ACE SL, LLC ("ACE") has been the City of Sugar Land's partner since the opening of the Smart Financial Centre, the City's premiere indoor performing arts venue which hosts over 100 shows per year.

Visit Sugar Land ("VSL") recognized that, post-COVID, visitor attendance to the Sugar Land Heritage Museum and Visitor Center decreased dramatically causing VSL to recommend changing its operational hours to a seasonal schedule which had historically higher attendance numbers. Due to continued low attendance numbers and demand, VSL ceased operation of the Visitor Center in April 2023 which coincided with staff's move to City Hall.

During this time VSL and ACE began conversations for a Visitor Center pilot and sponsorship agreement at the Smart Financial Centre. This trailblazing idea will allow attendees to be exposed to Visit Sugar Land's brand and purchase branded merchandise, VSL's inclusion in local and regional marketing promotions including, but not limited to Smart Financial Centre's website, email marketing, and social media posts, as well as the opportunity to provide information on Sugar Land's attractions, hotels, restaurants and retailers to every person that walks through the venue's doors. This agreement will be funded by the Hotel Occupancy Tax and is restricted revenue that is used to attract, promote, and market Sugar Land to visitors.

The terms of the agreement are as follows:

• Design and buildout of the Sweet Shoppe by Visit Sugar Land;
• Operate the Sweet Shoppe by Visit Sugar Land and staff it accordingly on show and event dates at the Smart Financial Centre;
• Curate the Sweet Shoppe by Visit Sugar Land for all things "Sugar Land," highlighting tourist attractions and local shops, restaurants, arts and culture.
• Conduct outreach to local businesses to invite them to participate in the Sweet Shoppe by Visit Sugar Land; 
• Retain inventory of Visit Sugar Land merchandise and provide documentation to settle total revenue per month with a 25% retainage for administrative costs;
• Secure and manage third party vendors (if applicable) and products for the Sweet Shoppe by Visit Sugar Land;
• Recognize Visit Sugar Land as a sponsor in its marketing materials, including but not limited to Smart Financial Centre's website, email marketing, and social media posts;
• Show thirty second (00:30) VSL ads on two (2) theatre video screens, as well as digital monitors throughout the venue; 
• Permit VSL to have on-site activations such as tabling, exhibiting, and selling outside of the Sweet Shoppe by Visit Sugar Land; and 
• Digital Promotions on e-mail blasts and a digital ad on the plaza marquee.

The City agrees to pay ACE for the buildout of Sweet Shoppe by Visit Sugar Land in three (3) installments, according to the following schedule:

1. $8,333.33 on the Effective Date of the Agreement; 
2. $8,333.33 twelve (12) months from the Activation Date; and
3. $8,333.34 twenty-four (24) months from the Activation Date.

The City also agrees to make three (3) Annual Sponsorship Payments to Ace, according to the following schedule:

1. $107,500.00 within thirty (30) days of the Activation Date;
2. $110,725.00 twelve (12) months from the Activation Date; and
3. $114,046.00 twenty-four (24) months from the Activation Date.

This agreement was presented to the Economic Development Committee and staff recommends the City Council approve the 3 year Sponsorship Agreement with ACE SL, LLC in the amount of $357,271 for Sweet Shoppe by Visit Sugar Land.