The Astros Golf Foundation (Foundation) has an agreement with PGA TOUR, Inc to host, manage and operate the Houston Open. The City, the Foundation, PGA TOUR Inc, and Memorial Park Conservancy desire to enter into an agreement to set the terms and conditions under which the Foundation will host the Houston Open at the Memorial Park Golf Course.
The Houston Open will produce public benefits, including annual charitable contributions by the Foundation, including but not limited to an annual $500,000 contribution to The First Tee, a youth development organization, as part of their agreement with PGA TOUR, Inc. Pursuant to the Tournament Facilities Agreement, the Foundation will remit to the City an annual $375,000 event fee for the event held in 2020, and for any other Event during the term that is not open to the general public at full capacity due to COVID-19. For all other events during the term, the Foundation will remit to the City $500,000. The Foundation will also remit an equivalent event fee to Memorial Park Conservancy for the benefit of Memorial Park.
Section 32-7(a) of the Code of Ordinances requires that unless otherwise expressly provided by ordinance, park revenues, except revenues received by the City from City park golf facilities, shall be deposited in the parks special revenue fund to be used for repairs, replacement, and renovation of the Parks Department's revenue-producing facilities, and equipment, and for maintenance and operation of the Parks Department's revenue-producing facilities and activities. Section 32-7(b) of the City Code requires 100 percent of the revenues received by the City and derived from all city-owned golf facilities, whether operated by the City or private entities, including all related concession fees, shall be deposited into the parks golf special fund to be used exclusively for the maintenance, operation, and improvements of any or all of such golf facilities. Section 32-69 of the City Code provides for the establishment of fees and charges for the use of park concessions, including golf course tournament fees, in the amounts set forth in the City fee schedule.
The Houston Parks and Recreation Department (HPARD) recommends Council approve a Tournament and Facilities Agreement, waiving section 32-7 and section 32-69 of the City Code for the Houston Open so that the Foundation may host the Houston Open at the Course in the manner contemplated in the Tournament Facilities Agreement and the City may utilize the revenues received under the Tournament Facilities Agreement for the benefit of all City parks.
Director's Signature:
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Steve Wright, Director
Houston Parks and Recreation Department