To: Board of County Commissioners
Through: N/A
Prepared By:
prepared
Michelle Halstead, Director, Commissioners' Office
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Subject:
title
Resolution for Approved Uses of One-time Funding from the Metropolitan Football Stadium District
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Purpose and Request:
recommended action
The Board is requested to adopt a resolution outlining approved uses for one-time funding received from the Metropolitan Football Stadium District.
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Background and Discussion: In 1998, the six-county Denver metro area passed a sales tax extension to build the $400 million stadium. The tax (10 cents on every $100 purchased) covered approximately 75% of the stadium's price tag was collected from 2001 to 2011, when the venue was paid off. The Lease and Management Agreement between the Metropolitan Football Stadium District (MFSD) and the franchise stipulates that cities and counties that helped fund the stadium's construction get a portion of the proceeds of a sale of the team should the Bowlen family sell the franchise.
In September 2022, the Walton-Penner group finalized the sale of the team for $4.65 billion; the MFSD received its 2% share of sale in October, less debt and capital contributions, totaling $41,037,951. The MFSD distributed funding to cities and counties based on proportional share of sales and use tax paid under the original state legislation. A list of disbursements is attached for reference. Last month, Arapahoe County received $637,822.09 from the MSFD.
This one-time funding is to be used for "youth activity programs" consistent with Article 33 of the Lease and Management Agreement. Neither MSFD nor Article 33 define youth activity programs, nor is there a timeline for implementation. While the MSFD does not have enforcement powers as to how cities and counties ultimately use money, they indicated they will reach out in 2023 to request information on how the County used provided funds.
During a November 29, 2022, study session (attached), the Board co...
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