The first budget review with Sports and Entertainment, and SMG was brutal. History in these reviews shows that Sam Mousa is nicer the second time around. Some fun math in these deals, for sure.
3:31: Overheard. “Hopefully the more they get through of these things, the better we look.”
3:32: Overheard. “I just want to get through today, and my vacation starts.”
3:36: Shari Shuman looks to get to the bottom of the various funds in this session; didn’t quite happen last time.
3:40: A really strong resurgence in tourist development tax since the recession.
3:41: Discussion of parking fees. Seeming confusion about who collects daily parking fees for given events. A $185,000 to $195,000 projection for this money.
3:43: Onto NFL ticket surcharges. Half of that amount is subject to a CPI increase. What this means, in a limited sense, is that the city’s kickback from owning an NFL team diminishes in real terms with each passing year.
3:45: The Jaguars collect the money, and they remit the money, with no seemingly transparent external accountability. Dave Herrell seems amorphous on the process; Mousa would like him to figure it out.
(Brief delay for breaking news).
4:01: More questions from Mousa about cash deposits.
4:03: On to Country Superfest. The contract stipulates that by 12/31 the promoter can dictate to the city that the event won’t happen here. Country Superfest wants “risk-protection” or “more money from us to come,” as Mousa says.
4:08: “The city is obligated to provide the infrastructure and the expense; Jaguars keep the revenue.”
4:14: The Country Superfest uncertainty is interesting. Part of the reason Jacksonville residents have fretted so consistently about the Jaguars leaving town, in part, is because promoters always seem to keep working for better deals.
4:15: Garth Brooks was not budgeted for FY 2015. Big events like that can’t really be forecast in the budget.
4:16: Curling is expected to draw “500 to 1,000” people a day.
4:23: The arena is often a loss. Apparently, a big contributor to that is “chilled water.” More revenues are shared with promoters than used to be the case. Food, beverages, ticket fees, from 45 percent to 65 percent. Apparently, the city keeps giving ground on negotiations for no renewed considerations. As well, promoters want to go to bigger markets. Mousa makes the point that the new arena was supposed to level the playing field. Herrell says it’s about visibility.
4:31: “Does it strike you as odd that the Ritz subsidy is twice as much as the Performing Arts [center subsidy]?” Mousa asks. Herrell sees it as a measure of the commitment to the facility, and wants one more year to get a sense of what the subsidy should be. Attempts to “raise the profile” of the 402 seat theater are not selling to Mousa. Without sponsorship and endowments, the Ritz will be scaled back.
4:36: Mousa left the room for another meeting; Herrell stepped out with him, then returned quickly. Interesting.
4:37: Discussion of Suns and Armada tickets. The Armada’s facility fee is 50 cents a ticket? There is a three-year commitment to the Armada with a $700,000 per year price tag to the city. There is a “make good” provision that allows for renegotiation at the end of a given year. There apparently is a rental fee that the Armada pays, but it is not itemized as such.
4:48: “It gets more people downtown. That’s what the council member told me.” — Shuman.
