HomeMy WebLinkAboutIR 23-1777 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 23-1777
To the Mayor and Members of the City Council December 5, 2023
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*a SUBJECT: LEASE AMENDMENT WITH SOUTHWESTERN EXPOSITION AND
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LIVESTOCK SHOW, RE: SHEEP AND SWINE BARN RENOVATION
DEBT PAYMENTS
The purpose of this Informal Report is to provide the City Council with an overview of an upcoming
proposal to amend the City's agreement with the Southwestern Exposition and Livestock Show (Lessee)
to host the annual Fort Worth Stock Show and Rodeo (FWSSR) at the Will Rogers Memorial Center
(WRMC) (collectively, the Lease). The proposed amendment to the Lease will, among other slight
changes, include the Lessee's obligation to pay for 50% of the annual debt service on the WRMC Sheep
and Swine Barn Renovation Project.
In April of 2023, City Council approved a Design Procurement Agreement (M&C 23-0331) with Event
Facilities Fort Worth (EFFW) to begin design work on the renovation of the WRMC Sheep and Swine
Barn. EFFW is a supporting organization of the FWSSR. The agreement authorized EFFW to design the
project, with the City providing reimbursement when funding for the entire project was in place.
Over the period of the Lease, Lessee has invested more than $77 million (adjusted to today's dollars) in
funding for capital improvements in the City-owned and operated WRMC. The list of WRMC projects
jointly funded by the City and Lessee includes the renovations of Cattle Barns 1&2 and construction of the
Tower Promenade.
Lessee's 50% share of the annual debt service payments of the Sheep and Swine Barn is proposed to be
accomplished by amending the Lease to increase the rental amounts paid throughout the term of the
lease to incorporate the annual debt service payments of a maximum of$47,010,165.06 over a thirty (30)
year period. To accomplish this, the term of the lease must be extended to accommodate the 30 years
needed to pay back the annual debt service payments. This will extend the Lease to 2054.
The proposed amendment also memorializes a long-standing agreement between the City and Lessee
concerning the hosting of private FWSSR events at the WRMC complex that fall outside the annual Stock
Show license period. Past practice is that Lessee uses WRMC space for these events without paying a
separate fee on the theory that the Lessee provides adequate consideration through its ongoing capital
contributions to the WRMC complex.
If you have any questions or concerns related to this report, please contact Michael Crum, Director of
Public Events, at 817-392-2501.
David Cooke
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS