The public got its first glimpse of next year’s Super Bowl agreement.
With Levi’s Stadium set to host Super Bowl LX in 2026, city employees presented the terms of the agreement to the Santa Clara City Council at its Tuesday night meeting. The presentation was similar to one approved earlier this year that lays out the details of six FIFA World Cup games, also set to come to Santa Clara next year.
Just as with those agreements, city employees used the council’s governing principles related to the event. Primary among those principles was ensuring the city would not be on the hook for any expenses. Others included maximizing benefits to local businesses and painting the city in a positive light, highlighting some of its assets, such as the convention center.
City Manager Jovan Grogan said much of the agreement mirrors the one put in place for Super Bowl 50, which the city hosted in 2016.
The Bay Area Host Committee (BAHC) has agreed to cover event expenses, and the Forty Niners Stadium Management Company (StadCo) has agreed to cover any expenses BAHC is unable to pay.
“To make sure that we get those amounts reimbursed, there are very detailed reimbursement process that ensures the city is fairly compensated in a timely manner for its provision of Super Bowl services,” City Attorney Glen Googins said.
Although subject to change as the event approaches, the city estimates the game’s cost at $6.3 million. BAHC will pay 50% of that cost to the city upfront by Christmas. The city has already been reimbursed for more than $300,000 in expenses.
While BAHC has the right to dispute what constitutes a “qualified cost,” if those disputes exceed $50,000, the money goes into a holding account until an arbiter decides the matter. Should the disputed amounts exceed $200,000, either party can opt to hasten arbitration.
The agreement details two categories of events: Super Bowl Activities — i.e., events within the security perimeter before, during or after the game that require security — and Super Bowl Services, which support the game and requirements.
The city is developing a Super Bowl Services Master Plan and a public safety plan. It will also establish a Special Event Zone, which will regulate commercial activity in proximity to the stadium.
The city’s convention center will be used in the days leading up to and including the event. Credits will offset the $650,000 rent for the center’s use, provided food and beverage sales meet certain thresholds, Grogan said. If those thresholds are not met, or if the convention center ends up not being used, the full rent is due.
“I am struggling to see how the city will benefit financially from this,” Council Member Suds Jain said.
In response, Grogan pointed to auxiliary benefits to the city, such as its hotel tax, sales tax and convention center use.
Although the BAHC’s financial terms with its partners are undisclosed, Zaileen Janmohamed, president and CEO of BAHC, said fundraising is going “very well.” The group estimates that Santa Clara County will see between $100 million and $160 million in economic benefit.
But just as with the FIFA agreements, Mayor Lisa Gillmor was unhappy. She said she worried the city’s general fund would be left “holding the bag” and disputed the mechanism of BAHC being able to dispute costs, calling the reimbursement process “cumbersome.”
“We shouldn’t go to the Bay Area Host Committee and have them approve the costs they are supposed to pay,” she said. “That makes no sense.”
She said she would like to see full upfront reimbursement or a letter of credit or a bond as a guarantee.
The agreements are scheduled to come back to the council for approval at its next meeting.
Consent Calendar Spending
The council approved the following spending via the consent calendar:
- A five-year $1.25 million agreement with CSG Consultants, Inc. and Bureau Veritas North America, Inc. to provide plan check review and inspection services.
- A $92,344 amendment to an agreement with Perkins + Will to amend the Tasman East Specific Plan. Agreement total is now $1.55 million.
- A five-year, $1.12 million extension to the software maintenance agreement with Hitachi Energy USA, Inc. for continued maintenance and support of Silicon Valley Power’s SCADA System. The contract total is now $2.5 million and goes through Aug. 31, 2030.
Council Member Karen Hardy was absent.
The next regularly scheduled meeting is 7 p.m. Tuesday, Sept. 16 in the Council Chambers at City Hall, 1500 Warburton Ave. in Santa Clara.
Members of the public can participate in the City Council meetings on Zoom at https://santaclaraca.zoom.us/j/99706759306; Meeting ID: 997-0675-9306 or call 1 (669) 900-6833, via the City’s eComment (available during the meeting) or by email to PublicComment@santaclaraca.gov
Contact David Alexander at d.todd.alexander@gmail.com
