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Q&A
World Cup preparations and EDC's $20 million budget allocation
1:24:21
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151 sec
Council Member Amanda Farías inquires about the $20 million allocation in EDC's budget for World Cup fan events. Andrew Kimball explains the rationale behind this investment and its expected economic impact.
- The $20 million is allocated for fan events related to the World Cup
- An economic impact analysis was conducted by a third party
- The analysis showed a substantial economic return for both New York and New Jersey
- New York City is expected to benefit significantly as many visitors will stay in the city while attending games at MetLife Stadium
- Both New York and New Jersey are contributing to the host committee operations
- Kimball argues that the use of tax levy for fan events is appropriate due to sponsorship opportunities and overall positive economic impact
- EDC will coordinate with OMB to provide the economic impact analysis to the council
Amanda Farías
1:24:21
Yeah.
1:24:21
That's what I would assume too.
1:24:23
But and then before I break for another round of questions for members, just some some questions around the World Cup.
1:24:32
The preliminary plan includes 20,000,000 in EDC's budget for the World Cup.
1:24:36
OMB testified that this funding was to hold, and I quote, fan events for economic development purposes, end quote, and that EDC performed its own return to the city model.
1:24:50
OMB told the finance committee that the council would receive that analysis and explain how it landed on the 20,000,000.
1:24:56
Can you share with us the model of how EDC concluded 20,000,000 was the right amount to invest in fan events for the World Cup?
Andrew Kimball
1:25:04
In the instance of the World Cup when New York and New Jersey were bidding to host be a host city, one of numerous ones across the country, there was an economic impact analysis done by a third party.
1:25:17
We went outside to a third party.
1:25:19
Often we do these in house using different established models.
1:25:25
So for this one we went outside and it showed a very very substantial economic return to both New York and New Jersey but particularly to New York because this is where so many of the people will come to then go out to the Meadowlands and see the games at MetLife.
1:25:46
So both New York and New Jersey are making a direct contribution to that host committee and their operations which include fan fest things on both sides of the harbor but particularly in New York City because this is where most of the people would be and that was the rationale for the $20,000,000 commitment.
Amanda Farías
1:26:04
And arguably the World Cup is one big fan event.
1:26:08
Do you think that the use of tax levy is appropriate for fan events associated with the World Cup?
Andrew Kimball
1:26:14
I do because these kinds of events generate enormous sponsorship opportunities that help pay for the event being here in the first place.
1:26:25
And again, the overall economic positive economic impact of having both some of the preliminary games, the semifinal games, and the final in New York City, the the net value to New York City is massive.
1:26:41
And I'll we'll coordinate with OMB to make sure that you see that analysis.
Amanda Farías
1:26:45
That would be great.
1:26:46
I did request it at the finance hearing and they chucked it up to you folks to hand it over to us.
Sandy Nurse
1:26:51
Okay.
1:26:51
We're on it.