Loading...
HomeMy WebLinkAboutCity Council Committees - Public Facilities Distict Board - 07/25/2013 (3) AL Public Facilities District KENT Board Minutes 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. i 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 S. 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 Higgins 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. 1 "~Ronald F. M�0'ore, MMC Board Secretary 3