07/19/18 Sports Authority Meeting

07/19/18 Sports Authority Meeting


>>I WOULD LIKE TO CALL THE MEETING TO ORDER. WE APPRECIATE THE TITANS. FOOTBALL WILL BE STARTING BEFORE TOO LONG. IT’S EXCITING TO BE HERE AND GET THE SPIRIT OF THE TITAN’S PROGRAM. WE WERE HERE LAST WEEK, AND WE HAD AN INFORMATIONAL SESSION TO REVIEW THE MLS STADIUM DOCUMENTS. WE’LL BE CONSIDERING THOSE AGREEMENTS TODAY. THE APPEALS PROCESS CAN BE FOUND AT THE TOP OF THE AGENDA. WE HAVE OUR MEETING MINUTES FROM OUR JUNE 21ST MEETING IN OUR PACKET. AT THIS TIME, WE’LL REVIEW THE MEETING MINUTES. IF THERE IS A MOTION TO APPROVE THE MINUTES FROM JUNE 21ST, WE’LL ENTERTAIN THAT AT THIS TIME.>>MOTION.>>SECOND. IS THERE ANY FURTHER DISCUSSION?>>SAY AYE. WE ARE JUST A P FEW MINUTES LAT. PRIOR TO THIS MEETING, WE HAD OUR FINANCE COMMITTEE MEETING HELD IN THE ROOM NEXT DOOR. PART OF OUR FINANCE COMMITTEE IS CHAIRED BY LISA HOWE, WHO IS SITTING NEXT TO ME. THIS WAS HER LAST FINANCE COMMITTEE MEETING WHERE SHE’S SERVING AS CHAIR. SOME OF YOU MAY OR MAY NOT KNOW THAT LISA AND HER FAMILY ARE MOVING TO DALLAS. THIS IS HER LAST SPORTS AUTHORITY MEETING TODAY. LISA HAS HAD A TREMENDOUS IMPACT ON THIS BOARD AND OUR COMMUMUNI AS A WHOLE. WE HAVE HAD THE GREAT JOY OF GETTING TO KNOW HER AS WELL AS OUR DAUGHTERS GO TO SCHOOL TOGETHER. I’LL MISS SEEING LISA HERE AND A PICK UP. LISA WAS FIRST APPOINTED TO THIS BOARD IN MARCH 2016. SINCE THEN, SHE JUMPED IN WITH A LOT OF SPIRIT AND COMPASSION. SHE SERVED AS A NISSAN STADIUM LIAISON AND CHAIR OF FINANCE. AT THIS TIME, I WANT TO SAY THANK YOU ON BEHALF OF THE BOARD. WE APPRECIATE YOUR SERVICE AND MISS YOU.>>THANK YOU. [APPLAUSE]>>AND WE HAVE A CAKE. WE HAVE A CAKE IN HONOR OF LISA AS WELL. AT THIS TIME, I’LL PITCH IT OVER TO MONICA TO GIVE US OUR REPORT.>>THANK YOU. I ECHO EVERYTHING OUR CHAIR SAID ABOUT LISA. IT’S A PLEASURE TO GET TO KNOW YOU AND WORK WITH YOU. WE WISH YOU AND YOUR FAMILY THE BEST.>>GOOD MORNING, EVERYONE. THANK YOU FOR BEING HERE. AS USUAL, WE HAVE A FULL AGENDA. FOLLOWING MY REPORT, WE’LL RECEIVE A REPORT AND TAKE IT TO LISA FOR THE FINANCE COMMITTEE MEETING. WE WERE HERE LAST TUESDAY FOR AN INFORMATION SESSION. FOR THOSE OF YOU NOT AT THE MEETING, IT WAS A THOROUGH REVIEW WITH JOHN COOPER. A LOT OF QUESTIONS WERE RAISED AND ANSWERED. MR. COOPER IS BACK WITH US AGAIN. HE WILL VIEW THE DOCUMENTS ONE MORE TIME AND THE BOARD WILL BE ASKED TO VOTE ON THE STADIUM DOCUMENTS. FOLLOWING ACTION ON THE STADIUM DOCUMENTS, SPORTS AUTHORITY WILL RECEIVE AN UPDATE ON THE FORD EYE CENTER AT BELLEVIEW. WE ARE LOOKING FORWARD TO HEARING MORE ABOUT THAT PROJECT. WE’LL ENTERTAIN QUESTIONS AS OUR PRACTICE TO DO AND RECEIVE THE TITAN STADIUM REPORT. ANY QUESTIONS ABOUT THE AGENDA? OKAY. OTHER THAN THAT, THERE ARE A COUPLE OF UPDATES I WANTED TO GIVE YOU. WE HAVE BEEN WORKING WITH METRO PROCUREMENT TO ISSUE SOLICITATIONS FOR A CONSTRUCTION MANAGER AND NUMBER TWO, THE PARKING CONTRACTOR TO MANAGE THE SPORTS AUTHORITY CONTROLLED PARKING LOT AT NISSAN STADIUM. JULY 17TH, A COUPLE OF DAYS AGO WAS THE DEADLINE FOR SOLICITATION, REVIEW OF THE PROPOSAL AND EVALUATION IS GETTING READY TO BEGIN. OUR GOAL IS TO BRING THE AWARD BACK TO THE AUGUST MEETING. YOU KNOW THIS BECAUSE WE WENT THROUGH THIS WITH DESIGN SOLICITATION. AFTER A WAIT PERIOD, WE’LL ENTER INTO CONTRACT NEGOTIATIONS AND THEN BRING A CONTRACT BACK TO THE BOARD FOR CONSIDERATION. THEN, SPEAKING OF CONTRACTS COMING BACK TO THE BOARD FOR APPROVAL, A COUPLE OF YOU HAVE ASKED ME ABOUT THE DESIGN CONTRACT WITH POPULOUS THAT THE BOARD APPROVED LAST MONTH. HARD TO BELIEVE IT WAS LAST MONTH. THE CONTRACT IS BASICALLY DONE. WE ARE FINALIZING AN EXHIBIT. THE CONTRACT WILL GO TO THE CHAIR FOR FINAL REVIEW AS WE DISCUSSED LAST MONTH, AND THEN IT WILL BE EXECUTED AND ROUTED TO SIGNATURES. THIS HAS BEEN A PROCESS. WE ARE COMING TO THE END OF IT. I THINK WE FEEL GOOD ABOUT THE PROGRESS WE HAVE MADE OVER THE LAST MONTH AS I APPRECIATE YOUR PATIENCE WITH THAT. FINALLY, I WANT TO GIVE A SHOUTOUT TO THE SOUNDS WITH FIVE MEMBERS ON THEIR ROSTER SELECTED IN THE AAA ALL STAR GAME JULY 11TH. WHERE WAS THAT? COLUMBUS. CONGRATULATIONS. [APPLAUSE]>>ARE THERE ANY OTHER QUESTIONS? IF NOT, THAT CONCLUDES MY REPORT.>>THANK YOU, MONICA. MOVING ALONG IN OUR AGENDA IS THE FINANCE REPORT. I WANT TO START WITH, I’M SO GRATEFUL TO BE ASKED BY THE MAYOR TO SERVE THE CITY, TO WORK ALONGSIDE THE MAYOR AND ALL OF THE PEOPLE OUT THERE. I HAVE COME TO KNOW AND LIKE SO MANY OF YOU. IT’S HARD TO MOVE. IT’S BITTERSWEET. I WISH EVERYONE THE BEST OF LUCK GOING FORWARD. THERE ARE SO MANY THINGS GOING FORWARD IN NASHVILLE AND THE SPORTS COMMITTEE. I WISH EVERYONE THE BEST SUCCESS. MANY OF OUR BOARD MEMBERS WERE AT THE FINANCE COMMITTEE MEETING. WE SPENT THE BULK OF OUR TIME DISCUSSING A RESOLUTION THAT WOULD APPROVE PHASE ONE OF A VIDEO SOUND SYSTEM UPGRADE AT BRIDGE STONE ARENA. I THOUGHT THEY DID A GREAT JOB. WMOST OF OUR DISCUSSION CENTERED AROUND THE SELF LOAN, HAVING FUNDS AVAILABLE THERE, BEING ABLE TO EXTEND IT OR EXPAND IT. CAPITAL IMPROVEMENT FUND. I THINK THE PREDATORS ARE TAKING A RISK. I THINK THEY ARE CONFIDENT BEING ABLE TO EXPAND. I AGREED WITH THAT. I THOUGHT THEY DESERVED TO BE CONFIDENT. THEY ARE WORKING WITH FIRST TENNESSEE BANK AND BOB LACKEY EXPLAINED REALLY, HOW THEY ARE PUSHING THROUGH THAT. IF YOU READ THE RESOLUTION OF THE FINANCE COMMITTEE DID APPROVE IT AS AMENDED.>>DO YOU WANT ME TO READ THAT? BEHIND TAB THREE IN THE BINDER, THE POWERS MANAGEMENT BROUGHT IN ADDITIONAL INFORMATION, PLANS, SPECIFICATIONS THAT WE DIDN’T HAVE WHEN WE DRAFTED THE DOCUMENT. IN THE FIRST RECITAL OF THE RESOLUTION, IT SAYS WHEREAS POWERS MANAGEMENT, MANAGEMENT OF BRIDGE STONE ARENA HAS INDICATEI PROPOSE TO INSERT LANGUAGE THAT SAYS, AND PLANS AND SPECIFICATIONS PROVIDED AT THE JULY REGULAR MEETING, AND THEN ATTACHED TO IT IS EXHIBIT A. IN CONJUNCTION WITH THE JUNE 28TH LETTER AND PLANS OF SPECIFICATIONS PROVIDED, THAT’S EXHIBIT A UPON WHICH THE REVIEW IS MADE AND APPROVAL WAS GIVEN.>>THAT’S MY RESOLUTION.>>SO THERE MAY BE FURTHER DISCUSSION FROM THE BOARD, BUT I MOVE APPROVAL AS AMENDED AS THE FINANCE COMMITTEE HAS APPROVED IT.>>THANK YOU. WE HAVE A MOTION TO ACCEPT THE FINANCE COMMITTEE’S RECOMMENDATION TO APPROVE THE RESOLUTION. ALL IN FAVOR? IS THERE A SECOND?>>SECOND.>>PROPERLY SECONDED. ANY FURTHER DISCUSSION? ALL IN FAVOR SAY AYE. OPPOSED? MOTION CARRIES. FINANCE COMMITTEE’S RECOMMENDATION IS APPROVED.>>I CAN — THE FINANCE COMMITTEE MEETING ENDED WITH AN UPDATE FROM JANINE FULCRUM WITH THE TITANS. SHE WILL COVER THAT LATER IN THE MEETING, BUT WE APPRECIATE THE ADDITIONAL INFORMATION, SO THANK YOU. I BELIEVE THAT’S IT FOR THE FINANCE COMMITTEE REPORT.>>THANK YOU, LISA. I THOUGHT ONE OTHER INTERESTING PIECE OF SITTING IN ON THE FINANCE COMMITTEE, THE PREDATOR’S ORGANIZATION REPORTED THE PRESALE OF TICKETS FOR ALL OF THE UPCOMING EVENTS AND CONTINUED INCREASE OF OTHER EVENTS AT BRIDGE STONE ARENA, RECORD SETTING AND CONTINUES TO I WANTED TO MAKE SURE THAT WE KNOW THAT. THANK YOU FOR THAT REPORT. NEXT UP, WE HAVE CONSIDERATION OF THE MLS STADIUM AGREEMENT. METRO LAW DIRECTOR JOHN COOPER IS BACK AND PRESENT TODAY. HE PRESENTED TO THIS BOARD LAST WEEK AND WALKED THROUGH THE FOUR AGREEMENTS THAT IS BEFORE US. THERE HAVE BEEN A COUPLE OF UPDATES SINCE LAST WEEK. MR. COOPER WILL WALK US THROUGH SOME OF THOSE.>>CERTAINLY, THANK YOU VERY MUCH. GLAD TO BE HERE. THERE ARE TWO CHANGES, ONE CHANGE TO THE DEVELOPMENT AGREEMENT AND ONE CHANGE TO THE STADIUM LEASE THAT OCCURRED FROM OUR DISCUSSION AT THE LAST MEETING. THE FIRST WAS TO CLARIFY AND INCLUDE A PROVISION THAT THE SPORTS AUTHORITY WILL BE ABLE TO USE THE FACILITY FOR SPORTS AUTHORITY BOARD MEETINGS. THERE IS A SPECIFIC USE SECTION FOR THAT PURPOSE. IN ADDITION, THE DEVELOPMENT COMMITTEE, WHICH I’LL GO THROUGH IN A MINUTE. THE DEVELOPMENT COMMITTEE THROUGHOUT THE DESIGN AND CONSTRUCTION PROCESS HAS BEEN INCREASED FROM FOUR MEMBERS TO FIVE MEMBERS. THE FIFTH MEMBER WILL BE APPOINTED BY THE FAIR BOARD. TWO FROM THE TEAM, TWO FROM THE SPORTS AUTHORITY AND ONE FROM THE FAIR BOARD. THOSE ARE THE TWO CHANGES FROM WHAT WE REVIEWED LAST WEEK. WOULD YOU LIKE ME TO GIVE A HIGH LEVEL SUMMARY OF THE AGREEMENTS?>>I THINK THAT WOULD BE HELPFUL. IN ADDITION, SINCE THE FAIR MEETING, WE HAVE MET.>>THE FAIR BOARD APPROVED THAT TWO DAYS AGO UNANIMOUSLY.>>SO DO WE WANT TO START WITH THE GROUND LEASE?>>SURE.>>THAT’S TAB FOUR.>>THE AGREEMENT IS BETWEEN THE FAIR BOARD AND SPORTS AUTHORITY. THIS IS A 30-YEAR AGREEMENT FOR THE GROUND BENEATH WHICH THE STADIUM WILL BE CONSTRUCTED. THE PROPERTY WILL BE LEASED IN AS IS CONDITION. THERE IS NO RESPONSIBILITY THE FAIR BOARD WILL HAVE FOR CONSTRUCTION OR COST. IT’S JUST FOR THE GROUND LEASE. IT’S A RATHER VANILLA DOCUMENT. THE STANDARD PROVISIONS, PROHIBITED USES, IT IS ONLY TO BE FOR THE STADIUM AND OTHER APPROVED LAWFUL USES, NOTHING TO CONSTITUTE A NUISANCE OR HEAVY INDUSTRIAL OR COMMERCIAL ACTIVITY. NEXT, I’LL COVER THE NEXT DOCUMENT IS THE DEVELOPMENT AGREEMENT. THE DEVELOPMENT AGREEMENT AND GUARANTEE AGREEMENT ARE INCLUDED WITHIN THE STADIUM LEASE, BUT THEY ARE SEPARATE AGREEMENTS. I’LL GO THROUGH THE DEVELOPMENT AGREEMENT. THIS IS BETWEEN THE SPORTS AGREEMENT AND SUBSIDIARY OF THE MLS TEAM. THIS IS FOR THE CONSTRUCTION OF A 30,000 PLUS SEAT STADIUM ON THE PROPERTY AT THE FAIRGROUNDS. ICON SPORTS VENUE CAA ICON, I THINK IS THE NAME OF THE COMPANY. THEY’LL BE SERVING AS THE TEAM’S REPRESENTATIVE THROUGHOUT THE PROCESS. THEY ARE A LEADER IN THE PROJECT MANAGEMENT FIELD FOR SPORTS VENUES. THEY HAVE DONE PROJECTS ALL OVER THE WORLD. IN ATLANTA, THE MLS TEAM AND THE FALCONS PLAY. FOR THE SPORTS AUTHORITY, RON WITH GHP AND CPS WILL BE SERVING AS THE OVERSIGHT FOR THE SPORTS AUTHORITY THROUGHOUT THE PROJECT TO MAKE SURE THAT THE PROJECT IS BUILT APPROPRIATELY AND ON TIME SO THEY WILL BE THE AYES AND EARS FOR THE SPORTS AUTHORITY AND WILL BE REPORTING BACK TO YOU REGULARLY AS THE STADIUM PROGRESSES. THE DEVELOPMENT COMMITTEE WILL MEET TO OVERSEE THE ACTIVITY AND HEAR REGULAR REPORTS FOR RON AND CBS AS WELL AS ICON. THE COMMITTEE HAS THE RESPONSIBILITY FOR ADJUDICATING DISPUTES THAT MAY COME UP THROUGHOUT THE PROCESS. IN THE EVENT THERE IS A CHANGE THAT WOULD MATERIALLY IMPACT THE FUTURE CAPITAL NEEDS OF THE STADIUM, THEN THE COMMITTEE WILL HAVE TO WORK TOGETHER THROUGH THAT.>>I THINK ON THE PRESENTATION WE ARE LOOKING AT, IT SAYS FOUR MEMBERS. THAT SHOULD BE FIVE.>>I DIDN’T UPDATE THAT. THE CHANGE WAS MET WHEN THE FAIR BOARD MET.>>QUICKLY, THE CONSTRUCTION TIMELINE AGAIN –>>IN THE AGREEMENT WHERE THEY AGREED, WE HAD LIVE DISCUSSION ABOUT THAT.>>IT’S ON PAGE SIX OF THE DEVELOPMENT AGREEMENT.>>ON THAT PAGE IT ESTABLISHES THE COMMITTEE AND CHAIR AND WHAT THE RULES WILL BE. IF YOU LOOK, UNDER SUBSECTION C DEVELOPMENT COMMITTEE CHAIR, IT SAYS THE DEVELOPMENT COMMITTEE CHAIR WILL BE THE FINAL DECISION MAKER ON ALL COST-RELATED ITEMS NOT REASONABLY ANTICIPATED ON THE CAPITAL EXPENSE OBLIGATIONS. IF IT’S A MINOR CHANGE THAT HAS NO IMPACT ON FUTURE CAPITAL NEEDS, THEN THE CHAIR OF THE COMMITTEE CAN MAKE THE DECISION BUT IF IT WOULD, IT WOULD HAVE TO BE ADJUDICATED BY THE FULL COMMITTEE.>>THANK YOU.>>ON TO THE CONSTRUCTION TIMELINE, IT’S ANTICIPATED THAT THE FINAL PLANS FOR THE STADIUM WILL BE SUBMITTED TO MLS FOR THEIR REVIEW BY FEBRUARY 25TH, 2019 WITH A START DATE, CONSTRUCTION START DATE OF JUNE 30TH, 2019. THE TEAM WOULD TAKE OCCUPANCY FEBRUARY 2021 TO START PLAY FOR THE 21 SEASON. THE DEVELOPMENT AGREEMENT SPECIFIES THE FUNDS SOURCES. REVENUE BONDS WILL COME BACK TO THE AUTHORITY FOR APPROVAL IF THE COUNCIL APPROVES THE NECESSARY LEGISLATION DURING AUGUST AND SEPTEMBER. THAT WOULD BE COMING BACK TO YOU LATE IN THIS CALENDAR YEAR. IN ADDITION TO THE REVENUE BONDS, THE SPORTS AUTHORITY WILL BE APPROVING, THERE IS A $25 MILLION CAPITAL CONTRIBUTION FROM THE TEAM. THERE IS ALSO A $25 MILLION STADIUM INFRASTRUCTURE CONTRIBUTION FROM METRO IN THE FORM OF GENERAL OBLIGATION BONDS TO BE APPROVED BY THE COUNCIL IF THEY ARE ANTICIPATED AT THE FIRST MEETING IN SEPTEMBER. THE THREE SOURCES TOGETHER MAKE UP THE TOTAL FUNDING FOR THE STADIUM. I WOULD POINT OUT, UNLIKE OTHER SPORTS FACILITIES, THE TEAM IS RESPONSIBLE FOR ALL COST OVERRUNS. METRO WON’T BE ON THE HOOK FOR WHATEVER EXCEEDS THE GUARANTEED MAXIMUM PRICE ON THE STADIUM. THE NEXT AGREEMENT IS A CONSTRUCTION ADMINISTRATION AGREEMENT. THIS IS ALSO A NEW CONCEPT FOR METRO AND SPORTS AUTHORITY. IT WAS DETERMINED THAT ICON, GIVEN THEIR EXPERTISE AND EXPERIENCE IN OVERSEEING STADIUM PROJECTS, THEY WERE BEST SUITED TO OVERSEE THE DAY-TO-DAY CONSTRUCTION OF THE STADIUM AND ARE SERVING AS THE TEAM’S REPRESENTATIVE. THIS AGREEMENT WILL BE BETWEEN THE SPORTS AUTHORITY, THE TEAM AND WALSH WHO IS THE TEAM SUBSIDIARY WITH ICON SERVING AS THEIR REPRESENTATIVE. THIS IS MODELED AFTER THE PROCESS OF THE NEW ATLANTA BRAVE STADIUM IN COB COUNTY GEORGIA. WE TOOK THEIR AGREEMENT AND TWEAKED IT TO SERVE OUR PURPOSES HERE. ICON WILL OVERSEE THE CONSTRUCTION MANAGER. BIDS FOR CONSTRUCTION MANAGER CLOSED THIS WEEK. ONCE THAT CONSTRUCTION MANAGER IS SELECTED, ICON WILL OVERSEE THEIR BUILDING OF THE STADIUM AS WELL AS THE ARCHITECT DESIGNING IT. ICON WILL SERVE AS A LIAISON AS THE SPORTS AUTHORITY AND ARCHITECT AND CONSTRUCTION MANAGER. THE RESPONSIBILITIES OF ICON, IT’S BASICALLY EVERYTHING RELATED TO OVERSEEING THE CONSTRUCTION OF THE STADIUM. THEY’LL DEVELOP ALL OF THE MILESTONES, DATES THAT MUST BE MET FOR CERTAIN COMPLETION OF THE STADIUM. THEY’LL WORK TO ESTABLISH THE GUARANTEED MAXIMUM PRICE AND WILL OVERSEE ALL OF THE COST AND PAYMENT OF INVOICES TO MAKE SURE THAT ALL OF THE PAYMENTS ARE APPROPRIATE FOR THE WORK DONE. THEY WILL ASSIST WITH THE RECORDKEEPING, WHICH IS ANTICIPATED THAT CPS, ON BEHALF OF THE AUTHORITY WILL WORK WITH THEM ON THE RECORD-KEEPING ASPECT TO MAKE SURE THAT ALL OF THE I’S ARE DOTTED AND T’S ARE CROSSED IN THE EVENT OF AN AUDIT END OF THE PROJECT, WHICH THERE LIKELY WILL BE. THE NEXT AGREEMENT IS THE TEAM LEASE AGREEMENT. THIS IS THE OPERATING LEASE FOR THE STADIUM. THAT’S BETWEEN THE WALSH AGREEMENT AND TERM MANAGEMENT.>>THAT’S TAB 5.>>THE TEAM IS RESPONSIBLE FOR PAYING ALL OF THE DEBT SERVICE ON THE STADIUM AS RENT. IT’S ANTICIPATED IT WILL BE IN THE 12 TO $13 MILLION A YEAR RANGE. THE TEAM WILL BE RESPONSIBLE FOR PAYING THAT. THEY ARE ENTITLED TO A RENT REDUCTION IN THE AMOUNT OF THE TICKET TAX AND SALES TAX REDIRECT REVENUE GENERATED AT THE STADIUM. THEY’LL GET A SET OFF OF THE AMOUNT. METRO IS GUARANTEEING A CERTAIN LEVEL OR AMOUNT OF YEARS ONE THROUGH FIVE. THE RENT WILL BE PAID TWICE A YEAR TO COINCIDE WITH BOND PAYMENT DATES. WALSH IS RESPONSIBLE FOR UTILITIES, SECURITY INTENSES. THERE IS A DETAILED PAYMENT THAT CLARIFIES WHAT THE OPERATING EXPENSES ARE. WE COVERED THAT LAST WEEK. THE SPORTS AUTHORITY WILL BE RESPONSIBLE FOR CAPITAL EXPENSES ASSOCIATED WITH THE STADIUM. AS ANOTHER NEW PROVISION FOR THE BENEFIT OF METRO SPORTS AUTHORITY, A PORTION OF THE TICKET TAX WILL BE SET ASIDE STARTING YEAR SIX FOR CAPITAL IMPROVEMENTS, CAPITAL EXPENSES. THAT’S SOMETHING WE DON’T HAVE WITH THE ARENA OR NISSAN STADIUM. THAT WILL PROVIDE A DEDICATED REVENUE GOING FORWARD AS THEY COME UP. THAT AMOUNT WOULD BE 50-CENTS PER TICKET, STARTING IN YEAR SIX, INCREASING TO 75-CENTS PER TICKET YEAR EIGHT. WALSH WILL BE REQUIRED TO PROVIDE A CAPITAL ASSET MANAGEMENT PLAN TO THE TEAM — I MEAN THE SPORTS AUTHORITY, STARTING IN YEAR SEVEN. THAT WOULD BE PROVIDED EVERY OTHER YEAR. THAT WOULD BE DONE BY AN INDEPENDENT THIRD PARTY CONSULTANT THAT THE SPORTS AUTHORITY WOULD HAVE TO APPROVE. THE SPORTS AUTHORITY WOULD AGREE TO THE CONSULTANT. THE CONSULTANT WOULD PROVIDE THE CAPITAL ASSET MANAGEMENT PLAN THAT WOULD GIVE AN ASSESSMENT OF THE STADIUM AND CURRENT CONDITION AS WELL AS PROJECTED EXPENSES FOR THE NEXT TEN YEARS SO THE SPORTS AUTHORITY CAN START PLANNING FOR THOSE PROJECTS. THE TEAM IS ALLOWED TO PLAY UP TO THREE GAMES, MOST LIKELY NISSAN STADIUM IN THE EVENT THERE IS A SPECIAL GAME, INTERNATIONAL GAME OR SOMETHING THAT THEY NEED THE EXTRA SEATING CAPACITY FOR. IF THEY PLAY GAMES OUTSIDE OF THE MLS STADIUM, THEY WOULD BE REQUIRED TO REIMBURSE METRO TO RENT REVENUE. THE TICKET SALES FROM PLAYING AT ANOTHER VENUE, THEY WOULD BE REQUIRED TO PAY METRO SO WE WOULD NOT BE OUT THE MONEY FOR THEIR DECISION TO PLAY ELSEWHERE.>>CONCESSIONS, NAMING RIGHTS, ADVERTISING, WHATEVER MONEY THEY GENERATE AT THE STADIUM, THEY GET TO KEEP TO GO TOWARD THEIR PAYMENT OF THE DEBT. A LOT OF DISCUSSION WENT INTO SCHEDULING ISSUES TO ENSURE THAT THE FAIRGROUNDS CAN HOLD ALL OF THEIR EVENTS THAT THEY ARE REQUIRED TO HOLD BY CHARTER. THERE IS LANGUAGE IN THE AGREEMENT REGARDING CONSULTING WITH THE FAIRGROUNDS ON SCHEDULING, PROVIDING THEIR SCHEDULES WELL IN ADVANCE SO THAT THOSE CAN BE COORDINATED. THE TEAM IS REQUIRED TO COVER ALL INSURANCE ON THE STADIUM, FULL REPLACEMENT AS WELL AS $50 MILLION LIABILITY INSURANCE. INCLUDED WITHIN THE LEASE AGREEMENT, THE OPERATING LEASE, IS A GUARANTEE AGREEMENT, UNCONDITIONALLY GUARANTEEING THIS IS A TEAM GUARANTEE GUARANTEEING ALL OF THE OBLIGATIONS ASSOCIATED WITH THE STADIUM. THAT’S ALL DEBT PAYMENTS, RENT PAYMENTS, ALL OF THE CAPITAL CONTRIBUTION AND COST OVERRUNS. AS PART OF THE NEGOTIATIONS WITH THE COUNCIL, WHEN THEY APPROVE THEIR RESOLUTION IN NOVEMBER, LANGUAGE IS INCLUDED IN THE AGREEMENT THAT IN THE EVENT JOHN INGRAM IS NO LONGER THE CONTROLLING OWNER OF THE TEAM, THEN NO PERSONAL GUARANTEES WOULD BE REQUIRED WHILE HE IS CONTROLLING OWNER. IF HE EVER CEASES TO BE CONTROLLING OWNER, WE COULD INSIST ON THE PERSONAL GUARANTEES AT THAT POINT. THAT LANGUAGE IS INCLUDED IN THE RESOLUTION AND FLESHED OUT MORE FULLY IN THE AGREEMENT. THE SPORTS AUTHORITY WOULD HAVE TO APPROVE ANY TIEMENT OF THE LEASE, AND MLS IS NAMED AS A THIRD PARTY BENEFICIARY SO THEY CAN STEP INTO THE SHOES OF THE TEAM IN THE EVENT OF A TEAM DEFAULT. THOSE ARE THE AGREEMENTS THAT YOU WILL BE APPROVING TODAY IF YOU SO CHOOSE.>>I HAVE A QUESTION REAL QUICK. I THINK IN THE BEGINNING YOU HAD THE TIMELINE. CAN WE GO BACK TO THAT? THIS IS STILL — THERE ARE SEVERAL CONDITIONS PER COUNCIL. THIS IS ALL CONDITIONAL BASED ON WHAT THE COUNCIL APPROVED IN NOVEMBER. AFTER ACTION TODAY, I BELIEVE –>>IF THE SPORTS AUTHORITY APPROVES TODAY, THE NEXT ACTION THAT WILL HAPPEN IS ALL OF THE LEGISLATION WILL BE FILED NEXT FRIDAY WITH THE COUNCIL. THAT WILL INCLUDE AN ORDINANCE APPROVING THE TICKET TAX AND DEMOLITION OF THE STRUCTURES AT THE FAIRGROUNDS. IT WILL INCLUDE APPROVAL OF THE PRIVATE-DEVELOPMENT GROUND LEASE WITH THE FAIR BOARD. IT WILL INCLUDE THE REZONING OF THE PRIVATE DEVELOPMENT PORTION, AND THE BOND RESOLUTION, THE GEOBOND RESOLUTION FOR $25 MILLION IN INFRASTRUCTURE ASSOCIATED WITH THE STADIUM AND $25 MILLION TO REBUILD THE EXISTING BUILDING AT THE FAIRGROUNDS. THERE IS A SUMMARY TIMELINE –>>I THINK IT WAS IN THE BEGINNING.>>SLIDE THREE.>>THANK YOU. THIS LEGISLATION WILL BE HELD NEXT FRIDAY. THE ORDINANCES, FIRST MEETING AUGUST, SECOND MEETING, THIRD TUESDAY IN AUGUST, AND FINAL ACTION ON SEPTEMBER 4TH. ONCE THAT APPROVAL GOES THROUGH, IT WILL COME BACK FOR APPROVAL OF THE SPORTS AUTHORITY FOR REVENUE BONDS.>>I’M SORRY.>>I HAD A QUESTION ABOUT — JUST CLARIFICATION ON THE BOND ISSUE. THERE IS $225 MILLION REVENUE BONDS BEING ISSUED.>>CORRECT.>>THOSE WOULD BE PAID FROM REVENUES CREATED AT THE STADIUM.>>THEY’LL BE PAID BY THE RENT PAYMENTS MADE BY THE TEAM. THAT WOULD BE REVENUE GENERATED AT THE STADIUM AS WELL AS THE TICKET TAX AND SALES TAX REDIRECT.>>THE SALES OBLIGATIONS ARE MADE BY T THE ISSUER.>>METRO WILL BE RESPONSIBLE FOR THE OBLIGATION BONDS, YES.>>I HAVE A FOLLOW UP ON THE GUARANTEE. I WANT TO RECAP CHA I UNDERSTAND THE SITUATION IS. WE HAVE A LEASE. THE LEASE IS BETWEEN THE SPORTS AUTHORITY AND WALSH MANAGEMENT, A SUBSIDIARY OF NASHVILLE SOCCER HOLDINGS LLC. LLC, THE LIMITED LIABLE COMPANY IS THE GUARANTOR ON THE LEASE.>>JOHN IS THE CONTROLLING OWNER. AS LONG AS JOHN INGRAM IS THE CONTROLLING MEMBER OF THE LLC, THERE WILL NOT BE PERSONAL GUARANTEES REQUIRED OF THE OTHER MEMBERS OF THE LLC. IS THAT CORRECT? A LIMITED COMPANY LIABILITY IS LIMITED TO THE CAPITALIZATION OF THE LLC. THE QUESTION I HAVE, AND I THINK IT’S IMPLICIT, BUT I WANT TO GET IT OUT THERE AND HEAR THIS, IS JOHN INGRAM COMMITTED TO THE HOLDINGS, THE GUA GUARANTOR, IS ADEQUATELY CAPITALIZED IF THE GUARANTOR IS CALLED ON?>>I WON’T SPEAK ON HIS BEHALF, BY MARY INGRAM IS HERE.>>THANK YOU, DUDLEY. THE OWNERSHIP GROUP IS LED BY JOHN, JOHN THE FAMILY AND COMPANY HAVE MANY PHILANTHROPIC ACTIVITIES WE HAVE BEEN INVOLVED WITH IN THE COMMUNITY. AS JOHN STATED LAST YEAR, HE’S COMMITTED TO THE TEAM AND WILL ENSURE THE TEAM WILL MEET THE OBLIGATIONS IF CALLED UPON. WE DON’T BELIEVE IT WILL BE CALLED UPON. THANK YOU.>>I BELIEVE WHAT MR. INGRAM IS DOING FOR THE CITY, I CONGRATULATE HIS CIVIC INVOLVEMENT AND CERTAINLY HOPE THIS GOES ALL ACCORDING TO PLAN. I DIDN’T ASK THAT QUESTION. , I WOULDN’T BE DOING MY JOB.>>THANK YOU.>>ARE THERE ADDITIONAL QUESTIONS FOR MR. COOPER?>>I HAVE A COMMENT. I HAVE COMPLICATED YOU AND THE LEGAL COUNSEL FOR WHAT THEY PUT TOGETHER. I THINK THE COMMUNICATION FROM THE SPORTS AUTHORITY HAS BEEN GREAT. WE HAVE HAD STATUS UPDATES AND EXCELLENT COMMUNICATION. I WANT TO THANK YOU FOR THAT. THERE ARE SO MANY THING THAT ARE GOOD FOR THE AGREEMENT THAT I THINK WOULD BE GOOD TO POINT OUT. METRO IS NOT RESPONSIBLE FOR COST OVERRUN. THAT’S WONDERFUL FOR A CITY. THERE IS A TICKET TAX FOR THE OUTSET FOR CAPITAL NEEDS DOWN THE ROAD. THIS IS SOMETHING THE SPORTS AUTHORITY FACES A LOT TO KEEP OUR FACILITIES IN THE CONDITION WE WANT. THIS ADDRESSES THAT ON THE FRONT END. THE FACT THAT THE TEAM IS PAYING RENT TO COVER THE FUNDS FOR 30 YEARS IS OUTSTANDING. THERE ARE SETOFFS AND PARTS OF THE AGREEMENT THAT — AND METRO HAS RESPONSIBILITY IN THE FIRST TEN YEARS DEPENDS ON THE TICKET SALES. THERE IS A CLEAR UNDERSTANDING THAT THE TEAM IS PAYING OPERATING EXPENSES VERSUS CAPITAL WHICH WE DON’T HAVE IN SOME OF OUR AGREEMENTS, WHICH IS EXCELLENT THAT, THAT WAS ADDRESSED. THERE ARE A LOT OF OUTSTANDING EASTBOUND TRAFFICS AT THE FAIRGROUNDS, THERE IS A LOT OF TROUBLE TAKEN TO ENSURE THAT SCHEDULING WILL BE DONE IN A MANOR THE PUBLIC WILL BE APPRECIATIVE AND CONSIDERING THE SCHEDULING OF THE TEAM AND REVENUES THAT COME BACK TO THE CITY, I THINK THAT’S OUTSTANDING, AND THE TEAM GUARANTEE AND WHAT WE HEARD FROM OUTSTANDING ALSO. I DON’T KNOW HOW YOU WANT TO GO THROUGH THIS, BUT I’M READY TO MAKE A MOTION.>>IF IT’S THE WILL OF THE BODY, WE COULD CONSIDER — MARGT MARGT DARBY HAS PREPARED A RESOLUTION TO TAKE THE MLS STADIUM DOCKETS AS A PACKAGE. THE TABITHA SAYS MLS DOCKETS.>>DO YOU HAVE A NUMBER?>>IT’S THE FOUR TAB. FOUR. OUR MINDERS ARE GETTING THICKER AND THICKER. WE ARE GOING TO MISS LISA. THIS IS A RESOLUTION RECOMMENDED. OF COURSE THE BOARD CAN MAKE ITS RESOLUTION. IT’S A RESOLUTION AUTHORIZING THE CHAIR FOR CONSTRUCTION DEVELOPMENT OF A MAJOR LEAGUE SOCCER STADIUM PROJECT. I’M HAPPY TO READ IT ALOUD IF YOU WANT ME TO.>>PLEASE.>>STARTING WITH THE FINAL, WHEREAS THE METROPOLITAN COUNCIL AND SUBSTITUTED RESOLUTION RS2017-910, THE RESOLUTION, CONDITION THE ISSUANCE OF SPORTS AUTHORITY REVENUE BONDS TO CONSTRUCT AN MLS STADIUM UPON THE EXECUTION OF SEVERAL AGREEMENTS AS WELL AS METROPOLITAN COUNCIL ACTION. AND AS CONTRACT NEGOTIATIONS HAVE RESULTED IN A LEASE AGREEMENT BETWEEN THE SPORT AUTHORITY AND WALSH MANAGEMENT LLC, TEAM LEASE IN EXHIBIT ONE, WHICH CONTAINS SPECIFIC REQUIREMENTS IN THE RESOLUTION. THIS HAS RESULTED IN THE CREATION OF A GROUND LEASE BY AND THROUGH THE SPORTS AUTHORITY, GROUND LEASE, ATTACHED IN SUBSTANTIAL FORM IS EXHIBIT TWO, REQUIRING REQUIREMENTS IN THE RESOLUTION AND WHEREAS CONTRACT RESOLUTIONS HAVE RESULTED IN THE DEVELOPMENT AGREEMENT BETWEEN THE SPORTS AUTHORITY AND WALSH MANAGEMENT LLC DEVELOPMENT AGREEMENT, ATTACHED IN EXHIBIT THREE SPECIFIC REQUIREMENTS IN THE RESOLUTION. CONTRACT DISCUSSIONS HAVE RESULTED IN THE AGREEMENT BETWEEN THE SPORT AUTHORITY, WALSH MANAGEMENT AND SOCCER HOLDINGS LLC ADMINISTRATION AGREEMENT ATTACHED IN SUBSTANTIAL FORM AS EXHIBIT FOUR AND WHEREAS THE SPORTS AUTHORITY REVIEWED THE AFOREMENTIONED AGREEMENT. AFTER SAID REVIEW THE SPORTS AUTHORITY DETERMINES THE EXECUTION OF THE AGREEMENT IS IN THE BEST INTEREST OF THE SPORTS AUTHORITY AND WILL FACILITATE THE PURPOSE FOR WHICH THE SPORTS AUTHORITY WAS CREATED. THE CHAIR IS NAMED TO EXECUTE THE TEAM LEASE, DEVELOPMENT AGREEMENT AND CONSTRUCTION ADMINISTRATION AGREEMENT ALL IN SUBSTANTIALLY THE FORMS PRESENTED TO THE BOARD, PROVIDED, HOWEVER, THAT THE CHAIR BE AND IS AUTHORIZED IN HER DIRECTION TO APPROVE CHANGES IN THE FORM AND CONTENT AS NECESSARY FOR EXECUTION AND TO BE CONCLUSIONIVE EVIDENCE OF SUCH APPROVAL IN THE FORM AND CONTENT, MATERIALLY REQUIRING AGREEMENT TO RECRUIT THEM. THE BOARD DETERMINED THE EXECUTION OF AGREEMENT WITH CHANGE, SUBSTANCE AND CONTENT APPROVED BY THE CHAIR IS IN THE BEST INTEREST OF THE SPORTS AUTHORITY AND WILL FACILITATE THE PURPOSE FOR WHICH THE SPORTS AUTHORITY WAS CREATED AND THE CHAIR IS PERFORMED OR CAUSED TO BE PERFORMED ON BEHALF OF THE SPORTS AUTHORITY TO BE EXECUTED OR DELIVERED BY AND ON BEHALF OF THE SPORTS AUTHORITY NOTICES, REQUESTS, DEMANDS, CONSENT, APPROVAL, ORDER, APPLICATION, CERTIFICATES, AGREEMENT, AMENDMENTS, FURTHER INSTRUMENTS OR COMMUNICATIONS UNDER THE SEAL OF THE SPORTS AUTHORITY AS SHE DEEMS NECESSARY TO CARRY ON THE FOREGOING RESOLUTIONS OR TRANSACTION CONTEMPLATED THEREBY OR THE FILING OF DOCUMENT OR AUTHORIZE OR CONTEMPLATE THE ONGOING RESOLUTIONS. IF YOU ADOPT AND APPROVE TODAY JULY 19TH, 2018. 50 THANKS, MARGARET. I BELIEVE WE HAVE A MOTION ON THE FLOOR TO APPROVE THE RESOLUTION FOR THE PACKAGE OF THE MLS STADIUM DOCUMENT.>>I’LL SECOND.>>MOTION, SECOND, IS THERE ANY FURTHER DISCUSSION? SEEING NONE, ALL IN FAVOR SAY AYE.>>AYE. ANY OPPOSED?>>MOTION CARRIES. IT IS APPROVED. THERE HAS BEEN A TREMENDOUS AMOUNT OF EFFORT BY SEVERAL PARTIES WORKING TO PREPARE THESE AGREEMENTS TODAY. I KNOW WE HAVE AN AMBITIOUS TIMELINE. IN PARTICULAR, THE PAD READY JUNE 30TH NEXT YEAR DATE. WE HAVE A LOT OF WORK TO DO. I WANT TO THANK EVERYONE WHO HAS BEEN WORKING HARD TO GET US TO THIS POINT. THE SPORTS AUTHORITY’S APPROVAL OF THE DOCUMENTS IS ONE OF SEVERAL CONDITIONS OUTLINED IN THE METRO COUNCIL APPROVED BACK IN NOVEMBER. AS MR. COOPER HIGHLIGHTED, IT WAS NOTED IN THE PRESENTATION, KEY VOTES BY THE METRO COUNCIL IN THE NEXT COUPLE OF MONTHS. I KNOW MONICA AND THE TEAM WILL KEEP US APPRIZED OF THAT PROCESS. WITH THAT SAID, WE ARE MOVING ON IN THE AGENDA TO THE ICE CENTER UPDATE. DANNY BUTLER. THANK YOU FOR YOUR PATIENCE, MR. JUST, FIRST, I WANT TO SAY THANK YOU TO EVERYONE THAT CAME TO THE GROUND BREAKING JUNE 29TH. I KNOW IT WAS PRETTY MUCH THE TEMPERATURE OF THE SUN THAT DAY, BUT IT REALLY WAS A GREAT DAY. I WANT TO KEEP BELLEVIEW TOP OF MIND TALKING ABOUT THE SOCCER THINGS, FOOTBALL SEASON STARTS IN A FEW WEEKS. THE SOUND HAD FIVE ALL STARS. I WANT TO KEEP TOP OF MIND FOR EVERYONE IF YOU HAVE QUESTIONS ABOUT IT. JUNE 29TH, WE HAD THE OFFICIAL GROUND BREAKING FOR BELLEVIEW AND THE COMMUNITY CENTER OUT THERE. WE HAVE THE MAYOR, VICE-MAYOR AND SEAN. IT WAS HOT OUT THERE. ONE THING WE DID WAS TO INVITE THE COMMUNITY HOCKEY TEAMS. WE WANT TO INVOLVE EVERYONE IN THE GROUND BREAKING BECAUSE THIS PROJECT IS FOR THE COMMUNITY BEING IT’S THE ICE CENTER AND RECREATION CENTER COMBINED. IT WAS FUN TO HAVE THEM THERE. YOU SEE MY KIDS IN THREE OR FOUR OF THESE PICTURES. WE DEFINITELY INVITED THE COMMUNITY TOO. WE WENT TO THE BELLEVIEW CHAMBER TO INVOLVE EVERYONE. WE HAD 15 OR 20 RESTAURANTS TO PRESENT WHAT THEY HAD TO OFFER. ON TOP OF THAT, WE HAD 300 TO 600 PEOPLE SWEATING WITH US OUT THERE. THERE WAS A PILE OF DIRT IN THE MIDDLE OF THE PARKING LOT BUT BEHIND THE PICTURE IS WHERE THE FACILITY WILL LIE. LAST WEEK, MONICA, THE FIRST RERENDERINGS OF THE FACILITY. THEY CAN CHANGE 700 TIMES FROM WHAT THEY ARE. WHAT I LIKE ABOUT THE FACILITY, IT’S FRONT-FACING. IT’S A GREAT LOOK AND DESIGN. THE PROJECT IS GREAT AND SHOWS OUR BRAND AND METRO CENTER BRAND. WE ARE WORKING WELL WITH PARKS. IT WILL RUN THE REC CENTER SIDE OF THE FACILITY. AS YOU HEARD IN THE SPEECH THAT THE MAYOR GAVE, THE FACILITY WILL OPEN AUGUST 2019. IF YOU WANT TO BOOK THE 2019 EVENT, WE WOULD BE HAPPY TO HAVE YOU. WE HAVE AN AGGRESSIVE TIMELINE AS WE BROKE GROUND LAST WEEK BUT WE EXPECT TO BE OPEN IN SEPTEMBER FOR THE HOCKEY SEASON, 2019. ARE THERE ANY QUESTIONS? I WENT THROUGH FAST, BUT I WANTED TO KEEP IT SHORT. I APOLOGIZE HOW HOT IT WAS. IF YOU NEED TEE SHIRTS TO REPLACE YOUR CLOTHES, I’M SURE WE HAVE SOME LEFT.>>THANK YOU.>>MARGARET MIGHT WANT TO ADD TO THIS, BUT THE PREDATOR LEGAL DEPARTMENT, WORKING ON AGREEMENT SO THE SPORTS AUTHORITY, WE ANTICIPATE WELL LEASE PART OF THE BUILDING FROM METROPARKS TO SUBLEASE IT TO THE PRED PREDATO.>>IT WILL BE AN OPERATING AGREEMENT NOT A SUBLEASE.>>THANK YOU. IT NEEDS TO BE A OPERATING AGREEMENT TO FUND THE AGREEMENT.>>WE ARE WORKING ON A TIME LINE. LIKE WE HAVE TRIED TO DO WITH SOCCER AND IN EVERY CASE, WE WANT TO MAKE SURE YOU HAVE SUFFICIENT TIME TO REVIEW THE AGREEMENTS AND DOCUMENTS. WE’LL PROVIDE THAT AS SOON AS THEY ARE READY AND GIVE YOU THE OPPORTUNITY TO ADJUST IT BEFORE SEEKING APPROVAL.>>THANK YOU FOR THAT REPORT AND ANOTHER AMBITIOUS TIMELINE AND FUN TO LOOK FORWARD TO FOR THIS BODY AND SPORTS COMMUNITY. IT’S REALLY EXCITING. AT THIS TIME, WE ARE AT THE FACILITY QUESTIONS PORTION OF THE AGENDA. BEFORE WE HEAR FROM OUR FRIENDS AT NISSAN STADIUM, IF THERE ARE QUESTIONS FOR THE PREDS IN ADDITION TO WHAT HAS BEEN DISCUSSED TODAY OR AT THE BALLPARK, WE’LL ENTERTAIN THOSE QUESTIONS AT THIS TIME. SEEING NONE, WE’LL MOVE ALONG. WE HAVE OUR NISSAN STADIUM REPORT. THE HONORABLE STEVE UNDERWOOD IS WITH US.>>HOW ARE YOU THIS MORNING? ON BEHALF OF OWNERSHIP AND EMPLOYEES, LET ME WELCOME YOU TO NISSAN STADIUM. I SHOULD SAY WELCOME BACK. WE WERE HERE A COUPLE OF WEEKS AGO. WE ARE SO GLAD TO HOST YOU HERE, BOTH THE MEMBERS AND GUESTS WE HAVE. I WAS THINKING ABOUT MY REMARKS BEFORE I GOT STARTED. NEXT MONTH, WE’LL BEGIN OUR 20TH YEAR IN THIS BUILDING. [APPLAUSE ]>>IN SOME WAYS, I THINK IT LOOKS GOOD NOW, MAYBE BETTER, THAN IT DID WHEN WE FIRST MOVED IN. WE HAVE ALWAYS APPRECIATED THE SPARTAN NATURE OF OUR BUILDING COMPARED TO OTHER NFL STADIUMS. EVEN NOW AS IT APPROACHES THE 20TH YEAR, IT’S A GREAT PLACE TO WATCH THE FOOTBALL GAMES. IT’S A GREAT PLACE FOR FOOTBALL, SOCCER, CONCERTS. WE DON’T THINK ABOUT IT, AND I THINK IT’S IMPORTANT THAT WE ALL BE REMINDED THAT DURING CALENDAR YEAR 2018, AS WE DID IN 2017, THIS FACILITY WILL HOST OVER 300 EVENTS. SOMETIMES, WE ONLY THINK ABOUT IT AS PLACES WHERE SOCCER TEAMS PLAY WE EXPECT THE USAGE TO INCREASE OVER TIME. FOR THOSE ASKING ABOUT THE AGE OF THE BUILDING IN TERMS OF HOW MUCH LONGER IT WILL LAST, KEEP IN MIND, WE HAVE NEVER SUGGESTED ONCE, PUBLICLY OR PRIVATELY THAT WE NEED A NEW BUILDING. IT’S AN IMPORTANT THING AS WE REACH A MILESTONE OF 20 YEARS TO KEEP THAT IN MIND. BEFORE I MOVE ON, I WOULD LIKE TO STOP THAT AGAIN TO THANK ALL OF YOU FOR YOUR TIME. THE SELFLESS AND SACRIFICE OF YOUR MORNING TODAY, FOR EXAMPLE, YOUR MORNING LAST WEEK WHEN WE WERE HERE FOR ADDITIONAL MEETINGS ABOUT THE MLS TEAM. WE ARE GRATEFUL FOR YOUR TIME AND FOR YOUR EFFORT, AND FOR YOUR TALENT. THANK YOU. AGAIN, A FOND FAREWELL TO LISA. WE WISH YOU THE BEST IN ALL OF YOUR FUTURE ENDEAVORS AND THANK YOU FOR YOUR CONTRIBUTIONS WHILE YOU WERE HERE AS A MEMBER OF THE SPORTS AUTHORITY AND FINANCE COMMITTEE. WE WOULD LIKE AS AN ORGANIZATION TO OFFER OUR CONGRATULATIONS TO THE SOCCER CLUB AND OUR FRIEND JOHN INGRAM FOR ALL OF THE EFFORT THAT HAS GONE INTO MAKING SURE THEY HAVE A PLACE TO PLAY. THAT’S A PROCESS THEY HAVE GONE THROUGH. THOUGH IT’S BEEN A LONG TIME AGO, I STILL REMEMBER. FOR ALL YOU THAT WORKED SO HARD ON THAT, IT’S A GREAT THING FOR NASHVILLE AND FOR US. THIS MORNING, WE HAVE WHAT WE HOPE IS A COMPREHENSIVE PRESENTATION. WE HAVE FOUR OTHERS OF OUR EMPLOYEES THAT ARE GOING TO LEAD THAT EFFORT. I WANT TO INTRODUCE ALL OF THEM BEFORE I WALK AWAY FROM THE PODIUM. RYAN COWEDDEN, BOB FLEN, JANINE KAUFFMAN AND SUSANNA NICKELS. SUSANNA WORKED FOR US A LITTLE OVER THREE YEARS BUT WOULDN’T BE HERE TODAY BUT FOR THE ABSENCE OF HER SUPERVISOR ON VACATION, TINA TUTTLE WHICH I KNOW YOU ALL KNOW. OUR EMPLOYEES ARE AT THE EPICENTER OF OUR BUSINESS AND CULTURE. WHEN WE HAVE AN OPPORTUNITY LIKE THIS, WE KNOW OUR FORMER EXECUTIVE DIRECTOR. JARRED PUFFER FROM OUR MEDIA RELATIONS GROUP IS IN THE BACK OF THE ROOM. ANTHONY KING IS TO MY RIGHT ON THE SIDE. I THANK THEM FOR ALL OF THE CONTRIBUTIONS THAT THEY MAKE WHICH ARE NUMEROUS TO OUR ORGANIZATION. WE ARE SO PROUD TO HAVE THE GREAT PEOPLE WE HAVE, FOUR OF OUR VICE PRESIDENTS, INCIDENTALLY, ARE IN THIS ROOM. A GOOD BIT OF OUR MANAGEMENT HAS PREPARED AND ARE READY TO ANSWER QUESTIONS IF YOU HAVE ANY. NOW IS MY PLEASURE TO INTRODUCE OUR NEWEST VICE PRESIDENT, RYAN COWEDDEN, JUST GOT HIS PROMOTION A COUPLE OF WEEKS AGO. HE’S BEEN WORKING FOR US A NUMBER OF YEARS. IT CAME QUICKLY AFTER OUR GENERAL MANAGER JOHN ROBINSON WAS HIRED.>>WELCOME.>>THANK YOU. IN THE TWO YEARS I HAVE BEEN HERE, TO BE SUCCESSFUL ON THE FIELD AND OFF THE FIELD, KEEPS US WORKING TOWARD THE SAME GOAL. THAT’S AMY AND CONTENT AND THEIR EXPECTATIONS OF US. WE ARE THREE DAYS AWAY FROM THE ROOKIES COMING BACK, BUILDING OFF OF THE MOMENTUM FROM THE YEAR BEFORE, JUST MISSING THE PLAYOFFS, COMING BACK, FINDING A WAY THROUGH IT, WINNING A GAME ON THE ROAD IS A BIG DEAL. IT’S HARD TO DO. THE TURNOVER IN PLAYOFF TEAMS EVERY YEAR IS SUBSTANTIAL. FINDING SUSTAINED SUCCESS IN THIS LEAGUE IS A HARD CHALLENGE. IT’S SOMETHING WE ARE LOOKING FOR. WHERE WE ARE NOW, WE ARE GETTING READY TO COME TO TRAINING CAMP, AND WE ARE EXCITED TO GET THESE GUYS BACK ON THE FIELD. THE COACHING STAFF AND HIS NEW COACHES HAVE DONE A TREMENDOUS JOB THROUGH THE SPRING OF DEVELOPING AND TEACHING. IT’S IMPORTANT TO TEACH THESE PLAYERS. WE GET THEM DRAFT, FREE AGENCY, NOWHERE NEAR A FINISHED PRODUCT. TEACHING THEM IS IMPORTANT. EVEN THOUGH THEY ARE PROFESSIONALS, THERE IS A LOT OF TEACHING TO BE DONE. RIGHT NOW, WE GO INTO CAMP WITH 90 PLAYERS, MAKING THE CUT AT 53 AROUND THE FIRST OF SEPTEMBER. HAVING SAID THAT, I’LL GIVE YOU AN IDEA OF WHERE WE ARE. YOU COME OFF OF THE END OF THE SEASON, DIDN’T GET IT DONE IN NEW ENGLAND, TOOK A LOT FROM IT. NOW YOU EVALUATE YOUR ROSTER, AND YOU SAY, WHERE CAN YOU GET BETTER? YOU HIT THE FREE AGENCY PERIOD. JOHN, OUR GENERAL MANAGER, AND WE BELIEVE IT’S IMPORTANT TO TAKE CARE OF YOUR OWN IF YOU CAN IN THE EVENT YOU CAN RESIGN YOUR OWN PLAYERS, ESTABLISHES CONTINUITY WHICH IS PARAMOUNT TO SUCCESS. IT’S HARD TO GET. IF YOU CAN GET CONTINUITY WITH YOUR PLAYERS, IT MAKES A TREADS DIFFERENCE. THEY MAY NOT COME IN A STARTING ROLL, BUT YOU ADDED TO THE DEPTH OF YOUR FOOTBALL TEAM, THE FIRST WAS A THREE YEAR STARTER OUT OF WEST ALABAMA. SUPERBOWL CHAMPION WITH ALL OF THOSE STARTS, THAT’S A TREADS ASSET. YOU KEEP GOING DOWN. WILL COMPTON, 2016 WITH THE REDSKINS AND DEON LEWIS, BENNY LOGAN, ALL OF THOSE GUYS HAVE A TREMENDOUS AMOUNT OF STARTERS WHICH IS HARD TO FIND ADDING TO THE ROSTER. WE FEEL THE GOAL IS TO FIND GUYS THAT FIT, NOT JUST FROM AN ON THE FIELD PERSPECTIVE, BUT WHO THEY ARE AS PEOPLE. WE ARE NOT GOING TO TAKE SOMEBODY, IF WE CAN GET AROUND IT WHO IS NOT GOING TO FIT IN THE LOCKER ROOM AND THE PART OF THE PROFILE WE BELIEVE IN AS PEOPLE, NOT JUST AS PLAYERS ON THE FIELD. YOU GET THROUGH FREE AGENCY, MAKE THE ADDITIONS AND NOW YOU ARE FINISHING UP DRAFT PREPARATION. THIS YEAR IN THE DRAFT, MOVING FORWARD, IT WAS A UNIQUE SITUATION. WE HAD FOUR PICKS — ENDED UP WITH FOUR PICKS. WE FELT WE WERE IN A SITUATION WHERE WE HAD THE CHANCE TO GET IMPACT-TYPE GUYS. WHEN YOU ARE PICKING UP THE BOTTOM OF THE ROUND. YOU HAVE SUCCESS, PICK AT THE BOTTOM. TO GET TO WITHIN IMPACT, WE MADE DECISIONS TO MOVE UP IN THE DRAFT AND ACQUIRE A COUPLE OF GUYS. SEAN IN ALABAMA, HAROLD IN THE SECOND ROUND, PLAYERS WE MOVED UP TO ACQUIRE. AGAIN, FEELING THAT THOSE PLAYERS FIT THE QUALITIES ON THE FIELD AND OFF OF THE FIELD THAT WE SPEAK HIGHLY ABOUT. YES, MA’AM?>>SINCE WE ARE HOSTING THE DRAFT, IS THERE HOME COOKING? I WOULD BE SWORN TO SECRECY ON THE DRAFT.>>WE’LL SEE HOW THAT PLAYS OUT. THAT WOULD BE AN EXCITING TIME. IN LUKE FAULK, A HIGHLY PRODUCTIVE PASSER, WE FELT HE WOULD BE A GOOD ADDITION TO THE TEAM IN THE QUARTERBACK POSITION. YOU ADD THE GUYS IN FREE AGENCY, ADD THE GUYS IN THE DRAFT, THE 20 FREE AGENTS, THE DRAFT IS OVER. 43 OFFENSE, 43 DEFENSE AND FOUR SPECIALISTS. WE HEAD INTO CAMP AND SEE. THAT’S WHERE WE ARE NOW IN TRAINING CAMP. THEY HAVE PUT IN AN IMMENSE AMOUNT OF WORK, ESPECIALLY THE ROOKIES. THEY GET IT HARDER THAN ANYONE ELSE. THIS IS AN EXCITING TIME TO CAPTURE. EVERY YEAR IS DIFFERENT. YOU MAY PUT THE SAME 53 PLAYERS IN THE LOCKER ROOM, BUT IT’S NOT THE SAME TEAM. THE CHALLENGE IS FINDING CHEMISTRY BETWEEN THE ON THE LINE PRODUCTION AND LOCKER ROOM COHESIVENESS IT TAKES TO WIN. YOU GET A COUPLE OF GUYS HURT, LOSE A STRING OF THREE GUYS, IF YOUR LOCKER ROOM IS NOT MADE UP OF GUYS WITH THE RIGHT INSIDE AND FORTITUDE AND THOSE THINGS, THEN YOU CRUMBLE. THE GOAL IS TO MAKE UP THE TEAM WITH GUYS THAT DON’T DO THAT, KEEP THEIR HEAD DOWN AND GET US WHERE WE NEED TO GO. WE ARE EXCITED ABOUT THE COACHING CHANGE. JOHN’S ENTHUSIASM AND HIS VISION. GOING BACK FROM OWNERSHIP COMMITMENT TO SUCCESS, WHETHER IT’S BEEN, WE NEED THIS FOR PLAYER IMPROVEMENTS, THE PIECES ARE JUST AN EXTENSION OF OWNERSHIP SUCCESS OUR PLAN FOR SUCCESS. WE ARE EXCITED ABOUT IT. I HAVE A QUESTION. IT WAS DECIDED THAT EVERYONE WOULD STAY IN THE LOCKER ROOM OR STAND. I’M CURIOUS AS TO WHEN YOU HAVE A KEY PLAYER THAT SAYS, I’M WILLING TO PAY, THOSE ARE THE GUIDELINES GIVEN HIM, HOW DOES THE OWNER AND THE TEAM RESPOND TO A PET PLAYER WHO SAYS, I’M TAKING A KNEE AND PAY. IS THAT OKAY BECAUSE IT FALLS WITHIN THE GUIDELINES? IT WAS GOING TO BE A QUIET ISSUE.>>NO PLAYER HAS EVER TAKEN A KNEE DURING THE ANTHEM. THAT’S NEVER HAPPENED. WE HAVE HAD PLAYERS THAT STAYED IN THE LOCKER ROOM, BUT WE HAVE NEVER HAD A PLAYER TAKE THE KNEE IN THE LOCKER ROOM. THAT HASN’T HAPPENED. THEY HAVE FROM TIME TO TIME RAISED THEIR FIST AFTER THE ANTHEM WAS CONCLUDED, BUT WE HAVE NEVER HAD A PLAYER TAKE A KNEE. IN THE CASE OF JERREL CASEY, I THINK OUR HEAD COACH AND GENERAL MANAGER ARE INTERESTED IN HAVING A CONVERSATION WITH HIM AFTER HE GETS BACK PRO FROM THE UNITED KINGDOM. WE BELIEVE THERE MAY BE A MISUNDERSTANDING WITH HIM. IF A PLAYER DOESN’T STAND FOR THE ANTHEM, THE TEAMS CONDITIONE FINED, NOT THE PLAYERS. THERE ARE TWO THINGS THAT ARE LEGITIMATE UNDER THE POLICY. YOU CAN STAY IN THE LOCKER ROOM, OR YOU CAN STAND RESPECTFULLY FOR THE ANTHEM. IT DOESN’T APPLY FOR THE PLAYERS, BUT EVERY EMPLOYEE OF OURS. WE ARE NOT SURE WHY HE SUGGESTED THAT HE WOULD — AS HE SUGGESTED, TAKE HIS FINE. THERE WILL BE NO FINES LEVEED AGAINST HIM. THANK YOU. I WAS CURIOUS. WE ARE EXCITED. WE HAVE A LOT OF YOUNG, HUNGRY PLAYERS. WE ARE EXCITED FOR THE 2018 SEASON. THANK YOU FOR YOUR TIME. HOPEFULLY, THAT GIVES YOU A GLIMPSE OF WHERE WE ARE HEADED INTO THE SEASON.>>[APPLAUSE]>>BOARD MEMBERS, WELCOME TO NISSAN STADIUM. GLAD TO PROVIDE YOU AN UPDATE ON WHAT WE ARE DOING HERE. OUR MAIN BUSINESS IS 10 NFL GAMES. THAT’S WHAT WE ARE HERE TO TALK ABOUT. FOUR BIG NI NIGHTS, HARD NIGHTSR THE STADIUM, FOR THE CITY. IT’S A LOT OF WORK. IT’S A BIG EVENT FOR US. WE HAD MONSTER JAM. IT’S AMAZING HOW MANY KIDS AND FAMILY COME OUT HERE. WE HAD OUR TENANTS THIS YEAR, MORE THAN LAST YEAR. I BELIEVE THAT WILL KEEP GROWING. AFTER THAT, WE HAD NATIONAL SOCCER CLUB ON THE 7TH. WE HAD THE CMAS, TWO WEEKS LATER, THE MONSTER JAM. TWO WEEKS LATER AFTER THAT, WE HAD THE NATIONAL SOCCER CLUB. THAT WAS ANOTHER GREAT EVENT TO HOST THEM THERE. THAT’S ANOTHER FAMILY FUN EVENT. IT’S AMAZING HOW MANY KIDS WATCH SOCCER. I WANT TO GO NOW UNTIL OCTOBER 28TH. ON AUGUST 4TH, WE HAVE AN OPEN HOUSE HERE. THE NEAT THING ABOUT THAT, WE HAVE 60 YOUTH FOOTBALL TEAMS PLAY HERE 8:00 TO 1:00 OR 1:30 PLAYING 25 MINUTE GAMES, FREE TO THEM. IT’S PART OF OUR COURSE. IT’S FOOTBALL. WE HAVE DONE IT FOR THE PAST THREE YEARS. THIS ONE WILL BE OUR BEST AND BIGGEST ONE WE HAVE. WE HAVE KIDS FROM ALL OVER THE PLACE, TEAMS FROM ALL OVER THE PLACE. IT’S A NEAT THING. WE HAVE THE BIG CLUB COME IN HERE AND DO OPEN HOUSE PRACTICE 3:30 TO 5:30. SOMETHING LIKE THAT. IT’S A GREAT EVENT. THE WEEK AFTER THAT, WE HAVE KENNY CHEZNEY. IT’S GOING TO BE A GREAT SHOW. WE HAVE A LARGE HOUSE THAT NIGHT. WEEK AFTER THAT, A TITAN GAME, AFTER THAT, TAYLOR SWIFT. THEN TSU. THEN THE U.S./MEXICO GAME HERE. THEN WE HAVE AN OPEN WEEKEND. AFTER THIS GAME, WE HOST OUR OPENING GAME, WEEK NUMBER TWO, NFL SEASON, THE 16TH. WE’LL HOST THAT GAME. THEN WE HAVE OPEN WEEK. WE’LL HOST THE 30TH, WHICH WILL BE OUR SECOND HOME GAME. OCTOBER 6TH WILL BE ED SHARON. OCTOBER 20TH, TSU HOMECOMING. THE TEAM WILL BE IN LONDON THEN. THEN WE HAVE A WEEK OFF TO TAKE A BREAK. I WANTED YOU TO KNOW, AUGUST 4TH TO THE 28TH, I THINK WE HAVE TWO WEEKENDS OFF, WHICH I THINK YOU WANTED THE STADIUM TO BE USED MORE. WE HAVE 300 PLUS EVENTS IN HERE. THOSE ARE EVENTS WE HAVE GOING ON ALL THE TIME, THE CLUB AND ALL OF THESE PLACES. WE ARE USING THE BUILDING. IT’S BUSY. THAT’S WHAT WE WANTED TO DO HERE. WE ARE EXCITED ABOUT WHAT WE ARE DOING HERE NOW. WE HOPE TO HAVE PLAYOFF GAMES HOSTING THIS YEAR. NEXT YEAR, WE HAVE THE DRAFT YOU ALL HEARD ABOUT. WE ARE GOING TO USE THIS FACILITY. WE’LL BE ACROSS THE RIVER DOING OTHER STUFF THERE. IT’S GOING TO BE A GREAT THREE DAYS OF NFL. WE HAVE 48,000 PEOPLE HERE. THIS IS WHAT WE EXPECT TO HAVE MORE AFTER THAT. AS YOU SAW THE UNITED BID WAS AWARDED BY FIFA. IN TWO YEARS, THEY’LL DECIDE WHAT 12 CITIES WILL HOST IT. RIGHT NOW, I LIKE OUR CHANCES. 2026 IS A LONG WAY OUT. FIFA, THE WORLD CUP FINALIZED LAST SUNDAY. IN TWO YEARS, WE’LL FIND OUT IF WE ARE ONE OF THE HOST CITIES OR NOT. WE ARE EXCITED ABOUT THAT OPPORTUNITY. WE HAVE A NUMBER OF OTHER THINGS WE CAN’T ANNOUNCE YET FOR 2009. WE EXPECT ANOTHER BUSY YEAR FOR THE STADIUM IN 2019. THEN WE ALSO WANTED TO MENTION, YOU HAVE HEARD ME TALK ABOUT THE SUITES BEING UPGRADED AND REFURBISHED. THERE ARE 177 SUITES TO UPGRADE THE SUITES. THEY LOOK GREAT. IF YOU WANT TO COME BY TO SEE ONE, THAT WOULD BE GREAT. IT’S 177 SUITES. IT’S OUR PARTY SUITES, ALL OF THE PERSONAL SUITES IN THERE. WE ARE EXCITED ABOUT IT. IT’S SOMETHING OWNERSHIP PUT BEHIND FOR US TO USE THE FACILITY. IT MIGHT LOOK BETTER THAN IT DID 120 YEARS AGO. WE ARE PROUD OF WHAT WE ARE DOING. WE ARE NOT PERFECT. WE ARE GETTING BETTER. I WANT TO GET BETTER. WE ARE TRYING TO GET BETTER ON THE FIELD, IN THE STANDS, GETTING PEOPLE IN HERE. WE ARE WORKING HARD. WE ARE GETTING THERE. DURING THE FINANCE MEETING, WE TALK ABOUT THE VIDEO SURVEILLANCE SYSTEM. THE ONLY THING LEFT THERE IS THE UNDERCARRIAGE SYSTEM TO BE PUT UP. RADIOS, WE’LL BE READY FOR THOSE AUGUST 4TH. WE HAVE A LOT OF THINGS GOING ON. YOU HAVE HEARD ABOUT WHAT WE NEED TO DO HERE. HAPPY TO ANSWER QUESTIONS YOU ALL HAVE. ALWAYS GLAD TO WORK WITH YOU ALL. LISA, APPRECIATE EVERYTHING YOU DID. I KNOW YOU WILL ENJOY THE NEXT PART OF YOUR JOURNEY.>>DO YOU HAVE THE TITAN FOOTBALL SCHEDULE?>>NO, WE DON’T. I CAN SEND YOU THE WHOLE THING IF YOU WANT.>>NEXT UP, SUSANNA NICKEL TO TALK ABOUT OUR COMMUNITY RELATIONS EFFORTS.>>AS MR. UNDERWOOD MENTIONED, I’M FILLING IN FOR THE DIRECTOR OF COMMUNICATIONS TINA TUTTLE AT A CONFERENCE THIS WEEK. I’LL GO THROUGH THE SLIDES QUICKLY, BUT IF YOU HAVE QUESTIONS, STOP ME. THESE ARE EVENTS WE’LL TALK ABOUT SINCE WE MET LAST TIME. THE SPELLING BEE WAS IN MARCH ON THE 10TH. WE BECAME THE FIRST AND ONLY SPORTS TEAM TO PONC SPONSOR A SPELLING BEE. WE STARTED WITH THE 41 COUNTIES IN MIDDLE TENNESSEE. THE COMING SCHOOL SEASON 2019, WE’LL HAVE 51 COUNTIES, 55% OF THE STATE. WE ARE PLEASED WITH THE GROWTH IN THE PROGRAM. WE STARTED WITH 68 SCHOOLS PARTICIPATING FIRST YEAR, UP TO 248. I THINK THAT NUMBER WILL GROW. REGISTRATION OPENED FOR 2019.>>WHAT IS THE AGE FOR THE SPELLING BEE AND HOW DO YOU PARTICIPATE?>>I HAVE NO IDEA HOW THIS WORKED. PRIOR TO TAKING ON THE SPELLING BEE, STUDENTS CAN’T ADVANCE TO THE COMPETITION YOU SEE ON ESPN IN MAY WITHOUT A SPONSOR. WE HAVE SEEN THIS A LOT, THE THEME OF TRADITIONAL NEWS MEDIA OUTLETS, BUDGET CUTS, THEY HAVE TO DROP THE SPELLING PEE. THE ADDITIONAL COUNTIES WE HAVE ADOPTED HAVE BEEN THROUGH BUDGET CUTS. COMMERCIAL APPEALS SPONSORED TEN COUNTIES IN WEST TENNESSEE THAT WE HAVE PICKED UP. SCHOOLS ENROLL WITH SCRIPTS TO PARTICIPATE AND HOST A SCHOOL WIDE SPELLING BEE, KINDERGARTEN THROUGH 10TH GRADE AND THEY ALL COMPETE TOGETHER. WE HAD A KINDERGARTEN WHO WAS SIX. SIX THROUGH 14 TO 15 IS THE AGE RANGE. YOU ADVANCE TO TAKE AN ONLINE TEST. THE TOP 70 SCORERS ADVANCE TO THE REGIONAL SPELLING BEE. TOP TWO ADVANCE REGARDLESS OF AGE OR SCHOOL AFFILIATION TO THE NATIONAL SPELLING BEE. WE PAY PART OF THE SPONSORSHIP IS PAYING FOR THE STUDENTS TO ATTEND. THERE IS NO COST OUT OF THEIR POCKET. THE PROGRAM IS FREE. THEY RECEIVE STUDY MATERIALS THROUGH THE SCHOOL AND ADDITIONAL RESOURCES. IT’S ONE OF OUR FAVORITE EDUCATION INITIATIVES. WE’LL BE, OBVIOUSLY INVOLVED FOR YEARS TO COME. IT’S AN INTERESTING DEVELOPMENT. TITAN CARAVAN IS SOMETHING WE HAVE DONE 20 PLUS YEARS. WE CAN BRING PLAYERS IN THE MARKET FROM ALL THREE STATES TO SAY THANK YOU FOR SUPPORTING US. WE TRY TO GO EVERY CORNER, RURAL COMMUNITIES TO FANS THAT DON’T HAVE THE OPPORTUNITY TO BE UP CLOSE AND PERSONAL WITH THE TEAM. USUALLY, IT KICKS OFF AROUND DRAFT WEEKEND. WE’LL REEVALUATE THAT FOR NEXT YEAR, BUT THE IDEA IS TO GET PEOPLE EXCITED IF THE DRAFT SEASON. APRIL 28TH THROUGH MAY 5TH. WE TRAVELED 15 CITIES, 3 STATES, MET WITH 3300 FANS AND HAD 15 PLAYERS. YOU CAN SEE MARCUS DEREK, RYAN AND NATE PALMER. WE HAD MORE THAN THOSE. TASTE OF THE TITANS IS SOMETHING WE HAVE DONE FOR FLEE YEARS NOW. THIS YEAR RAISED $115,000 SPLIT EQUALLY BETWEEN BIG BROTHERS/BIG SISTERS MIDDLE TENNESSEE AND THE TITAN FOUNDATION. WE HAVE THE 5K OUR NEXT EVENT. WE HAD ROUGHLY 2,000 RUNNER AND WALKERS. THAT BENEFITS GIRLS INC., A LOCAL ORGANIZATION PROVIDING ADEQUACY PROGRAMS AND SERVICES FOR YOUNG GIRLS. THE BABY SHOWER WAS IN JUNE. THIS IS OUR FOURTH ANNUAL BABY SHOWER, A PARTNERSHIP WITH THE UNITED WAY, TO PACK DIAPER BAGS FOR AT RISK MOTHER, BLANKETS, WIPES, ANYTHING YOU NEED TO START THAT FIRST WEEK OUT WITH YOUR BABY IN A HEALTHY WAY. THIS YEAR WE PACKED 2,000 DIAPER BAGS, 500 FROM LAST YEAR. SO FAR IN OUR PARTNERSHIP, WE HAVE BEEN ABLE TO SERVE 6500 AT RISK MOTHERS. THE DIAPER BAGS ARE DISTRIBUTED TO LOCAL HOSPITALS AND FAMILY RESOURCE CENTERS. THIS NEXT SECTION IS THE FOOTBALL SECTION. WE DO A LOT IN THIS SPACE. OBVIOUSLY, WE ARE WELL EQUIPPED TO SERVE THIS PARTICULAR COMMUNITY. THIS EVENT IS OUR HIGH SCHOOL FOOTBALL RECRUITING FAIR. WE BRING LOCAL HIGH SCHOOLS IN TENNESSEE TO THE STADIUM WITH REPRESENTATIVES FROM COLLEGES AND UNIVERSITIES, AND THEY ARE ABLE TO TALK TO THE COACHES, WATCH FILM, LOOK AT THE HIGH SCHOOL PLAYER TRANSCRIPTS, AND IT’S SMALLER COLLEGES AND LIMITED RECRUITING BUDGETS, THE ENTIRE STATE IN TWO TO THREE HOURS IN A CENTRAL LOCATION. THIS YEAR WE HAD 131 TENNESSEE HIGH SCHOOLS, PUBLIC AND PRIVATE. 63 COLLEG COLLEGES AND UNIVERSIN 15 STATES. NEXT, IS OUR COACH’S CLINIC. WE DO THIS ON AN ANNUAL BASIS AS WELL. IT’S SOMETHING WE HAVE DONE FOR FOUR YEARS NOW. OBVIOUSLY, THIS YEAR IS FIRST YEAR FOR COACH BRAIDWELL AND HE HIT IT OUT OF THE PARK. WE ARE UP 150 FROM THE FIRST YEAR. WE ARE PLEASED WITH THE GROWTH OF THAT PROGRAM. THOSE COACHES CAME FROM 75 HIGH SCHOOLS. MUSIC CITY BLITZ IS OUR ANNUAL FUNDRAISER WITH SPECIAL OLYMPICS. WE HAVE THEM COME INTO THE STADIUM. THEY RUN THE WHOLE EVENT START TO FINISH. WE PROVIDE THE EXTRA ENTICEMENT PLAYING HERE. WE CALL IT WHERE THE PROS PLAY. EVERY TEAM HAS A CERTAIN FUNDRAISING GOAL. IT’S FLAG FOOTBALL, NONCONTACT. WE HAVE LEADS FROM AMATEUR AND COED THROUGH ADULTS, AND WE RAISED $50,000 FOR OUR SPECIAL OLYMPICS. THAT HELPS FUND THEIR SUMMER GAMES. GAMES WHICH HAS 2, 205,000 ATHLETES. I CAN’T SAY ENOUGH ABOUT OUR COACHING STAFF AND PLAYERS AND HOW WILLING THEY ARE TO PARTICIPATE IN EVERYTHING WE DO. I THINK THAT’S ALL I HAVE. IF ANYONE HAS QUESTIONS, I CAN TAKE QUESTIONS OR TOSS IT TO JANINE. ALL RIGHT, JANINE. YOU ARE UP. THANK YOU FOR HAVING ME.>>I THINK IT MIGHT BE AFTERNOON NOW. GOOD MORNING, EVERYONE. JANINE CALFMAN WITH THE TITANS. WE ARE GOING THROUGH THE FINANCIAL OVERVIEW. WE TALKED A BIT ABOUT THE FINANCE COMMITTEE MEETING AS WELL. I’LL HIT HIGHLIGHTS, IF ANYONE HAS QUESTIONS, PLEASE FEEL FREE TO STOP ME. WE’LL BE GLAD TO ANSWER THOSE. FIRST UP IS THE TICKET TAX SUMMARY. AS A REMINDER, THE TICKET TAX IS $3. IT’S THEN SPLIT INTO 2-DOLLAR IR FUND AND $2. THIS HAS HELPED STADIUM IMPROVEMENTS AT THE FACILITY. THIS IS A DETAIL OF THE $2 FUND. YOU CAN SEE THAT THE BALANCE, CURRENTLY, IS SITTING AT 952,000. THESE FUNDS ARE KEPT AT METRO. THEY ARE NOT ON OUR BOOKS. EACH MONTH WE SUBMIT THE USER, DO A USER FUND SUMMARY PAYMENT. WE SUBMIT THE PAYMENT EACH MONTH TO METRO. METRO KEEPS TRACK OF THE FUNDS. THIS IS NOT ON OUR BOOKS. THESE ARE ON METRO’S BOOKS. THEY HOLD THE CASH FOR THESE. NEXT IS THE DOLLAR FUND. THE DOLLAR FUND WAS ISSUED. THAT RECENT ISSUE, NEW SEATS THAT YOU SEE BEHIND YOU IN THE STADIUM, WE DO CONCRETE RESTORATION AND THROUGHOUT THE BUILDING, THOSE FUNDS WERE USED FOR THAT PROJECT. YOU CAN SEE THE TOTAL LOAN OUTSTANDING ON THAT IS $12 MILLION BEING DECREASED EACH MONTH AS WE PAY INTO THE USER FUND. METRO THEN PAYS OFF THE LOAN. WE ARE PAYING IT DOWN AT A GOOD CLIP, IF YOU WILL.>>JANINE, CAN YOU TELL ME WHY THE PAST COUPLE OF YEARS THE AMOUNT COLLECTED FROM THE TICKET TAX LOOKS DOWN FROM FISCAL YEAR 2015 AND 16?>>I THINK IF WE FLIP TO THE NEXT PAGE, THE TICKET TAX PAID TO DATE, I THINK THAT’S A GOOD SYNOPSIS. THIS IS BASED OFF OF METRO’S FISCAL YEAR ENDING JUNE 30TH. THIS IS A CONVERSATION, LITERALLY, THAT STEVE UNDERWOOD AND I WERE HAVING YESTERDAY IN THE FLOW OF THE CASH. THE CASH FOR THE TICKET TAX IS PAID AS WE COLLECT IT, AS A TICKET IS SOLD. THAT IS BASED OFF OF WHEN CONCERTS GO ON SALE. WE, FOR EXAMPLE, IN 2018, HAVE MORE EVENTS THAN WE HAVE EVER HAD. , BUT THE TAX CASH FLOW IS BASED ON SALE. WENT ON SALE WITH TAYLOR SWIFT AND KENNY CHEZNEY. THAT’S WHEN THE CASH FLOWS IN. IT’S NOT NECESSARILY WHEN THE EVENT IS HELD. WE DON’T WANT TO HOLD ON TO METRO’S FUNDS. WE SUBMIT ON THE 20TH OF EACH MONTH TO METRO. SO, MARGARET, IT’S HARD TO GET A CLEAR PICTURE IF YOU WILL, FROM THIS REPORT AS TO THE FLOWS OF THE CASH AS IT RELATED TO EVENTS BECAUSE IT’S REALLY RELATE TODAY THE TIMING OF THE ON SALE AND WHEN THE TICKET IS PURCHASED, NOT WHEN THE EVENT OCCURS.>>I HOPE WE KEEP GOING UP REGARDLESS OF THE TIMING. WE CONTINUE TO TRY, AND IF YOU CAN BREAK IT DOWN, AND I THINK WE DO DISTRIBUTE OUT FOR YOU, THERE IS A PIECE OF PAPER NOT IN THIS PRESENTATION, BUT THAT IS SENT SEPARATELY BY EVENT, AND THE TOTAL COLLECTED BY EVENT, YOU CAN TAKE THAT SUMMARY AND ACTUALLY SAY, OKAY, THESE WERE THE 2018 EVENTS. THIS IS THE TOTAL AMOUNT REGARDLESS OF WHEN THE CASH FLOWED. YOU CAN SEE IT IS GROWING OVERTIME. IF THAT MAKES SENSE.>>SO PIGGYBACK ON THAT, MARGARET, 2018-802? 802,000?>>I WAS LOOKING AT THE $2 AND $1 AND THEN JANINE REFERRED ME TO THE NEXT TAX ABOVE.>>IF WE LOOK AT THE $1, 2018, IS THAT SAYING 802,000 HAS BEEN COLLECTED YEAR-TO-DATE? WITH A HALF A YEAR TO GO, THIS COULD BE A LARGER NUMBER THAN LAST REAR, YEAR, IT LOOKS LIKE.>>IT DEPENDS ON WHAT GOES ON SALE IN 18 FOR 19. THE CONCERT MAY GO ON SALE IN ONE PHYSICAL YEAR WHEN THE SHOW HAPPENS IN A DIFFERENT PHYSICAL YEAR. THAT’S WHY I THINK THIS SLIDE IS A LITTLE BIT — IT ALSO HAS ALL THREE DOLLARS IN THERE. PHYSICAL ’16, $3 MILLION. PHYSICAL ’17, 2.9 AND CURRENTLY, 2.6 WITH ONE MONTH TO GO. I T HOPE THAT KIND OF MAKES SENE THAT IT FLOWS, THIS IS THE CASH THAT FLOWS, NOT NECESSARILY NUMBER OF EVENTS OR ATTENDEES IN THE BUILDING. DOES THAT MAKE SENSE? LIKE I SAID, WE WANT TO, CERTAINLY IN OUR AGREEMENT WITH METRO, AS IT’S COLLECTED, WE REMIT. DO I HAVE ANY OTHER QUESTIONS ON THAT? IF NOT, I WILL FLIP TO THE TITAN USER FEE. THIS IS A BREAK DOWN OF WHAT WE, TITANS HAVE PAID IN, IN USER FEE. IF YOU REMEMBER MAY, THE USER FEE FOR THE TITANS WAS UP SLIGHTLY FOR 2017 SEASON V. PAY FOR THE 2016 SEASON. THAT’S A GOOD SIGN. WE FEEL THE TITAN USER FEE SHOULD BE UP COMPARED TO ’17. NUMBER ONE, BASED OFF OF TICKET SEASONS WE HAVE HAD. WE HAVE A GREAT OUTSTANDING HOME SCHEDULE THIS YEAR. WE HAVE SOLD OUT SOME OF THE GAMES COMING UP THIS YEAR. PEOPLE ARE SCROUNGING TO GET TICKETS FOR THOSE GAMES. FEEL GOOD THAT THE TITAN USER FEE WILL BE UP AS WELL. ALL RIGHT? WITH THAT, LET ME MOVE TO THE CAPITAL FUND SUMMARY. THE CAPITAL FUND SUMMARY, AGAIN, THIS IS PHYSICAL YEAR. WE ARE AT 86-$87,000. THIS IS MONEY SITTING ON METRO’S BOOKS. WHAT IS A BETTER SLIDE IS THE NEXT SLIDE. THIS GIVES YOU THE HISTORY OF THE CAPITAL FUND SINCE INCEPTION. YOU CAN SEE INTEREST INCOME EARNED, EVENT REVENUE AND AS A REMINDER, THE EVENT REVENUE REMINDER IS EVENT PORTION OF CMA COLLECTIONS. YOU SEE THAT DROP OFF IN PHYSICAL YEAR 2016. PHYSICAL YEAR 2016, THE CONCESSION PORTION OF CMAS THAT IS METROS WAS PLEDGED FOR THE LOAN ISSUED FOR THE SEATS AND THE CONCRETE REPAIR WORK AND SUCH. YOU NO LONGER SEE THAT. YOU WILL NOTICE THAT METRO’S CONTRIBUTION AT THAT POINT JUMPED TO A MILLION DOLLARS, THE REQUIREMENT IN THE LEASE. THE NEXT LINE IS THE CAPITAL FUND EXPENSE, WHICH IS EVERYTHING THAT HAS BEEN REIMBURSED TO THE TITANS FOR CAPEX DEFINITION UNDER THE LEASE. THE REASON YOU SEE THAT BEING MORE, THE $1.7 MILLION COMPARED TO THE LAST YEAR, 360, IF YOU WILL REMEMBER, THERE IS A DEFERRAL FOR THE HEATING SYSTEM THAT GOT PUSHED DOWN THE ROAD A BIT, AND WAS APPROVED AT A LATER MEETING. THAT OVERLAPPED THE PHYSICAL YEAR FOR METRO. IF YOU PUT THOSE TWO TOGETHER AND AVERAGE IT, IT AVERAGES OUT WITH THE REST OF THE REIMBURSEMENTS. OKAY, DO I HAVE QUESTIONS ON THAT? NEXT. NEXT IS A DETAIL OF OUR CURRENT RECEIVABLE, $8.7 MILLION IN RECEIVABLE. WE HAD ADDITIONS OF ABOUT 362 SINCE OUR LAST MEETING. THOSE WERE C COMPRISED OF INVOIS RELATED TO THE RADIO PROJECT AND VIDEO PROJECT. WITH THAT, I’LL TAKE QUESTIONS. WE COVERED THE CAPEX TOOL IN DETAIL AT THE FINANCE COMMITTEE MEETING. THAT WAS DUE TO MOBILE TICKETING OCCURRING FOR OUR TITAN GAMES AND NON-FOOTBALL EVENTS THAT COME THROUGH THE BUILDING AS WELL. WE DID NOT HAVE WI-FI AT THE GATES OR OUTSIDE OF THE GATES FOR OUR FANS TO UTILIZE. WHEN THEY COME TO THE GAME, THEY HAVE TICKETS, A SEASON TICKET CARD OR THE TICKET WILL BE ON THEIR PHONE. WE NEEDED TO PROVIDE THEM ACCESS. DO I HAVE ANY QUESTIONS? IF NOT, WE HAVE A SHORT VIDEO. WE AT THE TITANS HAVE INVESTED QUITE A BIT OF MONEY INTO OUR PRODUCTIONS DEPARTMENT. WE ARE EXCITED ABOUT A LOT OF GREAT THINGS TO DO TO GET US ON SOCIAL AND SHOW WHO WE ARE AND HAVE BEHIND THE SCENES COOL THINGS. WE DID A NEW SEGMENT CALLED IGNITE THE FIRE. YOU CAN FIND IT ON YOUR MOBILE APP. IF YOU DON’T HAVE THE TITAN MOBILE APP, PLEASE DOWNLOAD IT ON YOUR PHONE BECAUSE IT’S AWESOME. WE HAVE THE STORY OF “IGNITE THE FIRE.”>>IT DOESN’T MATTER HOW WE GOT HERE. IT DOESN’T MATTER HOW I GOT HERE STANDING IN FRONT OF YOU, HOW JOHN GOT HERE OR THE ASSISTANT COACHES OR TRIAL GUIDE. THE ONLY THING THAT MATTERS FROM HERE ON OUT IS WHAT YOU DO NOW THAT YOU ARE HERE. IF YOU CARE ABOUT THE TEAM AND YOU ARE GOOD TO THE TEAM FIRST, THE TEAM WILL BE GOOD TO YOU.>>MAKE SURE WE HAVE INTENSITY, FELLAS. MOVING AROUND.>>PATIENCE. YOU HAVE TO BE VERY DETAILED. PEOPLE HAVE TO BE AT CERTAIN SPOTS AT CERTAIN TIMES TO COME TOGETHER AND BE EXECUTED TO PERFECTION. THAT’S WHAT WE ARE SHOOTING FOR, PERFECTION. THE PUBLICITY WE GET BY BEING FOOTBALL PLAYERS ISN’T GOING TO HELP US DO WHAT? WIN. WE ARE NOT HERE TO PLAY. WE ARE HERE TO WIN. UNDERSTAND THAT. THAT PUBLICITY ISN’T GOING TO HELP US WIN END OF THE DAY. IT WILL HELP US UNDERSTAND WHAT TO DO, WORK ON SKILLS ON THE FIELD, DEVELOPING, GETTING BETTER, HAVING A RELATIONSHIP WITH MARCUS. WHATEVER WE NEED TO DO, THAT’S THE STUFF THAT HELPS US WIN. EVERYTHING WE DO INSIDE THIS BUILDING HELPS US WIN. THIS IS A GROUP OF GUYS WORKING HARD. THEY ARE WILLING AND EAGER TO DO WHATEVER IS ASKED OF THEM. I THINK THEY ARE E EAGER FOR SUCCESS. THEY ARE GOING TO BE A LOT OF FUN TO WATCH. I WANT YOU TO BE CONFIDENT.>>WITH THAT, I WANT TO SAY, THANK YOU ALL FOR YOUR TIME TODAY. LISA, WE’LL MISS YOU, REALLY MISS YOU. IF YOU HAVE A CHANCE TO COME OUT TO TRAINING CAMP, WE WOULD LOVE TO HAVE YOU OUT. WE DID THE SAME THING THIS YEAR AS LAST YEAR. WE HAVE PUT IN BLEACHERS AROUND THE TRAINING FACILITY. A LOT OF THEM HAVE NICE SHADE. IF YOU DIDN’T MAKE IT LAST YEAR, I RECOMMEND YOU COME OUT, BRING YOUR KIDS. IT’S A GREAT OPPORTUNITY TO SEE THE PLAYERS, SEE HOW BIG THEY ARE. PLAYERS STAY AFTER PRACTICE. THEY CAN DO AUTOGRAPHS. WE HAVE FACE PAINTING, ALL KINDS OF COOL THINGS FOR KIDS. I RECOMMEND IF YOU HAVE NOT COME OUT, THAT YOU COME OUT. IT’S OFFERED FREE TO THE PUBLIC. HOPE TO SEE YOU THERE. THANK YOU SO MUCH. [APPLAUSE]>>THANK YOU, JANINE AND THE REST OF THE TENNESSEE TITAN ORGANIZATION FOR THAT TREMENDOUS PRESENTATION. IT’S NICE TO SEE WHAT’S GOING ON IN THIS BUILDING AND THE VARIOUS ACTIVITIES THAT YOUR ORGANIZATION IS PART OF. IT’S AN HONOR TO BE PART OF THAT AS WELL. AS FAR AS ANY OTHER BUSINESS, SEEING NONE, I ASSUME SINCE WE ARE LATE IN THE HOUR, AND THANK YOU ALL FOR YOUR TIME, WE DO TRY TO BE RESPECTFUL OF EVERYONE’S TIME, SO THANK YOU FOR HANGING WITH US TODAY. OUR NEXT MEETING WILL BE AUGUST 16TH AT FIRST TENNESSEE PARK, AND OTHERWISE, UNLESS YOU ARE COMING TO THE KENNY CHEZNEY SHOW ON THE 11TH, IT MIGHT BE FOOTBALL TIME BEFORE YOU ARE BACK HERE. HOPEFULLY, WE’LL ALL BE SAYING TITAN UP AND CHEERING TOGETHER SOON. IF THERE IS NO OTHER BUSINESS, I WOULD MAKE A MOTION TO ADJOURN. WE ARE ADJOURNED. THANK YOU.

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