SCSA
Santa Clara Stadium Authority
SANTA CLARA
STADIUM AUTHORITY
FINANCIAL STATUS REPORT
Quarter Ending June 30, 2022
November 15, 2022
1 Table of Contents
Introduction .................................................................................................................................................. 2 NFL Events .................................................................................................................................................. 3 Non-NFL Events ......................................................................................................................................... 3 Discretionary Fund ..................................................................................................................................... 8 Stadium Builder Licenses ......................................................................................................................... 8 Santa Clara Stadium Authority Budget Status Reports ...................................................................... 11 Operating Budget ................................................................................................................................. 11 Debt Service Budget ............................................................................................................................ 14 Capital Improvement Project Budget ................................................................................................ 17 City of Santa Clara Net General Fund Impact ..................................................................................... 19 Public Safety and Administrative Cost Reimbursement ................................................................. 19 Rents and Senior and Youth Fee ...................................................................................................... 19 Other Revenue Impacts ...................................................................................................................... 19 Glossary ..................................................................................................................................................... 21
2 Introduction
This Santa Clara Stadium Au thority (“Stadium Authority ”) Financial Status Report provides information covering the first quarte r of the Stadium Authority’s 2022/23 fiscal year (“FY”) which ended on June 30, 2022. Comparative data fr om prior fiscal years is also included.
In addition to these quarterl y reports, the Stadium Authorit y produces annual financial statements. The FY 2021/22 financial statements were audited by an external audit firm and presented to the Stadium Authority’s Audit Committee on September 30, 2022 and approved by the Stadium Authority Board (“Board”) on November 1, 2022. The financial statements are published on the Stadium Authority’s website.
The Stadium Authority also pr epares a detailed b udget prior to the beginning of each fiscal year. The FY 2022/23 budget was adopted by the Board on March 15, 2022.
Stadium Authority finances are structured so that the City of Santa Clara (“City”) is not liable for the debts or obligations of the Stadium Authority. All services provided by the City, including administrative and public safety, to the Forty Niners Stadium Management Company, LLC (“Stadium Manager”) or the Stadium Authority are fully reimbursed with Stadium Authority funds.
Methodology
Information provided in this report was based in part on documentation submitted by Stadium Manager. Specifica lly, NFL and Non-NFL event statistics and financial information relating to Stadium Manager expens es are provided by Stadium Manager.
Stadium Authority staff is limited to a review of select ed financial information submitted by Stadium Manager, including some source documentation for Non-NFL events with attendance greater than 25,000, submitted 45 days after each event. More detailed documents are received within 90 days after the close of the quarter. For all other financial information, a full detailed review and/or a udit of source documentation has not been completed by the Stadium Authority for this report.
The Stadium Authority has cont racted with JS Held (formerl y Hagen, Streiff, Newton, & Oshiro), a forensic accounting firm, to review and evaluate Non-NFL event financial information from prior years, including source documentation. This report was discussed with the Board at the December 1, 2020 Stadium Authority Board meeting. The Stadium Authority is working with JS Held for the review of additional historical years.
The information provided reflects the best known and available at the time of the writing of this report and is subject to further re vision when the full body of records becomes available and review is complete. Consequent ly, the Board’s notation and filing of this report should not be considered an approval of the accuracy of the information in the report.
3 NFL Events
This section provides fiscal year to date and comparative data for NFL games categorized as pre-season and regular season games. T here were no NFL games held during the first quarter of FY 2022/23. Levi’s® Stadium hosted the first 49ers pre-season game of the 2022 season on August 12, 2022, which will be included in the report for the second quarter.
Non-NFL Events
This section provides year to date and comparative data for Non-NFL events categorized as events ranging from high school and colle ge football games, international soccer matches, concerts, wedding fairs, and special events. During the current reporting period, there were a total of 50,478 tickets sold for the one ticketed Non-NFL event that was held, resulting in $202,000 Non-NFL event ticket surcharge revenue (from the $4 per ticket Non-NFL event surcharge). The ticketed Non- NFL event in the current reporting period was a large-scale event resulting in a large increase in the ticket surcharge revenue over the same period in the prior year as there were no ticketed events held during FY 2021/22 which was impacted from restrictions due to the COVID-19 pandemic.
Stadium Manager reports that t here were also 19 smaller s pecial events held at Levi’s ®
Stadium with 9,996 attendees during the curr ent reporting period. Due to the pandemic, there were only 12 smaller special events held with 3,698 attendees during the entire FY 2021/22. Examples of these s pecial events include corporate events of various sizes, weddings, holiday parties, high school dances, etc.
In correlation with increase in Non-NFL event s held during the curr ent reporting period, there were 5,666 cars parked at these offsite lots and t he City has received $6,000 of a total of $33,000 in related offsite parking fees.
Total Non-NFL event public safety costs were $406,000, an increase of $404,000 from the prior year. As noted previously, this increase in cost is due to more events being held in the current year when compared to the prior year. Of these costs, $33,000 was covered by the offsite parking fee. The remaini ng $373,000 has been invoiced to the Stadium Manager of which $4,000 has been reimbursed.
Statistics for FY 2022/23 events are shown in Table 1 and comparative data from all nine years of operations are shown in Table 2.
4 Table 1
5 Table 2
6 Table 3 and 4 show Non-NFL net revenue by event type and event revenue and expenses by category. The inclusion of this information is to provide a greater level of transparency and provide the overall financial results of the Non-NFL events.
For FY 2022/23, the Stadium Manager anticipates FY 2022/23 Non-NFL events to result in net profits to range from $250,000 to $1, 750,000, as cited in the FY 2022/23 Adopted Stadium Authority Budget. In the first quarte r of FY 2022/23, ticketed events and non- ticketed special events contributed $320,000 and $558,000 in net profits, respectively.
Offset by $234,000 of non-event specific ot her operating expenses, Stadium Manager reported a net profit of $644,000 for the current reporting period.
Table 3
No. of
Events
Net
Revenue
Ticketed Events
Concerts 1 $ 320,231
Sporting ev ents:
Football (Non-NFL) 0 -
Soccer 0 -
Miscellaneous Ev ents 0 -
Subtotal Ticketed Events 1 320,231 $
Subtotal Remaining Non-NFL Events (weddings, corporate events, etc.) 19 557,805 $ Subtotal Other Operating Expenses
(2) (234,313)$
Total Non-NFL Net Revenue 20 643,723 $
Total Performance Rent paid to the General Fund (1) -$
(1) Performance Rent is calculated as 50% of the net revenue from Non-NFL events less performance-based credit of 50% of fixed ground rent
(2) Other Operating Expenses are expenses not attributable to a specific event Event Type
Levi's
®
Stadium
Net Revenue for Non-NFL Events
by Event Type
FY 2022/23 Quarter 1
7 Table 4
2022/23
YTD Total
REVENUE:
Seating Bowl 5,785,644 $
Ticketmaster Fees 485,404
Suites 87,000
Food & Beverage 345,823
Parking 107,920
Facility Fee 148,194
Miscellaneous(1) 1,967,022
Total Revenue 8,927,007 $
EXPENSE:
Public Safety/Security 624,604 $
Parking 173,422
Food & Beverage - Ticketed Events 66,873
Food & Beverage - Special Events 792,016
Operations/Janitorial/Maintenance 1,377,424
Miscellaneous(2) 5,248,945
Total Expense 8,283,284 $
Total Non-NFL Net Revenue 643,723 $
(1) Includes special events revenue such as corporate events, weddings, holiday parties, etc. (2) Includes rentals, fees & commissions, transportation, marketing, and other expenses Levi's® Stadium
Non-NFL Event Results by Category
FY 2022/23 Quarter 1
8 Discretionary Fund
The Discretionary Fund is funded by revenue equal to 50% of the Non-NFL event ticket surcharge of $4 per ticket. The one ticketed Non-NFL Event contributed $101,000 to the Discretionary Fund in the reporting period, which was received and deposited in August 2022. Table 5 shows the revenues and expenses in the Discretionary Fund since FY2014/15. The balance at the end of this reporting period was $2.4 million.
Table 5
Stadium Builder Licenses
The total principal value of currently acti ve Stadium Builder Licenses (“SBLs”) is $539.6 million and, as of June 30, 2022, 93% of the total principal value of all SBLs sold (i.e., $503.0 million) had been collected.
SBL holders that finance their purchase pay an annual interest rate of 8.5% and payments are due by March 1
st each year. The majority of SBL holders make their payments on time. For those that do not pay on time, SBL service staff, working for Stadium Manager on the Stadium Authority’s behalf, contact the SBL holders and attempt to collect the full amounts owed. Ultimately, an SBL can be def aulted for non-payment. Once an SBL is defaulted, the SBL holder in default loses their right to buy season tickets as well as their priority rights to tickets to Non-NFL events, and forfeits any money they had invested in the SBL. Defaulted SBLs are then available for resale.
There is a total of 61,845 currently active SBLs, or 94% of the 66,066 total sellable SBL seats. This is a decrease of 110 from the total active SBLs at the end of the prior fiscal year (March 31, 2022). The main reason for the reduction is due to defaulted SBLs. The defaulted SBLs were offset by (1) the sale of new SBLs and (2) the net increase related to the customer seat relocation program. T he customer seat relocation program allows customers to trade in their SBLs in return for others in a different location as long as the total face value of the new seats is equal to or greater than the original seats.
During the current reporting period, 286 SBLs we re sold for a total face value of $2.2 million. The customer seat relocation program resulted in an increase of $1.2 million to
9 the SBL face value, while netting 157 more SBLs. There were also 553 SBL defaulted during the quarter with a face value of $3.2 million.
Additional details regarding currently active SBLs are noted in Table 6. 10 Table 6
SBL Seats
Available
SBL Seats Sold
as of 3/31/22
New SBL
Sales
Net SBL
Relocations
SBL
Defaults Other SBL Seats
Sold SBL Value SBL Collected % SBL Principal
Collected
100 100 - - - - 100 14,082,625$ 13,079,310 $ 92.9% 942 928 2 8 - - 938 75,040,000$ 72,151,621 $ 96.2% 2 2 - - - - 2 80,000$ 74,257 $ 92.8% 4,945 4,549 18 10 (21) - 4,556 136,680,000$ 129,138,376 $ 94.5% 3,475 2,894 20 - (12) - 2,902 58,040,000$ 54,131,038 $ 93.3% 7 7 - - - - 7 105,000$ 96,939 $ 92.3% 2,163 2,199 6 - (7) - 2,198 26,376,000$ 24,175,245 $ 91.7% 7 7 - - - - 7 70,000$ 68,871 $ 98.4% 20,651 20,850 36 22 (178) - 20,730 124,380,000$ 114,682,604 $ 92.2% 14,307 14,037 140 (21) (158) - 13,998 69,990,000$ 62,889,021 $ 89.9% 916 919 3 1 - - 923 3,692,000$ 3,618,812 $ 98.0% 91 91 - - - - 91 273,000$ 257,424 $ 94.3% 40 44 - - - - 44 110,000$ 105,630 $ 96.0% 18,392 15,296 61 137 (177) - 15,317 30,634,000$ 28,543,314 $ 93.2% 28 32 - - - - 32 32,000$ 30,409 $ 95.0% 66,066 61,955 286 157 (553) - 61,845 539,584,625$ 503,042,871 $ 93.2% Plus: Interest on financed SBLs 66,133,956
Total Principal & Interest 569,176,827
(1) This table does not include $29.1 million that has been collected life-to-date from defaulted SBL holders. 1,000
5,000
4,000
3,000
2,500
2,000
Total
10,000
Santa Clara Stadium Authority
Currently Active Stadium Builder License (SBL) Summary (1) Through June 30, 2022
Seat Value
141,392
80,000
40,000
30,000
20,000
15,000
12,000
6,000
11 Santa Clara Stadium Authority Budget Status Reports
Operating Budget
With 25% of the fiscal year complete, total operating revenues for the first quarter of the 2022/23 Fiscal Year wer e $9.7 million repr esenting 14% of the overall budget for revenues. The pr imary reasons that r evenue is below 25% (par level through three months) is because non-NFL event revenue is recorded at the end of the fiscal year in accordance with Artic le 5 of the Stadium Management Agr eement, and the NFL ticket surcharge revenue is recorded in second quarter when the NFL season starts. In addition, the first SBL proceeds in the amount of $12.4 million was received in the second quarter instead of in June 2022 this year. During the current reporting period, the Stadium Authority collected $3.6 m illion in Naming Ri ghts and $5.6 million in rent from StadCo.
The Nam ing Rights revenue is collected twic e a year in October and Februar y. The Stadium Authority also collected $202,000 or 35% of the budget for non-NFL event ticket surcharge revenue.
Total operating expenses were $7.1 million, or 10% of the annual budget. The primary reason that total expenses are below 25% is due to timing of the debt service transfer that takes place in the second quarter.
For the current fiscal year, the Stadium Authority’s FY2022/23 budget was adopted on March 15, 2022 and included the Stadium Manager’s recommended Shared Expense budget of $10.5 million in a Legal Contingency line item. The expenses that were included in the Legal Contingency lin e are Stadium Operations, Engineering, Gues t Services, Groundskeeping, Security and the Stadium M anagement Fee. However, the Executive Director was delegated authority to approve budget amendments of $5.1 million to move funds from the Legal Contingency line item to Shared Expenses after the review of adequate documentations for costs based on B oard direction. Subsequent to that direction, Stadium Authorit y staff met with the Stadium Manager on April 12, 2022 to review documentation for shared expenses. After follow-up meetings with the Stadium Manager, payments related to compensation were reviewed and approved for monthly payment, totaling $5.1 million for the fiscal year.
Shared Stadium Manager expenses were at 56% of the budget, or $4.6 million of the $8.3 million budgeted amount. This is due to timing of when insurance premiums are due. The Stadium Authority paid $2.3 million of the $3.2 million budgeted insurance expense paid during the first quarter. SBL Sales & Serv ice expenses were 33% of the budget, or $696,000. The Stadium Authority pays for all utility costs from February 1 st through July 31st and the tenant (StadCo) pays fo r utility costs fr om August 1 st through January 31 st (Tenant Season). Therefore, utility costs are 67% of the budget for the year, or $962,000.
The current period covers 50% (three out of the six months) that the Stadium Authority is responsible for utility cos ts. Lastly, Stadium Authority G&A costs were tracking below budgeted levels at $516,000 or 12% of the budget.
On August 31, 2022, the Stadium Authority entered into a s ettlement agreement with StadCo and Stadium Manager over disputes regarding the Operating and Management 12 Expenses, Shared Expenses, and Capital Expenditures that were previously withheld. As part of the settlement, the Stadium Authority agreed to pay for the budgeted expense for its share of Shared Stadium Manager Expenses and other expenses for the current fiscal year. The Stadium Authority released all of t he previously withheld expenses in the first quarter to the Stadium Manager on Octobe r 3, 2022. As such, the payment will be included in the third quarter report.
Overall, the Stadium Authority operating fund ended the first quarter with a fund balance of $41.5 million, an increase of $2.6 million or 6.6%. Included in that amount is a $12.3 million operating reserve and a $2.4 million discretionary fund.
Additional details are shown in Table 7.
13 Table 7
Budget to Budget to
Adopted Amended Q1 YTD Actual Amended YTD Actual
Budget Budget Actuals Actuals Difference % Received Budget Actuals Difference % Received Resources
Revenues
NFL Ticket Surcharge 10,822,000 $ 10,822,000 $ - $ - $ 10,822,000$ 0% 8,665,000 $ - $ 8,665,000$ 0% SBL Proceeds 24,398,000 24,398,000 - - 24,398,000 0% 23,682,000 - 23,682,000 0% Interest 15,000 15,000 60,600 60,600 (45,600) 404% 56,000 4,659 51,341 8% Non-NFL Event Revenue 250,000 250,000 - - 250,000 0% - - - NA Net Revenues from Non-NFL Events - - - - - NA - - - NA Naming Rights 7,380,000 7,380,000 3,635,630 3,635,630 3,744,370 49% 7,165,000 - 7,165,000 0% Sponsorship Revenue (STR) 405,000 405,000 148,143 148,143 256,857 37% 325,000 81,250 243,750 25% Rent 24,762,000 24,762,000 5,640,899 5,640,899 19,121,101 23% 24,762,000 6,741,100 18,020,900 27% Senior & Youth Program Fees 237,000 237,000 - - 237,000 0% 232,000 - 232,000 0% Non-NFL Event Ticket Surcharge 574,000 574,000 201,912 201,912 372,088 35% 150,000 - 150,000 0% Other Revenue - - - - - NA - - - NA Revenues Subtotal 68,843,000 $ 68,843,000 $ 9,687,184 $ 9,687,184 $ 59,155,816 $ 14% 65,037,000 $ 6,827,009 $ 58,209,991 $ 10% Total Resources 68,843,000 $ 68,843,000 $ 9,687,184 $ 9,687,184 $ 59,155,816 $ 14% 65,037,000 $ 6,827,009 $ 58,209,991 $ 10% Budget to Budget to
Adopted Amended Q1 YTD Actual Amended YTD Actual
Budget Budget Actuals Actuals Difference % Used Budget Actuals Difference % Used Expenses
Shared Stadium Manager Expenses
Stadium Operations - $ 2,496,635$ 832,211 $ 832,211 $ 1,664,424$ 33% 1,586,393 $ 386,890 $ 1,199,503$ 24% Engineering - 1,721,783 573,927 573,927 1,147,856 33% 1,543,240 314,610 1,228,630 20% Guest Services - 375,622 125,206 125,206 250,416 33% 242,553 49,445 193,108 20% Groundskeeping - 91,938 30,642 30,642 61,296 33% 93,809 19,125 74,684 20% Security - 389,965 129,989 129,989 259,976 33% 378,652 77,190 301,462 20% Procurement - - - - - NA 311,412 - 311,412 0% Insurance 3,230,000 3,230,000 2,935,718 2,935,718 294,282 91% 3,136,000 784,045 2,351,955 25% Stadium Management Fee - - - - - NA - - - NA Shared Stadium Mngr Exps Subtotal 3,230,000$ 8,305,943 $ 4,627,693 $ 4,627,693 $ 3,678,250 $ 56% 7,292,059 $ 1,631,305 $ 5,660,754 $ 22% Other Expenses
SBL Sales and Service 2,089,000 $ 2,089,000 $ 696,308 $ 696,308 $ 1,392,692$ 33% 3,448,000 $ 540,000 $ 2,908,000$ 16% Senior & Youth Fees (paid to City) 237,000 237,000 - - 237,000 0% 232,000 - 232,000 0% Non-NFL Event Expense - - - - - NA 600,000 - 600,000 0% Ground Rent (paid to City) 460,000 460,000 - - 460,000 0% 425,000 - 425,000 0% Performance Rent (paid to City) - - - - - NA - - - NA Discretionary Fund Expense 250,000 250,000 - - 250,000 0% 250,000 - 250,000 0% Utilities 1,444,000 1,444,000 962,496 962,496 481,504 67% 1,586,000 370,500 1,215,500 23% Use of StadCo Tenant Improvements 48,000 48,000 11,602 11,602 36,398 24% 26,000 - 26,000 0% Stadium Authority G&A 4,205,000 4,205,000 515,590 515,590 3,689,410 12% 5,115,000 580,570 4,534,430 11% Naming Rights Commission 91,000 91,000 45,445 45,445 45,555 50% 88,000 44,122 43,878 50% Legal Contingency 10,542,420 5,466,477 - - 5,466,477 0% 3,966,941 - 3,966,941 0% Other Expenses 723,000 723,000 240,879 240,879 482,121 33% 388,000 - 388,000 0% Transfers Out 44,785,580 44,785,580 - - 44,785,580 0% 41,262,000 - 41,262,000 0% Other Expenses Subtotal 64,875,000 $ 59,799,057 $ 2,472,321 $ 2,472,321 $ 57,326,736 $ 4% 57,386,941 $ 1,535,192 $ 55,851,749 $ 3% Total Expenses 68,105,000 $ 68,105,000 $ 7,100,014 $ 7,100,014 $ 61,004,986 $ 10% 64,679,000 $ 3,166,497 $ 61,512,503 $ 5% Operating Reserve 12,329,870 $ 12,329,870 $ 12,301,488 $ 9,693,657 $ 11,940,523 $ Discretionary Fund 2,364,850 $ 2,364,850 $ 2,428,806 $ 2,327,832 $ 2,327,850 $ Operating Budget Status Report
For the Period Ending June 30, 2022 and 2021
Period Ending June 30, 2022 Period Ending June 30, 2021 Santa Clara Stadium Authority
14 Debt Service Budget
The Stadium Authority’s FY 2022/23 de bt service revenue budget of $2.1 million represents anticipated contribut ions from the Community Fa cilities District (CFD). The CFD levies and collects a special hotel tax on hotel rooms within the CFD. All collections from the special CFD hotel ta xes are contributed to Stadium Authority to pay down the CFD Advance. The CFD Adva nce is payable solely from amounts received by the Stadium Authority from the CFD. During the first quarter, $611,000 was contributed by the CFD, or 29% of the annual budget.
Total Stadium Authority debt service expenses for the cu rrent reporting period were $19.0 million, or 44% of the budgeted amount. The debt service expenses for the CFD Advance, the Term A Loan, and the StadCo Subordinated Loan were $434,000, $17.4 million, and $1.1 million, respectively.
As of June 30, 2022, the total outstanding amount of Stadium Authority debt had declined to $264.7 million. This is a reduction in principal of $15.6 million from the March 31, 2022 outstanding debt amount of $280.3 million.
Additional details are shown in Tables 8 and 9 and Chart 1. 15 Table 8
Budget to Budget to
Adopted Amended Q1 YTD Actual Amended YTD Actual
Budget Budget Actuals Actuals Difference % Received Budget Actuals Difference % Received Resources
Revenues
Contribution from CFD 2,124,000$ 2,124,000 $ 611,227 $ 611,227 $ 1,512,773$ 29% 483,000 $ 158,418 $ 324,582 $ 33% Revenues Subtotal 2,124,000 $ 2,124,000 $ 611,227 $ 611,227 $ 1,512,773$ 29% 483,000 $ 158,418 $ 324,582 $ 33% Net Transfers In from Operating 40,984,580 40,984,580 - - 40,984,580 0% 37,572,000 - 37,572,000 0% Contribution from Fund Balance - - 18,371,442 18,371,442 (18,371,442) NA - 17,479,851 (17,479,851) NA Total Resources 43,108,580 $ 43,108,580 $ 18,982,669 $ 18,982,669 $ 24,125,911 $ 44% 38,055,000 $ 17,638,270 $ 20,416,730 $ 46% Budget to Budget to
Adopted Amended Q1 YTD Actual Amended YTD Actual
Budget Budget Actuals Actuals Difference % Used Budget Actuals Difference % Used Expenses
CFD Advance 2,042,000 $ 2,042,000 $ 433,923 $ 433,923 $ 1,608,077$ 21% 483,000 $ 421,471 $ 61,529 $ 87% Term A Loan 25,494,000 25,494,000 17,415,690 17,415,690 8,078,310 68% 25,529,000 16,898,728 8,630,272 66% StadCo Subordinated Loan 15,490,580 15,490,580 1,133,056 1,133,056 14,357,524 7% 12,043,000 318,071 11,724,929 3% Total Expenses 43,026,580 $ 43,026,580 $ 18,982,669 $ 18,982,669 $ 24,043,911 $ 44% 38,055,000 $ 17,638,270 $ 20,416,730 $ 46% Debt Service Reserve 11,536,235 $ 11,536,235 $ 11,536,235 $ 11,536,235 $ 11,536,235 $ Debt Service Budget Status Report
For the Period Ending June 30, 2022 and 2021
Period Ending June 30, 2022 Period Ending June 30, 2021 Santa Clara Stadium Authority
16 Table 9
Chart 1
17 Capital Improvement Project (CIP) Budget
As part of the Capital Expense (“CapEx”) Plan, the following projects have been completed as of the current reporting period:
Financial Management Information System Project
Emergency Recycled Water Line Repair Project
The following CapEx projects are currently in progress and expected to be completed by the end of the fiscal year:
Stadium Insulation
Command Post Window Treatment
Non-Slip Floor Matting
Lift Station
Mechanical and Electrical Closet Lighting
Rust Prevention Mitigation
Loading Dock Lighting
The CIP Budget increased from $21.7 million to $23.0 million in the first quarter. This is due to an additional $1.2 million in budget am endment that the Board during the first quarter. A total of $150,000 has been spent in FY 2022/23, which amounts to 0.7% of the budget. The main reasons that this is below budget are (1) there has been little activity on warranty work which makes up 7% of the CIP Budget, (2) delays in projects due to staffing shortage from the cont ractors as a result of CO VID-19, and (3) a number of projects are under compliance reviews of State procurement and prevailing wage laws.
On August 31, 2022, the Stadium Authority entered into a settlement agreement with StadCo and Stadium Manager ov er disputes regarding the Operating and Management Expenses, Shared Expenses, and Capital Expenditures that were previously withheld. As part of the settlement, in regards to Capita l Expenditures, the Stadium Authority agreed to discontinue the current practice of withholding payment for Capital Expenditures subject to the review and approval of t he prevailing wage docum entation by Stadium Authority’s labor law compliance consultant. Under the Settlement Agreement, Stadium Manager further confirmed it s obligation to comply with applicable laws, including Prevailing Wage Laws, and St adium Manager also implem ented its new internal Prevailing Wage Laws compliance policy and pr ocedures. Accordingly, the Stadium Authority will process the invoice payments as they come in.
Additional details are shown below in Table 10.
18 Table 10
Budget to Budget to
Adopted Amended Q1 YTD Actual Amended YTD Actual
Budget Budget Actuals Actuals Difference % Received Budget Actuals Difference % Received Beginning Balances 22,103,296 $ 22,103,296 $ 23,001,058 $ 23,001,058 $ (897,762) $ 19,438,420 $ 20,805,741 $ (1,367,321) $ Resources
3,800,310 3,800,310 - - 3,800,310 0% 3,690,000 - 3,690,000 0% - - - - - NA - - - NA Total Resources 25,903,606 $ 25,903,606 $ 23,001,058 $ 23,001,058 $ 2,902,548 $ 89% 23,128,420 $ 20,805,741 $ 2,322,679 $ 90% Budget to Budget to
Final Amended Q1 YTD Actual Amended YTD Actual
Budget Budget Actuals Actuals Difference % Used Budget Actuals Difference % Used Expenses
Construction 12,699,189 13,905,231 52,627 52,627 13,852,604 0% 6,743,911 - 6,743,911 0% Equipment 6,555,678 6,555,678 97,584 97,584 6,458,094 1.5% 5,734,770 26,229 5,708,541 0% Contingency 962,743 962,743 - - 962,743 0% 623,935 - 623,935 0% Stadium Warranty Related Construction 1,528,202 1,528,202 - - 1,528,202 0% 1,528,202 - 1,528,202 0% Total Expenses 21,745,812 $ 22,951,854 $ 150,211 $ 150,211 $ 22,801,643$ 0.7% 14,630,818 $ 26,229 $ 14,604,589$ 0% Ending Balances 4,157,794 $ 2,951,752 $ 22,850,846 $ 22,850,846 $ 8,497,602 $ 20,779,512 $ Transfers In from Stadium Manager
CIP Budget Status Report
Transfers In from Operating Budget
For the Period Ending June 30, 2022 and 2021
Period Ending June 30, 2022 Period Ending June 30, 2021 Santa Clara Stadium Authority
19 City of Santa Clara Net General Fund Impact
During the current reporting per iod there was a total of $41, 766 that was contributed to the General Fund as shown in Table 11. This is due to the timing of when the ground rent is paid and the performance rent is calculated. Additionally , the Senior and Youth Fee and the Tasman Lot Parking Fee are both related to NFL games of which there were none in the first quarter. This sect ion of the report also provides information on General Fund revenue and expenditure impacts resulting from the stadium.
Table 11
Public Safety and Administrative Cost Reimbursement
As described in earlier sections of this report, costs incurred by the City on NFL and Non- NFL events are tracked and billed to the Stadium Manager. Reimbursement is monitored and included in this report. A total of $406,000 in public safety costs were incurred in support of Non-NFL events that were held at Levi’s
® Stadium in the current reporting
period, all of which have been reimbursed to the City. These reimbursements came from a combination of payments from the Stadium Manager and the offsit e parking fees that were collected.
In addition to public safety costs, administrat ive costs are also tracked and billed to the Stadium Authority. These incl ude the cost of providing overall stadium management, financial, human resource, legal, and other services to the Stadium Authority. In the first quarter of FY 2022/23, a total of $353,000 of adm inistrative costs were incurred by the General Fund, which have been reimbursed to the City.
Rents and Senior and Youth Fee
As noted above, the City’s General Fund did not collect any rents or Senior and Youth fees in the current reporti ng period. See the Glossary for more information on these revenues and how they are calculated.
Other Revenue Impacts
General Fund sales tax, property tax, and transient occupancy tax (TOT) collections have benefited from the direct and indirect economic activity related to stadium events.
Ground Rent - $
Performance Rent -
Senior and Youth Fee -
Tasman Lots Parking Fee -
Sales Tax 41,766
Total Net General Fund Impact 41,766 $
City of Santa Clara
Net General Fund Impact
For Stadium Authority Fiscal Year to Date Ending June 30, 2022 20 Food and beverage concession sales and merchandise sales at Levi’s ® Stadium are taxable, resulting in sales tax revenue for the City. The last quarter of sales tax collections from Levi’s® Stadium transactions generated $42,000 for the City’s General Fund. In addition to the direct sellers at the Stadium, other businesses in Santa Clara are benefiting from the influx of people coming to attend one or more events at Levi’s® Stadium, resulting in potentially more sales tax collections for the General Fund.
In accordance with State Law, StadCo must pay possessory interest property tax based on their lease of Levi’s
® Stadium from the Stadium Authority. This revenue is collected by the county and placed into the Redevelopm ent Property Tax Trust Fund (RPTTF).
Amounts remaining in the RPTTF after payi ng any enforceable obligations of the Successor Agency are distributed to taxing ent ities in the same proportion as secured property taxes. The City’s proportion is approximately 10%.
Many stadium events bring travelers to the region, resulting in hotel stays which generate TOT collections for the City’s General Fund. Although it is impossible to say exactly what portion of the City’s TOT collections is due to the stadium, it is clear that hotels both inside and outside the City have benefited, resulting in increases in TOT collections in Santa Clara and our neighboring cities.
21 Glossary
This section of the report prov ides details behind key terms that are used in the body of this report.
Discretionary Fund – The Amended and Restated Stadium Lease Agreement describes the Non-NFL event ticket surcharge which is imposed by the Stadium Authority. All promotors or sponsors of ti cketed Non-NFL events are requi red to collect a Non-NFL event ticket surcharge of $4 per ticket on behalf of the Stadi um Authority. One-half of these proceeds are used to cover Stadium Authority operating and maintenance costs.
The other one-half of the proceeds are deposited in the Stadium Authority’s discretionary fund. If at any time the discretionary fund balance exceeds $1 million, then in consultation with the Stadium Manager, the Stadium Authority will dete rmine if provision has been made for replacement and improvement of capital improvements contemplated under the public safety plan. If not, t hen funds will be reserved in t he discretionary fund for such purposes. If adequate provision has been made fo r these items and the balance of the discretionary fund still exceeds $1 million, then up to half of the amount over $1 million can be transferred to the General Fund, in which event an equal amount will also be transferred from the discretionary fund to the Stadium Authority operating fund and will be included as revenue available to pay Stadium Authority expenses.
Ground Lease – The Ground Lease Agreement has an initial term of 40 years commencing on the date of substantial completion which was July 31, 2014. The amount of annual base ground rent that is payable by the Stadium Au thority to the City is noted in the chart 2 below.
Chart 2
Lease Year Fiscal Year
Annual Fixed
Ground Rent
1 2014/15 180,000 $
2 2015/16 215,000 $
3 2016/17 250,000 $
4 2017/18 285,000 $
5 2018/19 320,000 $
6 2019/20 355,000 $
7 2020/21 390,000 $
8 2021/22 425,000 $
9 2022/23 460,000 $
10 2023/24 495,000 $
11-15 2024/25 - 2028/29 1,000,000$
16-20 2029/30 - 2033/34 1,100,000$
21-25 2034/35 - 2038/39 1,200,000$
26-30 2039/40 - 2043/44 1,300,000$
31-35 2044/45 - 2048/49 1,400,000$
36-40 2049/50 - 2053/54 1,500,000$
22 Net Non-NFL Event Revenue – Net Non-NFL event revenue is remitted by Stadium Manager to the Stadium Authority on a year ly basis. This is done annually because the final reconciliation of the Non-NFL event revenues and expenses does not occur until after the conclusion of each fiscal year.
NFL Ticket Surcharge – The Amended and Restated Non-Relocation Agreement states that the Team will collect a 10% NFL ticket surcharge on the price of admission to all NFL games on behalf of Stadium Authority.
Non-NFL Event Ticket Surcharge – The Stadium Lease Agreem ent requires that the promoter or sponsor of any Non-NFL event collect a Non-NF L event ticket surcharge of $4 per ticket. The Lease Agreement sets as ide one-half of the Non-NFL event ticket surcharge for stadium operating and maintenanc e costs and one-half for discretionary expenses of the Stadium Authority.
Offsite Parking Fees – Parking lot operators who wish to operate a parking lot for sports or entertainment venues are required to go through the Cit y’s permitting process. If approved, per the City’s Municipal Fee Schedule, these operators remit an offsite parking fee for each car that is parked for sports or entertainment events. This fee is designed to recover the public safety costs associated with these permitted offsite parking lots.
Therefore, when invoicing for NFL or Non-NFL public safety costs for a particular event held at Levi’s® Stadium, the offsite parking fee that is collected for said event partly offsets the total public safety costs owed for that event. In the City’s FY 2022/23 (July 1, 2022 through June 30, 2023) the offsite parking fee is $6.13.
Performance-Based Rent – The Amended and Restated Stadium Lease Agreement and the Ground Lease Agreement both describe the performance-bas ed rent that is due to the City. (It is calculated as 50% of t he net income from Non-NFL events less performance-based rent credits. The performance-based rent credits include 50% of the fixed ground rent for the current lease year.)
Public Safety Costs – For each NFL and Non-NFL event held at Levi’s ® Stadium, a
public safety plan is developed and implem ented. Multiple City departments provide staffing, materials, and supplies to support t he public safety plan. Services are provided through a combination of City staff, contracts with other agencies (California Highway Patrol, County Sheriff’s Office, and City of Sunnyvale) and some vendor provided services.
The Amended and Restated Stadium Lease Agreement section 7.5 states that the tenant is responsible for reimbursing the City for the public safety costs attributed to NFL events at Levi’s
® Stadium. Additionally, Article 5 of the Stadium Management Agreement notes that the Stadium Manager is responsible for paying Non-NFL event expenses on behalf of the Stadium Authority. Ther efore, the cost of providing public safety services are tracked through the City’s financial system and invoices are sent to the Stadium Manager.
All of these costs are reimbursed to the City of Santa Clara.
23 Senior and Youth Program Fees – The Amended and Rest ated Stadium Lease Agreement requires that StadCo collect a Senior and Youth Program Fee of $0.35 per NFL ticket sold on behalf of the Stadium Aut hority. Per section 8.2 of the Ground Lease Agreement between the City and the Stadium Authority, the Stadium Authority remits this fee to the City as additional rent to support senior and youth programs in the City.
Stadium Management Fee – The Stadium Manager receives an annual base management fee to manage Levi’s® Stadium. The fee was $400,000 in the first lease year and increases by 3% annually as detailed in the table below. This annual base management fee is split 50/50 between StadCo and the Stadium Authority since the Stadium Manager manages the stadium year-r ound for both entities. In addition to the base management fee, the Stad ium Manager also receives a stadium marketing and booking fee (incentive fee) which is based on a percentage of the amount that the net income from Non-NFL events exceeds t he marketing and booking fee benchmark. The marketing and booking fee benchmark was $5 mill ion in the first lease year and also increases by 3% annually as detailed in the table below. The annual stadium management fee for each of the first ten lease years are noted in the chart 3 below.
Chart 3
Tasman Lots Parking Fees – The City collects a fee of $5 per space for all cars that are parked on the Tasman surface lots during NFL events.