HomeMy WebLinkAboutCity Council Committees - Public Facilities Distict Board - 06/25/2009 AGENDA
CITY OF KENT SPECIAL EVENTS CENTER PUBLIC FACILITIES DISTRICT
SPECIAL MEETING
Thursday, June 25, 2009, 3:30 p.m.
ShoWare Center, 62S West James Street
Suite Lounge Room
I. Call to Order
a. Introductions—All
b. Approval of Minutes of the May 28th, 2009 Meeting - Motion.
II. Finance Report - Bob Nachlinger, Ben Wolters, Tim Higgins and Patrick McCluskey
a. Review of State Sales Tax Revenues
b. ShoWare Center Income Statement on First 150 days of Operations
III. Operator Update - Beth Sylves, Tim Higgins
a. Marketing update
b. Status of Event Bookings/Attendance
IV. Seattle Thunderbirds Update - Colin Campbell
a. Thunderbird Attendance, Sales and Marketing Update
b. Advertising Sales Update
c. Suite Sales Update
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V. Other Business
a. Next meeting date
Adjourn
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KENT
Public Facilities District
May 28, 2009
Board Members Present: Mike Miller, Greg Haffner, Lew Sellers, Cass Prindle,
Randall Smith
Others Present: Tim Higgins, Beth Sylves, Ron Harmon, Pat Fitzpatrick, Ben
Wolters, Patrick McClusky, Colin Campbell, Robert Nachlinger, John Hodgson, Mel
Tate, Jim Berrios, Steve Hunter, Julie Pulliam
I. Call to Order
a. The meeting was called to order by Chair Mike Miller at 3:30 p.m.
b. Approval of Minutes. Sellers moved to approve the minutes of the
meeting of March 26, 2009. Haffner seconded and the motion carried.
II. Finance Report
a. ShoWare Center Income Statement. Patrick McClusky, Director of
Finance, reviewed the income statement for the first four months of
the year, which shows a loss of $169,923. He noted that there were a
lot of start up costs, as well as some unexpected revenue. He added
that a light month in April contributed to the loss. Higgins noted that
staffing was at a higher level in the beginning and can be reduced.
McClusky predicted a decline in operating expenses, and explained
that the total revenue was below what was anticipated but the per cap
is higher. He said that budget figures for the second half of the year
will not be available until after the Thunderbirds' schedule is out. Colin
Campbell said approximately half of the games will be before the
holidays and half after. He also said he is working on a process for
handling no-shows, and that there will be fewer games per week this
year. Later in the meeting, McClusky confirmed for Jim Berrios that
he compares the budget to another budget put together by himself
and Tim Higgins.
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Higgins explained for Harmon that April figures came in low because
dates had to be held in case there were hockey playoff games, so
other events could not be booked. He said he's certain they'll be in
the black by the end of the year. Upon a question from Wolters,
McClusky stated that general operating costs should level off by April.
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Public Facilities District May 28, 2009
Page Two
b. Review of State Sales Tax Revenues. Bob Nachlinger noted that the
Public Facilities District has collected $194,000 in sales tax revenues
in the first four months of the year, which is 33% below what was
anticipated. He noted that the city's revenue is also down. He
explained that after the Revenue Service has determined that you've
had a loss of greater than one-and-one-half percent during the first
twelve months, you can adjust your sales tax rate to compensate for
that, and said that the Department of Revenue won't determine the
loss until September and that it won't be seen until the end of the
year. He added that the change would not affect the public, since
the city would get more money and the state would get less. He
noted that the change in the tax rate would be permanent.
Sales tax revenues from March 2008 through April 2009 were
reviewed and explained.
C. Financial Update. Nachlinger noted that there is $106,000 in
admissions tax, which is the 5% tax on ticket sales, and that the
loss on the city's books is $204,170 year to date. He noted that
capital improvements funds come from taxes and outlined the funds
which would be available if sales and admissions don't cover the
debt service. He emphasized that the ShoWare Center has never had
an impact on the City's operating budget. He went over charts
showing the annual LTGO debt service by bond issue, the revenues
available for capitals, the combined debt service LTGO and Events
Center, and no Events Center revenue. He said that even in the worst
case scenario, enough money has been allocated to debt services to
cover it. Later in the meeting, Nachlinger noted for Berrios that there
is approximately $1.5 million in unbudgeted capital funds.
Miller suggested temporarily meeting on a monthly basis to monitor
the numbers. Nachlinger said he will be able to give better numbers
after the Thunderbirds' schedule is set, and Colin Campbell said the
schedule will be set by the end of July.
Higgins said they have two vacant positions which they will keep
vacant as long as possible, and that they are working on cutting direct
expenses.
III. Operator Update.
a. Event Bookings and Attendance. Higgins noted that 96 events and 18
Thunderbirds games have been booked this year. He noted that there
were just under 4,000 people at the Lippizoner event over the
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Public Facilities District May 28, 2009
Page Three
weekend, and that the Styx REO concert was a great success. He said
the trend in the industry is slow, but they are actively pursuing
promoters. Ben Wolters gave an update on the pursuit of arena
football.
b. Marketing Update. Wolters noted for Smith that Tarragon feels Kent
Station restaurants see a 4-5% bump in sales due to the ShoWare
Center. Higgins noted that a concert brings in approximately 80%
more money than graduations, and that the ShoWare Center is
becoming popular with the Christian market.
IV. Seattle Thunderbirds Update.
a. Thunderbird Attendance, Sales and Marketing Update. Colin Campbell
reported on their plan to increase the usage of tickets, to handle
unused season tickets, and to provide benefits to club seat holders.
He said 350 of the 500 club seats were sold last year and that they
expect 90% to renew. He announced a partnership with the school
district which could generate $30,000 for them.
b. Advertising Sales Update. Campbell said the signage on the score
clock has been sold and that a three-year deal with Allied Waste has
been made for the bottom of the score clock. He said there are five
more packages in various stages, and that advertising is going well.
C. Suite Sales Update, Campbell said suite sales have been impacted
by the economy and noted that four big companies have been lost.
He said there are still 10 to 12 parties interested in the suites, but
that it's a difficult commitment for them to make. He said they are
doing one-time sales, which is working well. He noted for Harmon
that the average paid attendance at a hockey game was 4,300, but
that when people don't show up, there is an impact at the concession
stands. He added that playing fewer games per week will have a
positive impact.
Higgins explained that promoters think ShoWare and Everett are
the same market, and that he is attempting to show them that events
could indeed play at both locations. Campbell said it would be rare to
have an empty building when there could have been an event, since
he and Tim work together daily on upcoming events. He noted for
Sellers that the Memorial Cup can be bid on in three years, and that a
committee to work on that could be formed any time; he also said
that there were probably more no-shows at ShoWare than at Key
Arena, simply because of the number of games. Campbell outlined
summer events, including camps.
Public Facilities District May 28, 2009
Page Four
V. Other Business
a. Summary. Miller summarized that this is a difficult economy which
has affected the ShoWare Center, and that everyone has challenges
but all are working as hard as they can and keeping on top of things.
He said no one wants to tie up the City's capital, but that there are
funds available if needed.
b. Meeting Date. It was agreed that a special meeting will be held at
3:30 p.m. on June 25, 2009, at the ShoWare Center.
VI. Adjournment
a. At 4:52, Sellers moved to adjourn. Smith seconded and the motion
carried.
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Brenda Jacober, CMC
City Clerk
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KENT SPECIAL EVENTS CENTER
PUBLIC FACILITIES DISTRICT FUND (PFD)
As of May 31, 2009
Revenue & Debt Svc.Fund
2008 Actual 2009 YTD
Beginning Fund Balance 0 166,327
,REVENUES
Investment FMV Inc/Dec 17
Sales &Use Tax - 786,843 241,491
Interest- Sales Tax 2,295 906
TOTAL REVENUES 789,155 242,397 -
Transfers In-Bond Proceeds 1,769,877
TOTAL RESOURCES 2,559,032 408,724.
EXPENDITURES - -
Debt Service 2,392,705 '.....
TOTAL EXPENDITURES 2,392,705
CHANGE IN FUND BALANCE 166,327 242,397
ENDING FUND BALANCE 166,327 408,724
6/19/2009
Kent Special Events Center Public Facilities District (PFD)
Sales Tax Revenues
As of May 31, 2009
Year Month Sales Tax Revenue .
Received
2008 March 68,928.08
April 64,340.03
May 77,107.07
June 72,061.77
July 73,138.12
August 82,904.41
September 61,870.79
October 57,569.76
November 63,238.50
December 55,649.74
2009 January 48,144.96
February 61,890.26
March 43,938.87
April 40,442.93
May , 47,073.92
918,299.21
* Revenues for January and February were accrued back to 2008. Reversal
of accrual will happen for December 2009 closing.
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6/19/2009
Kent Events Center Operating Fund
As of May 31, 2009
2008 2009
Actual YTD
BEGINNING FUND BALANCE (700,287)
REVENUES
Lodging Tax Transfer 31,000
Admissions Tax 105,907
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Total Revenues 136,907
TOTAL RESOURCES (563,380)
EXPENDITURES
Salaries & Benefits 36,208
Supplies 16,089 236
Services 684,198 311,836
TOTAL EXPENDITURES 700,287 348,280
Change In Fund Balance (700,287) (211,373)
ENDING FUND BALANCE (700,288) (911,660)
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ShoWare Center Marketing Update — June 25, 2009
(Votes for Agenda Packet
Mission: ShoWare Center is a public facility striving to serve Kent through economic
development activity; the home for social and community gatherings and source of civic pride
for its residents. Three pillars to achieve mission success—exceptional service, increased
awareness, economic growth.
Marketing Objectives:
• Community Relations
• Exist as a good corporate neighbor, develop goodwill & support community
programs.
• Invigorate the community to engage in positive word-of-mouth messaging about
their experiences at ShoWare Center.
• Publicity & Media Relations
• Ensure that all local talent & management are aware of ShoWare Center's
amenities.
• Promote the positive image of Kent as a desirable live entertainment destination
and position ShoWare Center as a "must-play" venue in the Pacific NW.
• Economic Development
• Position ShoWare Center's marketing assets to local & regional business
communities to encourage cross-promotion and collaborative messaging,
offering sales potential and improving the experience for our visitors.
• Event Advertising& Hospitality Sales
• Communicate directly to residents of Kent &South King County regarding
ShoWare Center's service to community and upcoming events.
• Generate revenue for ShoWare Center through individual event ticket sales,
group sales, premium patrons' sales of Club Seats and Suites and banquet event
sales.
• Develop relationships with local media agencies to create a buying platform that
gives ShoWare Center a competitive edge over other NW facilities.
• Grow ShoWare Center's marketing opportunities through relationship building
and database development.
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Good Morning, /� �M®
I wanted to lake a moment to thank you for the use of your venue for the Renton graduations last p® �y
Friday.After watching my oldest son graduate at Meydenbauer Center 3 years ago our whole ,
family was pleasantly surprised with ShoWare. Our senior citizens were seated with the utmost -i
care and the family was placed nearby for easy access to them when the ceremony was over. From: Ramseyer,John(Equity Sales-SEA)
Everyone had a clear view to see the ceremony and their child.After the ceremony sever [mailto;John_ramseyer@ml.com]
Sent:Thursday,February 19,2009 7:51 AM
parents echoed the same feeling we had.ShoWare graduation was a wonderful experie To:Sylves, Beth
My hope Is that Renton will continue to use your venue in the future. Subject: RE:GlobetrottersI,
We appreciate ShoWare and its employees. Beth'
Thanks again, I can't thank you enough for getting the -
Penny Nielsen Globetrotters tickets for us. My son was so
Proud parent of a Lindbergh High Grad surprised and the experience was magical for
Class of 2009 him. The seats on the floor were amazing and
From:MAnnis0l@aol.com[mailto:MAnnis0l@aol.com) the ShoWare Center is spectacular. Thank
Sent:Wednesday,June 24,2009 8:19 AM
To;Yost,Lindsay - you again.
Subject:Many thanks-and what a professional job you did John
Hey Lindsay,
Mike Annis here,the Jostens cap and gown guy that was at the ShoWare Center as
Renton Schools.
I meant to get a hold of you earlier,but just wanted to say what a great,professional job you did,and the facility 's
was great. You were so pleasant and accommodating. That is rare,and at the other venues we have been at,
a rare find. Keep up the good work,and just wanted to let you know how much we appreciated you. In fact,
most everybody I talked to in the school districts mentioned the same thing about you and your facility. Thanks
again,and see you next year. j
We enjoyed supporting this event and it was one of the best we have ever
done.The staff and the venue was top shelve.We collected 50 resumes,a From:justincasel5@comcasl.net[mailto:justincasel5@comcast.net]
away as Everett.We have interviews with 5 candidates which should result Sent:Thursday,January 08,2009 12:41 PM
least one hire.We will keep you posted!! To:Sylves,Beth
Subject:Re:ShoWare Center Club Seats Contact Request
Again thank you for inviting us.
What a great venue we now have in Kent!!
Jim&Staff
James A.Scott,Sr.LUTCF We also thank-you and your staff for the great work.We have tickets to Chris
Tomlin already,and are going to renew our season tickets for the T-Birds early
Managing Principal in part because of the facility and staff at ShoWare Center. '....
The Southern Cascades Division of Waddell&Reed Inc.
Thanks again,
Lindsay, Francis
Thank you so much for all of your help prior to and during the From: Shandon Hoffineier
Renton School District graduations. For a first time graduation at [mailto:Shandon.Hoffmeier@phoenix.edu]
ShoWare for us, it went very well. The superintendent and Board Sent: Monday, June 22, 2009 9:49 AM
of Directors were pleased with the facility and ceremonies. They To: Yost, Lindsay
also appreciated the room that you made available for their use. I Subject: THANKS!
was a comfortable place for them to be while they waited for each
graduation. I had no idea that they even had a TV in there! THANKS THANKS THANKS...no words to describe
Thanks again. I believe the Renton School District will be the professionalism and charisma of your ShoWare
contacting you soon to schedule next year's graduations. Center team, Without your quick response to our
requests and detail oriented set up, we would not
Sue Beeson have been nearly as successful. Please share my
appreciation to everyone! Thanks, again. See you
next year...Shandon
ShoWare Center Marketing Update — June 25, 2009
Notes for Agenda Packet
Mission: ShoWare Center is a public facility striving to serve Kent through economic
development activity; the home for social and community gatherings and source of civic pride
for its residents. Three pillars to achieve mission success—exceptional service, increased
awareness, economic growth.
Marketing Objectives:
• Community Relations
• Exist as a good corporate neighbor, develop goodwill & support community
programs.
• Invigorate the community to engage in positive word-of-mouth messaging about
their experiences at ShoWare Center.
• Publicity & Media Relations
• Ensure that all local talent & management are aware of ShoWare Center's
amenities.
• Promote the positive image of Kent as a desirable live entertainment destination
and position ShoWare Center as a "must-play' venue in the Pacific NW.
• Economic Development
• Position ShoWare Center's marketing assets to local & regional business
communities to encourage cross-promotion and collaborative messaging,
offering sales potential and improving the experience for our visitors.
• Event Advertising & Hospitality Sales
• Communicate directly to residents of Kent & South King County regarding
ShoWare Center's service to community and upcoming events.
Generate revenue for ShoWare Center through individual event ticket sales,
group sales, premium patrons' sales of Club Seats and Suites and banquet event
sales.
• Develop relationships with local media agencies to create a buying platform that
gives ShoWare Center a competitive edge over other NW facilities.
• Grow ShoWare Center's marketing opportunities through relationship building
and database development.
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