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CONFI DENTI ALDISCUSS IONMAT E RI ALSPreliminary ObservationsLazard is pleased to work with the City of San Diego to find a structural and funding solution to aid in construction of a newdowntown football stadium that keeps the Charger s in San Diego As Lazard understands it, the City is seeking a way to finance the stadium without recourse to tax increases or general fundobligations Stadium construction will be funded through contributions from the City, the Chargers organization,the NFL andpotentially from San Diego CountyQualcomm Stadium's existing land/ asset value can, and should, help fund the new stadium All municipal support directed to the stadium must be funded from sources specifically generated by, or otherwise madeavailable from, the stadium projectNew excise taxes are difficult due to a supermajority vote requirement and should be avoided if possibleOn preliminary review, there appear to be many potential sources of up-front proceeds or ongoing revenue support availableNegotiating an arrangement with the Chargers organization to share proceeds of these revenue sources will be critical to theproject's successQualcomm Stadium is currently losing 10 - 12 million a year; these avoided losses could also be used to support a new stadium The new stadium will be both physically separate and financially independent Detailed negotiations Efforts to hire engineers/ consultants regarding the project design have not proceeded beyond a basic site study; therefore,with the Chargers have been minimal to date limited to high level, conceptual discussionsestimates around costs are not necessarily reliable Taxpayers will want a favorable return on any public investment in the facility1ILAZAI Dfrom the Convention CenterI

CONFIDE NTIALDISCUSSIONMATERIALSHistory of New Stadium Construction( in millions)Stadium construction costs have been rising over time, reflecting inflation as well as the additionalamenities included in modern stadiums 800Lucas Oil StadiumIndianapolisColtsFord FieldDetroitLions700CenturyLink FieldS cattleS eahaJ1Jks600-· Bank of America StadiumCarolinaPanthers400Georgia DomeAtlanta Falcons200Everbank FieldJacksonvilleJaguars100 FedEx FieldWashingtonRedskt''"" .--Edward Jones Dome300ClevelandBro/llnsCowboys StadiumDallas CoJ1Jbqys 1.15 billion-\- -\Sports Authority FieldLP FieldAt Mile HighTennessee1 'itansDenverBroncos \Browns Stadium500\. \Lincoln Financ ial FieldPhiladelphiaEaglesUniversity of Phoenix StadiumAn·zona Cardinals·- - - - - ./ . ·- ·- -MetLife StadiumNe/IIYork JetsNe,v York Giants 1.6 billion\10-Y car Average in1nclexed 2011 clolhrs: 578 million (")Reliant StadiumHoustonTexans\Paul Brown StadiumCincinnatiBengalsGillette StadiumNe1vEngland Patriots\IM&T Bank FieldBaltimoreRavensRaymond James StadiumTampa Bqy BuccaneersJHein z FieldPittsburghSteelers01990199419982002 City Population(a) Excludes MetLife Stadium.2 ILAZAI?D,---.',,.\San Diego-- \)Population \, ,,(Representative)20062010

--CONFIDENT ,.,,.I ALDISCUSSION- --- --· ---·-·---MATERIALS--- ·----·-Potential Sources of Capital/ Capital SupportA number of potentialsources of capital/ revenue streams exist to support private and/ or public sector contributionsSelect private sector components can be leveragedrevenue bond interest/ repayment)PRJVATEfor use by the public to supportSECTORcapital contributionsPUBLIC( e.g., rent can offsetSECTOR Direct Rent Avoided Costs at Qualcomm Naming PSLsProperty Taxes Received from RedevelopmentAgency NFL Loans Sales Taxes Ticket Surcharge/Tax General Hotel Taxes Luxury Box Sales On-site Hotel Development Concessions Car Rental Taxes Advertising Restaurant Parking "Sin" Taxes Pouring Rights Admissions Others? Lottery /Leasing Land Sales/Leases Other Asset Sales Others?3 ILAZ ARRightsDTaxesTaxRevenuesRights/OccupancyTaxj-

.- ., ., ., . ., ., .,.'.TIWCONFIDENTIAL.'VDISCUSSION 'V.,'VIMATERIALSIndicative Scope of WorkWe envision a process comprised of four distinct phases, following which the City and Lazard will en ter into detailednegotiations with the Chargers to develop a new stadiumILLUSTRATIVETIMELINEPhase I - Under standing the City's ObjectivesD ete rmin e desi red outco me o f Ltz::i.rd engage mentUnder stand current statu s o f negotiationsReview of City's strategic o ptions and Charger s' pote ntialaltcrn :i.tivcsInitial interaction with interested parties(e.g., Chargers, NFL, Cou nty, others )Determine and implement pub lic relations strategyPhase II - Valuing and Financinga Stadi umO ngoin g interactio n with interested parties(e.g., Ch argers, N FL, County , othe rs)O ngoin g refinement and implement atio n of publicrelations strategyReview of precedent financingsSources of capital; level of public contributionSource s of revenue :rnd sha ring arrangeme ntPhase III - StructuringAlternativesfor the City of San DiegoPotential sources of fundin g available to the CityAlternative finance optionsPolitical considcrntionsPh aserv - Determine Nego tiating PositionReview desired outcom e of negotiationsDetermine list of "wan ts" vs. "needs"E nlist partnersPhase V - Initia 1e Discussionswith the Chargers and Oth ersLamd to m ist in on go ing negotiations4 I J . AZ-.\l I)-b'--------'-' ----

vw vv CONFID ENTIALDISCUSSIONMATERI':LsIdentifying Value DriversWithin the scope of this assignment, Lazard envisions an analysis which assesses the potential value impact of a new stadiumon the Chargers, with the goal of agreeing on an equitable division of value between the stakeholders driven by the relativelevels of capital contribution by each party The "national" portion of the The goal of our engagementis to A portion of the economic benefitvalue of the Chargers is attributedidentify sources of value andrealized by the City and County ofto the league affiliation, TV rights,create a structure which providesSan Diego will be in the form ofetc.strong upside to the Chargerswider economic impactA portion of the value of the teamwhile equitably sharing value withis driven by local factors, includingtaxpayers Redevelopment of "blighted" landleads to increased tax revenue andother sources of affiliated valuethe current arrangement atQualcomm StadiumPotential IncrementalValue Created fromNew Stadium------Illustrative"Local" Valuel1 ITaxpayer ValueCapture .II- - - - - - - - - - - - - ,.--- .-,.,.,,.- - - -- - - - - -----."National"ValueChargers Todays [LAZAH.DIllustrative Impact ofNew StadiumPotential IncrementalEconomic Impactj

- - . uu wCONFIDENTIALDISCUSSIONMATERIALSLazard Role and StrategyLazard will act on the City and County'sfootball stadium behalfto develop and negotiateIntent is to keep the Chargers in San Diego while minimizingthe value realized by taxpayersa cost-effectivethe tax impactof the stadiumCHARGERS SOURCES OF REVENUE Direct Rent Luxury Box Sales Naming Concessions PSLs Advertising NFL Loans Parking Ticket Surcharge/Tax PouringRights TraditionalLAZAR D6 I T ,AZA. l-{Ddevelopmenta new downtownand maximizingSources --· e.g., Excise and Use Taxes Additional StadiumUtilizatione.g., SDSU, Commercial LeasesAlternativeCiNegotiate on behalf of the City/Countyto maximizevalue capture to support stadium build & operationto financePUBLIC SOURCES OF VALUEL ,RightssolutionPublic Sourcese.g., EntertainmentDistrictMinimize traditional tax-driven solutions and rely on afunding strategy which maximizes value fromalternative sourcesI

vvvvvvvu u uuuu ww CONFI DENTI AL---- I CUSSIONMATERIALSNext Steps Between the City of San Diego, San Diego County Supervisorsand LazardIn order to continue to advance the dialogue between the City, County and other key stakeholders, Lazard proposes thefollowing: Approach the NFL to open dialogue with goal of gathering informationBegin information gathering to facilitate detailed stadium planningUnderstand details of new loan program, other form s of assistance Approach the Chargers and their financial advisors, Goldman Sachs··- Open dialogue to show that the City is serious about reaching a mutually beneficial agreement Arrange further initial meetings with key constituentsKey potential partners (SANDAG, MTS, others) to open dialogue and understand concerns over processConstructionfirms (e.g., Clark, Turner, Bucknall) to refine construction cost estimates, determine variablesOther potential users/interested parties (e.g., Convention Center, SDSU, NCAA) to understand intended/desiredrevenue potential of the stadiumuse and ancillaryLocal corporations and relocation candidates (Qualcomm, Sempra, others) to determine interest and potential level of support Create a detailed model of a theoretical new stadiumUnderstand the value created by the new development for the City and facility users·- Inform decision making in negotiationsRefine proposed timeline for November 2012 ballot initiative? !LAZARDI

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- ----- ---·------·--·······CONFIDENTIALAUp da e on Qtl! r NFL Stadium De el Ements--LAZAl?D

.91. -.,.,.,.,.,., .,.,.CONFIDENTIAL.,A.,UPDATE.,ON.,.,OTHER.,NFL STADIUM.,.,.,-DEVELOPMENTSNFL Stadium Development in Los AngelesTwo competing proposals for an NFL stadium in Los Angeles have achieved key developmentpositives and negatives to the City and the NFL It is expectedDOWNTOWNthat the first developmentLOS ANGELESto secure a relocation(AEG)CITYThe Anschutz EntertainmentGroup has put forth a 1.4 billionproposal to construct a new stadium in downtown Los Angeles commitmentThe stadium would be located in AEG's existing L.A. Liveentertainmentdistrict, across the street from the Staples Centermilestonesand presentbothfrom an NFL team will succeedOF INDUSTRY(MAJESTICREALTY)Real estate developer Edward Roski has presented a competingproposal to construct a suburban stadium on land he already owns,but has not yet received any specific financing commitments Roski's firm Majestic Realty would develop the stadium in theCity of Industry, approximately 20 miles east of downtown LA-- 72,000 seats capacity; 15,000 club seats; retractable roof - 75,000 seats capacity; 15,000 club seats; open airThe estimated cost of 1.2 - 1.4 billion has already beenpartially funded through a 700 million naming rights deal withFarmersInsurance GroupMajestic believes it could build the stadium, tentatively called"Grand Crossing," for as little as 800 million, without anyadditionalThe remainder of the stadium would be financed privately,including an AEG commitment of 450 million; contingentfinancing commitments are already in placeAEG would commit to renovate the Convention Center, butfunds would be provided by City bond issuance AEG has proposeduncommon-a "Landlord/Tenant"relationshipwhich isin the NFLSimilar to the Staples Center, where AEG controls all ticketing,advertising and sponsorship rights and retains a portion of allproceed ss lLAZAHD costs for relocationor redevelopmentThe stadium would be built on a 600 acre parcel alreadycontrolled by MajesticThe site would be "totally devoted to football" and include awider entertainment district and 25,000 on-site parking spacesW'-I

······ ----- ··--·-·····-·······CONFI DENTI ALAUPDATEONO H R ,STADIUMDEVELOPMENTSOther Current NFL Stadium DiscussionsSAN FRANCISCOMINNESOTA49ers Candlestickthe NFL The 49ers have been actively seeking anew stadium solution, either in downtownSan Francisco or in the suburb of SantaClaraPark is the oldest stadium in The Metrodome is the second-oldestunrenovated stadium in the NFL and wasrecently damaged in a winter storm The Vikings are pressing for a stadium tobe built in the suburb of Arden Hills"" The Vikings would contribute 264million in return for a 40-year lease" The team contribution (including NFLfunds) could be over 360 million9 1LAZARD Lottery revenues from a new scratch-offgame would be directed to the team The team has argued for its share to bebased on a roofless stadium design, whichwould lower its obligation to 210 millionA competing proposal would construct astadium at the Metrodome site andrenovate the Target Center, which couldsave up to 200 millionRAIDERSThe O.co Coliseum is the sixth-oldeststadium and is believed to contribute tothe lagging financial performance of theRaiders The Raiders are last in the league inaverage attendance and total estimatedrevenues The Raiders' lease expires after the 2013season and the NFL has suggested thatthe Raiders jointly finance a stadium withthe 49ers, similar to the Jets/Giantsarrangement in the Meadowlands Former team owner Al Davis refused tosell an interest in his team and repeatedlyadvocated for a new stadium at theColiseum sitePublic contribution would be fundedthrough a tax increase on sportsmemorabilia (7%), hotels (1.5%) andrental carsSanta Clara voters approved 114 millionin public funds to support construction ofa 1 billion, 68,000 seat stadiumInitial estimates suggested a publiccontribution of 160 million, plus quasipublic Stadium Authority revenue bondsOAKLANDEstimated cost of 791 millionThe 49ers' lease expires in May 2015 and anew stadium could be ready in time forthe 2016 season VIKINGSHis recent death has led to speculationthat his son Mark may sell his interest inthe team to AEG, facilitating a return toLos AngelesI

- - -- - - -- - -- ----- ----- CONFIDENTIALBPrecedent Stadium Financing))etailLAZARD .

- - - - - - - - - - - - - - - - - - .- .- ,., ,.,CONFID ENTIALBPRECEDENTSTADIUMFINANCINGDETAILNFL Stadium Overview( in millions)27 of the 32 NFL teams are playing in stadiums which were built or renovated in the past 15 years Of the 5 additional teams, both Minnesota and San Francisco are petitioning for new 0620032003200320022002200220022001200 992198719821960FacilitArrowhead Stadium {Renovation- Built 1972)MetL ife StadiumCowboys StadiumL ucas Oil StadiumSun Life Stadium {Re11oz,ation- Built 1987)Superdome (Refiirbishment- Bmlt 1975)Univ. of Phoenix StadiumSoldier Field {Renovation- Bmlt 1924)Lincoln Financial FieldLam beau Field (Re11ovatio11- Bt11lt1957)Fo rd FieldGillette StadiumReliant StadiumCenturyLink StadiumSports Autho rity Field at Mile HighHeinz FieldPaul Brown StadiumRalph Wilson Stadium (Renovation - Built 1973)Brow ns StadiumLP FieldM&T Bank StadiumRaymo nd Jame s StadiumQ ualcom m Stadium (Renovation- Built 1967)FedEx FieldBonk o f America StadiumEverbank FieldO.co Coliseum (Renovation- Bt11!t1966)Edwa rd Jo nes D omeGeo rgia DomeSun Life StadiumMetrodo meCandlestick ParkAveraJ7C -AllN ·w Swdi11111Rcn JV ; 1ti o n10I T .AZAB.DTc an1Ka nsas City ChiefsNew York Jets/G iantsD:i.llas Cow boysIndianapolis Co ltsMiami D olp hinsNew Orleans SaintsPhoenix CardinalsChicago BearsPhiladelphia Eag lesGreen Bay PackersDetr oit LionsBoston Patriot sHousto n T exansSeattle Seahaw ksD enver Bro ncosPittsburgh SteelersCincinnati BengalsBuffalo BillsCleveland Brown sNashville TitansBaltimore RavensTampa BuccaneersSan Diego ChargersWashington RedskinsCharlotte PanthersJacksonvilleJaguarsOakla nd RaidersSt. Louis Ram sAtlanta Falco nsM iami D o lphinsMinnesota VikingsSan Franci sco 49e rsCost 8138563283292220169782502481212002802141156825 319 329 2 82IndexedCost 2011 1"' 2158498439453347267125399405197326467389240155184 460 ./85 372¾ PublicPrivat e Cont ril 11tionContrih utit nNonUna 0 1 ,100.0'½,100.0% 8724401818019661000115065.0 /c,66.0 ",61.5" siry,N orth A111ericu11Associationof Sports Economists.Real 2011 dollar construc tion cost est imat es per Arm y Corps o f Eng inee rs' Civil Works Const ructi on Co st Ind ex System.(a)02011 1·' ' 431126902928732010000024000 147 225 162 91 2.57 11./I

------- --- -CO N f' I D E NTIALBp RE EDEN 'I' s TAD I :1 FIN - -. AN CI NGDETAILNFL Stadium Loan Programs( in millions)The NFL "G-3" loan program was institutedin 1999 to provide teams with capital to assist in stadium development Teams building new stadiums were eligible for up to 150 million each The program is funded through a contribution As the funds diverted into the program would otherwise be split with players, it is subject to union approval and waseliminated in the latest collective bargaining agreementA replacementof media revenues and a percentagefund is thought to be in the worksG-3 200320022002200220022001200111IJ.AZ A RDof the visiting team's club seat revenuesLOANRECIPIENTSFacilit yG-3 Loan% ConstructionAmountCostArrowhead Stadium (Renovation- Built 1972)MetLife StadiumCow boys StadiumLucas Oil StadiumSun Life Stadium (Renovation- Built 1987)Superdome (Refurb- Built 1975)Univ. of Phoenix StadiumSoldier Field (Renovation- Built 1924)Lincoln Financial FieldLambeau Field (Renovation - Built 1957)Ford FieldGillette StadiumReliant StadiumCenturyLink StadiumSports Authority Field at Mile HighHeinz Field .0%Average( a) 9116.0%Source: NF L, Ma rquetteUniversity.(a) Repr esents average for th ose team s th at received G -3 funds.13I

CONFIDENTIALBPRE EJ? N'.I: TA L M FINANCINGD ETAILNaming Rights Deals( in millions)Naming rights are one of the leading sources of private sector value in new stadiumroutinely worth over 100 million in total value Rights deals are generally paid on an annual basis, though on occasionconstruction,(e.g. Qualcomm'swith multi-year1997 deal) they can be paid in alump sum to fund stadium development 19981997199619961996Average12I LAZAT?DTeamNameDateNAMINGFarmers InsuranceLos Angeles (New Team TBD)Mercedes BenzSports AuthorityOverstock.comNew Orleans SaintsDenver BroncosOakland Raider sMetlife InsuranceNew York Jets /G iantsSun LifeEverBankMiami DolphinsMall of AmericaJacksonville Ja guarsMinnesota VikingsLucas OilUniv. of PhoenixIndianapolis ColtsPhoenix CardinalsLouisiana-PacificNashville TitansCentury LinkBank of AmericaSeattle Seahaw ksGilletteM&T BankLincoln FinancialFordReliant EnergyEdward JonesCharlotte PanthersBoston PatriotsBaltimore RavensPhiladelphia EaglesDetroit LionsHouston TexansSt Louis RamsHeinzFedExRaymond J amesNerwork AssociatesPittsburgh SteelersWashington Red skinsTampa Bay BuccaneersQualcommSan Diego ChargersInv escoEricssonPro PlayerDenver BroncosCharlotte PanthersMiami DolphinsOakland Raider sRIGHTSdealsSOLDTotalTennAnnualValue(Years Pa ment 13520201010 2.010.02.72.97.62.51.2 11016 5.6N/A6.02.02.0I

-----------CONPJD ENT - ----- IALB PRECEDENT-STADIUM FINANCING DETAILIPersonal Seat LicensesPersonal Seat Licenses are sold to fans in return for the right to purchase season tickets in a specific seat. PSLs are attractivethey provide up -front capital, allowing teams to finance new stadiums directly Fourteenteams in the NFL currently have PSLs, the most of any major professionalPERSONALRaiders' PSLprogram(administered by OaklandCounty) 1vas cancelledin 2006follo,vingpoor ticket salesSEATLICENSEassports league in the United StatesPROGRAMSYearStadium# of SeatPSLs as¾PSL PriceEst. TotalOpenedCapacityLicensesof CapacityRangePSLRevenueTeamStadiumDallas CowboysCowboys Stadium200980,00056,31470.4% 2,000 - 150,000 470,000,000New York GiantsMetLife Stadium201082,50075,26191.2% 1,000 - 20,000 400,046,000New York JetsMetLife Stadium201082,50047,80457.9% 2,500 - 30,000 325,879,000Carolina PanthersBank of America Stadium199671,21562,40087.6% 600 - 5,400 195,000,000St. Louis RamsEdward Jones Dome199565,41957,80088.4% 250 - 3,000 78,000,000Tennessee TitansLP Field199968,40261,50089.9% 250 - 4,500 71,000,000Philadelphia EaglesLinmln Financial Field200367,50229,00043.0% 1,500 - 3,145 70,000,000Chicago BearsSoldier Field200361,50027,50044.7% 900 - 10,000 70,000,000Oakland /? aidersO.co Co!iset1/JI199663,02645,0007 1.-4-'YoS250 -4,00 0S68JJ00,000Baltimor e RavensM&T Bank Stadium199868,44765,70096.0% 250 - 3,000 65,000,000Houston T exansReliant Stadium200267,12045,42067.7% 600 - 4,200 50,000,000Pittsbur gh SteelersHeinz Field200164,12849,53377.2% 250 - 2,700 37,000,000Cincinnati BengalsPaul Brown Stadium200064,52142,00065.1% 300 - 1,500 26,000,000Cleveland BrownsBrowns Stadium199969,40549,73371.7% 300 - 2,350 25,000,000Seattle Seahaw ksQwest Field200264,8978,35612.9% 2,000 - 3,000 17,000,00069,82548,45268.8% 900 -17,625 135,708,929Averagen \LAZAHD.

.,. C O N FID.,. ,. - --- - - ---- -----E NTIALB p RE C D E N T s A D--2uM. . I N A N C I N G D ET A I L-IMetLife Stadium - Meadowlands , NJ (2010)( in millions)DESCRIPTION SOURCES 1,600 millionMetLife Stadium was completed in 2010 to replace the existing 300Giants Stadium at the Meadowlands in New Jersey The stadium is home to both the New York Giants and the NewYork Jets 650-NFLG -3Loa n-Gian ts Revenue Bonds PSLs Game Day RevenuesGiants/Jets100%The stadium includes features allowing the stadium to completelyAncillary Stad iumRevenues Naming Rightschange its branding overnight OF FUNDING- Jets Revenue BondsMetLife is the largest and most expensive NFL stadium everconstructed, at a cost of 1.6 billion.Permanent seating capacity of 82,566, including 10,005 club seatsFINANCINGand 218 luxury bo xes STRUCTUREThe stadium is the only NFL stadium developed without anypublic supportThe stadium was built at the existing Giants Stadium site withcritical infrastructure already in place 650Obligationr:: The ow nership joint venture lease s the land from the public NewJ ersey Sports & Exhi bition Authority for 5 million /y ear Construction costs were split evenly between the teamsN ewJerseyState- . 1.3 billiontaxable bondsL.-----The NFL committed a record 300 million from the G-3 programOwnershipEach team issued revenue bonds and sold PSLs to cover theirportionEastRutherford, NJSo11rce:NJSEA , CS&L, VanderbiltUniversity.1s l LAZAHD!1}6':.PILOTSSj'f.rLandLease

---- ------ CO N F ID E N T I ALB PR ECE DENTSTADIUMF IN N ! N G D ET ILCowboys Stadium - Dallas, TX (2009)( in millions)DESCRIPTION The Cowboys Complex was completedthrough agreementSOURCES OF FUNDING 1,150 millionin 2009 and financedNFLG-3 Loanbetween the City of Arlington, TX and theDallas CowboysCowboys Estimatedconstructioncosts of 650 million were split equally 65069.6%between the parties, with cost overruns borne by the teamll, C mttibotio Voter approval was granted to impose various incremental taxes tofund the City's capped contribution of 325 millionICounty InfrastructureImprovements0.5% Sales Tax2.0% Hotel T ax5.0% Rental Car Tax10.0% Ticket Tax 3.00 Parking FeeThe Cowboys operate the stadium under lease from the City andFINANCINGpay 2 million a year in rentThey also pay an additional 500,000 a year up to 16.5 million inSTRUCTURE 2 million /y rBase RentDallasCowboysaggregate to fund youth sports programs in the communityCity ofArlington, TX-Th e Cowboys retain naming rights, however they must pay 5.0% ofIany proceeds to the City PSLsPublic30.4%Total costs amounted to approximately 1,150 million -:i: - 325 millionBond Proceeds-IL.-The Team set a record for Personal Seat Licenses,selling for up toClub Project Fund. 150,000 and raising 650 million of their 800 million cost 76100% of costover -run s-50% each ofAgreed !Exp ensesThe Cowboys offered PSL financing of up to 30 years at 8% fixedinterestNFLG-3 Loan Cowboys Stadium is consideredwith non-footballthe most profitable in the NFL,events generating over 12 million in annualrevenuesSource: M aster Agreement Regard,izg Dallas Cozvboys Complex Development Project, dated A ugust 2004.t6 I LAZAl D-- - - - - - - - - . .----- Lease--- ----IOwner shipj

- -- - - C O NFIDE ----- · · ···-NT IALBPR E 1:'. DE T ::".':.DI U M A E' C NGD ET AILILucas Oil Stadium - Indianapolis, IN (2008)( in millions)DESCRIPTION In 2006, the City of IndianapoliscompletedSOURCES OF FUNDINGconstructionColts (Net)7.5%on the-c 720 millionColts' Lucas Oil StadiumBy City Lease Termination PaymentThe stadium features a retractable roof which allows it to be usedIfor NCAA and other events The stadium was developed in conjunctionPublic92.5%with an expansionof the Indiana Convention Center and the project was fundedjointlyFunding was primarily provided from 666.5 million in Stadium to 329.2 million in Convention Center BondsFINANCINGSTRUCTURE--- - - - - - - .Debt service is ultimately funded by the State Office of.,I 666.5 million Stad ium BondsBonds. 329.2 million ConventionManagement & Budget (0MB)The Colts contributed 100 million to the construction,Marion Co . lnnkeper s' TaxMarion Co . Food & Bevera ge TaxRegional Co. Food & Beverage TaxSupplemental Auto Rental Excise TaxMarion Co. Admissions Tax Bonds issued by the Indiana State Finance Authority, in addition Stadium Bond showever- ---- - - , 48 million was funded via a lease termination payment fromSublease :the CityService The team ret ains all game day revenues and the City bears allIIndiana StateNFLG-3LoanBuilding Authorityoperating expensesThe Colts retain naming rights and receive half of revenue fromIndi anapolis Colts 0.25/yrSubleaseOwnershipLucas OilStadium11I LAZAH.DIi Colts pay 250,000 annual rentSource: Indiana FinanceAuthori(Y Bond Indenture.----Marion County 33non -Colts events up to 3.5 millionCity of IndianapolisOp eration

.- - - - - - - - - - - - - ., ,.,, ,.,C O N F I D EN T I ALB PRECEDENT,., ., ., ., . ., -STADIUMFINANCINGDETAILUniversity of Phoenix Stadium - Phoenix, AZ (2006)( in millions)DESCRIPTION SOURCES 455 millionThe Arizona Sports and Tourism Authority ("ASTA") was created by theArizona Senate in April 2000 to build and operate a multipurposeOF FUNDINGfacility andCardinals {provide funding for tourism promotion in Maricopa County32.3% County in November NFL G-3 LoanThe ASTA brought a stadium financing package to voters in MaricopaTotal construction2000 which was approved by a 52% voteArizona Sports and Touri smAuthority Reven ue Bondscost: 455 millionPublic67.7%a Cardinals agreed to pay 109.3 million, plus any cost overruns, and the land cost,:{for which it wou ld be reimbursed via foregone taxes ( 147 million total cost )IllTh e ASTA issued an initial bond o f 224.5 million and a sub sequ ent bond in 2005of 53.5 million, for tota l deb t of 278 millioni!!lGlendale , AZ510 ---Car rental, hot el and NFL incom e taxes as well as sales tax recapture wereFINANCING1% Hotel Bed Tax3.25% Car Rental SurchargeNFL In co me TaxSales Ta x Recapt ur eSTRUCTUREcollected star ting in 2001 contributing mor e th an 25 million annually The AST A services its debt utilizingfive revenue sourcesIii1% hot el bed tax and 3.25% car rental surcharge into a Tourism Revenue AccountI!All facility reve nue s, NFL incom e tax (income tax p aid by Cardin als pla yers andemployees) and sales tax recapture (sales tax related to construction) into a Fa cilityRevenue Accountl!l!Bond holders have a pri ority lien again st both reserve accounts with additiona lTourism RevenueAccountCar RentalTaxHotel BedTaxI. ;8,:;;;o:- -Arizona Sports andTourism AuthorityOwnership Cardinals agreed to pay ASTA 250,000 annually with 2% ann ual increases The Cardinals sold the naming rights to the University of Phoenix for 154.5million over 20 yearsl)Sot1rce:Arizona Tourismand SportsAuthoriry anntwljilings.1.,. ev.:ue on :IPaci lirySalesNFLRevenu esTaxInco meRecaptureTaxArizona Cardinalsrevenue going to th e AST A18 IJ .,A Z A] -- - -)- State of Arizona - - NFLG-3 LoanNnc-:- ait IN

- - -- - - ----- ------ - - - - - - ·-C O N F I D E NTIALBP R- E.E N T s TA o I u FI N AN c r N G DE TA r L \Lincoln Financial Field - Philadelphia, PA (2003)( in millions)SOURCESDESCRIPTION OF FUNDING 512 millionLincoln Financial Field, which opened in August 2003, was financed throughcontributions from the City of Philadelphia, the State of Pennsylvania and the 126Philadelphia Eagles Total construction cost: 512 million ( 360 million for stadium constructionEagles65%and 152 million for land acquisition)l!IState of Pennsylvania funded 85 million structured as a grantl!ICity of Philadelphia funded 96.2 million-Elf unded with ongoing 2% car rental tax{Public35%Philadelphia Eagles raised 375 million to fund their 331 million obligation 125NFL G-3 Loan 70SBL Program2% Car Rental Tax 96 City of Phil adelph iaState of Penns ylvania'"-ii 180 million bank loan 125 million NFL G-3 loanFINANCING- 70 million raised from Stadium Builder License ("SBL") Program Lincoln Financial acquired the naming rights for 139.6 million over 20 years Lease ArrangementIiiEagles pay 1 / year over the course of their 30-year lease112Eagles pay 2 million per season to city as part of PILOT Programi:IEagles are responsible for all taxes except real estate taxes as well as stadiummaintenance::: i,1.Car RentalTaxtCity ofPhiladelphia19 IJ ,A Z A I DSource: 2004 Tnsidethe Ownershipof Pro Sports. 1801------ 125,,,.,."----i----.'1,,'.,,,,,,,,,,,,,,,,1 ."STRUCTUREPhiladelphia Eagles .-''.-- --: LeaseI-- .NFLG-3Loan

- - - - - - - - - - - - .,., .

University of Phoenix Stadium ·---· ---. . ·-·--\ Reliant Stadium Houston Texans Gillette Stadium Ne1v England Patriots Raymond James Stadium Tampa Bqy Buccaneers Hein z Field Pittsburgh Steelers 1994 1998 2002 2006 City Population (a) Excludes MetLife Stadium

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SAN DIEGO CONVENTION CENTER SAN DIEGO, CALIFORNIA SUBMITTED TO: EXISTING Mr. Brian Hughes San Diego Tourism Marketing District Corporation 8880 Rio San Diego Drive, Suite 800 San Diego, California, 92108 bhughes@sdtmd.org 1 (619) 209-6108 PREPARED BY: HVS Convention, Sports & Entertainment

Discharger City of San Diego Name of Facility E.W. Blom Point Loma Wastewater Treatment Plant Facility Address 1902 Gatchell Road San Diego, CA 92106 San Diego County The California Regional Water Quality Control Board, San Diego Region (San Diego Water Board) and the U.S. Environmental Protection Agency (USEPA), Region IX