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Event Production Agreement with POOF And Purchase Order Contract with Sunbelt Rentals Inc. September 23, 2024 Page 3 FISCAL IMPACT The following table includes the cost estimate for the event. City Pays POOF Pays Total Flooring Rental $118,548 $118,548 Security, Food/Beverage, Stage/Lighting, Additional Floor Seating, Sound System $411,826 $411,826 Total Costs $118,548 $411,826 $530,374 POOF has estimated the event will generate $775,950 of revenue. Under normal circumstances, the City would collect a fee of $9,005 for rental of the stadium. However, in lieu of the normal rental fee, the City and POOF have agreed to a formula of cost recovery for the event, as outlined in the table below. Scenario Ratio of Event Revenue to Total Costs City Cost Recovery 1 0%-25%Maximum of $13,259 (10% of revenue) 2 26%-50%Maximum of $53,037 (20% of revenue) 3 51%-75% Maximum of $118,548 (City’s portion of total costs) + $786 (a portion of the stadium rental fee), based upon 30% of event revenue 4 76%-100% Maximum of $118,548 (City’s portion of total costs) + $9,005 (entire stadium rental fee), based on maximum City out-of-pocket costs If the revenue exceeds total costs, the City will receive the maximum cost recovery and stadium rental fee outlined in Scenario 4 in the table above, plus 20% of revenue in excess of Total Costs. Example #1 If the event only generates $132,594 of revenue (25% of total costs), the City will only receive $13,259 (10% of the revenue) to offset its costs. This would result in a net loss of $105,289 ($13,259 revenue, less $118,548 cost). Example #2 If the event generates $530,374 of revenue (100% of total costs), the City will receive reimbursement for the $118,548 of flooring and the $9,005 stadium rental fee that would have normally been charged. City Council 12 – 3 9/23/2024