HomeMy WebLinkAboutCity Council Committees - Public Facilities Distict Board - 01/27/2011 (4) KENT
Public Facilities District
January 27, 2011
Boardmembers Present: Mike Miller, Greg Haffner, Lew Sellers, Randall Smith
Others Present: Colin Campbell, Bob Nachlinger, Tim Higgins, Patrick McClusky,
Ben Wolters, Julie Pulliam, Susan Jensen and Steve Hunter
I. Call to Order
The meeting was called to order by the Chair at 3:35 p.m.
a. Introductions. Introductions were made.
b. Election of Officers. Haffner nominated Miller as Chair. Sellers
seconded and the motion carried. Sellers nominated Haffner as Vice-Chair.
Miller seconded and the motion carried. Haffner nominated Sellers as
Secretary. Smith seconded and the motion carried.
C. Approval of Minutes. Haffner moved to approve the minutes of
October 28, 2010. Sellers seconded and the motion carried.
U. Finance Report
a. Sales Tax Revenues. Nachlinger distributed copies of his report and
noted that nearly $3.8 million was taken in during 2010, $3.744 million was spent
in debt service, and the anticipated ending fund balance is $167,000. He said sales
tax revenues increased about 14% over last year and that some of that is due to
the annexation which went into effect in July. Nachlinger said he anticipates a
$500,000 loss for the year in the City's Operating Fund for the Center.
b. ShoWare Center Income Statement. McClusky distributed copies of the
Income Statement as of December 31, 2010 and noted that the net loss for the year
is $398,000. He said event income was $245,000 less than budgeted because some
events did not occur as planned and attendance was less than budgeted. He added
that there were 30 more catering events than anticipated. He pointed out that there
was a variance of $34,000 for suites, club seat ticket sales, and advertising due to
fewer hockey games and the sale of a suite which did not occur as planned, He said
a variance of $23,000 in indirect expenses was due to an August utility bill which
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was higher than budgeted. Higgins and McClusky explained direct and indirect
expenses in relation to the building and events.
C. Projected 2011 Budget. McClusky reviewed the 2011 budget, noting an
anticipated loss of $290,000 which is $109,000 better than in 2010. He added that
2010 was $54,000 better than 2009. He noted that total indirect expenses of
$2,420,000 are in line with 2010 indirect expenses. He listed upcoming events,
emphasized that revenue is attendance based, and said that family shows are very
well attended.
III. Operator Update.
a. Event Booking and Attendance. Higgins said there has been a great
response to the marquee and that it is selling tickets. He said customer service and
improvements to the steel in the building have resulted in hold dates from seven
new promoters in the last few months--four local, two regional and one national.
He said they are averaging an event every 2-1/4 days and highlighted some of the
events including Ladies Night Out, which sold out. He added that the Kent Pre-
dators will return and that catering is up over 100%. It was noted that the final
cost of the marquee was $197,000,
b. Marketing Update. Higgins stated that although the number of
concerts being held throughout the industry is down, four shows are already
booked in the building. Wolters distributed copies of an article from Rolling Stone
magazine regarding the plunge in the number of national tours and the need to
slash prices to draw fans. He noted that Higgins is working with local and regional
promoters, but that he is competing with 25 venues within a 50-mile radius. He
emphasized that more important than the number of concerts is the attendance at
the concerts. Wolters pointed out that SMG's contract is for three years with an
option to extend it for another two years, and that extension of that contract will
come up for consideration by the City Council by the end of the year.
IV. Seattle Thunderbirds Update
a. Sales Marketing and Attendance. Campbell said they have had good
success with the 24-flex plan and that they are revising pricing on it which will
increase attendance. He said unused tickets have been a problem which also affects
concessions, so they are working on things such as giveaways to get people to attend
and to come in early. He stated that the league as a whole is virtually flat in
attendance. He highlighted some of the upcoming events including youth group
nights and the Teddy Bear Toss.
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Campbell said they continue to enhance their radio coverage, and that a game in the
building was recently televised live on FSN. He added that two more games are
going to be televised, and that some players have been interviewed. He noted that
the Thunderbird Foundation has provided funds to local youth sports and schools.
b. Advertising and Suite Sales. Campbell noted that both new and
renewal advertising are going well, and said he is close to completing a new pricing
structure on suites and club seat sales. He said five of the six suites are up for
renewal and that the new pricing structure will serve as an incentive to renew. He
said another incentive being used is to allow some companies to sample the suites,
which also impacts food and beverage sales. Haffner noted that ticket prices for
club seats and season tickets in Everett are lower than they are here, and that
businesses may be more likely to buy if prices were lower.
Adjournment
It was noted that the next meeting will be on April 28, 2011. The meeting
then adjourned at 4:45 p.m.
Brenda Jacober, C`C
City Clerk
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