Scottsdale OKs up to $475,000 for Super Bowl Fan Fest

• Scottsdale will donate up to %24475%2C000 to a Super Bowl event%2C called Fan Fest
• Fan Fest will coincide with ESPN%27s broadcast leading up to the Super Bowl
• It will take place at a site next to Scottsdale Fashion square southwest of Scottsdale Road and Highland Avenue

Scottsdale will contribute up to $475,000 in taxpayer money toward a Super Bowl event at Scottsdale Fashion Square in 2015.

The City Council unanimously approved the event funding this week.

Fan Fest Scottsdale, a mix of Super Bowl festivities in downtown Scottsdale, will coincide with ESPN's official broadcast the week leading up to Super Bowl XLIX, Jan. 26 through Feb. 1. The game will be played Feb. 1 at University of Phoenix Stadium in Glendale.

Scottsdale Fashion Square, LLC, the event producer, requested the dollars from Scottsdale's tax on hotel stays, which is earmarked specifically for tourism.

Fan Fest will take place the same time as next year's Waste Management Phoenix Open, which will be played Jan. 26-Feb. 1 at TPC Scottsdale's Stadium Course.

Rachel Sacco, president and CEO of the Scottsdale Convention & Visitors Bureau, said the event is a great opportunity to attract visitors to downtown Scottsdale.

The City Council added a stipulation that the CVB, which markets the city to visitors, will provide oversight of the event-planning process.

"I think having the CVB more intimately involved in it is a good idea," said Scottsdale Mayor Jim Lane, who expressed some reservations about the deal.

The Convention & Visitors Bureau has been a "great partner" and "has been engaged in conversations" since day one, said Kate Birchler, assistant vice president of tourism marketing for Macerich. Macerich owns Scottsdale Fashion Square.

"We plan to continue that conversation," Birchler told the council. "There's a lot of work to be done and we're ready to get started on it."

Current estimates place the price tag for the event at $1.05 million.

Macerich and Scottsdale Fashion Square hope to secure sponsorships from other agencies as well.

As part of its contract, Macerich will come back with final budget numbers by Sept. 1.

Lane said the city's contribution of up to $475,000 could deter event officials from seeking sponsorships elsewhere.

"If I know it's going to be covered, I'm not really going to be looking for sponsors," he said.

If the amount the event producer receives in sponsorships exceeds the total budget amount, the city's portion of event funds will be reduced by how much the sponsorship amount exceeds the budget amount, said Steve Geiogamah, Scottsdale's economic development manager-tourism.

For example, if the budget amount is determined at $800,000 and other sponsorships total $400,000, Scottsdale's funding would drop by $75,000, to $400,000.

Scottsdale would contribute the bed-tax dollars after Fashion Square submits a report after the event, Geiogamah said. The report must include the producer's performance under the contract, total attendance and benefits for the city, among other details.

"If the deliverables don't meet the $475,000, we'll also reduce it," Geiogamah said.

Vice Mayor Guy Phillips said he thinks sponsors will want to pitch in "to the point that they're going to knock down our doors."

"I think $400,000 is very conservative," Phillips said. "We're investing in tourism. Tourism is what pays for the amenities we all enjoy in Scottsdale."

Lane said that "some of the numbers have changed around."

Scottsdale Fashion Square estimates increased sales in downtown Scottsdale during Super Bowl time "to the tune of $15 million," he said. According to Macerich estimates, the sales would pump added sales-tax revenue of $237,600 into the city's coffers, which is lower than a previous estimate of $300,000.

"We'll know pretty certainly by then what our costs are and what our revenues are," said Steve Helm, Fashion Square's assistant vice president of property management.