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HomeMy WebLinkAboutCity Council Committees - Public Facilities Distict Board - 01/30/2014 (3) I'�a S'. 1(EtdT III N ITI X. AGENDA City of Kent Special Events Center Public Facilities District Meeting Thursday, January 30, 2014 @ 4:00 p.m. ShoWare Center 625 West James Street Board members Mike Miller - Randall Smith - Cass Prindle - Lew Sellers - Jeff Piecewicz Officers Mike Miller, Chair - Ronald F. Moore, Secretary - Robert Nachlinger, Treasurer I. Call to Order a. Introductions b. Motion to approve the minutes of July 25, 2013 and October 24, 2013 II. Finance Reports a. City of Kent — Bob Nachlinger, Finance Director b. ShoWare Center — Arletta Voter, ShoWare Director of Finance i. 2013 Year End and 2014 Proposed Budget III. Operation Update a. GM Update — Tim Higgins, ShoWare General Manager b. Marketing Update — Ryan Hart, ShoWare Director of Marketing c. City Update — Ben Wolters, Economic & Community Development Director IV. Seattle Thunderbirds Update a. Thunderbird Sales, Marketing &Attendance Update b. Advertising & Suite Sales V. Other Business VI. Adjournment �' Public Facilities District �✓ KENT Board Minutes WASHING—N July 25, 2013 ShoWare Center 625 West James Street Board Members present: Mike Miller, Lew Sellers, Jeff Piecewicz, and Randall Smith Others present: ShoWare General Manager Tim Higgins, ShoWare Director of Finance Patrick McCluskey, Seattle Thunderbirds Vice President / Assistant General Manager Colin Campbell, Seattle Thunderbirds Director of Ticket Sales Sean Runnels, Mayor Suzette Cooke, Interim Chief Administrator Tom Brubaker, Finance Director (Board Treasurer) Robert Nachlinger, Acting City Attorney Pat Kirkpatrick, Economic Development Manager Kurt Hanson, City Clerk (Board Secretary) Ronald F. Moore and Reporter for the Kent Reporter, Steve Hunter I. Call to Order. The meeting was called to order by Chair Mike Miller at 4:06 p.m. a. Introductions. Tom Brubaker introduced new Board Member Jeff Piecewicz. b. Motion to approve the minutes of January 31, 2013. Randall Smith moved to approve the minutes of January 31, 2013, seconded by Lew Sellers. Motion carried 4-0. II. Finance Reports a. City of Kent. Bob Nachlinger, Finance Director presented the City of Kent finance report and noted that the sales tax collections to date from 2008 to present. He also reviewed sales tax collections from inception to date. Miller pointed out that the admission tax funds go directly to the City and the 2013 estimate is $288,000. b. ShoWare Center. Patrick McCluskey, ShoWare Director of Finance discussed the variance item on the ShoWare Center income statement for the quarter ending June 30, 2013. He focused on the total year to date budget for the first six months show a net income loss of $132,000 and $191,000 was budgeted. This resulted in a variance of $59,126. He noted that the total event income item of $71,598 is what is driving the positive variance. He stated playoff hockey ticket sales and additional events are driving the positive number. However, he communicated that utilities are higher because of the additional events. Miller communicated that the numbers look good and are moving in the right direction. McCluskey continued and reviewed the income statement for the years 2009 through 2012. Higgins announced that this was McCluskey's last day with the ShoWare and has accepted a position in Bellevue. Higgins thanked him for his work over the years. C. Results of supplemental report on the economic and tax revenue impact of ShoWare Center. Kurt Hanson discussed the Economic Impact Analysis (EIA) and introduced Mark Goodman. Goodman handed out a document which took information from the EIA and discussed the document. He noted that 2009 through 2012 was analyzed in the document. He stated that over 12 interviews and surveys were done concerning patron spending. The EIS reviewed ShoWare attendance, the origins of the patrons, the direct, indirect and induced revenues, and 1 the cumulative impacts of the ShoWare Center. He noted that the diversity of the events is a huge driver for the attendance. He communicated that approximately $11 million is being spent in the city of Kent by patrons of the ShoWare Center. He reviewed the specifics of the patron origin chart and the Economic Impact Summary Table. Mayor Cooke noted and confirmed that without the ShoWare Center the patrons wouldn't be here. Miller added that the events that the ShoWare has brings revenues to the restaurants and retail businesses in the area. Mayor Cooke continued and discussed a meeting with a person who said they knew about the ShoWare Center and didn't know about the city of Kent. Sellers inquired about page 7 of the addendum. Goodman responded that the number reflected is discussing the cost of the construction of the ShoWare Center. Brubaker discussed the indirect and induced revenues over the 2009 - 2012 period being $95,914,000 over the four year period. Hanson discussed hockey ticket sales and Campbell discussed their marketing and season ticket holder sales. Miller stated it would be interesting to track the sales of certain events and where the sales take place regionally. III. Operations Update a. General Manager Update. Tim Higgins, ShoWare General Manager was thanked by Miller thanked for his work in getting the people to the ShoWare on Friday for the American Idol event. Higgins stated that it was a good event even with the event in Seattle. He noted that it has been a great first half with significant revenue from events. He highlighted that the Beatles tribute band will be at the ShoWare in December and a Bee Gees tribute band will perform also. Additionally, he communicated that there will be a Led Zepplin tribute band at the ShoWare on September 19. He announce d that the annual 3 on 3 basketball event has grown and surpassed all previous numbers. Ladies Night Out, Volume Six will be at the ShoWare on August 2 and the ice goes in on August 3 and the hockey camp begins on August 5. Finally, he said Florida Georgia Line plays the ShoWare on December 14. Piecewicz inquired about conflicting scheduling and Higgins noted that it is all about selling tickets. He communicated that you must be strategic in booking artists. Sellers inquired about the staff vacancies and stated that there is an offer for a new marketing position and three candidates for the finance director position. Higgins communicated that the Florida Georgia Line will be a big draw and they will be here at the end of their tour. He discussed upcoming shows. Sellers discussed April through August being the "low" months and Higgins replied that April and May will be for playoff hockey so it will be better. He added that there will be camps and school in those middle months. Hanson communicated that "The Platform" building apartments have been laying the slab and there will be a 12 month build. He said that this time next year the building will be done. 2 Miller communicated that it will be a great structure. Piecewicz confirmed with Hanson that there will be 30-33 free parking stalls for the project and at 5:00 p.m it will be resident parking. He added in response to Campbell that the project will begin to be marketed in the next couple of months. Hanson noted that the rates will be about $1.75 per square foot. Randall Smith departed at 4:43 p.m. IV. Seattle Thunderbirds Update a. Sales, Marketing &Attendance Update. Colin Campbell, Vice President /Assistant General Manager discussed the team. Campbell discussed the summer events at the ShoWare and the playoff hockey that the Thunderbirds experienced. He discussed their top draft pick and reviewed the "$2 for Tuesday" events and the 2013 - 2014 events. He discussed the Thunderbird Sports Foundation, which has given back over $228,000 to youth sports over the years. Miller inquired about suite sales and Campbell communicated that he felt that they will do well and the individual suite sales will be ok, too. Sellers inquired about hosting a Memorial Cup and Campbell replied that the Canadian Provincial Government usually locks onto the event because it produces $3 million in revenues for them. He also inquired about an NHL exhibition game and Campbell communicated that usually venues sign an agreement with teams and they are locked in. However, he said he is willing to explore it in the future. V. Other Business None. VI. Adiournment Miller confirmed that the next meeting is on October 24, 2013. Meeting adjourned at 5:14 p.m. Ronald F. Moore, MMC Board Secretary 3 �' Public Facilities District �✓ KENT Board Minutes we=H NG—N October 24, 2013 ShoWare Center 625 West James Street Board Members present: Mike Miller, Lew Sellers, Jeff Piecewicz, and Randall Smith Others present: ShoWare General Manager Tim Higgins, ShoWare Director of Finance Arletta Voter, ShoWare Director of Marketing, Ryan Hart, Seattle Thunderbirds Vice President / Assistant General Manager Colin Campbell, Seattle Thunderbirds Director of Ticket Sales Sean Runnels, Interim Chief Administrator Tom Brubaker, Finance Director (Board Treasurer) Robert Nachlinger, Acting City Attorney Pat Kirkpatrick, Economic and Development Director Ben Wolters, City Clerk (Board Secretary) Ronald F. Moore and Reporter for the Kent Reporter, Steve Hunter I. Call to Order. The meeting was called to order by Chair Mike Miller at 4:02 p.m. a. Introductions. Higgins introduced Ryan Hart, Director of Marketing and Arletta Voter, Director of Finance who highlighted their careers and professional accomplishments. b. Motion to approve the minutes of July 25, 2013. Moore communicated that the minutes would be emailed to the board for approval at the January 30, 2014 meeting. II. Finance Reports a. City of Kent. Bob Nachlinger, Finance Director discussed the financial documents and noted the Public Facilities District fund, sales tax collections, and the ShoWare Operating Fund. Nachlinger confirmed for Miller that the City transfers $500,000 from the general fund into the Public Facilities District debt. i. 2013 State Audit Update - Bob Nachlinger, Finance Director discussed page four of the report and discussed the 'opinion" of the auditor's office. It was confirmed that the facility has been audited two years in a row. Nachlinger stated that he is anticipating them doing it every year. Sellers communicated that the meeting was brief and it was good news with no findings coming out of the audit. b. ShoWare Center. Tim Higgins, General Manager communicated that the net income loss year to date actual is $305,496 with $552,685 being budgeted. Miller communicated that there has been a significant reduction in the amount of loss, about $280,000 from last year. Wolters communicated that SMG and the City work on budgeting and have been dealing with the compressors which have been related to the original bond. He said SMG is working on getting the funds back to reimburse the ShoWare for the cost. He said any results of those claims will be shown in future budgets, years from now. Miller confirmed that the failure occurred when the ice was being put back in. 1 III. Operations Update a. General Manager/Marketing Update. Tim Higgins, ShoWare General Manager (Ryan Hart, ShoWare Director of Marketing) commented that 215,000 people have come to the ShoWare this year. He noted that there are some big events coming up and last year's number should be beaten. He said there have been 1.7 million people have come to the ShoWare since 2009. He added that there have been discussions about having a fifth anniversary event. He discussed upcoming events such as Disney, MMA Cage, Florida-Georgia Line, Seattle University Basketball, Harlem Globetrotters, and high school basketball. Higgins also pointed out that there has been a lot of buzz about Florida-Georgia Line selling out in two hours and said he has booked a trip to Nashville because there are country artist promoters looking to book ShoWare Center. b. City Update. Ben Wolters, Economic and Development Director discussed the City's ongoing work with SMG and said the building is starting to show some wear and tear. He said there are some maintenance items that are in the 2014 budget. The City is reviewing those items and determining what can be done. He said he is also looking at options for grants to do further energy cost savings measures. IV. Seattle Thunderbirds Update a. Sales, Marketing &Attendance Update. Colin Campbell, Vice President /Assistant General Manager stated that the team is off to a good start. He noted that the team is 9-3. He said attendance is good, with half of the suites sold and five are being worked on. He added that five season packages sold this week. He discussed the Thunderbird Sports Foundation which has donated over $250,000 back to youth sports and that November 8 is the Community Sports Foundation Night. He discussed all of the charity work and promotional nights coming up. He added that the Thunderbirds have partnered with Q13 and Les Schwab for a Toy Drive for three nights in December and that the team is playing on December 31st, New Year's Eve at home, a Two-for-Tuesday night. Sellers thanked Campbell for the funding under the Community Sports Foundation and for their support to youth sports. Campbell discussed the foundation and said it's been doing well. V. Other Business None. VI. Adiournment Miller confirmed that the next meeting is on January 30, 2014. Meeting adjourned at 4:45 p.m. Ronald F. Moore, MMC Board Secretary 2