gc
07 August 2003, 01:13 AM
City studies 'creative' income plan
Sponsorships, naming rights may help Dallas balance next budget
08/05/2003 - By COLLEEN McCAIN NELSON / The Dallas Morning News
http://www.dallasnews.com/sharedcontent/dallas/politics/local/stories/080503dnmetdalcouncil.aee70.html
What's in a name? Cold, hard cash, say Dallas leaders.
The city is struggling to make ends meet, and council members are hoping that corporate sponsorships will help balance next year's budget. A City Council committee agreed Monday to move forward with plans to develop a policy to sell naming rights and sponsorships at municipal facilities.
No final decisions have been made about what, precisely, will be on the auction block, but city leaders said they're not ruling out anything.
Soon, Dallas employees could be chatting on a city-approved cellphone while sipping the official soda of Dallas. Residents could find advertising stuffed in their water bills, posted at their parks and even emblazoned on city equipment.
"We're trying to be creative," First Assistant City Manager Mary Suhm said. "Maybe some company would like all of Dallas' parks to be mowed with their lawn mowers."
Other cities have sold sponsorships to cellular phone providers and the "pouring rights" at public facilities to soft drink companies.
Dallas will explore similar sponsorship opportunities, Ms. Suhm said, and will consider selling the naming rights to some city facilities. The city also could cash in by designating "official city products" and by allowing advertising in public buildings and parks and on equipment, she said.
Several City Council members said they support the idea, but a few questioned whether facilities named for city fathers would be forsaken in favor of honoring the highest bidder.
"I would have a problem naming parks or recreation centers or libraries after a product," Mayor Pro Tem John Loza said. "Having Sprite Park and Pepsi Library – I don't think that's an option."
Ms. Suhm assured council members that they would have the final say on naming rights and sponsorships.
First, Dallas plans to hire an outside firm to take inventory of buildings, parks and equipment that could provide moneymaking opportunities. The firm would help the city develop a naming-rights and sponsorship policy, Ms. Suhm said.
"We do believe there's an opportunity here that should not be missed," she said.
Selling naming rights to city facilities is not a new idea. Two years ago, Oak Farms Dairy bought the rights to the Latino Cultural Center's performance hall for $1 million.
But Oak Farms stepped in only after controversy quashed plans to sell the rights to Jose Cuervo's parent company, Guinness United Distillers & Vintners North America Inc. Council members said they couldn't stomach naming part of the Latino Cultural Center for a tequila.
Other cities have found success selling sponsorships and naming rights. The city of Fort Worth receives $130,000 a year from TXU, which has hung promotional banners in the city's convention center arena, said Kirk Slaughter, Fort Worth's director of public events.
Now, the city is negotiating a pouring rights agreement with Coca-Cola to sell beverages at Will Rogers Memorial Center and the convention center.
The sponsorships lessen the burden on taxpayers and provide private corporations with valuable exposure, Mr. Slaughter said.
"We're trying to find other ways of collecting revenue instead of going straight to the taxpayers," he said. "So far, it's been successful. We haven't had one complaint."
During budget discussions last year, Dallas City Council member Mitchell Rasansky urged the city manager's office to seek similar profitable possibilities. On Monday, he commended Ms. Suhm's efforts.
"I think it's about time," Mr. Rasansky said.
Ms. Suhm said the city would move quickly to develop a policy and seek moneymaking opportunities. Already, City Manager Ted Benavides has included $2 million from sponsorships and naming rights in his proposed budget for the fiscal year that begins Oct. 1.
Mr. Loza said he was uneasy about projecting $2 million in revenue from a program that did not exist.
"I think this is a good idea," he said. "I just think we're being wildly optimistic."
Sponsorships, naming rights may help Dallas balance next budget
08/05/2003 - By COLLEEN McCAIN NELSON / The Dallas Morning News
http://www.dallasnews.com/sharedcontent/dallas/politics/local/stories/080503dnmetdalcouncil.aee70.html
What's in a name? Cold, hard cash, say Dallas leaders.
The city is struggling to make ends meet, and council members are hoping that corporate sponsorships will help balance next year's budget. A City Council committee agreed Monday to move forward with plans to develop a policy to sell naming rights and sponsorships at municipal facilities.
No final decisions have been made about what, precisely, will be on the auction block, but city leaders said they're not ruling out anything.
Soon, Dallas employees could be chatting on a city-approved cellphone while sipping the official soda of Dallas. Residents could find advertising stuffed in their water bills, posted at their parks and even emblazoned on city equipment.
"We're trying to be creative," First Assistant City Manager Mary Suhm said. "Maybe some company would like all of Dallas' parks to be mowed with their lawn mowers."
Other cities have sold sponsorships to cellular phone providers and the "pouring rights" at public facilities to soft drink companies.
Dallas will explore similar sponsorship opportunities, Ms. Suhm said, and will consider selling the naming rights to some city facilities. The city also could cash in by designating "official city products" and by allowing advertising in public buildings and parks and on equipment, she said.
Several City Council members said they support the idea, but a few questioned whether facilities named for city fathers would be forsaken in favor of honoring the highest bidder.
"I would have a problem naming parks or recreation centers or libraries after a product," Mayor Pro Tem John Loza said. "Having Sprite Park and Pepsi Library – I don't think that's an option."
Ms. Suhm assured council members that they would have the final say on naming rights and sponsorships.
First, Dallas plans to hire an outside firm to take inventory of buildings, parks and equipment that could provide moneymaking opportunities. The firm would help the city develop a naming-rights and sponsorship policy, Ms. Suhm said.
"We do believe there's an opportunity here that should not be missed," she said.
Selling naming rights to city facilities is not a new idea. Two years ago, Oak Farms Dairy bought the rights to the Latino Cultural Center's performance hall for $1 million.
But Oak Farms stepped in only after controversy quashed plans to sell the rights to Jose Cuervo's parent company, Guinness United Distillers & Vintners North America Inc. Council members said they couldn't stomach naming part of the Latino Cultural Center for a tequila.
Other cities have found success selling sponsorships and naming rights. The city of Fort Worth receives $130,000 a year from TXU, which has hung promotional banners in the city's convention center arena, said Kirk Slaughter, Fort Worth's director of public events.
Now, the city is negotiating a pouring rights agreement with Coca-Cola to sell beverages at Will Rogers Memorial Center and the convention center.
The sponsorships lessen the burden on taxpayers and provide private corporations with valuable exposure, Mr. Slaughter said.
"We're trying to find other ways of collecting revenue instead of going straight to the taxpayers," he said. "So far, it's been successful. We haven't had one complaint."
During budget discussions last year, Dallas City Council member Mitchell Rasansky urged the city manager's office to seek similar profitable possibilities. On Monday, he commended Ms. Suhm's efforts.
"I think it's about time," Mr. Rasansky said.
Ms. Suhm said the city would move quickly to develop a policy and seek moneymaking opportunities. Already, City Manager Ted Benavides has included $2 million from sponsorships and naming rights in his proposed budget for the fiscal year that begins Oct. 1.
Mr. Loza said he was uneasy about projecting $2 million in revenue from a program that did not exist.
"I think this is a good idea," he said. "I just think we're being wildly optimistic."