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Good morning.
>> Welcome to the Mesa City Council study

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session for August 13, 2026. Mayor
Freeman is out of town and is excused.

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All other council members are present,
although Council Member Heredia is

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attending by Zoom. I don't see him on
yet.

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» Okay. So, Council Member Heredia is
running a few minutes behind, so we'll

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just note when he uh he calls in.
Item number one is to review the agenda

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we have for our Monday, August 17th
council meeting. Let's go through that

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agenda if council has any questions.
Mr. Butler, I know we have presentation

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set for 5 A and 5B.
>> We do.

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» Yeah. Okay. So, we'll skip 5 A and 5B
for now. Does anybody have any questions

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or comments on the remainder of the
agenda?

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Seeing none, why don't we start with 5A?
All right. So, staff have come up and uh

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vice mayor, council, we're uh really
excited we're we've made it to this day

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where we're bringing um contract forward
for your consideration with Legends

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Global uh for management of the
convention center. And I know u this is

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one uh opportunity that we had discussed
um as sets the stage for bringing in uh

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all the types of uh hospitality and uh
maximizing the use of the convention

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center in in ways that um we as an
independent operator were not uh able to

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do. And so um so we're really glad that
we've after a competitive process gotten

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to this point for your consideration.
I'll turn it over to Candace and she can

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walk you through everything that's led
us to this point.

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» Good mayor, good morning uh vice mayor
and council. Um I Candace Candace,

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deputy city manager, and I'd like to um
introduce the team that we have up here

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with us today. So to my right is uh Brad
Gnner. He is our consultant that we used

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on this particular project since this is
the first time we've looked into this

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type of a public private partnership. He
is a a former senior vice president of

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AEG
um global previously and about and

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decades of experience in this industry.
So we were very help um glad to have him

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on this project. Uh to my left we have
uh Harry K. He is the senior vice

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president of business development for
Legends Global, which is the contractor

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we are proposing to enter into an
agreement with. Um, and to his left is

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Tyler Oin. You, some of you may have
remembered him from last year. So, he uh

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is with CSL. CSL did the feasibility
study for us um when we were looking at

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what improvements we would need to
modernize the convention center in the

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amphitheater. And so, he presented to
you last March of 20 um 25. Um so with

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that we will start into the
presentation.

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» All right. And council member Heredia is
online.

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» Okay.
>> Great. Um this just gives an overview.

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What we're talking about here is the
Mesa Convention Center and the Mesa

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Amphitheater. It is all on one campus um
situated near center and university.

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This is kind of an overview of that.
Also gives an overview of the timeline.

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So we did put out a request for
proposals um back in February. uh we've

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worked through that over this last uh
over the spring and into into summer.

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Now we had the top two proposals come in
and give presentations to staff so we

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could ask them questions about their
management style and how this particular

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type of partnership works. Um we are
here now proposing to enter into a

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contract with Legends Global who was the
the top proposal.

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Why are we why are we going into this?
This is a public private partnership and

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I want to explain that a little bit in
the fact that the city will still retain

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the ownership of all of the facilities.
Um we still fund the operations of this.

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So this part of it doesn't change. The
part of it is coming in with a partner

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who has industry specialty and expertise
to come in and do the actual management.

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Um that management doesn't mean just the
daily management but also where we have

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access to now their network. So they're
an international company. um they have

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access to acts and other other entities
and um contracts and so forth and so

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that can really bring that to it. They'd
be coming in with strategic management.

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Where do we want to go with this campus?
Where do we want to go with these

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facilities? Um they would take over the
daily operations of it, meaning it would

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be their employees [clears throat] who
actually work on this site. They would

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be responsible for the marketing and
advertising um for any type of sales,

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ticketing, rentals, um everything that
we currently do today. And then we all

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they also bring with them um because CSL
is an affiliate organization with

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Legends Global, they bring that
expertise that we already tapped into

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last year, which is what do we need to
modernize, what do we need to monetize,

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um what type of capital improvements
would we need to make, how do we really

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put a a strategic plan around this
particular campus and what we want to

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see out of it for our downtown and for
our residents.

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This is just gives you an overview and I
apologize this should be intent of

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management contract not contracted. Um
but these just gives you a highle view

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of what we requested as part of our of
the proposals we were looking for and

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what we were judging the proposals on.
Could they develop and deliver these

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particular things? We want to continue
to hive have and elevate um the quality

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of experiences and the event management
we have there. We want to maximize that

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utilization. how how can we best
maximize that? Are there capital

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improvements that we can make that would
allow us to extend our season for

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example at the amphitheater uh when we
know that it gets pretty hot in the in

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the summer. Um what is the economic
impact? How can we use this campus to

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drive people into our downtown? How do
we get them here and then get them into

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our onto our main street and into our
our shops and our hotels?

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Also, how do we boost our our
effectiveness with all of the other

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partners that we already have here in
downtown? that includes the visit Mesa,

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downtown Mesa Association
and the local hotels that we have here

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and how do we pull that together and
also integrating as we continue to work

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on our downtown arts and innovation
district. How do we amplify that? Um,

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and so that we're all working together.
So, those were the things that we asked

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for when we went out for proposals is
how could you help us with this?

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» Uh, yeah. Yeah, please.
>> On that slide, um, this is for fun. Is

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that the Weezer concert? [laughter]
>> I'm pretty sure it is. I just want

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everyone know exactly which concert.
>> I went to that concert and it was

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awesome.
>> Berg has confirmed it is it is Weezer.

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So
>> good. Vice Council member Taylor, you

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have very good eyes. If [laughter] you
can see who's on stage there. Um

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[clears throat]
>> it was awesome. It was like Christmas

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Weezer. Who says no to that? So anyway,
[laughter]

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just wanted to throw that out there.
>> And I'm glad you enjoyed that.

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I know.
>> As we move forward, one of the things as

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we really kind of talk about what does
this partnership look like and what does

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this partnership mean? Um, again, the
city of Mesa continues to hold the

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ownership of the campus. So, it is our
campus, it is our facilities. We will

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also continue to fund the operations.
So, this is not like so it's not similar

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to the golf course when we did that
where they actually run the entire golf

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course for us. Um but it's their
operation that they're running. This is

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still our operation. They are running it
on our behalf. What that means is that

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we are still funding the daily
operations for everything that happens

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on the campus. So that part doesn't
change. So when we talk about the cost

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cost to the city or cost to the
contractor, I want to be very clear that

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um the cost of running of actually
operating the operating expenses will

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still be funded by the city of Mesa. Um
and they will be doing it on our behalf.

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So, what are the actual costs um out the
door costs? The city cost to Legends

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Global um as an entity is a monthly base
fee for a monthly management fee of

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$14,000 a month. Um they will also
receive um on food and beverage 4% on

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the gross sales and 8% on the net sales.
There is an annual performance

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incentive. So, each year there will be
performance measures that will uh

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benchmarks and targets that will be set
um with both entities. And at each year

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we'll review those to see if they've met
those and there's a um incentive fee of

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up to $50,000. It is based on each
benchmark. There's an annual

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quantitative incentive fee. And what
that is is in our adjusted gross income

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each year, um Legends Global will put
together a budget and targets that they

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will give to us. We'll review them. We
need to approve them. So it'll be

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between the city of Mesa and Legends
Global what our targets are for next

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year, what we hope to accomplish. um if
they accomplish those that does not go

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into this incentive fee. It's only if
they go above and beyond those then they

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would receive 20% of the AGI over
whatever benchmark we had set for that

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year. And then for sponsorship
commissions, which is this is an

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industry standard um as they go out and
receive um advertising sponsorships for

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particular things could be possibly be
naming rights um they would receive a

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20% in essence finders fee or commission
on those.

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Um, Legends Global has agreed to um help
us and and contribute to the capital

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portion of this by doing a one front a
onetime upfront payment of $500,000 that

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would go towards some type of
improvement on the campus. Those are to

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be determined as we go through and start
talking about what is the priority for

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us. um what is the the thing we can do
right out of the gate um that could help

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us increase our revenues or increase our
number of shows while we continue to

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work on larger plans of the campus what
it would look like and maybe a larger

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capital improvement. These would be
things we could do within the next year.

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Um they've also they they are all about
community. So they would like to um

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contribute $10,000 a year for the five
years of the term toward a not

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for-profit or a community based
organization of the city's choice. And

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so that'll be something we would talk
about as we move forward where we would

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like those funds to go. They will also
be covering the transition cost of

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actually setting this up. So the way
this is organized is there's actually a

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two-month transition period where they
need to set up all of the infrastructure

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in order to take on this management and
they would be covering those costs. It

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would be no cost to the city for that
setup.

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Um at this time I'm going to hand it
over to Harry so he can talk a little

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bit. you can get to know Legends Global
a little bit more.

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» So, thank you, Candace. First of all,
let me start by saying thank you for the

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invitation to be here today. Um, very
much appreciated. This is a partnership

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we are very excited about. We're ready
to get going. Um, and again, so thank

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you for this opportunity and uh we know
it's going to be successful for all

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parties moving forward. Um, you've got
on your screen there just a quick

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overview of Legends Global. Uh we are a
worldwide industryleading company that

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specializes in much more than just venue
management and content and booking. We

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provide all of those specialized
services a 360 degree suite of services

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that you see there on the right hand
side. Tyler who will speak here in a

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minute represents feasibility and
consulting with our with CSL our

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affiliate. We provide owners rep um
services for uh and project management

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services for renovations, expansions,
new construction. Um premium sales more

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so on the arena stadium side in terms of
your your VIP spaces um your suites,

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your loies, your club seats. We have
expertise in in those sales efforts. Um

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partnerships is as Candace just said,
naming rights, sponsorship, advertising,

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entitlements. Uh we have a whole
division on a worldwide scale that

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specializes in that area.
Hospitality, which is food and beverage,

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which will be part of our scope here. Uh
merchandise probably not so much, but we

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do have the the access to those
individuals. We do merchandise for NFL

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teams, for the Olympics, for the RDER
Cup. So again, worldwide experience with

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the sale of merchandise, both uh retail
and and online. And then venue

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management and content booking are
really the core services um that we're

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providing here for the Mesa Convention
Center, the amphitheater. So what does

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this all mean for the city? It means
access to um and the support of the

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resources and the expertise of all these
divisions as we move ahead together um

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to grow these venues, to grow the city,
and to grow the destination.

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Um just real quickly, uh drilling down
on venue management, we manage 450

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venues worldwide. About 70% of those are
North America. Uh we do have a fairly

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significant international footprint as
well. Um the majority of our um uh

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venues that we manage are municipally
owned. Um so we are in essence a

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government contractor. We understand the
basic tenants of public administration

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and transparency and bidding
requirements and all those things that

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are important to our municipal partners
as you over oversee and manage these

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venues on behalf of the taxpayers. So
that's our wheelhouse. We do manage some

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very large um a market uh venues, seven
NFL stadiums, large convention centers.

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But if you look at our resume, we really
specialize in smaller venues, whether

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it's convention centers, arenas,
theaters, um equestrian centers, um

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conference centers, um whether they're
in a secondary market, a tertiary

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market, or in a very crowded a market
where Mesa sits here in in the Phoenix

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market. Um, and we've had tremendous uh
success using our resources, our

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visibility, our branding, our best
practices to elevate the operations of

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those venues. Um, and many of our
clients have been with us for a long

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time. We've we've succeeded in achieving
their goals. We've earned renewals and

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we're hopeful that'll be the path here
with the city of Mesa moving forward.

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The other thing I'll say before we leave
this page, Candace, this is kind of our

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wheel of resources. We have over 100
people um just in the venue management

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silo of our company that support the
operations of our local staff here or

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will be supporting day in and day out um
across all these disciplines and more

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all these departments. To me this is the
real value of our company is um you know

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I've been doing this a long time. Brad's
been doing this a long time but we don't

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know everything. And operating in this
in this world this specialized world for

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almost 50 years. You live and learn
trial and error. You take everything

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that we're learning every day and what
we do is condense that and distill it

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down into usable programs and systems
and best practices um to elevate the

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operations and the support for our local
staff and achieving your goals. That is

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the real power of our company is that
shared worldwide experience from doing

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this for for many many years.
And on the local level, while we are a

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large international company, we have a
presence here in the market already. Um

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um I'm sure you're all familiar with
State Farm Stadium, Desert Diamond

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Arena. We also have some food and
beverage operations um in the market. We

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run the the uh the food and beverage at
Talking Stick, the amphitheater uh for

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Live Nation. So um so we're coming into
this engagement with the Mesa Convention

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Center and the amphitheater in the city
which is a perfect complimentary venue

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to uh the footprint we already have in
the market. Existing relationships and

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understanding of the market, community
relationships, business relationships,

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um operators and programmers that sit in
this market that know it very well. Um

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again to support our operations here, no
learning curve. Um and we're ready to

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hit the ground running. I'll turn it
over to Tyler.

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» Great. Well, excited to be back here.
Um, excited to remain a part of the

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planning of of these facilities, the
convention center and amphitheater. Um,

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some of you may remember me probably
from a year and a half ago as we

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concluded our feasibility study. Um,
fortunate timing from the CSL side, our

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organization became uh uh joined with
the former ASM uh organization. We are

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now Legends Global. We are now the
global planning arm for Legends Global.

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And the great news here is we have a
wealth of data and research that we

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conducted over the course of the second
half of 2024, first half of 2025,

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looking at the opportunities for the
convention center and amphitheater to

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increase business, to increase economic
impact. um both in terms of of what can

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we do capital investment wise, but
there's also opportunities to think

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strategically about those buildings and
diversify and increase the programming

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that that go to those facilities. This
is a recap of the work that we did um

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looking at your building versus the 50
potentially competitive facilities

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throughout the valley. Uh benchmarking
you against similar facilities around

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the nation. We also collected input from
65 event planners representing more than

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300 events. we have the real world data
uh about what we could do here from a

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marketing standpoint, from a scheduling
standpoint and capital investment

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standpoint uh to help guide the future
of of this facility and downtown Mesa.

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Um on the next slide is just a quick
recap of what we saw as as as key

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opportunities and issues for the the
convention center. Um there has been

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increased convention activity and
meetings activity certainly following

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the COVID pandemic in in the valley area
and at the same time we're dealing with

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a very competitive field of hotel
conference centers, various ballrooms

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that are that are around the the area.
This is a building that has been used

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for local shows, public consumer shows,
and but has increased conventions uh in

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recent years. How do we build on that
momentum? not necessarily by uh trying

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to be the next Phoenix Convention Center
and and greatly expand our footprint,

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but by differentiating and by thinking
strategically of what types of groups

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and meetings could fit here. And then
over time thinking, okay, what can we do

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uh uh uh from a physical investment
standpoint to increase that business and

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support that growth because I think
there's an exciting opportunity for this

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building and the amphitheater to be a
big part of a really exciting future for

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downtown. We certainly talked about that
in the report last year. Um similar for

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the amphitheater. Um I think what what
Legends uh brings to the table is is the

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network um relationships not just with
Live Nation but a number of promoters

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nationally and regionally uh to help
bring a diverse set of programming to

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this building. They also bring a lot of
creative thinking and ideas for how can

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we use the amphitheater, not just for
concerts and performances, but in unison

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with the convention center. So, I think
there's synergies that we're we're going

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to work together to to identify to to
greatly maximize the use of that

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building and again think of the future
um over the next 5 10 years. How can we

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improve the experience of that not just
for attendees but for the artists and

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make sure that we're we're growing our
calendar of events that that are going

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to the facility.
um CSL, you know, our our role here is

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is to continue uh uh to look at the
future of these facilities to advise the

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legends team and provide real market
data. You know, that's what really sets

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this relationship apart in in this world
of live sports and meetings and

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conferences and entertainment. We're
here to actually give them the voice of

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the consumer. We're here to give them
data on competitive venues. And we're

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here to think strategically about from
an economic and financial perspective

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what are the the wisest moves we can
make with both of these facilities over

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time. Over on the right are just some of
the trends we identified in the report

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last year. But immersive experiences,
technology, local and authentic food and

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beverage. also looking at the
amphitheater and thinking of when from

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when you get there to when you leave,
you know, engaging the the attendee and

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and giving them the best experience
possible and creating as many

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opportunities for for revenue generation
as possible for for major concert

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concerts that are going there. So, we we
are here to be an ongoing adviser. um

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look forward to to working with you all
in the future and working with Harry and

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the team um to help think uh uh not just
of of near-term planning and

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strategizing in these venues, but
starting to think also, okay, what's a

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schedule of of projects we can think
about over the next five years and what

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gives us the greatest return. So, very
excited to continue to be here. Um and

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uh I think I'll pass it back to Candace.

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» Facility improvement planning. you sorry
>> uh facility improvement planning um um

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you heard Tyler talk about that a little
bit those are that that's the expertise

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that they bring right is what is it that
we can monetize what is the best effort

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that we can put forward in the next year
two years five years um in order to

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really um elevate that entire campus and
so we'll be working together all three

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you know two entities but CSL is is part
of legends global now as we really go

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through those so they will be providing
that expertise to us similar to what

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they did with the feasibility study
taking it to that next level, that next

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step. Um what is the first priority, the
second priority, and what is it we're

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00:20:40,240 --> 00:20:47,360
actually trying to drive to? Um and how
do we implement that over this time?

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Um the transition itself. So the
transition the the contract we have

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proposal for you is a 62-month initial
term. The reason why it's 62 is so that

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there's a full 5-year management period
um following the two-month transition

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period. Um, so transition period right
now we are looking for a September 1st

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start to the transition period and a
November 1st start to the actual

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management. That's when they would then
be the on-site managers effective on

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November 1st. Um, there are three uh
five-year renewal administrative

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00:21:17,280 --> 00:21:24,159
renewals that we could do for a total of
20 years on this and it would go through

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our normal administrative processes for
that. Some of the things that we do want

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to talk about is that um there have been
questions about our staff and the

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transition and how does that work
because these will again these will be

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legends employees that will be on this
campus. Um all of our employees have

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00:21:37,520 --> 00:21:43,600
known this. We have been very
transparent over the last year that this

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was a a direction we were going in. Um,
and once we do have a signed contract,

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we'll be working with each employee to
see if they would like to move over to

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00:21:49,840 --> 00:21:56,240
the Legends Global team and continue on
that site or if they would like to stay

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with the city of Mesa and we will assist
them in finding another location within

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the city for them to work. So, it'll be
an employee by employee basis. No

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00:22:02,400 --> 00:22:08,799
employees will be laid off as part of
this process. they will all have a home

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and it's up to them where that home is
um on what side if they want to continue

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in that industry which we have some who
are very industrydriven and this would

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be a great opportunity for them and
there are others who are long-term

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employees and like to stay with the city
of Mesa and we'll and we will make space

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for them as well so they will all be
taken care of. Um there will be a

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general manager on site that would be
our prime contact for the the city side.

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So we'll have a city contracts
administrator that will be the contact

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on our side and the general manager will
be the contact on their side. Uh we will

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00:22:36,080 --> 00:22:42,320
continue to have access to all
financials uh into the financial records

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as well as monthly reports, quarterly
reports, uh projections, those types of

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things. So this is truly a partnership
between the city of Mesa and Legends

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00:22:49,919 --> 00:22:55,760
Global in their management of that. So
we will be in every step. This isn't

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something that at the end of the year we
find out how they did. Um, this is being

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with them at every step, knowing what's
happening this month, what's in what's

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coming up in the next few months, how
are bookings going, how are shows going,

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um, and those types of things, as well
as the feedback that we have on, um,

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surveys, whether it's artist surveys or,
um, customer surveys, those types of

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things. So, this is truly an integrated
partnership u between the city of Mesa

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and Legends Global.
And with that, I will

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» I think that was the smoothest
presentation that has ever gotten

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00:23:27,679 --> 00:23:35,039
through council. Well,
>> however, I'm sure there are questions at

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00:23:33,039 --> 00:23:38,080
this part. Mr. Adams, would you like to
begin?

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00:23:36,240 --> 00:23:43,760
» Well, thank you, Vice Mayor. Uh, thank
you for that presentation. Um,

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00:23:41,280 --> 00:23:50,480
I am I'm just curious about a couple
things. Um, as as you have had a chance

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00:23:46,720 --> 00:23:58,000
to look over our venue,
what do you see as its limitations

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00:23:53,760 --> 00:24:04,320
and in in comparison to uh venues in
similar size cities and what are your

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00:24:01,440 --> 00:24:10,000
plans to try to address those? I mean, I
I won't repeat what we've heard from

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00:24:07,280 --> 00:24:15,039
different sources as limitations, but
I'd [clears throat] be curious to know

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00:24:11,360 --> 00:24:20,640
how you see it. How do you think we move
beyond those?

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00:24:16,960 --> 00:24:25,520
How do we attract um maybe some more
A-list acts, that type of thing? So,

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00:24:23,120 --> 00:24:32,720
that's that's my my first question. And
second part is um can you describe

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00:24:29,440 --> 00:24:36,960
similar venues in other municipalities
that you've stepped into and what have

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00:24:35,520 --> 00:24:43,520
the result what have the challenges and
the results been there?

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00:24:40,480 --> 00:24:45,360
» Do you want to grab that? Mhm.
>> Physical.

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00:24:43,919 --> 00:24:51,200
» Let's go.
>> From from you know the the facility

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00:24:48,720 --> 00:24:54,559
standpoint and you know some things that
put a ceiling I think on on potential

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00:24:53,039 --> 00:25:00,080
for for the facilities. You know from
the convention center side it it is it

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00:24:56,799 --> 00:25:06,480
is dated. Um the hotel package could be
grown. Um that's probably a longer term

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00:25:02,400 --> 00:25:10,000
issue. um technology um and some of the
services that certainly some of the

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00:25:08,080 --> 00:25:13,520
corporate sector and and some higher
value associations are looking for out

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00:25:12,080 --> 00:25:17,200
of venues. We we don't have those
currently. So that's certainly the

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00:25:15,360 --> 00:25:21,679
something to look at over time. From the
amphitheater standpoint, um we've talked

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00:25:19,440 --> 00:25:25,840
about similar issues, things with the
modern attendee experience, uh premium

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00:25:23,919 --> 00:25:29,760
seating, more points of sale for food
and beverage aren't aren't quite up to

353
00:25:27,360 --> 00:25:35,120
standard. Um maybe there's opportunities
to expand capacity over time as well. Um

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00:25:32,640 --> 00:25:40,080
it's a great unique boutique experience.
I I love that that venue. Um but is

355
00:25:37,279 --> 00:25:44,720
there potential to slightly tweak it? Um
you know to to maximize the value that

356
00:25:41,760 --> 00:25:49,360
that we get from the community. Um and
then I think just thinking strategically

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00:25:47,120 --> 00:25:52,480
and and you know just just even even
looking at the calendar and maximizing

358
00:25:51,200 --> 00:25:56,159
the value of the events that we get with
the facilities we have today. I think

359
00:25:53,679 --> 00:26:00,400
there's still potential uh uh you know
to to grow the event calendar um even

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00:25:58,799 --> 00:26:03,279
before we begin the physical planning.
But I I'll let Harry speak to just

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00:26:01,840 --> 00:26:07,120
similar venues that they've been a part
of.

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00:26:05,120 --> 00:26:10,720
» Yeah, just to piggyback first on on what
Tyler said regarding the amphitheater.

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00:26:08,880 --> 00:26:13,840
Um and and we al also had some
recommendations for the convention

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00:26:11,919 --> 00:26:18,720
center, but we certainly during the
course of this RFP process, we we we

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00:26:16,159 --> 00:26:23,279
shared some aspirational uh thoughts
around um where these venues could go.

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00:26:21,279 --> 00:26:27,440
Realize a lot needs to come together
with the financing end and how that we

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00:26:24,960 --> 00:26:31,600
all pull that together. But um again I
mentioned we've got a a pretty good

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00:26:29,200 --> 00:26:34,640
knowledge of this market and we we we
drew upon that experience of operating

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00:26:33,200 --> 00:26:37,919
the market to drive kind of our
recommendation specific to the

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00:26:35,919 --> 00:26:41,840
amphitheater. If we can get to the point
where we can increase capacity, make an

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00:26:40,159 --> 00:26:45,919
investment into that amphitheater both
in the back of house and the front of

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00:26:43,360 --> 00:26:50,720
house. increase the the the rigging
capacities. U I think Tyler mentioned um

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00:26:48,960 --> 00:26:54,960
the event experience, food and beverage,
right? Points of sale, meeting and

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00:26:53,120 --> 00:26:58,720
exceeding customers expectations in
today's world. Um it's great to get the

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00:26:57,360 --> 00:27:02,960
events, but then you want to maximize
the experience as well as maximizing

376
00:27:00,400 --> 00:27:06,240
revenue with a commercial mindset. But
um it's all about the event experience

377
00:27:04,880 --> 00:27:10,159
at the end of the day, right? Every
event is an opportunity to to wow

378
00:27:08,559 --> 00:27:13,760
people, right? And create cheerleaders
and ambassadors for the venues and for

379
00:27:12,480 --> 00:27:17,679
the city. you don't want to you don't
want to people leaving with a terrible

380
00:27:15,360 --> 00:27:20,480
experience. So, it's managing every step
in that process from the time they leave

381
00:27:19,200 --> 00:27:24,960
home to the time they get home and
making sure that that experience um as I

382
00:27:23,039 --> 00:27:30,880
said creates those ambassadors for for
the venues in the city. um in terms of

383
00:27:28,480 --> 00:27:33,919
maximizing I mean I I think of again we
manage so many venues I think of Grand

384
00:27:32,240 --> 00:27:41,120
Rapids I think of Baton Rouge I think of
Florence um Sagenol Michigan um theaters

385
00:27:37,919 --> 00:27:44,240
in in Ohio Toledo Ohio where operating
at a significant deficit we've turned

386
00:27:42,720 --> 00:27:49,840
that turned those into profitable
buildings or significantly decreased um

387
00:27:46,559 --> 00:27:53,039
the required subsidy each year um Tyler
touched on a little bit which I didn't I

388
00:27:51,360 --> 00:27:57,600
don't didn't think we had time in this
in this session but to drill too deep um

389
00:27:55,919 --> 00:28:00,880
But the shared data and analytics that
we have as our company again pulling all

390
00:27:59,279 --> 00:28:05,279
that information together
>> to inform our local staff to help them

391
00:28:03,039 --> 00:28:09,039
do the best deals right and doing the
shows to help them advance the shows

392
00:28:06,880 --> 00:28:12,960
properly. Um if we know there's a tour
that's played six other of our venues we

393
00:28:10,880 --> 00:28:16,880
have all that shared information from
those events

394
00:28:14,799 --> 00:28:21,200
um what people like to eat, what people
like to drink so we can plan effectively

395
00:28:19,360 --> 00:28:25,039
again maximize their experience and
maximize revenue. So what we're doing in

396
00:28:23,679 --> 00:28:32,080
that world with a program we have
workday and AI down the road and all of

397
00:28:27,520 --> 00:28:36,720
that technology and and shared data um
um again drives that experience and

398
00:28:33,840 --> 00:28:39,919
drives more revenue um to the venue. But
um you know we've grown to the size we

399
00:28:38,640 --> 00:28:44,799
have because we've achieved our
municipal partners goals and that's

400
00:28:41,520 --> 00:28:49,120
that's financial and otherwise. Yes. the
the mission and the goals for many of

401
00:28:46,559 --> 00:28:53,200
these venues the same bottom line
performance economic impact right

402
00:28:51,360 --> 00:28:57,919
quality of life for residents attracting
new residents bringing people downtown

403
00:28:56,000 --> 00:29:01,520
um as a complimentary venue to the other
assets that's in the community all those

404
00:29:00,159 --> 00:29:05,679
things but they vary a little bit it's
not cookie cutter every every city every

405
00:29:03,360 --> 00:29:10,240
state every county authority they have
different goals working within those

406
00:29:07,200 --> 00:29:14,240
broader u set of of typical objectives
and and missions so we customize to our

407
00:29:13,279 --> 00:29:18,720
individual
municipal partners goals which we will

408
00:29:15,919 --> 00:29:22,480
do here um with a demonstrated track
record and again I I go back to using

409
00:29:20,880 --> 00:29:26,960
the scale of the company and the
experience and the data that we have and

410
00:29:24,080 --> 00:29:31,440
the information um but maximize the
opportunities and the events when we get

411
00:29:28,399 --> 00:29:34,720
them also the marketing the branding the
vis visibility in two separate

412
00:29:33,279 --> 00:29:38,559
industries the live entertainment
industry and and the convention meeting

413
00:29:36,399 --> 00:29:42,000
hospitality industry uh which these
venues play in and having those

414
00:29:40,159 --> 00:29:47,039
relationships on a national level on a
regional level um and a comfort level

415
00:29:44,159 --> 00:29:49,919
for users um and and our partners that
if they come to a a Legends Global

416
00:29:48,960 --> 00:29:53,760
Managed building, they're going to
receive great service and u there's a

417
00:29:52,399 --> 00:29:56,559
level of expectation that they have
comfort with.

418
00:29:54,960 --> 00:30:01,679
» Good. I appreciate that. Just one other
quick question. How many outdoor venues

419
00:29:59,760 --> 00:30:06,640
similar to ours do [clears throat] you
currently manage or operate?

420
00:30:03,840 --> 00:30:10,399
» We manage I think 20 some amphitheaters.
>> Okay.

421
00:30:07,039 --> 00:30:14,240
» Um Council Member Adams. Um various
sizes. We just opened uh the Aquaore

422
00:30:12,799 --> 00:30:16,559
Amphitheater in Grand Rapids. That's
about 12,000 seats.

423
00:30:16,080 --> 00:30:23,679
» Okay.
>> Um just a few months ago. Uh we managed

424
00:30:21,039 --> 00:30:28,240
down to boutique amphitheaters, 5,000
capacity, 7,000 seat capacity capacity

425
00:30:26,559 --> 00:30:33,600
in Raleigh, North Carolina and Kerry
right outside of Raleigh. Uh 15,000 seat

426
00:30:31,440 --> 00:30:38,000
uh amphitheater in Syracuse, New York.
Um so we have a a fairly significant

427
00:30:35,520 --> 00:30:42,080
footprint um in the amphitheater world.
So I imagine you face the uh the

428
00:30:40,159 --> 00:30:45,279
opposite seasonal problem in Grand
Rapids that we face here. So okay, good.

429
00:30:44,399 --> 00:30:47,360
Thank you so much.
>> Yeah, thank you.

430
00:30:45,919 --> 00:30:50,799
» That actually works out because once
they're done over there, they can come

431
00:30:48,640 --> 00:30:56,799
right over here and book.
>> But I think ours is only 5,000

432
00:30:54,720 --> 00:30:59,600
» 5,000 capacity. So it's on the smaller
end.

433
00:30:58,240 --> 00:31:03,600
» Council member Duff, I know you've been
waiting. Thank you.

434
00:31:00,240 --> 00:31:07,600
» Yeah, I have quite a few questions. Um
apologize for the long list. it took a

435
00:31:06,080 --> 00:31:08,799
little while for all the information to
be uploaded.

436
00:31:08,736 --> 00:31:15,279
» [clears throat]
>> Um so a couple of years ago we did a

437
00:31:12,240 --> 00:31:20,960
whole visioning of the convention center
and look at at capital improvements and

438
00:31:18,799 --> 00:31:24,799
I think there was two or three
selections depending on how much we want

439
00:31:22,799 --> 00:31:33,919
to invest and what the ROI is this
related or is this a separate exercise

440
00:31:28,559 --> 00:31:39,440
or I mean it is that work related to the
future of what Legends is working on.

441
00:31:37,120 --> 00:31:43,760
So, Vice Mayor and Council Member Duff,
it is um it is related in the fact that

442
00:31:41,840 --> 00:31:47,360
this is the next step towards trying to
achieve those goals, right? So, what we

443
00:31:45,760 --> 00:31:51,840
came to council with a year and a half
ago was this is the feasibility of the

444
00:31:49,760 --> 00:31:57,279
the actual facilities themselves, like
what would we need to do physically at

445
00:31:54,399 --> 00:32:00,960
the campus in order to elevate the n the
artists, the the acts we get, the things

446
00:31:59,600 --> 00:32:04,000
that we book at the convention center,
the food and beverage, that type of

447
00:32:02,240 --> 00:32:08,799
thing. So, that was a feasibility study
and it left us with some really great

448
00:32:05,679 --> 00:32:12,880
ideas. Um and the next question is how
do we fund those? How do we how do we

449
00:32:11,200 --> 00:32:16,480
invest? We know we want to invest in
this campus. How do we go about doing

450
00:32:14,399 --> 00:32:21,360
that? So this is that next step of
actually bringing in an international

451
00:32:18,159 --> 00:32:26,320
partner um in this industry who has done
this before and can figure out how to

452
00:32:24,080 --> 00:32:31,600
elevate what we currently have and
monetize it in a manner that allows us

453
00:32:28,720 --> 00:32:35,519
to invest then back in all of those
revenues back in to larger capital

454
00:32:33,440 --> 00:32:39,840
improvements which then increases our
revenues and allows us to invest again.

455
00:32:37,679 --> 00:32:45,200
So the goal of this is actually to
monetize as much as we can as it sits

456
00:32:41,919 --> 00:32:49,840
today. Um doing some minor modifications
as much as we can and then reinvesting

457
00:32:47,840 --> 00:32:55,039
and reinvesting so that we're constantly
reinvesting back into the campus. It is

458
00:32:52,880 --> 00:33:00,000
it is investing the revenues from the
campus back into the campus and not

459
00:32:57,519 --> 00:33:03,440
asking in the future for general funds
in order to fund a capital improvement.

460
00:33:02,000 --> 00:33:07,440
The capital improvement would be funded
by the revenues coming from the campus

461
00:33:05,200 --> 00:33:10,320
itself. So that is the goal. This is
this is the step one into that

462
00:33:09,257 --> 00:33:16,159
[clears throat] goal which is to bring
in a partner who has that expertise and

463
00:33:12,880 --> 00:33:20,240
that breadth of experience and resources
that allows us to truly maximize what we

464
00:33:18,640 --> 00:33:24,559
can do on this campus. So this is really
that it's this is that next step from

465
00:33:21,840 --> 00:33:28,480
that feasibility study. And and maybe I
can just add, vice mayor and council

466
00:33:26,000 --> 00:33:33,600
member. Um that's why I'm so excited
this morning because um I love seeing

467
00:33:31,440 --> 00:33:37,840
Tyler this morning in this perspective
because now we have a path forward to

468
00:33:35,519 --> 00:33:42,720
actually make some of that those visions
that um we had when you were presented

469
00:33:40,720 --> 00:33:48,080
uh their findings a year and a half ago
an actual reality that's not going to

470
00:33:45,039 --> 00:33:53,679
burden our overall uh taxpayers. Because
what what this partnership uh allows us

471
00:33:51,039 --> 00:34:00,320
to do is maximize revenue that's
generated on site by bringing um more

472
00:33:56,960 --> 00:34:03,760
lucrative shows by by maximizing our
return on investment uh that we make

473
00:34:02,559 --> 00:34:08,399
both in the amphitheater and the
convention center to bring high value

474
00:34:06,399 --> 00:34:13,599
acts and bring highv value conventions
and others that will uh further revenue

475
00:34:11,440 --> 00:34:18,879
that then we'll be able to invest back
into the infrastructure and the capital

476
00:34:16,480 --> 00:34:22,560
side of this program. I mean, we sat
here a year and a half ago with the

477
00:34:20,480 --> 00:34:27,200
vision of what it was going to take to
uh modernize our facilities, but we had

478
00:34:25,200 --> 00:34:32,480
no path forward on how we were going to
pay for for those as Candace just said.

479
00:34:29,200 --> 00:34:36,960
And so, this partnership because of what
um Legends Global brings to the table

480
00:34:34,639 --> 00:34:40,639
will allow us to maximize revenue at
these centers that can be reinvested

481
00:34:38,879 --> 00:34:45,200
back in them. So the users will be
paying for the capital improvements of

482
00:34:42,639 --> 00:34:50,000
these facilities and not shifting the
burden onto any of the general city

483
00:34:46,960 --> 00:34:54,000
taxpayers. And that is uh a fantastic
development that we could not have

484
00:34:52,079 --> 00:34:58,640
foreseen if we had stayed with the
status quo. And uh and we we have

485
00:34:56,720 --> 00:35:03,280
excellent staff. U to Harry's point
about um other venues that might have

486
00:35:01,520 --> 00:35:08,079
been operating in the red, we're we're
fortunate um and and maybe unique in

487
00:35:05,599 --> 00:35:13,440
some ways that we we paid for ourselves.
We were break even, but we weren't

488
00:35:10,400 --> 00:35:17,839
maximizing the opportunities. Uh, and it
wasn't for lack of great staff. It's

489
00:35:15,680 --> 00:35:22,160
we're not part of the network that Harry
just described. If you're a convention

490
00:35:19,920 --> 00:35:25,599
planner, um, you're taking the path of
least resistance. You're not reaching

491
00:35:23,599 --> 00:35:28,800
out to independent venues to schedule
your conventions. You're calling Legends

492
00:35:27,200 --> 00:35:32,480
Global because you have a relationship
with them and you're saying, "I want to

493
00:35:30,800 --> 00:35:35,760
schedule my next four years. I want to
be in the Northeast. I want to be in the

494
00:35:33,920 --> 00:35:38,880
Pacific Northwest, in Florida, and then
in in the Southwest."

495
00:35:37,520 --> 00:35:43,359
Where where are you going to put me,
Legends Global? Where where are your

496
00:35:40,400 --> 00:35:49,359
venues? What makes sense for my um for
my um conference or or my uh touring

497
00:35:47,280 --> 00:35:55,680
artist or whatever it may be? That's
just access and opportunity that we

498
00:35:51,920 --> 00:36:01,920
haven't had. and that these uh industry
experts know how to maximize, know how

499
00:35:58,480 --> 00:36:05,680
to bring in that high value um into both
the amphitheater and the convention

500
00:36:03,599 --> 00:36:11,520
center, which will then allow us to
invest back into um into those

501
00:36:08,079 --> 00:36:17,440
facilities so that we can continue to um
to elevate it um to to a modern facility

502
00:36:15,119 --> 00:36:22,079
to uh a high value facility like the
amphitheater to bring in uh those

503
00:36:19,680 --> 00:36:26,880
experiences like Harry um had described
earlier.

504
00:36:23,040 --> 00:36:32,720
with um all the modern amenities and
high value FnB and other uh

505
00:36:29,760 --> 00:36:37,920
opportunities that just reflect the
reality of the market today and that um

506
00:36:35,119 --> 00:36:43,839
we we current we currently can't provide
without substantially burdening the

507
00:36:40,480 --> 00:36:47,839
taxpayers um in a way that I I know
brought a lot of hesitation to probably

508
00:36:45,440 --> 00:36:51,920
all of us and so uh this partnership
will give us a path forward and that's

509
00:36:50,000 --> 00:36:55,119
one of the reasons I'm I'm so excited
about because it was a daunting prospect

510
00:36:53,520 --> 00:36:59,680
of how are we going to get there. So we
had to change the model. We had to do

511
00:36:57,200 --> 00:37:04,079
something uh different to maximize
private sector expertise and investment

512
00:37:01,920 --> 00:37:08,320
and so that's why this partnership is is
a real I mean it's a it's a big deal.

513
00:37:05,920 --> 00:37:13,119
This is a real gamecher uh and will have
a ripple effect. I I appreciate that the

514
00:37:10,320 --> 00:37:17,119
Delta uh hotel is here because again
we're um this this will have a ripple

515
00:37:15,280 --> 00:37:20,880
effect into what we're seeing in
downtown throughout the hospitality side

516
00:37:19,520 --> 00:37:25,760
of things. I know you've received a
letter from Visit Mesa um with their

517
00:37:23,280 --> 00:37:30,400
support. Um you know, the mayor I think
I think the mayor left something with

518
00:37:27,119 --> 00:37:34,640
the vice vice mayor uh to express his
support, but the mayor's been a big big

519
00:37:32,480 --> 00:37:38,560
champion of this because again, if we
were going to change the status quo, if

520
00:37:36,960 --> 00:37:43,680
we were if we were going to find
funding, we had to go out and and

521
00:37:41,200 --> 00:37:47,920
harness the private sector opportunities
of partnership. And that's what um the

522
00:37:45,760 --> 00:37:51,599
Legends Global team um brings to the
table. That's why it's a big deal.

523
00:37:50,079 --> 00:37:55,839
» Yeah, I appreciate that and I'm very
excited about it. But I'm still trying

524
00:37:53,520 --> 00:37:58,880
to pull everything together because
we've been on this road for quite a

525
00:37:57,599 --> 00:38:01,599
while. I was trying to decide what we're
going to do with the convention center

526
00:38:00,320 --> 00:38:04,720
and I didn't know if Legends was
involved at that time. Sounds like it

527
00:38:02,880 --> 00:38:09,440
was a separate feasibility study which
led us to Legends. We're no longer

528
00:38:07,200 --> 00:38:14,640
looking at a bond opportunity in order
to do improvements. But I do say and

529
00:38:12,320 --> 00:38:18,160
you're you're experienced at this. It's
kind of a chicken and egg thing, right?

530
00:38:16,480 --> 00:38:22,720
In order for you to get the revenue that
you need to to improve the building, you

531
00:38:21,359 --> 00:38:26,880
have to have investment. But you can't
get the investment until you, you know,

532
00:38:25,119 --> 00:38:34,320
until you do the improve. I'll leave
that to you. Um, it's kind kind of

533
00:38:30,320 --> 00:38:41,040
tricky. Um, are we expecting any revenue
from this at from to the city or this is

534
00:38:39,520 --> 00:38:46,160
» I imagine there's so much investment
that needs to go on from the feasibility

535
00:38:43,520 --> 00:38:54,160
study that we saw. identified like at
the bottom level is like $30 million. Um

536
00:38:49,839 --> 00:38:59,359
so are we paying for you said operations
I don't know what that is and then do we

537
00:38:57,760 --> 00:39:04,880
expect revenues?
>> So vice mayor and council member Jeff

538
00:39:01,760 --> 00:39:09,680
this is um so again they are operating
on our behalf. So it is still city funds

539
00:39:07,680 --> 00:39:14,480
that are funding all of the operations.
So anything operational on that campus

540
00:39:12,079 --> 00:39:16,640
is still a city funded operations.
>> So we're see keeping all the revenue and

541
00:39:16,320 --> 00:39:20,160
city
>> keeping all the revenue. Right.

542
00:39:17,920 --> 00:39:23,599
» And then the commission base and all
that. That's where you're right

543
00:39:22,079 --> 00:39:27,440
» getting your revenues. Okay.
>> Correct. So Legends Global would receive

544
00:39:25,440 --> 00:39:31,359
exactly what was on that list. Anything
above and beyond that are everything is

545
00:39:29,520 --> 00:39:35,440
city revenues. The only thing that comes
out of those city revenues are exactly

546
00:39:33,200 --> 00:39:40,560
what's on that list based on formulas.
>> Okay. Then looking at the way we

547
00:39:38,880 --> 00:39:45,040
envisioned [clears throat] our arts and
innovation district is a lot of

548
00:39:42,320 --> 00:39:48,880
development over property that is around
the convention center on the convention

549
00:39:46,880 --> 00:39:53,839
center especially a lot of parking lots
maybe could be built over or anyway we

550
00:39:52,400 --> 00:39:59,040
need to do some visioning on that. Is
there anything that prohibits us from

551
00:39:57,119 --> 00:40:02,079
you know development? We wanted to do
the lightw walk and have development

552
00:40:00,560 --> 00:40:06,160
vertically along that up to the
convention center making that connection

553
00:40:03,839 --> 00:40:11,520
from the convention center to downtown
to activate our downtown from the

554
00:40:08,400 --> 00:40:17,440
convention center. Is there
>> So we're still on the grounds. We have

555
00:40:14,800 --> 00:40:22,000
» vice council member de we the ownership
doesn't change. Um all of the plans that

556
00:40:19,359 --> 00:40:25,440
we've done with the the future lightwalk
and the partnerships with ASU and the

557
00:40:24,000 --> 00:40:29,359
rebuilding of that kind of post office
area, the Serin House improvements that

558
00:40:27,760 --> 00:40:33,440
we're going to do, the natural history
museum which is downtown. Anything that

559
00:40:31,520 --> 00:40:37,520
we do at the MAC, all of that stays the
same. So all of the planning that we're

560
00:40:35,440 --> 00:40:43,119
putting in um with Jack Mufay's team and
and JDonnell's team about how to really

561
00:40:40,240 --> 00:40:48,000
lift and boost the downtown, all of that
is still in play. All of that is still

562
00:40:45,200 --> 00:40:53,599
continuing. This actually elevates um by
bringing another another team to the to

563
00:40:50,800 --> 00:40:57,359
the to the group, right? And another set
of expertise about what we could we

564
00:40:55,359 --> 00:41:00,880
could do on campus. How does that fit
into the lightwalk? How do we make that

565
00:40:59,440 --> 00:41:03,760
connection between because that's what
the lightwalk is for, right? is to make

566
00:41:02,319 --> 00:41:07,920
that connection between the convention
center and Main Street because we want

567
00:41:05,839 --> 00:41:11,520
people who come to a concert, we don't
want them to get back in their car. We

568
00:41:09,680 --> 00:41:15,680
want them to go to Main Street, right,
and continue their festivities for that

569
00:41:13,599 --> 00:41:19,280
day and then um and then leave the
downtown, right? We want people to come

570
00:41:17,200 --> 00:41:24,079
early and we want people to stay late.
And so this all um all of this still

571
00:41:22,319 --> 00:41:26,960
continues. What this does is bring
expertise to the table for this

572
00:41:25,839 --> 00:41:31,280
particular campus.
>> Yeah. And we have on the campus of the

573
00:41:29,520 --> 00:41:35,440
convention center, we like I said, we
have a lot of land that's not really

574
00:41:33,280 --> 00:41:39,520
producing anything and reworking that.
We still have that opportunity within

575
00:41:37,040 --> 00:41:45,760
the campus of the convention center to
continue that vision of utilizing the

576
00:41:42,640 --> 00:41:52,720
property. Okay. Um
we have um existing contracts especially

577
00:41:50,079 --> 00:41:56,960
with Mesa AMP and stuff like that. Does
that all terminate or do you work with

578
00:41:55,440 --> 00:42:00,640
like I know Danny Leco?
>> No. So yeah, Vice Mayor and Council

579
00:41:58,480 --> 00:42:04,960
Member Duff, all contracts um will
continue. So this is a seamless

580
00:42:02,400 --> 00:42:09,839
transition at the end of the day. Um we
hope that our customers um just have a

581
00:42:08,079 --> 00:42:13,040
seamless transition with us as we work
through the next two months in that

582
00:42:11,520 --> 00:42:17,280
transition period. Those are all the
things that would be um identified. Yes,

583
00:42:15,520 --> 00:42:21,280
this is an industry that books out one,
two, or sometimes three years ahead

584
00:42:18,880 --> 00:42:24,560
depending on how large um either the
concert or the convention is. And so

585
00:42:23,359 --> 00:42:28,000
those would just be seamless
transitions. The contracts would remain

586
00:42:26,160 --> 00:42:31,920
in place. Any contract signed on behalf
of the city of Mesa is still in place

587
00:42:29,920 --> 00:42:35,760
when Legends Global comes in to manage
that particular contract.

588
00:42:33,680 --> 00:42:39,520
» Um there may be some uh different
subcontractors, those types of things.

589
00:42:37,760 --> 00:42:44,480
So they will have people who have
contracted with us for a convention,

590
00:42:41,599 --> 00:42:49,280
let's say for next year. um they would
now have um access to the new food and

591
00:42:46,960 --> 00:42:51,760
beverage um selections that they could
work from, but the contract itself would

592
00:42:51,040 --> 00:42:54,560
remain in place.
>> Food and beverage. Yeah, we need to work

593
00:42:53,280 --> 00:43:00,560
on that, especially when it comes to the
Mesa AMP. And I I love that you had the

594
00:42:57,359 --> 00:43:05,599
elevated food concepts there. and like
to encourage

595
00:43:02,480 --> 00:43:10,000
where appropriate using some of our
local restaurants and beverage providers

596
00:43:07,760 --> 00:43:14,160
that are you know especially in the
beverages they make their own products

597
00:43:12,240 --> 00:43:19,520
and stuff like that and do distribution
to grocery stores they have the capacity

598
00:43:15,760 --> 00:43:22,400
to um sell and it keeps it unique kind
of like airports right you go to

599
00:43:20,800 --> 00:43:26,560
airports and it's boring now if you go
to an airport and they have the standard

600
00:43:24,400 --> 00:43:32,160
whatever you know you want to see some
local fair

601
00:43:27,440 --> 00:43:36,640
» I um Vice Mayor, Council Member Duff, um
that is foundational to how we operate

602
00:43:33,920 --> 00:43:40,880
our food and beverage operations. um
incorporating technology, speed of sale,

603
00:43:38,880 --> 00:43:45,920
proper points of sale, graband go, all
those things, elevated VIP club

604
00:43:43,119 --> 00:43:49,359
experiences, premium experiences, but um
foundational is the use of local

605
00:43:47,599 --> 00:43:53,599
products, local vendors, local brands,
local suppliers, giving local community

606
00:43:52,000 --> 00:43:58,400
businesses and entrepreneurs an
opportunity um to elevate their

607
00:43:55,599 --> 00:44:02,480
operations, turn jobs into careers,
right? And providing them an opportunity

608
00:44:00,319 --> 00:44:06,079
that that's central to how we operate
municipally owned buildings. I mean that

609
00:44:03,920 --> 00:44:10,400
to me that's a core mission is providing
opportunities for local businesses and

610
00:44:08,560 --> 00:44:16,079
from an event experience standpoint I
think whether it's a convention a

611
00:44:11,520 --> 00:44:19,760
meeting a concert um the locals are are
they go to a show they want to

612
00:44:18,160 --> 00:44:22,319
experience brands and products that
they're familiar with that they're

613
00:44:20,800 --> 00:44:26,240
comfortable with it's a feeling of this
is our venue right a sense of equity in

614
00:44:24,160 --> 00:44:30,160
that venue and people coming from out of
town and visitors um they want to

615
00:44:28,560 --> 00:44:34,319
experience Mesa right they want to
experience local products and brands and

616
00:44:32,880 --> 00:44:37,920
um as part of the food and beverage
operation which is central to the event

617
00:44:35,920 --> 00:44:43,119
experience as we all know um and revenue
generation. I mean that is that is core

618
00:44:40,240 --> 00:44:47,520
to to the success of any any venue.
>> I appreciate that. It helps our

619
00:44:45,440 --> 00:44:52,480
businesses and our community by keeping
those dollars invested locally, but it

620
00:44:49,680 --> 00:44:59,200
really helps us brand downtown as well
as being that uniquely local experience

621
00:44:55,440 --> 00:45:03,920
by having it extended into the auxiliary
um building so we have more of a

622
00:45:00,960 --> 00:45:08,640
presence. So, thank you for for that.
Um,

623
00:45:05,680 --> 00:45:13,359
I just wanted to
um put in there the arts and innovation

624
00:45:11,119 --> 00:45:19,359
district. Of course, we're working with
ASU and the creative technologies

625
00:45:16,079 --> 00:45:23,359
and um you know,
augmented reality, virtual reality,

626
00:45:21,359 --> 00:45:27,040
filming, gaming, all these kinds of
things. And I I saw in your

627
00:45:25,440 --> 00:45:34,720
presentation, which I like very much, is
being able to do hybrid events as well

628
00:45:30,560 --> 00:45:38,000
as immersive events. And um I think that
could really put us on the map for our

629
00:45:36,400 --> 00:45:42,720
convention center is being highly
specialized to being able to do that,

630
00:45:40,480 --> 00:45:47,839
especially when we have so much talent
that we'll even more with more ASU

631
00:45:45,119 --> 00:45:53,920
schools here. um being able to integrate
and be have that identity do for the

632
00:45:51,839 --> 00:46:00,800
arts and innovation district, being part
of that, having that unique um venue

633
00:45:57,839 --> 00:46:06,160
that can do a gaming thing or things
like that that really are kind of new in

634
00:46:03,359 --> 00:46:11,040
the space. And it helps us again with
our identity and what we're trying to do

635
00:46:07,680 --> 00:46:18,000
in the economic development um the job
creation side of it for the downtown

636
00:46:13,520 --> 00:46:22,640
area. Um, oh, and we're doing a a music
scene and trying to get that going in

637
00:46:20,079 --> 00:46:29,440
downtown. I'm sure you've met with DMA.
And so, again, that's an extension of

638
00:46:24,800 --> 00:46:35,359
it. Now, um, we do use the convention
center for city events, whether the

639
00:46:32,000 --> 00:46:39,920
grounds um, events and community events,
United Food Bank, we usually do our

640
00:46:36,960 --> 00:46:44,720
turkey drives or whatever, those kind of
things. Are we looking at continuing

641
00:46:41,839 --> 00:46:48,079
that? Do we have access and rights to
>> working through those? Because it is

642
00:46:47,040 --> 00:46:51,839
kind of a
>> vice mayor and council member Duff. We

643
00:46:49,760 --> 00:46:55,920
actually have highlighted um as we go
through the contract, we've proposed

644
00:46:53,680 --> 00:46:58,640
specific events that will continue um
whether they're date specific like

645
00:46:57,359 --> 00:47:03,040
Celebrate Freedom, which is state
specific, or if they're um dates that we

646
00:47:01,280 --> 00:47:06,000
can work in conjunction with Legends
Global to find the right date, which is

647
00:47:04,480 --> 00:47:09,920
what we do with our our convention
center staff today, is looking for

648
00:47:08,000 --> 00:47:13,920
whether they're revenue options versus
an event that we need to do. we have

649
00:47:11,920 --> 00:47:18,640
highlighted the United Food Bank uh food
distribution, those two particular um

650
00:47:16,560 --> 00:47:22,800
uses of the parking lot on those days.
So, there's those particular state of

651
00:47:20,319 --> 00:47:28,000
the city um um those types of things
that we do on an annual basis. Um and

652
00:47:25,520 --> 00:47:32,880
also our departments use um a lot of the
rooms and so forth for events or

653
00:47:30,000 --> 00:47:38,319
meetings and so we would continue with a
fee structure for our department city

654
00:47:35,040 --> 00:47:43,760
use separate from the commercial use.
>> Okay. Okay. um you've touched upon it

655
00:47:41,680 --> 00:47:49,200
but you know do you have a vision over
all of the evolving you know what that

656
00:47:46,560 --> 00:47:52,960
is you've t we've talked a lot about
what's wrong with it not I'm not saying

657
00:47:50,960 --> 00:47:58,400
through you but over the years we've
like realized we have some things that

658
00:47:55,599 --> 00:48:02,319
need to be remedied um but as you look
forward and with your experience and

659
00:48:00,240 --> 00:48:10,000
knowledge working nationally with so
many venues do you what's your vision of

660
00:48:04,960 --> 00:48:14,319
how this can fit into the national
offerings and how we could stand out

661
00:48:12,079 --> 00:48:21,040
uniquely.
>> Yeah. Um, Vice Mayor, Council Member

662
00:48:16,880 --> 00:48:26,640
Duff, I I the vision is this is an
asset. It's a centerpiece asset for the

663
00:48:22,960 --> 00:48:30,800
community, right? Um, and in many way,
shapes, and forms, right? It's um you

664
00:48:29,440 --> 00:48:35,839
obviously there's the financial end of
it that's driving the e economic impact,

665
00:48:32,720 --> 00:48:40,000
but in many respects these venues help
shape or detract from the image of a

666
00:48:37,599 --> 00:48:44,160
downtown, right? And we've seen that if
they're well booked, if the service is

667
00:48:41,760 --> 00:48:49,119
good, um they are ingrained as part of
the community, it elevates, it lifts all

668
00:48:46,079 --> 00:48:53,280
boats. Um if the event schedule is down,
right, the facilities are not taken care

669
00:48:50,880 --> 00:48:56,400
of, uh they're in poor condition, it
just not only detracts from that

670
00:48:54,800 --> 00:49:01,839
individual
um operation and venue, but it reflects

671
00:48:59,359 --> 00:49:05,520
on the whole city. So um they're
centerpiece assets, right? They they

672
00:49:03,440 --> 00:49:14,000
impact the brand, the image of the city
as well as financially. So in my mind

673
00:49:08,240 --> 00:49:17,599
it's um establishing venues that are um
setting the trends or ahead of the

674
00:49:15,280 --> 00:49:21,760
trends of what's going out there um in
going on out there in the industry. Uh

675
00:49:19,599 --> 00:49:26,000
which we feel we are we have our finger
on the pulse of and in many cases we're

676
00:49:23,359 --> 00:49:31,760
actually setting those trends. Um again
two separate industries. Um but the

677
00:49:28,559 --> 00:49:36,400
bottom line is um having a venue and
having it operated in a way that it is a

678
00:49:34,400 --> 00:49:40,000
complimentary centerpiece asset to all
of all the assets and all the new stuff

679
00:49:38,240 --> 00:49:43,680
and improvements and investment and
technology that's going on in the city

680
00:49:41,440 --> 00:49:48,079
of Mesa so that it's complimentary. It
lifts all boats and we're all working

681
00:49:45,040 --> 00:49:52,000
together to do that. Um you know and it
comes down to collaboration it comes

682
00:49:49,440 --> 00:49:56,079
down to knowledge. comes down to um
again bringing that that experience from

683
00:49:53,839 --> 00:50:00,559
a worldwide scale of managing v many
venues just like this driving people

684
00:49:58,400 --> 00:50:04,000
downtown keeping people here as Candace
I think mentioned for two or three days

685
00:50:02,640 --> 00:50:10,400
not just coming to a show and leaving
but can we give them um a destination

686
00:50:07,520 --> 00:50:14,640
experience that is enjoyable that's
going to bring them back that's going to

687
00:50:11,680 --> 00:50:18,480
spread positive word of mouth um and
that that's goes beyond as I think we've

688
00:50:16,880 --> 00:50:22,400
touched on today just the venues the
district around that the opportunities,

689
00:50:20,720 --> 00:50:28,480
the attractions, the safety, the
security um um you know, the traffic

690
00:50:26,160 --> 00:50:33,040
flow, pedestrian and vehicular, does it
all make sense? Is it all coordinated?

691
00:50:30,720 --> 00:50:36,880
Um to provide the best experience,
right? And it's all about, as I said,

692
00:50:35,440 --> 00:50:41,119
it's all about lifting all boats and
working with stakeholders to to elevate

693
00:50:39,040 --> 00:50:43,920
the entire destination of which these
are centerpiece assets for the

694
00:50:42,720 --> 00:50:50,559
destination.
>> And yeah, I'll I'll add to that a little

695
00:50:46,240 --> 00:50:54,960
bit. Um, just kind of uh adding to a lot
of the points Harry made. Um, I think

696
00:50:53,440 --> 00:50:58,240
we're we're at at a time in both the
live entertainment and convention

697
00:50:56,160 --> 00:51:01,440
industry where planners, promoters,
attendees, they're looking for something

698
00:50:59,440 --> 00:51:04,319
more unique, more authentic. We know
there's certain lines of businesses and

699
00:51:03,040 --> 00:51:08,079
in certain cities we're not going to
compete with in terms of size, but we

700
00:51:06,079 --> 00:51:12,960
can very much differentiate in terms of
experience, technology. um throughout

701
00:51:10,800 --> 00:51:16,480
the the uh report writing process. I
mean, I was really excited, genuinely

702
00:51:14,800 --> 00:51:20,160
excited for for the f future of downtown
Mesa. So, there's paths we could go um

703
00:51:18,559 --> 00:51:23,280
in in terms of planning this this
downtown, certainly for a city that

704
00:51:21,599 --> 00:51:27,440
continues to grow and the convention
center and amphitheater could and should

705
00:51:24,880 --> 00:51:32,960
be a major anchor to to what does happen
here. So aligning with uh these goals

706
00:51:30,400 --> 00:51:35,760
regarding technology um the the the
lightwalk and and various public

707
00:51:34,559 --> 00:51:39,760
improvements we want to make throughout
downtown. Also aligning with economic

708
00:51:37,440 --> 00:51:43,839
development and going after highv value
tech and other industries that can come

709
00:51:42,000 --> 00:51:47,680
to town. This can be the welcome mat,
the showroom for those various

710
00:51:45,680 --> 00:51:52,000
industries. We're not going after 10,000
attendee conventions. We're going after

711
00:51:49,760 --> 00:51:55,359
meetings, gatherings, conferences, and
certainly leveraging what Arizona State

712
00:51:53,680 --> 00:51:58,640
has here and other labor that we have
here that's in the world of immersive

713
00:51:56,720 --> 00:52:02,400
experiences, which I think we're just,
you know, starting to get past the tip

714
00:52:00,720 --> 00:52:05,760
of the iceberg about opportunities for
there. Um, we're excited for that and

715
00:52:04,160 --> 00:52:08,800
it's a moving target. You know, I we
made that report last year and we can't

716
00:52:07,280 --> 00:52:11,680
fully predict what this facility could
and should look like 10 years from now,

717
00:52:10,319 --> 00:52:16,400
right? But that's why we're excited to
be part of the team uh to provide just

718
00:52:14,160 --> 00:52:20,000
data for decision-m on an ongoing basis
as we plan this out in phases over the

719
00:52:18,880 --> 00:52:24,319
coming years.
>> Well, I I appreciate your expertise. I

720
00:52:22,160 --> 00:52:30,880
look forward to working with you and
also continuing the engagement with the

721
00:52:28,079 --> 00:52:35,760
entities in in the surrounding area with
economic development. I could see this,

722
00:52:33,839 --> 00:52:41,440
you know, having a great convention
center in that museum being a cat

723
00:52:37,839 --> 00:52:46,000
catalyst along with the ASU schools for
the economic development and job

724
00:52:43,119 --> 00:52:51,760
creation that we want to do um along the
lightwalk and have, you know, um those

725
00:52:50,160 --> 00:52:55,680
opportunities. We have a great downtown,
but we need the jobs. We need the

726
00:52:54,079 --> 00:52:58,720
professional jobs here, and that's what
we're lacking. And that could really

727
00:52:57,040 --> 00:53:03,280
help. but working with economic
development and visit Mesa, we want to

728
00:53:00,400 --> 00:53:08,240
be the destination and our downtown and
ASU so that we holistically leverage all

729
00:53:06,640 --> 00:53:16,000
the assets that we're all bringing to
the table to um make each partner

730
00:53:12,319 --> 00:53:21,040
better. So, thank you.
>> Do we know off top of our heads how many

731
00:53:18,400 --> 00:53:25,440
days the convention center is booked for
the amphitheater

732
00:53:23,760 --> 00:53:29,440
currently?
>> I do. Uh, Vice Mayor, we have that data,

733
00:53:27,520 --> 00:53:34,160
but I don't have it in front of me, but
we can provide that data to the council.

734
00:53:31,359 --> 00:53:38,559
We are we are heavily utilized, I will
say, um, in that. And so, what we're

735
00:53:36,079 --> 00:53:43,599
really looking at is how to elevate what
we're already doing. How do we get that

736
00:53:40,880 --> 00:53:48,000
next tier convention, the ones who stay
for a few days, not just come in for the

737
00:53:45,920 --> 00:53:54,640
day and back out again? How do we get
the people who travel for that artist,

738
00:53:51,119 --> 00:53:58,720
not across town, but across the state?
um you know how do we do so it's really

739
00:53:56,720 --> 00:54:02,240
it's not necessarily a utilization it's
the type of acts and the type of

740
00:54:00,480 --> 00:54:04,800
conventions that create the bed bed
nights

741
00:54:02,800 --> 00:54:08,000
» yeah and you absolutely nailed where I
was going with that because I was

742
00:54:06,400 --> 00:54:12,240
curious the second followup was going to
be how many of those are multi-days as

743
00:54:10,480 --> 00:54:17,520
we want them staying at the delta so the
delta could also continue to do the

744
00:54:15,040 --> 00:54:20,640
investments that they want to make
>> right

745
00:54:18,319 --> 00:54:24,880
» to upscale this uh at the same time
>> yeah and vice that's exactly what we're

746
00:54:22,240 --> 00:54:28,400
looking at and for. So, it's it's really
never been a point of are we not

747
00:54:26,800 --> 00:54:32,559
utilizing the rooms? Are they not being
booked? They are being booked. It's this

748
00:54:30,640 --> 00:54:35,839
it's not necessarily overnight stays.
We're not. And that's what we're looking

749
00:54:33,920 --> 00:54:39,680
for is how do we encourage people to
come to downtown for more than just the

750
00:54:37,839 --> 00:54:42,319
day, right? We want them to be here for
the weekend or the week or um those

751
00:54:41,760 --> 00:54:46,000
types of things.
>> And I appreciate the discussion of the

752
00:54:44,400 --> 00:54:51,760
Mesa Celebration of Freedom because
that's going to continue to be a a

753
00:54:48,960 --> 00:54:54,720
marquee event for our community. Uh, I
see Chief Camelly in the background and

754
00:54:53,520 --> 00:54:59,359
one of the events I was thinking about
is the Arizona Fire School comes in and

755
00:54:56,720 --> 00:55:03,280
that's a multi-day event that utilizes
that facility.

756
00:55:01,520 --> 00:55:07,200
Beverage sale should be interesting,
Mary

757
00:55:04,960 --> 00:55:09,839
as they improve. And you had a comment,
Mr. Butler.

758
00:55:07,920 --> 00:55:16,480
» Well, no, I mean, Vice Mayor, you you
nailed it. It's again it's back to to

759
00:55:12,800 --> 00:55:20,880
high value utilization of the facility
because because we we do as I stated

760
00:55:18,800 --> 00:55:25,520
earlier we start off at a better spot
than a lot of smaller convention centers

761
00:55:23,440 --> 00:55:29,280
or maybe Harry could maybe tell me even
larger convention centers that we don't

762
00:55:27,359 --> 00:55:33,119
have to subsidize these facilities. They
break even. But so that's great. That's

763
00:55:31,599 --> 00:55:38,000
a good starting point. But the reality
is it it wasn't those high value

764
00:55:35,119 --> 00:55:43,280
conferences and shows that generate room
nights that that allowed people to stay.

765
00:55:40,160 --> 00:55:47,599
It it's great that we can book the venue
and um people would get in their car in

766
00:55:45,440 --> 00:55:51,760
their morning in Glendel and drive to
Mesa and be at a conference for four or

767
00:55:50,160 --> 00:55:55,680
five hours and then get back into their
car and drive back to Glendel all

768
00:55:54,079 --> 00:56:02,079
without frequenting a downtown
restaurant, without putting a head in

769
00:55:58,400 --> 00:56:06,319
bed at the Delta. Um so those were just
opportunities that we know with this

770
00:56:04,319 --> 00:56:12,160
partnership we'll be able to maximize
for high value um opportunities that can

771
00:56:10,400 --> 00:56:16,559
generate that revenue and have that
ripple effect not just through the the

772
00:56:14,720 --> 00:56:20,079
revenue that the facility brings in but
what that means for restaurants and

773
00:56:17,920 --> 00:56:24,319
hospitality and and businesses in
downtown Mesa. I mean, we've we've all

774
00:56:22,480 --> 00:56:28,160
been to conferences, overnight
conferences, and you know that impact

775
00:56:25,760 --> 00:56:31,359
that it has when people are going out at
night and going to the restaurants and

776
00:56:29,760 --> 00:56:35,599
and getting up in the morning and going
to the coffee shops and and and having

777
00:56:33,920 --> 00:56:39,599
those type of experiences. And so,
that's what we um hope to generate

778
00:56:37,839 --> 00:56:43,040
through through this partnership. Well,
not only that, I think about how many

779
00:56:41,280 --> 00:56:47,359
conferences we go to and by the time
we're starting to wind down, the next

780
00:56:44,720 --> 00:56:51,119
one is starting to wind up and and it's
just an exchange. And that's the kind of

781
00:56:49,440 --> 00:56:55,280
thing that we want to see is just one
right into the other.

782
00:56:52,640 --> 00:56:59,040
» Um, where do we see our naming rights?
At what point we might be be able to

783
00:56:57,200 --> 00:57:05,520
generate some revenue from naming
rights? I'm Arizona Financial Theater,

784
00:57:02,240 --> 00:57:10,274
Desert Diamond Arena, State Farm. Um,
Tempe Stadium is apparently sponsored by

785
00:57:08,480 --> 00:57:14,640
the devil.
[laughter]

786
00:57:12,079 --> 00:57:18,079
» Maybe not that one, but
>> Well, you know, depends on the check.

787
00:57:16,880 --> 00:57:21,599
Depress on the check. Well, I don't
know. The White Socks did the Pope thing

788
00:57:19,760 --> 00:57:26,160
the other day. That might be closer to
our kind of flavor around here.

789
00:57:24,000 --> 00:57:30,000
» Um, Vice Mayor, we will be um we will be
looking into those types of of things.

790
00:57:28,079 --> 00:57:33,839
All sponsorships to me are on the table.
Um, there are certain ones that would

791
00:57:31,440 --> 00:57:39,599
come back if it's name, not the devil.
Um, but um unless it's the Sunundevil.

792
00:57:36,720 --> 00:57:42,400
Um, but it's uh naming rights, those
types of things would come back to

793
00:57:40,720 --> 00:57:45,280
council. Something of that magnitude.
any type of a naming rights. We already

794
00:57:43,760 --> 00:57:49,040
have a policy in place for any naming
rights would come back to council for

795
00:57:46,720 --> 00:57:53,440
approval. Um but we'll be pursuing those
as well as just general sponsorships and

796
00:57:51,680 --> 00:57:56,480
advertising and things. How can we
monetize the campus?

797
00:57:54,880 --> 00:57:59,920
» All right. That's good to hear it come
back. There are a few I think that we

798
00:57:58,160 --> 00:58:02,559
would probably want to shy away from.
I've never

799
00:58:00,559 --> 00:58:07,760
» Sure. We we would obviously be very
cognizant of a public venue and and um

800
00:58:05,359 --> 00:58:11,680
wouldn't just Yeah, that would that
would be forefront of our thinking and

801
00:58:09,839 --> 00:58:15,760
partnership. And I know Legends Global
is very uh in any market that they're in

802
00:58:14,079 --> 00:58:18,319
dealing with a public private
partnership. They're everyone would be

803
00:58:17,760 --> 00:58:21,440
cognizant
>> and I I think the mayor is going to very

804
00:58:20,000 --> 00:58:24,480
much appreciate how many times he's
heard elevate in this conversation. So

805
00:58:23,839 --> 00:58:30,000
» maximize
>> and maximize well it's mostly elevate

806
00:58:26,240 --> 00:58:35,359
me. So fantastic questions from my left
side. No pressure on the right side, but

807
00:58:33,520 --> 00:58:37,680
that's where we're going to head with
>> I don't think there's anything left.

808
00:58:37,390 --> 00:58:43,280
[laughter]
>> It was well done. Um really and truly

809
00:58:40,960 --> 00:58:48,400
they you know Council Member Duff and
Adams covered most of my questions but I

810
00:58:46,160 --> 00:58:53,680
just do have a couple comments which you
know I appreciate that we've set the

811
00:58:50,240 --> 00:58:58,480
stage here on um telling us where we are
right now. I I didn't remember that we

812
00:58:56,640 --> 00:59:03,119
break even. So, I'm glad that you
mentioned that, Scott, and that the what

813
00:59:00,960 --> 00:59:08,400
the point and the goal and objective of
this is for, which is to

814
00:59:06,160 --> 00:59:13,520
capture more of that economic value
around downtown Mesa from the events at

815
00:59:11,520 --> 00:59:19,680
the convention center and amphitheater
as well as generate revenue to reinvest

816
00:59:17,520 --> 00:59:26,000
in improving those facilities because I
think to go out and to ask folks um to

817
00:59:23,760 --> 00:59:33,119
pay for that is is a lot there's a lot
more risk and in this way. We we sort of

818
00:59:29,040 --> 00:59:36,960
uh we prove that um we we do a test case
and we prove that that it's necessary.

819
00:59:34,799 --> 00:59:44,640
And I think people are are a little bit
more um apt to buy in and support um a

820
00:59:41,359 --> 00:59:50,079
capital improvement um program later on
when we've shown um the increase in

821
00:59:47,359 --> 00:59:53,359
improvement that we can make by using
what we have now. And I think that

822
00:59:51,760 --> 00:59:57,280
that's fantastic. I think we'll be able
to do that with your expertise and your

823
00:59:54,880 --> 01:00:02,880
network is to improve upon what we
already have uh and then build on that

824
00:59:59,680 --> 01:00:05,760
with uh adding funding investment in at
a later date.

825
01:00:03,839 --> 01:00:10,480
» And and let me be clear, Vice Mayor and
Council Member, I I do believe um and

826
01:00:08,319 --> 01:00:17,040
and we've you know, we've been working
with with Legends on on this and and um

827
01:00:13,920 --> 01:00:22,480
Mr. Kennington and others. We um we
believe again that the revenue generated

828
01:00:19,760 --> 01:00:26,880
on site will produce uh enough that's
going to allow us to make those capital

829
01:00:24,880 --> 01:00:32,400
investments. And so when we talk about
proving it up for um the rest of the

830
01:00:29,760 --> 01:00:36,960
community, we we want to take the burden
off the rest of the community. We want

831
01:00:34,400 --> 01:00:40,880
this to be userdriven and and that's
what this partnership will allow us to

832
01:00:38,799 --> 01:00:46,559
do. So I assume there's been discussions
about what those targets are

833
01:00:43,040 --> 01:00:53,440
» over and I over the five years um of the
contract the initial five years. Uh and

834
01:00:50,960 --> 01:00:58,079
» I I I don't I mean I see some some
incentive in there but there's no quotas

835
01:00:55,680 --> 01:01:00,640
or anything like that. Do we have any we
just have targets and we have some

836
01:00:59,520 --> 01:01:02,960
incentives.
>> Is that correct?

837
01:01:01,280 --> 01:01:07,119
» We have Vice Mayor and Council Member Go
forth. Those will be um negotiated each

838
01:01:05,599 --> 01:01:11,520
year when we put together the annual
budget and annual plan. Okay.

839
01:01:08,880 --> 01:01:16,640
» And so part of the contract is that each
annual plan is approved. They will they

840
01:01:14,720 --> 01:01:19,520
will propose one and we will have to
approve it. So there'll be some

841
01:01:17,760 --> 01:01:23,280
negotiations on what our targets are for
that year and the following year. So

842
01:01:21,520 --> 01:01:25,680
everything we set up is because we have
already put together targets before the

843
01:01:24,799 --> 01:01:28,000
year begins.
>> Okay.

844
01:01:26,160 --> 01:01:31,839
» And and this is you know Harry Harry's
got a business to run, right? And I

845
01:01:29,520 --> 01:01:36,160
appreciate that we can build into this
the opportunity that the more business

846
01:01:34,400 --> 01:01:41,040
that's brought and the higher value
business and the more FNB sells, they're

847
01:01:38,960 --> 01:01:44,480
going to win and we're going to win. And
that's that's what's great about this is

848
01:01:42,880 --> 01:01:49,119
that they have those connections and
those relationships that can bring that

849
01:01:46,559 --> 01:01:52,880
in. And the the better they do, the
better they'll do financially and the

850
01:01:50,720 --> 01:01:57,920
better we'll do financially. So it is it
really is that that partnership

851
01:01:54,480 --> 01:02:00,799
incentive that um is is great about this
relationship.

852
01:01:59,119 --> 01:02:05,520
» Yeah. I was a little surprised about the
five years, but is that sort of

853
01:02:02,319 --> 01:02:09,440
standard? Is that you know that I'm not
in this industry obviously, so maybe it

854
01:02:07,839 --> 01:02:13,680
is, but when I saw five years, I was
just a little surprised at the length.

855
01:02:11,040 --> 01:02:20,799
» Um Vice Mayor, Council Member Goforth,
um that is a fairly common term. Um

856
01:02:17,440 --> 01:02:27,680
without getting too much in in depth um
you know tax code kind of plays a role

857
01:02:23,280 --> 01:02:32,000
in when a when a facility is um uh built
or expanded renovated with taxfree

858
01:02:30,160 --> 01:02:37,440
bonds. There's certain regulations that
come into play with regard to how deal

859
01:02:33,760 --> 01:02:41,440
structures um um can be put together in
terms of term and calculations of

860
01:02:39,040 --> 01:02:46,559
incentives. So um this is somewhat of a
traditional um uh deal structure. It's

861
01:02:44,400 --> 01:02:51,040
performance-based to Scott's point. 100%
performance based. Yes, we get a base

862
01:02:48,000 --> 01:02:57,760
fee, but um we're incentivized to
maximize quantity, quality, diversity of

863
01:02:53,760 --> 01:03:01,920
events in both venues. Um uh which if
we're making more money than the city is

864
01:02:59,280 --> 01:03:06,319
much better off than we are. So um it
aligns our goals, it aligns our

865
01:03:03,440 --> 01:03:10,240
interests. Um so again, this is a fairly
common structure that we see with many

866
01:03:07,920 --> 01:03:15,440
of our municipal clients. Um,
>> so um it's it's pedal to the ground

867
01:03:13,520 --> 01:03:18,160
every day to to maximize opportunities
and to maximize revenue with a

868
01:03:16,880 --> 01:03:22,319
commercial mindset
>> and and vice mayor um council member Go

869
01:03:20,319 --> 01:03:29,440
forth and and we also have to avoid the
whiplash as as well. Obviously we are um

870
01:03:26,400 --> 01:03:33,359
we are working with our employees to um
to relocate those employees whether they

871
01:03:31,680 --> 01:03:38,559
choose to continue in the hospitality
industry or whether they um want to move

872
01:03:36,319 --> 01:03:42,160
to another position within the city. But
this isn't something that can be done

873
01:03:40,000 --> 01:03:46,960
lightly, right? You can't stand up your
own operations and then ratchet it down

874
01:03:44,960 --> 01:03:51,599
um you know overnight. And so that's why
five-year terms really um reasonable.

875
01:03:49,599 --> 01:03:56,960
They they have to staff up. they have to
make their assumptions of their ROI um

876
01:03:54,480 --> 01:04:02,240
on on a relationship like this and and
smaller terms would be difficult for us

877
01:03:59,599 --> 01:04:06,559
and for them to really make pencil out
and and practically be able to to ramp

878
01:04:04,400 --> 01:04:11,359
up hiring and and everything that's
needed to sustain that operation under

879
01:04:09,039 --> 01:04:15,680
shorter term. though. And that's why I I
think, you know, as as Candace, we're

880
01:04:13,119 --> 01:04:19,119
we're very proud of this relationship
now that we're entering into with with

881
01:04:17,200 --> 01:04:23,920
Legends. But this was a competitive
process and I I think that speaks to the

882
01:04:21,039 --> 01:04:29,839
market. Um some of their major
competitors in this space were um

883
01:04:27,520 --> 01:04:34,319
competed for this and and again, so I
think that really shows I mean they're

884
01:04:32,799 --> 01:04:37,280
this is their business. They know what
they're doing and and and their

885
01:04:35,839 --> 01:04:41,599
competitors know what they're doing. And
so the fact that they looked at these

886
01:04:38,960 --> 01:04:45,359
venues, uh, they toured the facilities,
they they saw the good and the bad of of

887
01:04:43,680 --> 01:04:49,280
these facilities, and yet it was a very
competitive process, I think, speaks to

888
01:04:47,119 --> 01:04:53,920
the opportunity that's there. We've got
facilities with good bones. That good

889
01:04:51,119 --> 01:04:58,720
opportunity well situated in this metro
area that can be better maximized with

890
01:04:56,799 --> 01:05:02,319
with these strategic strategic
investments on the capital side, but

891
01:05:00,480 --> 01:05:07,200
strategic partnerships on the type of
users that we're bringing into to these

892
01:05:04,240 --> 01:05:11,039
venues. Well, I
for me I think given the age of the

893
01:05:09,280 --> 01:05:14,559
facility and what we've experienced and
what we know we want it to be having a

894
01:05:13,039 --> 01:05:20,880
partner willing to be here for five
years, they need the longer runway to to

895
01:05:18,559 --> 01:05:25,039
make put the heartbeat back into this
place.

896
01:05:21,760 --> 01:05:29,839
» So, you know, it's performance-based,
which is important, but also it doesn't

897
01:05:27,359 --> 01:05:35,200
let them escape us. So, they're they're
dedicated to us at this point. Yeah, I

898
01:05:32,480 --> 01:05:40,640
think this is I'm I am excited for this.
I think this is the right first step in

899
01:05:38,079 --> 01:05:46,720
in the long future of these facilities
is to um partner with you all who know

900
01:05:44,640 --> 01:05:50,480
what you're doing um who have the
expertise in the network. I think this

901
01:05:48,160 --> 01:05:57,200
is a great first step and again like I
said to to make the case that we should

902
01:05:52,960 --> 01:06:01,039
invest um more financially um and make
huge in capital investments. So, I I I

903
01:05:59,280 --> 01:06:04,559
am happy that we're going this route
first, and I'm excited because I think

904
01:06:02,640 --> 01:06:08,880
we all knew there was there was room for
improvement. Um, not that,

905
01:06:06,960 --> 01:06:12,880
» you know, it was okay, but there was
definitely there's definitely room for

906
01:06:11,039 --> 01:06:19,440
improvement. You obviously see it as
well um in its existing state with a few

907
01:06:16,720 --> 01:06:23,680
with a few tweaks um before we get to
some of the bigger investments. So,

908
01:06:21,440 --> 01:06:27,520
anyway, appreciate it. Thank you for the
um presentation. I look forward to

909
01:06:25,280 --> 01:06:30,799
seeing all the great things. I going to
more concerts. [laughter]

910
01:06:29,839 --> 01:06:32,880
» More wheezer.
>> Yeah.

911
01:06:31,200 --> 01:06:35,280
» Council member Taylor, your button
cleanup.

912
01:06:33,520 --> 01:06:37,680
» All right.
>> Thank you. Thank you for the

913
01:06:36,480 --> 01:06:41,440
presentation. Thank you for the time
that you've spent answering all of our

914
01:06:39,200 --> 01:06:44,720
questions. Um I understand the pretty
high level goal. Correct me if I'm

915
01:06:43,359 --> 01:06:49,119
wrong, but really what we're looking to
do is refresh these spaces. The hope is

916
01:06:47,440 --> 01:06:52,480
that we'll obviously drive more business
into downtown Mesa and hopefully

917
01:06:50,880 --> 01:06:56,559
encourage additional businesses to look
at opening up in downtown Mesa. Really

918
01:06:54,880 --> 01:07:00,480
activating the entire area is what I
know activating is like the new buzzword

919
01:06:58,240 --> 01:07:03,920
everywhere. So, I get that, but I tend
to be a little more socratic, so I ask a

920
01:07:02,240 --> 01:07:07,039
lot of questions. The technical details
just help me understand the bigger

921
01:07:05,200 --> 01:07:11,920
picture more and it highlights it
generally for the general public. So, um

922
01:07:10,240 --> 01:07:15,280
I know that you have all of your
projects listed, at least the big ones,

923
01:07:13,680 --> 01:07:18,720
in the presentation. So, thank you. That
actually answered quite a few questions

924
01:07:16,799 --> 01:07:21,520
of where else do you have Arizona
locations that you're currently doing

925
01:07:20,160 --> 01:07:25,760
business in?
>> Um, are those in the feasibility study?

926
01:07:23,680 --> 01:07:30,400
Did we use those additional locations
that they're doing business in to help

927
01:07:27,520 --> 01:07:35,920
bolster their their bid for this
project? You know, the success rates

928
01:07:32,240 --> 01:07:40,400
that you have in Tempe or the Diamond um
uh stadium or the State Farm Stadium,

929
01:07:38,400 --> 01:07:44,160
like have you presented those so that
you don't I can get that information?

930
01:07:42,640 --> 01:07:47,920
» Um, yeah. uh Vice Mayor and Council
Member Taylor, part of the request for

931
01:07:45,920 --> 01:07:53,039
proposals did require that they give us
case examples of areas, things that they

932
01:07:50,880 --> 01:07:56,319
do that are similar in our size and
nature.

933
01:07:53,920 --> 01:08:00,160
» Um also, um just, you know, what is
their history over time? What are their,

934
01:07:58,960 --> 01:08:03,119
you know, what have they what have they
driven? So, it might not be the the

935
01:08:01,599 --> 01:08:06,000
examples they used in their proposal
might not be the ones that was in

936
01:08:04,400 --> 01:08:09,520
Arizona. They might be ones that were
more comparable, okay? uh number of

937
01:08:07,839 --> 01:08:13,760
seats and and square footage and
ballroom size and so forth because those

938
01:08:11,839 --> 01:08:17,359
are more comparable. But those those
were all provided as part of the

939
01:08:15,280 --> 01:08:21,120
proposals from all proposers were
required to bring that in. They were

940
01:08:18,960 --> 01:08:25,440
required to have expertise in this
industry um you know multi-year

941
01:08:23,359 --> 01:08:29,679
expertise in this industry and and prove
it up through their proposals as well as

942
01:08:27,759 --> 01:08:33,120
talk to us about anything that may have
gone ary in the past. Were there

943
01:08:31,199 --> 01:08:35,920
anything that were cancelled um and
those types of things? So those that

944
01:08:34,560 --> 01:08:40,960
type of background was part of that
proposal and part of what we reviewed as

945
01:08:38,159 --> 01:08:45,120
a team um for the selection committee
>> and have the have you experienced with

946
01:08:43,199 --> 01:08:48,159
more boutiquesized
locations? I know our amphitheater is

947
01:08:46,799 --> 01:08:52,480
obviously not huge but I think it's
pretty cool but per capita our city is

948
01:08:50,400 --> 01:08:56,239
quite large. So that's a weird kind of
tenuous relationship with how many

949
01:08:54,400 --> 01:09:00,159
people we have here, how many people we
want to bring in on top of how many

950
01:08:58,239 --> 01:09:04,080
people we have here. and the culture of
our city is very unique in that I'd say

951
01:09:02,159 --> 01:09:08,239
Mesa is very very family friendly. So
that would kind of form and shape the

952
01:09:05,679 --> 01:09:12,640
types of events that we may offer um
additional to events that we might want

953
01:09:09,839 --> 01:09:16,640
to draw people in from outside cities or
locations. So do you have experience

954
01:09:14,880 --> 01:09:21,359
with that very unique relationship
between the per capita size, the size of

955
01:09:19,279 --> 01:09:27,440
the venue and then the culture of the
city?

956
01:09:23,120 --> 01:09:30,400
Um, yes. I mean, there look, there's um
Philadelphia comes to mind, Pittsburgh

957
01:09:28,880 --> 01:09:35,440
comes to mind, Grand Rapids comes to
mind. Um, you fairly larger markets,

958
01:09:33,440 --> 01:09:40,640
maybe not top tier, but that that next
tier where you have to find the right

959
01:09:37,440 --> 01:09:46,560
niche, right, in in that marketplace.
Um, as I mentioned before, this this

960
01:09:43,279 --> 01:09:50,880
venue, this venue size is kind of in our
wheelhouse. Um

961
01:09:48,719 --> 01:09:57,120
» uh if you look at our network and in
some cases um it is the main centerpiece

962
01:09:54,159 --> 01:10:00,560
venue in that community. Um in other
cases it's in a very competitive market

963
01:09:59,199 --> 01:10:03,280
where you've got to find that niche,
you've got to establish that niche. And

964
01:10:01,920 --> 01:10:07,679
that's part of what we talked about with
the city during the process um in terms

965
01:10:06,159 --> 01:10:12,239
of the types of events, in terms of
things we could do with improvements to

966
01:10:09,360 --> 01:10:16,640
position us a little bit better um
within that marketplace. But um every

967
01:10:14,719 --> 01:10:21,120
situation's different. Um we've been
doing this for 45 47 years I think now

968
01:10:19,760 --> 01:10:26,719
» just a little bit of experience.
>> So it it's um you know again it it's a

969
01:10:24,719 --> 01:10:30,239
situation where we've worked hard to
achieve the goals of our municipal

970
01:10:28,000 --> 01:10:36,800
partners. It's finding that right niche.
Um it's it's utilizing the resources we

971
01:10:33,600 --> 01:10:41,360
have customized to their needs. um the
cities, the states, the counties we work

972
01:10:38,480 --> 01:10:47,360
for um all have different goals um
objectives and um it's our job to be

973
01:10:45,760 --> 01:10:52,480
kind of the day-to-day worker bees to
use our our resources to maximize those

974
01:10:50,159 --> 01:10:56,719
venues while um in this case the city of
Mesa sets the miss and sets the goals,

975
01:10:55,040 --> 01:11:02,080
approves the budget, approves major
contracts as Candace said. Um so yeah, I

976
01:11:00,560 --> 01:11:07,760
mean we've got we come in here with
thoughts out of the gate as to what we

977
01:11:03,920 --> 01:11:11,600
can do right away. um sharing of of
leads and opportunities given the other

978
01:11:09,679 --> 01:11:15,679
venues we have in the marketplace,
business relationships that we have with

979
01:11:13,679 --> 01:11:19,520
with premium seat holders at the other
venues or sponsors where they might be

980
01:11:18,000 --> 01:11:23,520
look looking to do a meeting or a
conference and we could rotate that into

981
01:11:21,280 --> 01:11:28,159
Mesa. So, it's that sharing of of
opportunities and leads um that's

982
01:11:26,000 --> 01:11:33,679
central to our thinking here that are a
good fit for this venue. Um, so yeah,

983
01:11:31,760 --> 01:11:36,719
preconceived thoughts, what we can do
right out of the gate, a little bit of

984
01:11:35,280 --> 01:11:40,320
living and learning over time as we're
on the ground here working with

985
01:11:37,840 --> 01:11:45,600
stakeholders, um, learning more about
the venue. Um, so but confidence we can

986
01:11:44,880 --> 01:11:49,949
» Thank you.
>> We can be successful here.

987
01:11:47,120 --> 01:11:53,840
» That's very helpful. Thank you. Um, so
[clears throat]

988
01:11:50,480 --> 01:11:58,080
I had a few other questions. Uh,
I was curious to know just I'm just

989
01:11:55,679 --> 01:12:02,159
going to trail off that one. What would
you consider a premium act of

990
01:12:00,000 --> 01:12:06,159
entertainment coming to the Mesa
Amphitheater that might also share over

991
01:12:04,159 --> 01:12:10,320
to the convention center for this
particular size? Because I I was

992
01:12:08,800 --> 01:12:14,400
thinking about I was thinking about
Glendale Swift City as everyone called

993
01:12:12,159 --> 01:12:18,239
it. And I'm like, man, that brought in
literally hundreds of thousands of

994
01:12:15,840 --> 01:12:22,640
people. It was wild. And I was I was
trying to imagine that's huge

995
01:12:20,239 --> 01:12:26,880
entertainment. What would that look like
here in our I know that's not who I'm

996
01:12:25,360 --> 01:12:29,520
thinking of, but just what would
something like that look like? Is that

997
01:12:28,239 --> 01:12:34,960
even feasible?
>> Well,

998
01:12:32,239 --> 01:12:38,719
um, Vice Mayor, Council Member Taylor,
um,

999
01:12:36,800 --> 01:12:43,679
look there the if you're talking about
live entertainment in the amphitheater

1000
01:12:40,080 --> 01:12:47,360
events and concerts, um, you've got to
focus on what makes economic sense,

1001
01:12:45,600 --> 01:12:53,760
right, for for the tourists, for the
artists. Um certainly there's a niche

1002
01:12:50,560 --> 01:12:56,800
that a 5,000 seat amphitheater has in in
that industry.

1003
01:12:55,040 --> 01:13:01,520
» Um we've talked about expansion a little
bit that's come up. Again, we've got a

1004
01:12:59,120 --> 01:13:05,600
live entertainment one of our uh Ralph
Marquetta who's an industry veteran

1005
01:13:03,280 --> 01:13:10,000
who's based here in in the Phoenix
market, knows all the venues, knows the

1006
01:13:07,440 --> 01:13:15,360
market very well, what genres work, um
what doesn't work. um and he and others

1007
01:13:13,840 --> 01:13:20,000
in our live entertainment division were
central to our focus on um some

1008
01:13:18,159 --> 01:13:23,920
thoughts, initiatives, aspirational
thinking that we brought to the table

1009
01:13:21,440 --> 01:13:28,000
during this process. Expanding capacity
of the amphitheater if we can get to

1010
01:13:25,679 --> 01:13:31,600
that point is central to it. um adding
another couple thousand seats, elevating

1011
01:13:29,760 --> 01:13:36,480
the premium experiences, addressing the
back of house positions you much better

1012
01:13:34,800 --> 01:13:41,679
um with the key decision makers in that
world, artists, agents, promoters,

1013
01:13:38,880 --> 01:13:47,679
managers um to bring a higher level of
act to to the venue. So um look, we've

1014
01:13:45,840 --> 01:13:53,760
got we've got our relationships. We've
got um our successful promoter partners

1015
01:13:51,600 --> 01:13:57,679
um Live Nations, the AGs of the world,
but also the smaller independent

1016
01:13:55,199 --> 01:14:00,640
regional promoters. Um, we operate all
of our amphitheaters with an open venue

1017
01:13:59,280 --> 01:14:04,480
policy. We don't want to turn away
opportunities. Um, some some don't

1018
01:14:03,040 --> 01:14:09,360
operate that way where they're more
exclusive to one promoter. Um, but we

1019
01:14:07,120 --> 01:14:13,360
want to work with all promoters. Um, and
we have proven success doing that,

1020
01:14:11,199 --> 01:14:17,440
bringing all genres opportunities to the
table. U, but it's got to make economic

1021
01:14:15,360 --> 01:14:21,520
sense all the way around. And that's why
you've engaged us to be a voice in the

1022
01:14:19,840 --> 01:14:24,960
room as we plan for the future and the
phasing and what's most important. What

1023
01:14:23,040 --> 01:14:28,239
can we do out of the gate? what's going
to take a higher level of investment, a

1024
01:14:26,320 --> 01:14:31,760
little bit more time to plan out. Does
that lead to naming rights

1025
01:14:29,360 --> 01:14:36,239
opportunities, other opportunities? So,
um

1026
01:14:33,520 --> 01:14:40,880
um so we're we're you know, we're we're
looking at all that and and look to work

1027
01:14:38,080 --> 01:14:43,440
work with the city moving forward. But I
think there's also just maybe this

1028
01:14:42,159 --> 01:14:46,640
doesn't answer your question. There's
the opportunity to do events that

1029
01:14:44,960 --> 01:14:50,560
utilize all the spaces, right? You maybe
do those already. Um where you've got a

1030
01:14:49,280 --> 01:14:53,600
convention or a meeting that's going to
have a trade show element, it's going to

1031
01:14:51,840 --> 01:14:56,719
have a banquet element. It's going to be
there's going to be a VIP party or that

1032
01:14:55,440 --> 01:14:59,840
element that could be hosted at the
amphitheater. There could be a live

1033
01:14:58,000 --> 01:15:03,040
entertainment or speaker, a comedian
that could be part of that convention

1034
01:15:00,960 --> 01:15:06,719
that you utilize the whole
>> and what can we do going forward whether

1035
01:15:05,199 --> 01:15:10,239
it's outdoor spaces or other
opportunities again working with other

1036
01:15:08,320 --> 01:15:13,440
stakeholders to elevate that destination
cell for those types of groups so that

1037
01:15:11,760 --> 01:15:18,239
they're not yes they can use the whole
campus. we're providing the technology,

1038
01:15:15,600 --> 01:15:21,760
the space, the service, the food to meet
their expectations, but are there

1039
01:15:19,679 --> 01:15:25,120
broader opportunities outside of the
outside of the complex that would appeal

1040
01:15:23,440 --> 01:15:30,080
to the meeting planners and the decision
makers? Um, and the live entertainment

1041
01:15:27,520 --> 01:15:33,760
side, not to kind of ramble here, is no
>> there's very few decision makers. It's

1042
01:15:31,760 --> 01:15:37,199
not it's a pretty tight ecosystem of
people

1043
01:15:34,640 --> 01:15:41,120
» that determine what shows go where and
how they're routed. Um, and we're

1044
01:15:39,679 --> 01:15:46,239
ingrained in that world. We're we're at
the table in that world. So, um, but you

1045
01:15:44,480 --> 01:15:51,199
got to have the ammunition and the and
the, uh, the arrows and the quiver to

1046
01:15:48,159 --> 01:15:54,880
shoot to land those shows. Um, so our
our thoughts are around, yes, we can

1047
01:15:53,360 --> 01:15:58,640
elevate what you have now, but we also
need to be thinking about the future and

1048
01:15:56,320 --> 01:16:02,320
where we see a niche in this marketplace
that we can take advantage of

1049
01:16:00,480 --> 01:16:03,679
» and that's part of that five years.
>> Yes.

1050
01:16:02,719 --> 01:16:07,920
» Yeah.
>> Okay, that's helpful. Um, will the

1051
01:16:06,080 --> 01:16:11,840
targets and goals that they're setting,
will that come to council or that will

1052
01:16:09,440 --> 01:16:14,560
remain just with staff? Vice Mayor and
Council Member Tenner, that would be

1053
01:16:13,040 --> 01:16:18,400
with staff. That's the administration of
the contract.

1054
01:16:15,280 --> 01:16:22,000
» Okay. And I hate to be like the Debbie
Downer, but if they fail to meet their

1055
01:16:20,080 --> 01:16:25,760
targets and goals within that 5-year
period, what does that look like for us

1056
01:16:23,520 --> 01:16:29,637
as a city? Do we have an out in the
contract? If it's just not

1057
01:16:28,320 --> 01:16:32,080
» the engine is running, but we're not
[snorts] going anywhere.

1058
01:16:30,400 --> 01:16:35,920
» Mayor and Vice Mayor Chandler, we have
we have the out. We always have an out

1059
01:16:34,080 --> 01:16:39,600
in contracts if they're not going the
way we want them to go. Um, and we're

1060
01:16:38,000 --> 01:16:42,960
not talking about just the overall
normal contract of of default on either

1061
01:16:41,440 --> 01:16:47,760
side type of a thing, but if just the
partnership is not working um, going

1062
01:16:45,440 --> 01:16:50,800
forward with with pri proper notice and
so forth and obviously we would have

1063
01:16:49,199 --> 01:16:56,000
worked on it for a long time before we
would have made that decision. Um, but

1064
01:16:53,440 --> 01:16:59,840
there's always that opportunity um to
make sure that we are protecting

1065
01:16:57,520 --> 01:17:03,120
ourselves, our staff, our our facilities
and so forth. So, we always have that in

1066
01:17:01,440 --> 01:17:06,239
every any contract we negotiate.
>> Okay. It's a big pitch to the public,

1067
01:17:05,040 --> 01:17:09,840
you know, and I think it's wonderful
that we're looking at obviously using

1068
01:17:08,000 --> 01:17:13,440
the revenue to reinvest in those
facilities. That's excellent. I was

1069
01:17:11,440 --> 01:17:18,320
super excited to hear that. Um, and that
it's not displacing the burden of all of

1070
01:17:15,679 --> 01:17:21,120
this refreshing onto the taxpayer in
general. So, that was wonderful. I just,

1071
01:17:20,239 --> 01:17:25,920
you know, I have to think through all
the moving pieces. Um, I'm skipping some

1072
01:17:24,560 --> 01:17:30,199
of these were already answered, which
was wonderful. Uh,

1073
01:17:30,800 --> 01:17:36,800
I did have one important [clears throat]
question on slide eight. I know this

1074
01:17:34,400 --> 01:17:45,640
might be part of your in-house
operations. Um, I'd love to hear what

1075
01:17:39,840 --> 01:17:45,640
you consider DEI uh in human resources.

1076
01:17:48,560 --> 01:17:55,600
» Yeah, I think it's um you look we have
specialists in DEI in our in our human

1077
01:17:53,520 --> 01:18:02,159
resources department. So um that could
go into greater depth than I can but um

1078
01:17:59,360 --> 01:18:06,800
you know as a baseline our focus is on
developing our people right um we have

1079
01:18:04,880 --> 01:18:10,800
training programs we have over 120
different training programs different

1080
01:18:08,800 --> 01:18:16,640
languages from customer service training
leadership training um online training

1081
01:18:13,520 --> 01:18:21,520
that all of our full-time people um and
in some cases some of our contractors

1082
01:18:18,960 --> 01:18:25,040
will be uh will be expected to
participate in. Some are some are

1083
01:18:22,960 --> 01:18:31,600
required, some are more optional, but
developing our people um is central to

1084
01:18:28,480 --> 01:18:37,120
to our approach here. We've got um you
know, we talked about the transition

1085
01:18:32,880 --> 01:18:41,679
here. What we've seen over the years um
is a track record of

1086
01:18:40,080 --> 01:18:44,960
um you we talked about the transition
and coming in here and we expect that

1087
01:18:43,760 --> 01:18:48,960
some of the employees are going to stay
on as our employees. We give them more

1088
01:18:46,960 --> 01:18:56,080
tools, more resources to help them do
their job better. Um, and I'm sure that

1089
01:18:53,040 --> 01:18:59,920
will play out here. Um, you know, people
want to be a part of something special.

1090
01:18:58,239 --> 01:19:04,159
People want to be contributors. They
want to be part of a team that's

1091
01:19:01,120 --> 01:19:08,880
successful and contribute to it. So, um,
you know, we will provide them that

1092
01:19:05,440 --> 01:19:14,480
opportunity. Um, so I'm not sure I'm
answering your question, but um,

1093
01:19:10,800 --> 01:19:17,199
» do you receive ESG funds?
>> I don't know if I can answer that

1094
01:19:15,840 --> 01:19:19,040
question, but I can get that answer for
you. Councilman

1095
01:19:17,920 --> 01:19:23,360
» Taylor,
>> thank you. Yeah, I'm excited to see

1096
01:19:21,440 --> 01:19:27,840
where it lands. I think it's going to be
great for the space. I I think the

1097
01:19:26,400 --> 01:19:33,199
public will be excited to see the
amphitheater and the convention center a

1098
01:19:31,360 --> 01:19:38,560
little more lively. I do get asked quite
frequently, do we use our convention

1099
01:19:35,600 --> 01:19:43,520
center? Like, yeah, we do. We do. I I
think the east side doesn't tend to

1100
01:19:40,640 --> 01:19:46,560
traverse over to this area frequently.
>> I'm here.

1101
01:19:44,560 --> 01:19:50,070
» Okay. Do you go to the convention center
often?

1102
01:19:47,600 --> 01:19:52,960
» Uh I used to go for fire school. Yeah.
[laughter]

1103
01:19:50,719 --> 01:19:56,719
» Okay. So, not for a while.
>> Um I think it'd be good to see some more

1104
01:19:54,640 --> 01:20:00,239
events happening there. I'm I'm I'm
imagining big events and I'm hoping we

1105
01:19:58,800 --> 01:20:03,280
get to that point at the end of that
maybe fiveyear period because I've been

1106
01:20:02,080 --> 01:20:06,480
to some pretty cool events at some
pretty awesome convention centers and I

1107
01:20:04,800 --> 01:20:10,640
can see where it can go.
>> So, thank you so much. Thanks for

1108
01:20:07,679 --> 01:20:16,320
answering my questions. I appreciate it.
>> Great. Also, the state of the city is

1109
01:20:14,719 --> 01:20:21,679
also fun to come to.
>> Nice. Yeah. So, so Vice Mayor, I I do as

1110
01:20:19,199 --> 01:20:25,360
as we're wrapping up on on this, uh, it
seems I I just wanted to thank Brad

1111
01:20:23,440 --> 01:20:28,640
Gestner, who's gotten off easy this
morning. He hasn't had [laughter] it,

1112
01:20:26,560 --> 01:20:32,560
but when you when you go into something
and you don't know what you don't know,

1113
01:20:30,880 --> 01:20:38,800
um, you have to go out and find people
who can shepherd you through that. Um

1114
01:20:35,120 --> 01:20:43,440
Brad Brad's history um has been in this
industry uh on the other side of the

1115
01:20:41,040 --> 01:20:47,360
equation, but we went out and and Brad's
been working with us to to help us

1116
01:20:45,280 --> 01:20:51,840
navigate and understand this process
because we needed that uh we we needed

1117
01:20:49,440 --> 01:20:57,360
someone who understood that that side of
the industry to help us guide our RFQ,

1118
01:20:54,880 --> 01:21:02,480
our negotiations, our understandings of
industry best practices and norms as we

1119
01:20:59,760 --> 01:21:06,640
had our our conversations um with with
all the folks who applied for this and

1120
01:21:04,640 --> 01:21:10,880
so just want to thank thank Brad. He's
he he's been indispensable in this

1121
01:21:09,040 --> 01:21:16,000
process and so we've we've appreciated
his uh stewardship throughout all this.

1122
01:21:13,199 --> 01:21:21,116
So thank you. You
>> okay [sighs] Mr. Heredia suggested the

1123
01:21:18,400 --> 01:21:25,760
Purina Pro plan convention center.
[laughter]

1124
01:21:22,480 --> 01:21:29,239
That was me. It was me. Mr. Heredia, do
you have any questions?

1125
01:21:29,840 --> 01:21:36,239
» It's always finding the mute button
that's the hardest.

1126
01:21:33,600 --> 01:21:41,520
No, appreciate it, Scott. No.
>> Um, no, this is exciting and appreciate,

1127
01:21:39,440 --> 01:21:48,640
uh, all the questions have been asked.
Uh, great. I I I also look forward to,

1128
01:21:45,920 --> 01:21:53,840
um, you know, great events happening
there at the amphitheater and the

1129
01:21:51,280 --> 01:21:57,040
convention center. So, thank you.
>> Agreed. I think the fact that we've been

1130
01:21:55,679 --> 01:21:59,920
talking about this for an hour and 20
minutes shows the importance of of

1131
01:21:59,106 --> 01:22:06,000
[snorts]
this for the heartbeat of downtown.

1132
01:22:03,199 --> 01:22:08,960
uh but as an asset that we really want
to maximize. So, thank you so much for

1133
01:22:07,920 --> 01:22:10,639
your time.
>> Thank you.

1134
01:22:09,360 --> 01:22:13,800
» Look forward to working with you.
>> Thank you.

1135
01:22:14,159 --> 01:22:20,400
» Anybody need a break? Are we good?
>> Buckle up.

1136
01:22:18,960 --> 01:22:22,719
» I think we just have one more and then
we have

1137
01:22:20,960 --> 01:22:27,520
» one more and then we have an e session.
So, we can let's see uh

1138
01:22:24,639 --> 01:22:33,280
» we can plow through.
>> Yes, sir. I have 9:30

1139
01:22:31,760 --> 01:22:37,920
meeting offite.
>> Okay. Mr. Adams has a hard stop at

1140
01:22:35,840 --> 01:22:43,520
» Sure. And and I I think Jay can be very
brief on this. It it's um so we can run

1141
01:22:40,960 --> 01:22:48,000
through this very quickly and then um it
it's really just answer any questions

1142
01:22:45,040 --> 01:22:52,560
that council may have about um about the
agreement with Canon Beach and and um

1143
01:22:51,280 --> 01:22:58,239
» Okay. Glad to answer that.
>> Uh so Mr. Adams has to leave at 9:30. he

1144
01:22:57,360 --> 01:23:00,639
has a hard stop.
>> Okay.

1145
01:22:58,960 --> 01:23:06,320
» What does that mean for the e session?
>> We we can continue. I I I also think if

1146
01:23:04,000 --> 01:23:10,960
we can plow through this, uh, you know,
the e session probably shouldn't be very

1147
01:23:08,320 --> 01:23:13,040
long, um, either. So, I I think we'll be
in good shape.

1148
01:23:11,679 --> 01:23:16,397
» We'll we'll see how that works. We will
miss council member Adams if he does

1149
01:23:14,400 --> 01:23:18,417
have to leave but I think we can
[laughter]

1150
01:23:19,440 --> 01:23:27,120
vice versa economic development director
for the city of Mesa and joining me

1151
01:23:24,800 --> 01:23:31,600
today is Sarah Steedman assistant city
attorney attorney and then on my right

1152
01:23:29,040 --> 01:23:36,480
is Ben Snow deputy director for the
office of economic development. The

1153
01:23:34,080 --> 01:23:40,719
purpose uh of what we're doing today is
to talk about the Canon Beach Hotel

1154
01:23:38,239 --> 01:23:46,400
project, which is an upscale hotel
project with a minimum of 130 rooms and

1155
01:23:44,480 --> 01:23:50,880
various amenities including a rooftop
deck, an event space, ground level, hot

1156
01:23:48,639 --> 01:23:54,480
tub, and lawn area, a bar and lounge
connected to an outdoor terrace

1157
01:23:52,400 --> 01:23:59,520
overlooking the surf pool with a
fullervice upscale restaurant. This is

1158
01:23:57,040 --> 01:24:03,280
something that we've been very anxious
for in Southeast Mesa. So, we'll be

1159
01:24:01,920 --> 01:24:06,320
discussing the major terms of the
development agreement, but we'll go

1160
01:24:04,880 --> 01:24:10,080
fairly quickly. So, if you have any
questions at the end, there will be time

1161
01:24:07,600 --> 01:24:14,880
for that. Um, the location is just south
of Warner Road on the east side of of

1162
01:24:12,159 --> 01:24:21,199
Power. The total site for the entire
development is 35 acres and the hotel

1163
01:24:17,360 --> 01:24:27,360
site is just over 1.3 acres. The
proposed development area uh development

1164
01:24:24,400 --> 01:24:31,280
agreement project area again is only for
the hotel development and it's a

1165
01:24:29,440 --> 01:24:35,040
property that's owned by Canon Beach
Hotel. We also have a member of their

1166
01:24:33,360 --> 01:24:38,320
executive team in the audience today,
Joe Codddle here. So if you have

1167
01:24:36,800 --> 01:24:42,960
specific questions for the developer,
he's happy to pop up and answer those.

1168
01:24:40,320 --> 01:24:47,600
This is a sales tax reimbursement for
public infrastructure that's related to

1169
01:24:45,120 --> 01:24:52,080
the hotel and restaurant. So, the
overview of the DA structure is as

1170
01:24:49,679 --> 01:24:58,400
follows. It again, it's a reimbursement
of the taxes up to $950,000

1171
01:24:55,600 --> 01:25:02,960
for dedicated public infrastructure if
the developer completes all of the

1172
01:25:00,320 --> 01:25:06,400
following conditions. 18 months from the
DA effective date, they will obtain

1173
01:25:04,960 --> 01:25:10,400
building permits for the public
infrastructure. 36 months from the

1174
01:25:08,800 --> 01:25:15,520
effective date, they'll complete the
public infrastructure, which must be

1175
01:25:12,800 --> 01:25:19,679
designed, bid, and built per applicable
law. and they'll dedicate the public

1176
01:25:17,679 --> 01:25:26,080
infrastructure as well as the right of
way to the city. Um, plus they will also

1177
01:25:23,280 --> 01:25:30,480
construct the upscale upscale hotel
which is currently a planned tapestry by

1178
01:25:28,560 --> 01:25:34,800
Hilton and they must complete
construction of that and be open to the

1179
01:25:32,560 --> 01:25:40,239
public within 36 months of the effective
date of the DA. So reimbursement for the

1180
01:25:37,920 --> 01:25:44,719
public infrastructure is using uh
construction sales tax that's generated

1181
01:25:42,719 --> 01:25:48,400
from the project and a portion of the
retail sales tax generated by the hotel

1182
01:25:46,719 --> 01:25:53,440
and restaurant. And I'll turn it over to
Sarah. Oop, excuse me. Um, one more

1183
01:25:51,120 --> 01:25:58,800
slide. Uh the proposed property again
the the p the public infrastructure

1184
01:25:56,080 --> 01:26:03,199
that's on Warner Road will include all
of the public improvements which is

1185
01:26:01,120 --> 01:26:08,320
pavement, turn lanes, curbon gutters,
sidewalks, driveways, storm drains,

1186
01:26:05,840 --> 01:26:13,280
signing and striping and and staking and
testing. And now Sarah will go through

1187
01:26:10,960 --> 01:26:17,600
the construction tax incentives
specifically. And just looking at this

1188
01:26:15,040 --> 01:26:21,840
to reiterate, the portions of dedicated
sales tax for public safety, quality of

1189
01:26:19,760 --> 01:26:25,400
life, and streets is not included in
this deal.

1190
01:26:22,400 --> 01:26:25,400
» Correct.

1191
01:26:26,400 --> 01:26:32,960
» Good morning, council. As Jay mentioned,
the public improvements that developers

1192
01:26:30,800 --> 01:26:37,760
required to install along Warner Road
are eligible for reimbursement. The

1193
01:26:35,600 --> 01:26:42,960
maximum amount of reimbursement the city
would pay is $950,000.

1194
01:26:40,880 --> 01:26:47,440
um that's based on the current estimate
of the cost to install the public

1195
01:26:44,719 --> 01:26:52,000
improvements. If it ends up costing the
developer less to put in those public

1196
01:26:49,120 --> 01:26:56,320
improvements, um the actual cost of the
public improvements would be the cap

1197
01:26:53,520 --> 01:27:00,639
that we would reimburse. And the
reimbursement comes from the transaction

1198
01:26:58,880 --> 01:27:07,760
privilege tax that this project
generates the which as you said, Vice

1199
01:27:04,159 --> 01:27:13,280
Mayor, um it's at a 2% rate only the 1.2
to non-dedicated and unrestricted amount

1200
01:27:10,480 --> 01:27:17,440
could be used for the reimbursement. The
first portion of that TPT that we could

1201
01:27:15,600 --> 01:27:24,480
reimburse from is the construction sales
tax. Um 100% of that 1.2% can be used to

1202
01:27:22,320 --> 01:27:28,159
reimburse the developer for the public
infrastructure. So, and that would

1203
01:27:26,320 --> 01:27:33,120
happen as a one-time payment after all
of those conditions are met and the city

1204
01:27:30,000 --> 01:27:38,639
has accepted the public improvements.
The second portion that of the TPT that

1205
01:27:35,840 --> 01:27:44,880
we can reimburse from is the elig um the
retail sales tax and we would reimburse

1206
01:27:40,880 --> 01:27:47,840
50% of that non-dedicated 1.2%.
This these reimbursement payments would

1207
01:27:46,719 --> 01:27:51,520
happen over the course of the
development agreement which has a

1208
01:27:49,360 --> 01:27:56,560
10-year term although we anticipate they
will reach the reimbursement cap in the

1209
01:27:53,679 --> 01:28:02,639
first eight years.
And Ben will cover the economic impact

1210
01:27:59,679 --> 01:28:06,760
analysis.
see my light coming on here.

1211
01:28:08,560 --> 01:28:15,040
» There we go. Thank you. So, there are
four statutory requirements. Um, and I

1212
01:28:13,440 --> 01:28:20,440
will share those with you quickly here
per Arizona statute section 9-5001.

1213
01:28:20,480 --> 01:28:26,480
Council must find that the proposed
sales tax incentive of the project will

1214
01:28:24,800 --> 01:28:31,120
raise more revenues than the amount of
the incentive reimbursement during the

1215
01:28:28,639 --> 01:28:35,040
term of the agreement and that the
development [clears throat] would not

1216
01:28:32,320 --> 01:28:40,960
locate in Mesa in the same time, place
or manner in the absence of said tax

1217
01:28:37,840 --> 01:28:44,239
incentive. The second uh requirement is
the statute requires an independent

1218
01:28:42,480 --> 01:28:49,280
third-party review of the council
findings. Third is that ARS section

1219
01:28:47,360 --> 01:28:53,440
42-610
requires that construction and sales tax

1220
01:28:51,120 --> 01:28:58,800
incentives offered to retail businesses
be provided only as reimbursement for

1221
01:28:56,719 --> 01:29:03,360
public infrastructure dedicated to and
accepted and controlled upon completion

1222
01:29:00,880 --> 01:29:07,040
of the project by the city which which
Jay had mentioned a couple minutes ago.

1223
01:29:05,520 --> 01:29:10,639
And there are also a requirement for
there to be two city council meetings

1224
01:29:09,120 --> 01:29:15,679
which include a notice of intent
resolution and resolutions for approval

1225
01:29:13,199 --> 01:29:20,560
of the development agreement and council
findings requiring a two-thirds vote of

1226
01:29:17,920 --> 01:29:25,760
our council.
>> I feel like we've been done this before.

1227
01:29:23,600 --> 01:29:31,520
» So the third party economic analysis was
performed by applied economics Sarah

1228
01:29:28,960 --> 01:29:36,960
Merley as principal. It includes an
economic analysis and impacts uh summary

1229
01:29:34,239 --> 01:29:43,120
with projected sales tax, city st city
tax revenues, public improvements, total

1230
01:29:40,320 --> 01:29:47,840
economic impact, job creation, annual
labor income and construction activity.

1231
01:29:45,760 --> 01:29:51,840
And the revenues to the city are
forecasted that this project will

1232
01:29:49,280 --> 01:29:55,520
generate significantly greater amounts
of sales tax revenues than the total

1233
01:29:53,920 --> 01:30:00,560
amount of this rebate that's being
proposed um on the order of 10 times as

1234
01:29:58,159 --> 01:30:04,800
much over a 10-year period. and the
final analysis report will be a

1235
01:30:03,199 --> 01:30:09,520
companion document with the the
resolution uh with the with the

1236
01:30:06,800 --> 01:30:13,679
development agreement.
So the next steps in the process here is

1237
01:30:11,920 --> 01:30:18,000
on Monday there will be a notice of
intent resolution that will be placed on

1238
01:30:15,520 --> 01:30:21,920
the agenda for Monday's council meeting
and then on September the 14th that's

1239
01:30:20,480 --> 01:30:27,520
when the development agreement
resolution and the city council findings

1240
01:30:24,080 --> 01:30:32,560
resolution will be placed on the agenda.
>> Okay. So, next meeting's notice of

1241
01:30:30,400 --> 01:30:35,120
intent. There are any questions or
concerns? We have plenty of time to

1242
01:30:34,320 --> 01:30:39,280
answer those.
>> Vice Mayor, just wanted to amplify one

1243
01:30:37,280 --> 01:30:41,440
point that Ben said because
>> I kind of glossed over more than more

1244
01:30:41,120 --> 01:30:44,560
than [laughter]
>> that's all I that's all I

1245
01:30:43,040 --> 01:30:49,199
» Well,
it's upscale luxury hotel first and

1246
01:30:47,120 --> 01:30:53,040
foremost. This is the type of hotel
development I know council is anxious to

1247
01:30:51,520 --> 01:30:59,280
see. So we appreciate the partnership
with Canon Beach on on bringing a high

1248
01:30:55,520 --> 01:31:03,600
quality luxury brand high upper level.
I'm not sure of the industry term, but

1249
01:31:01,280 --> 01:31:08,000
uh we would call it upscale. Sometimes
people will refer to it in the four the

1250
01:31:05,600 --> 01:31:10,880
fourstar arena. Those mean the same
thing.

1251
01:31:08,320 --> 01:31:15,199
» Yeah. So so that's great. And again on
the tax incentive side that this will

1252
01:31:12,639 --> 01:31:20,080
generate more than 10 times the amount
of of this uh investment that we're

1253
01:31:18,000 --> 01:31:24,080
allowing back into this. So it's it's a
great ROI. It's going to make a lot of

1254
01:31:21,600 --> 01:31:28,320
money for the city and uh and and the
hospitality industry um when this hotel

1255
01:31:26,080 --> 01:31:30,800
comes to fruition. So that's it's this
is exactly the type of quality

1256
01:31:29,679 --> 01:31:34,080
development we need
>> same time period.

1257
01:31:32,880 --> 01:31:40,639
» Yes.
>> I I'm Joe I know Joe's out somewhere. Um

1258
01:31:39,040 --> 01:31:44,320
I I'll I'll tell you if you're going to
back somebody uh it's Canon Beach.

1259
01:31:42,960 --> 01:31:48,400
They've been putting their shoulder into
bringing a higher level of quality here.

1260
01:31:46,400 --> 01:31:52,320
I think they did. They steal First
Friday from downtown or they just do a

1261
01:31:50,880 --> 01:31:57,199
new one.
>> We could do a D see who has a better uh

1262
01:31:55,280 --> 01:32:01,040
First Friday and we're going to have a
competition on First Friday.

1263
01:31:59,280 --> 01:32:06,239
» No, they they stole from Phoenix, which
is even better, you know. So, so uh the

1264
01:32:04,639 --> 01:32:11,199
the level of restaurants are bringing in
are all sit down restaurants, which is

1265
01:32:08,000 --> 01:32:14,800
what's people in the entire city have
been asking for, but particularly on the

1266
01:32:13,360 --> 01:32:19,280
east side, you know, we've been asking
for more of these things. And we have

1267
01:32:16,880 --> 01:32:23,360
somebody that's just been running full
full steam ahead on on delivering some

1268
01:32:21,679 --> 01:32:27,199
of that. Sometimes a little faster than
you [laughter]

1269
01:32:24,719 --> 01:32:31,520
perhaps you should, but I've really been
impressed with what's been going on

1270
01:32:29,600 --> 01:32:35,679
there. So when you when you look for a
partner, um this this is one I think we

1271
01:32:34,320 --> 01:32:38,239
would want to pick up on.
>> Thank you, Vice Mayor.

1272
01:32:36,639 --> 01:32:40,000
» Any questions or comments from Yes,
ma'am.

1273
01:32:38,560 --> 01:32:43,600
» I don't have a question, but I just I
wanted to say I was looking up the

1274
01:32:41,280 --> 01:32:47,280
Tapestry hotels and they are so cool. I
was like, I want to go stay in all of

1275
01:32:45,040 --> 01:32:50,080
these. Like all of them have such unique
looks and designs to them. You can tell

1276
01:32:48,800 --> 01:32:53,199
they're pretty immersive. You get a
different experience depending on where

1277
01:32:51,280 --> 01:32:57,040
you are. So I'm I was just excited to
see that that's going to be the style

1278
01:32:55,440 --> 01:33:01,120
coming in. I think it's going to draw in
a lot of excited visitors both locally

1279
01:32:59,120 --> 01:33:05,440
and even from out of town. I mean, Canon
Beach, it's pretty cool. We've been a

1280
01:33:03,360 --> 01:33:09,679
couple times. So, just to look at a fake
beach is awesome. [laughter]

1281
01:33:08,239 --> 01:33:13,440
» Have a beach.
>> That's a I'm going to sit on that

1282
01:33:11,520 --> 01:33:16,560
rooftop and like I don't know, eat some
French fries,

1283
01:33:14,719 --> 01:33:21,280
» live the life.
>> Mr. Adams, I know you have a question.

1284
01:33:19,120 --> 01:33:25,040
» Yes. Thank you, Vice Mayor. Uh I would
just comment I think this is a great win

1285
01:33:23,120 --> 01:33:30,719
by economic development the team there
and uh what I'm recalling is probably

1286
01:33:28,239 --> 01:33:34,960
somewhere between five and seven years
ago when I was a member of the visit

1287
01:33:33,199 --> 01:33:40,080
Mesa board and I believe it was Cole
Cannon who came and presented his

1288
01:33:38,000 --> 01:33:46,560
concept of what Canon Beach and the
surrounding development would be and um

1289
01:33:44,239 --> 01:33:51,440
I would say that from what I've observed
is he has surpassed

1290
01:33:49,520 --> 01:33:58,159
the vision vision that he presented at
that time and um um I think Adam Saxs

1291
01:33:55,920 --> 01:34:02,080
was uh I think Adam's still affiliated
with that. He was a very productive

1292
01:34:00,000 --> 01:34:06,159
member of the visit Mesa board and
continue to forward that vision. So I'm

1293
01:34:04,239 --> 01:34:11,120
I'm very supportive of this. I think
it's a great win for us and I think uh

1294
01:34:08,800 --> 01:34:15,280
these these are folks who delivered
above and beyond what which doesn't

1295
01:34:13,040 --> 01:34:19,120
always happen and folks come and paint a
picture for you. It doesn't always fill

1296
01:34:17,440 --> 01:34:23,199
in, but this one is colored in really
nicely.

1297
01:34:21,280 --> 01:34:28,040
» And I hear they have an absolutely
perfect safety record for shark attack.

1298
01:34:28,080 --> 01:34:33,600
» Good point.
>> Seeing no other questions,

1299
01:34:33,040 --> 01:34:37,080
uh,
>> how many people

1300
01:34:37,280 --> 01:34:41,920
» by sharks?
>> I don't know. That's uh information I

1301
01:34:40,400 --> 01:34:44,239
think they can gather and come back
with.

1302
01:34:42,159 --> 01:34:48,080
» We we believe that number is zero. But
we did run some recent numbers and since

1303
01:34:46,159 --> 01:34:52,880
Canon Beach has been open, I know
today's topic is specific to this hotel

1304
01:34:50,560 --> 01:34:57,280
project, but since Canon Beach has been
open over the last 20 months, there have

1305
01:34:54,960 --> 01:35:01,360
been nearly 1 million visits to the
Canon Beach campus

1306
01:34:59,199 --> 01:35:04,800
» over that period. We need to get these
hotels up. Yeah.

1307
01:35:02,159 --> 01:35:08,520
» Mr. Heredia,
>> did I hear you or

1308
01:35:10,480 --> 01:35:14,080
» No,
>> no, I'm good. Thank you.

1309
01:35:12,080 --> 01:35:18,320
» All right. Thank you, Mr.
Thank you so much for the presentation.

1310
01:35:15,760 --> 01:35:21,199
We'll see you later in the week. Um, I'm
going to fly through this because I know

1311
01:35:19,520 --> 01:35:25,600
we're short on time. Item 2A,
appointments to various boards and

1312
01:35:23,120 --> 01:35:29,280
commissions. Do I have uh council member
Duff, Council Member Adams? All in favor

1313
01:35:28,080 --> 01:35:35,600
say I.
>> I. Item 3A is acknowledge receipt of

1314
01:35:33,120 --> 01:35:41,199
board minutes. Do I have a motion?
>> Council member Adams and Council Member

1315
01:35:38,000 --> 01:35:47,600
Duff. All in favor say I. I.
>> I. Any oppose? Hearing none. Motion

1316
01:35:44,320 --> 01:35:51,520
carries. Did you get those? Yeah. Okay.
Uh we we will talk about what we've been

1317
01:35:49,760 --> 01:35:56,480
doing over our council break maybe at
the next meeting on Monday so we can get

1318
01:35:53,360 --> 01:36:01,600
through this. And um with that, I'll con
u look for a motion to convene an

1319
01:35:58,400 --> 01:36:08,080
executive session to discuss with the
city attorney potential to engage uh

1320
01:36:05,120 --> 01:36:12,480
with a lawsuit. So, Council Member
Goforth and Council Member Taylor. All

1321
01:36:11,280 --> 01:36:16,960
in favor?
>> I. Any opposed?

1322
01:36:15,040 --> 01:36:21,000
Ignoring anybody that said no, we're
going into executive session.

1323
01:36:48,320 --> 01:36:55,040
Mr. [music] Smith, do you have my
motion?

1324
01:36:52,480 --> 01:36:57,679
» I know you wanted me to memorize it, but
>> I can I'll just read it and say just

1325
01:36:56,800 --> 01:37:03,360
read it if you want.
>> Okay, I'll just say that we're uh we are

1326
01:37:00,880 --> 01:37:10,560
reconvened. We are minus uh council
member Heredia was not able to uh

1327
01:37:08,239 --> 01:37:16,719
was not able to rejoin us. So there's
and mayor's uh absent excused.

1328
01:37:14,960 --> 01:37:20,880
So with that, is there a motion to
direct the city attorney to file a

1329
01:37:18,880 --> 01:37:25,760
lawsuit and pursue litigation on behalf
of the city of Mesa against the fire

1330
01:37:23,199 --> 01:37:31,440
apparatus manufacturers the city has
purchased from and to retain legal

1331
01:37:28,639 --> 01:37:35,600
counsel for that purpose as discussed in
the executive session? Do I have a

1332
01:37:33,199 --> 01:37:40,320
motion from council member Adams, a
second from council member Duff? All in

1333
01:37:38,480 --> 01:37:47,199
favor, please say I.
>> I. Any opposed? Seeing none, the motion

1334
01:37:44,320 --> 01:37:52,639
passes unanimously with council member
Heredia and the mayor absent. Very good.

1335
01:37:51,119 --> 01:37:57,360
With that, do I have a motion to
adjurnn? Council member Adams, council

1336
01:37:54,719 --> 01:38:02,440
member Duff, all in favor say I. I. Any
opposed? I didn't think so. We are

1337
01:37:59,440 --> 01:38:02,440
ajourned.

1338
01:38:07,207 --> 01:38:09,227
[music]