Economic Development Authority - Erik Thorvig, Community Development Director
Title
Title
Approving Sponsorship Request for the 3M Open
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Executive Summary
Approve four-year commitment through 2025 for City of Blaine sponsorship for the 3M Open.
Background
The 3M Open will be held at the TPC Twin Cities in Blaine July 18 - 24, 2022. The 3M Open is a regular PGA Tour event with 156 of the world’s best golfers competing.
The inaugural year of the 3M Open was 2019. It was estimated the tournament had an economic impact on the region of over $50 million. The local, national and worldwide exposure of the event on social media and television was impactful. The four-day tournament has over 15 live hours and over 55 total hours of broadcast time on the Golf Channel and CBS.
In 2019, the EDA approved a three-year sponsorship (2019 - 2021). This sponsorship identified an initial sponsorship cost of $100,000 with a 3% escalator each year. The EDA paid $103,000 in 2020. In 2021, the EDA paid $58,000 since fans were not allowed to attend in 2020 and the EDA was not able to benefit fully from the sponsorship.
The tournament has requested the City of Blaine enter into a four-year sponsorship agreement through 2025. The tournament is secured as a tour event through 2025. The sponsorship will provide the City of Blaine access to a hospitality tent on the 18th hole, Tuesday - Sunday, and 40 event tickets per day. With the event being high profile locally and worldwide, this is an opportunity to invite and host guests that play a direct role in economic development activity in Blaine. Revenue from the tournament, which includes Blaine’s sponsorship, was part of the $1.5 million in donations the 3M Open fund contributed annually. The three largest recipients were the University of Minnesota Masonic Children’s Hospital, Science Museum of Minnesota and National Park Foundation. Local organizations that received donations include The First Tee Blaine, Stepping Stone Emergency Housing, Allina, SBM Fire, Panther Foundation, Blaine Police Explorers and TPC Rose.
In 2021, the City of Blaine hosted over 160 guests in the hospitality tent. Guests included real estate developers and brokers, existing and prospective Blaine businesses, financial institutions and other key community stake holders. Staff intends to create a targeted invite list and examine the possibility of themed days (developer day, broker day, Blaine business day, etc.) and review this with the EDA/Council sometime this spring before invitations are sent out.
Attached is a schedule of deliverables for the sponsorship. The cost is as follows:
2022 - $115,000
2023 - $118,450
2024 - $122,000
2025 - $125,660
Included in the four-year sponsorship is membership in the Leadership That Matters group. This group is comprised of female business leaders and facilitated by the 3M Open. City Manager, Michelle Wolfe was able to participate in this group at no charge in 2021. The annual membership cost is $7,500. The purpose of the group is to connect future leaders with current female leaders who drive business and culture each day. There are various events throughout the year that allow city representatives to market Blaine and network amongst major business leaders in Minnesota. The membership will allow other female leaders in Blaine, including councilmembers, to attend various events throughout the year. Memberships also go to support local nonprofits that promote the advancement and protection of women.
This expenditure was included in the 2022 EDA Budget adopted in December. Following years will be accounted for in annual EDA budgets.
Strategic Plan Relationship
This event advances efforts in both the Growth Management and Organization Health components of the strategic plan.
Board/Commission Review
Not applicable.
Financial Impact
This expenditure was included in the 2022 EDA Budget adopted in December. Following years will be accounted for in annual EDA budgets. Annual actions will be required for future expenditures.
Public Outreach/Input
Not applicable.
Staff Recommendation
By motion, approve the Resolution.
Attachment List
Schedule of Deliverables
Body
BE IT RESOLVED by the Board of Commissioners (the “Board”) of the Blaine Economic Development Authority (the “EDA”), as follows:
WHEREAS, it is one of the goals and purposes of the Blaine EDA to improve the community, strengthen the tax base and enhance employment opportunities; and
WHEREAS, the 3M Open is anticipated to have a $50 million economic impact to the local area; and
WHEREAS, the 3M Open will bring significant tourism to the City of Blaine; and
WHEREAS, as the host City, the tournament has requested a sponsorship from the City of Blaine in the amount of $115,000 for 2022.
NOW, THEREFORE, BE IT RESOLVED, by the Board of Commissioners of the Blaine Economic Development Authority, City of Blaine, Minnesota, that the President and Executive Director of the Blaine Economic Development Authority are hereby authorized to expend said funds to promote the City of Blaine at the 3M Open Tournament held at the TPC Golf Course in Blaine, July 18 - 24, 2022 and enter into a contract for sponsorship through 2025.
PASSED by the Blaine Economic Development Authority this 3rd day of January, 2022.