City's Position

IN THE UNITED STATES DISTRICT COURTFOR THE NORTHERN DISTRICT OF TEXASDALLAS DIVISIONDARREL RUNDUS, §Plaintiff, §§v. § Civil Action No. 3:06-CV-1823-BD§ ECFCITY OF DALLAS, et al., §Defendants. §CITY OF DALLAS’ PROPOSED FINDINGS OF FACTAND CONCLUSIONS OF LAW

TO THE HONORABLE COURT:Defendant City of Dallas (“City”), files and submits this its Proposed findings of Fact andConclusions of Law.

I. PROPOSED FINDINGS OF FACT

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1. SFOT and its predecessors have been private corporations since 1886.2. Today, SFOT is a Texas non-profit corporation exempt from federal incometaxation under section 501(c)(3) of the Internal Revenue Code.3. During a period not to exceed 30 days in the months of September and October each year, SFOT conducts an exposition known as the State Fair of Texas (“the Fair”) usinga 277-acre site in East Dallas known commonly as Fair Park.4. Fair Park, the site of the Fair, is owned by the City.5. The Fair is open to the general public who can gain admission by purchase of aticket.6. SFOT’s regulatory regime prohibits Rundus and other members of the Great News Network (“GNN”) who desire to distribute Bible tracts for free from doing so at Fair Park during the Fair except from an exhibition booth.

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The numbers of the Proposed Findings of Fact reference those in the parties’ Amended Stipulated Facts;therefore, there are gaps in the numbering, but ultimately this provides the Court with an easy reference point.

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City’s Proposed Findings of Fact and Conclusions of Law

27. There have been a series of agreements between SFOT and the City.8. The most recent agreement became effective May 21, 2003, is for an initial termcontinuing until January 1, 2028, and provides for two automatic five-year extended terms,unless either the City or SFOT elect not to renew (the “2003 FPC”).9. The relationship between the City and SFOT has been since 1987, and at all timesrelevant to this lawsuit, a landlord-tenant relationship.10. During the period of the Fair, the 2003 FPC gives SFOT “possession andoccupancy of Fair Park, other than City Permanent Areas and Cultural Facilities.”20. The City approves the dates of the Fair and keeps Fair Park available for that purpose.21. Under the 2003 FPC, SFOT takes over portions of Fair Park 60 days prior to theFair (the “Setup Period”) and retains control over those portions for approximately 30 daysafter the Fair is over (the “Takedown Period”).22. During the Fair and the Setup Period and Takedown Period, SFOT maintainscomplete control over the areas of Fair Park it leases.23. SFOT determines who may be on the leased portions of Fair Park; pays utilitiesutilized in connection with the leased premises; and receives all revenues generated byactivities on the leased premises.24. During the Fair, SFOT is exclusively responsible for deciding what persons toadmit, not admit, or remove from the areas of Fair Park it leases, except that the City’s policeofficers retain their inherent authority to enforce applicable laws.25. Pursuant to the 2003 FPC, SFOT has the right to close the possessed premises tothe general public.

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City’s Proposed Findings of Fact and Conclusions of Law

326. If the City wanted to bring a group to any of the Fair Park buildings during theFair, the Setup Period, or the Takedown Period, the City would have to obtain approval fromSFOT before bringing such a group.27. In periods of the year other than during the Fair and the Setup Period andTakedown Period, portions of Fair Park that are principally used during the Fair are gatedand locked.28. Only SFOT has authority to permit use of those locked areas at any time.29. SFOT does not pay to the City any portion of the revenues SFOT receives fromthe Fair, except to the extent such revenues are used by SFOT to pay its rent and marketingfee to the City.30. SFOT does not receive any payments from the City.31. SFOT does not receive any payments from any city, state, or federal government.32. Section 3.01 of the 2003 FPC recites the intent of the Defendants to “provide for continued operation and presentation of the annual Fair at Fair Park in the City of Dallas aswell as...development and improvement of Fair Park as a public entertainment facility, touristattraction, campus for Cultural Facilities and public park [and]...the desire of the parties...to promote mutual cooperation in order to achieve these joint purposes.” It further states thatSFOT “shall be responsible for...operating...the annual Fair, including the annual Universityof Texas-University of Oklahoma football game at the Cotton Bowl, the annual GramblingState University—Prairie View A&M University football game at the Cotton Bowl, other collegiate or professional athletic events held at the Cotton Bowl during the Period of theFair, and operation of the Midway, both during the Period of the Fair and periodicallythroughout the year according to this Agreement.”

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