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October 19, 2012

Balloons Will Keep Flying at Balloon Fiesta Park

City and Balloon Fiesta Board Reach Tentative Agreement$1.3 Billion Economic Engine has a Home for the Next 15 years.

ALBUQUERQUE, NM The Albuquerque International Balloon Fiesta (AIBF) willcall Balloon Fiesta Park home thru 2027 based on preliminary terms agreed to bythe City of Albuquerque and the AIBF board of directors. A new contract will beprepared in the coming days and will be submitted to the City Council forapproval. The fifteen year license agreement is proposed to replace the currentagreement, signed in 1997, that expires at the end of this year.

The Balloon Fiesta is a tremendous economic, cultural and tourism driver forAlbuquerque and the entire region and I am pleased that we have reachedagreement on terms that will allow all parties to succeed, said Mayor Richard J.Berry. The Balloon Fiesta is synonymous with Albuquerque and has truly put uson the world map. We have a great taxpayer owned venue and a greatpartnership with the non-profit organization that actually runs the event. This newagreement will open up a host of opportunities for the city, local businesses andthe Fiesta.

Based on a study conducted for the Albuquerque International Balloon Fiesta byCRC & Associates, the estimated direct economic impact to the city was $90million in 2011. Looking forward, the Fiesta could generate in excess of $1.3billion in direct economic impact for the city of Albuquerque over the life of the

proposed license agreement.

The Balloon Fiesta generates nearly $9 million in local and state tax revenuesannually.

The event also serves as a platform to feature local food and merchandiseconcessions to an international audience while introducing national andinternational guests to Albuquerque and New Mexico.

The tentative license terms between the City of Albuquerque and AIBF identifiesthe following features and improvements over the last contract;

A 15 year license versus the old ten year agreement for AIBF to use BalloonFiesta Park which will provide stability for future planning efforts andeconomic activity.

A reduction in the time the AIBF has exclusive use of Balloon Fiesta Parkfrom 90 days to 60 days giving the community increased opportunities touse the park for youth sports and other activities.

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Agreement to provide new opportunities for participation by local vendorswhen such opportunities are available.

Agreement forimproved public safety by operating the event under theNational Incident Management System and National Fire Protection

Association standards.

Increased transparency and accountability through additional reportingrequirements including a requirement for AIBF to provide a copy of its

Annual Audit as a standard course of action.

Increases to the annual rental payment from $50,000 of Park improvementsto $100,000 of improvements or cash.

Increased opportunities for collaboration by providing the City ofAlbuquerque a 10% finders fee for any sponsorship that is secured as a

result of their referral.

Opportunities for the city to invest in park improvements while receivingadditional rent payments from the Fiesta (example: if the city makes animprovement that saves the Fiesta rent to an outside vendor the citycould receive the rent payments, thus offsetting costs to taxpayers).

Solidifies the rental fee for the Golf Center and identifies a mechanismwhere AIBF can rent permanent structures in the future.

This lease is a win-win for the city of Albuquerque, the businesses who rely on

this economic engine and for our event. It is clear through our many discussionsthat this is a business oriented administration that understands the value andimportance of our event in the community, says Bill Walker, President of the

Albuquerque International Balloon Fiesta Board of Directors. The 23 members ofour volunteer board of directors and 1,000 volunteers have a passion forballooning that we share with our community and other people benefit from it.

About the Albuquerque International Balloon FiestaThe Albuquerque International Balloon Fiesta is an annual festival of hot airballoons that takes place every October in Albuquerque, New Mexico, USA. It isthe largest gathering of balloons and balloonists in the world. For details on

events, schedule, entertainment and photographs visit www.balloonFiesta.com.Balloon Fiesta can be found on Twitter @BalloonFiesta and on Facebook.

http://www.balloonfiesta.com/http://www.balloonfiesta.com/