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HomeMy WebLinkAboutCity Council Committees - Public Facilities Distict Board - 10/27/2011 i e KENT WAexixoiox Public Facilities District October 27, 2011 Board members Present: Mike Miller, Greg Haffner, Lew Sellers, Cass Prindle Others Present: Tom Brubaker, Ben Wolters, Bob Nachlinger, Tim Higgins, Beth Sylves, Patrick McCluskey, Sean Runnels, Julie Pulliam, Steve Hunter and Brenda Jacober I. Call to Order The meeting was called to order at 3:30 p.m. a. Introductions. Introductions were not made. b. Approval of Minutes. Referring to a sentence in the July 28, 2011, minutes under Event Booking and Attendance, Sellers asked for clarification as to why the Perfect Circle event was significant for ShoWare. Higgins explained that it was because of the promoter's affiliation with WaMu Theater. Sellers moved to approve the minutes of Jul 28 2011 with the pp Y , following correction: "Wolters said that the Perfect Circle event was significant for ShoWare because of the promoter's affiliation with WaMu Theater." Haffner seconded and the motion carried. C. Reappointments. It was noted that re-appointment of Cass Prindle and Lew Sellers to this Board for four-year terms was confirmed by the City Council on October 18, 2011. U. Finance Reports a. City of Kent. Nachlinger distributed copies of the Public Facilities District Fund Report dated September 30, 2011, which shows $650,000 in sales tax credit, intergovernmental revenue of $3,084,000, and total expenditures of $3,735,000. He said the fund balance is expected to be the same as it was at the beginning of the year. He noted that sales tax has been basically flat, and that very little sales tax is collected from the Panther Lake annexation area. Sellers moved to approve the report, Haffner seconded and the motion carried. i Public Facilities District October 27, 2011 Page Two Nachlinger explained the proposed budget for 2012, noting that the year would begin with the same amount as this year, and that he expects 2% growth in sales tax, intergovernmental to remain flat, and a slight increase in debt service. Upon Miller's request, he agreed to look into refinancing and provide him with that information. Sellers moved to approve the 2012 PFD budget, Haffner seconded, and the motion carried. b. ShoWare Center. McCluskey distributed copies of the Income Statement as of September 30, 2011, and said that three variances have thrown the budget off: 1) low circus sales, 2) an unexpected quarterly sewer and water bill, and 3) repair of a compressor. He and Higgins explained those issues and it was noted that the year-to-date actual is $(306,000) vs. year-to-date budget of $(231,000). McCluskey said he expects revenues to be up, and Haffner moved to approve the 3rd quarter report. Sellers seconded and the motion carried. III. Agreements. a. SMG Operation Agreement. Wolters explained that the SMG Operation Agreement terminates at the end of this year and that although there is an option to extend it by two years, SMG and the City have reached tentative agreement on a three year management contract which would reduce their base management fee by approximately 48%, from $250,000 to $130,000, He said there is also a potential adjustment of a $10,000 annual bonus for SMG bringing in new shows. Wolters noted that as part of the original agreement, SMG had provided the City with a $700,000 no-interest loan which was used to finish out equipment purchases, and said that the remaining balance is $400,000. Under the new contract, SMG agrees to let the city pay off the loan at $100,000 per year, with a final payment of $200,000 in Year Three. He said the contract is scheduled to go to the City Council Operations Committee on November 15, 2011. b. Thunderbird License Agreement. Wolters said progress is being made on an amendment to the 30-year lease which would adjust the structure for the sale and pricing of suites and club seats. He said this would allow everyone new sales opportunities, which would put the building on more solid financial footing. He noted that this will also go to the Council Operations Committee on November 15. Public Facilities District October 27, 2011 Page Three IV. Operator Update. a. Event Bookings and Attendance. Higgins noted that approximately 40% of all activities are community and youth events. He said that they have been reaching out to promoters outside the area, and that he is excited about the future of the building. b. Marketing Update. Sylves announced that total attendance through October was 960,861, and the total number of page views to the website is 14,163,898. She outlined upcoming non-hockey, community, and corporate events and said there will be some type of recognition when a certain significant number of attendees is reached. V. Seattle Thunderbirds Update a. Sales, Marketing and Attendance. Runnels reported on upcoming promotions and giveaways, and noted that they've had great success in encouraging Kent companies to hold their holiday parties in the building. He added that more people who work in Kent are attending games regularly. Higgins announced that ShoWare naming rights partner Ralph Fasi of VisionOne will be here on December 2"d, and will drop the puck. VI. Meeting Dates. Miller announced that the regularly scheduled meetings in 2012 will be on January 26, April 26, July 26, and October 25. Higgins pointed out that there is a big event in the building on January 26, and all agreed to change that meeting date to January 19. It was noted that the January 19 meeting will therefore be a special meeting. Haffner suggested changing the time of all regular meetings from 3:30 p.m. to 4:00 p.m. There was no objection and Haffner moved to change the regular meeting time to 4:00 p.m. beginning in January 2012. Sellers seconded and the motion carried. VII. Adiournment. The meeting adjourned at 4:,?O p.m. Brenda Jacober, CMC,Glty Clerk I I I