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HomeMy WebLinkAboutCity Council Committees - Public Facilities Distict Board - 07/31/2008 (3) KENT W.SMINGTO. Public Facilities District July 31, 2008 3:30 p.m. Board Members Present: Chair Mike Miller, Vice-Chair Greg Haffner, Secretary Lew Sellers, Randall Smith and Cass Prindle. Others Present: Economic Development Director Ben Wolters, Finance Director Bob Nachlinger, Tim Higgins, General Manager of the Events Center, and Brad Tong of Shiels Obletz Johnsen. I. Call to Order a. Introductions. Chair Miller called the meeting to order at 3:30 p.m. and introductions were made. b. Approval of Minutes. Sellers moved to approve the minutes of May 29, 2008. Prindle seconded and the motion carried. • U. Project Overview and Update a. Overview of Project Budget. Brad Tong distributed copies of the monthly budget report and noted that in July 2007 the entire project budget was $78.6 million and that with the supplemental budget approved in July 2008, the revised budget is now $84.5 million. Wolters explained that the additional funds will be used for committed and required additional costs, additions for revenue and safety, and improvements to quality, efficiency and revenue. Tong explained the figures on the monthly report and noted that approximately 62% of the revised budget has been spent. b. Overview of Project Schedule. Tong noted that the only change in the project schedule is that, even though the contractual completion date for Drop the Puck is January 11, 2009, the contractor has committed to an early completion date of January 2. He noted that a community opening event is planned for January 2. Wolters added that the Thunderbirds have an option to play three games in the Events Center during the week prior to January 2, and that that will be determined in mid-October. Tong commented that everyone has worked very well together to maintain the aggressive schedule. • C. Current Status of Construction. Tong noted that the subcontractor buyout and the exterior masonry are 100% complete, Public Facilities District July 31, 2008 Page Two and that the current critical path activities are mechanical, fire sprinklers, building enclosure elements including glazing, and preparation of the arena ice slab. He said that the concrete pour will begin on August 18 and will take at least 18 hours. He noted that there are approximately 120 laborers on site daily, including weekends. d. Status of Design. Tong said design of the plaza fronting James Street and interior design for the club lounge had been deferred until the Council's approval. Wolters distributed copies of a list of the Prioritized Improvements For Supplemental Funding, a Summary of Project Costs and Potential Revenues, and a Contingency Use Chronology, and explained each. He clarified that the improvements will be paid for by the City, not the Public Facility District. He reported that advertising, sponsorship, and suite sales are all going well, and that there are two serious prospects regarding naming rights. e. Concessionaire Selection. Wolters said three national firms - • Center Plate, Savor, and Ovations - were recently interviewed, and that the panel will hold a conference call on Friday, at which time a consensus on a recommendation may result. He explained the financing, contract, and evaluation methods. III. Operator Update Tim Higgins noted that three people have been hired recently - a Director of Marketing and Sales, a Director of Operations, and a Human Resources/Administration person. He explained who was hired and what their duties will be. He added that he is still looking for a Director of Finance and a Box Office Manager. Higgins noted that three arena football groups have expressed interest in playing in the facility, spoke about the transitioning going on amongst those leagues, and said there are many things to consider before making a decision. He noted that dates for other events are being set, and that two weeks of grand opening events are being planned with the City. IV. Sales and Marketing Update Colin Campbell was not in attendance, so no update was given. V. Finance Report Public Facilities District July 31, 2008 Page Three a. Financial Update. Nachlinger outlined revenues as of June 30, 2008, totaling $65,093,968, and expenditures totaling $36,033,210. He also provided information on payments which have come into the City from the Public Facilities District and gone out to contractors. b. Review of State Sales Tax Revenues. Nachlinger noted that sales tax revenue through July totals $356,783.08, and that $720,000 in sales tax is anticipated for the year. Nachlinger expressed concern about a reduction in revenue due to the streamlined sales tax which went into effect on July 1st, and which will affect both the City and the Public Facilities District. He anticipates coming to the PFD next year requesting a shift in funds from the State's portion to the City. • VI. Other Business Upcoming Action. It was noted that no action is foreseen before the end of the year. Meeting Dates. Miller noted that the next regular meeting date is September 25th at 3:30, and that the regular meeting in November falls on Thanksgiving. It was agreed to tentatively reschedule the November meeting to December 4th at 3:30 p.m., possibly at the Events Center. VII. Adjournment At 4:48 p.m., Sellers moved to adjourn. Smith seconded and the motion carried. Brenda Jacobe , MC City Clerk