In August 2018, the Economic Development Committee requested the formation of a City Council Task Force to look at the policy aspect of requests from existing public/private partnership (P3) project partners for additional capital support from the City. In accordance with adopted policy, volunteers were sought from the City Council - with the Mayor responsible for the selection of up to three members to serve on the City Council-requested Destination Venue Capital Support Policy Task Force. Ultimately, Mayor Joe Zimmerman, Councilmember Bridget Yeung, and Councilmember Himesh Gandhi served on the Task Force.

In September 2018, the City Council Destination Venue Capital Support Policy Task Force held its first meeting. During this meeting, staff reviewed the history of P3 Partnerships, along with agreement frameworks and funding sources. This information included discussion on the guidelines of the intentional strategy the City has established for destination development - as well as a detailed discussion about the guiding principles used for original agreements, which include:

• Selectively choosing highest-quality partners,
• Protecting the City's business and financial interests by limiting the City's risk,
• Leveraging the use of the restricted or project-generated revenue sources,
• Increasing the amount of upside sharing as the City's upfront investments increase, and
• Celebrating amenities through the Visit Sugar Land Tourism Program once open.

Task Force members were then presented with recommended options to consider if they desire to create a policy, recognizing that any policy should fall within the framework of the existing guiding principles. As such, members concurred with a need to create a policy.  In December 2018, the Task Force held its second meeting. During this meeting, staff reviewed the details of the draft policy and Task Force members provided recommendations, which are included in the attached final draft of the policy.  Overall, the draft policy outlines the following:

• Only Consider Support of Capital Projects with Substantial Benefit to Economy/Community (Operational Support Not Eligible for Consideration)

• Revenue Source:
  • Project-Generated (i.e. Performance Based) Revenue for Commercial Partners
  • Restricted Revenue (SL4B) Contributions Only for Non-Profit Partners
    • Up to $200K Annually – Only if Available After Carryovers

• 50% Matching Required from P3 Partner

• Prioritization Criteria – if Multiple Requests Received:
  • Amount of Time Since Venue Opened
  • Number of Times Venue Operator Requested Funding
  • Economic Benefit to City Overall Community Benefit

During the workshop, staff will provide background information on the work of the Task Force and provide specific details of the policy – as well as seek feedback from the City Council on next steps.