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HomeMy WebLinkAboutCity Council Committees - Public Facilities District Board - 01/28/2016 (2) :'1 1 ...111111110! �' KENT KENt�� WASHINGTON Public Facilities District Board Special Meeting Minutes January 28, 2016 @ 4 p.m. City of Kent City Hall, Centennial Building, Room 105 / 107 Boardmembers present: Mike Miller, Randall Smith, and Jeff Piecewicz Others present: ShoWare Center General Manager Tim Higgins, ShoWare Center Finance Director, Arletta Voter, ShoWare Center Director of Marketing Ryan Hart, Seattle Thunderbirds Vice President/Assistant General Manager Colin Campbell, City of Kent Finance Director (Board Treasurer) Aaron BeMiller, City of Kent Economic and Community Development Director Ben Wolters, City of Kent City Clerk (Board Secretary) Ronald F. Moore, Reporter for the Kent Reporter, and Steve Hunter. I. Call to Order. The meeting was called to order by Chair Miller at 4:00 p.m. a. Motion to approve the regular meeting minutes of October 29, 2015. Jeff Piecewicz moved to approve the minutes of October 29, 201S, seconded by Randall Smith. Motion carried 3-0. U. Financial Reports. a. City of Kent. Aaron BeMiller, Finance Director (Treasurer) discussed the ShoWare Center Operating Fund. He noted that the estimated actual ending fund balance for the year 2015 is $904,000. Chair Miller inquired what the $28,000 in Other Income is for and BeMiller communicated that he would find out and let the board know. Treasurer BeMiller confirmed for Boardmember Smith that a movement of $1 million is budgeted by the City. Boardmember Piecewicz inquired about the additional $500K and BeMiller replied that when it is transferred it loses its General Fund classification. He added that the $904,000 is there for any paybacks that may occur so the General Fund isn't affected. Boardmember Smith confirmed that there is a meeting tomorrow concerning the $500,000 no interest loan and the accounting for it. Basically, how those funds will move from SMG and the City. Wolters confirmed that it is debt service reserve. Treasurer BeMiller continued and discussed the Kent Special Events Center Public Facilities District Fund. Public Facilities District Board Special Meeting Minutes January 28, 2016 Chair Miller confirmed that the funds will come in January and February. Treasurer BeMiller continued and discussed the $21.5 million in funds moved into the Public Facilities District (PFD) to pay debt service since 2009. He added that the total resources that have come in is $4.1 million and the ending balance would be $272,738 and it would get used to apply to the debt service next year. He added that the next page notes the sales tax collections through September 30, 2015. BeMiller invited the PFD Board Members to the Council workshop meeting on Tuesday as there will be a discussion on the refunding of the PFD Bonds. He added that the City has a strong Standard and Poor's rating. Boardmember Sellers arrived at 4:14 p.m. b. ShoWare Center. Arletta Voter, ShoWare Director of Finance highlighted the ShoWare Center has had a positive year. She noted that the 4th Quarter net income is $142,643. Councilmember Berrios communicated the net income numbers from 2009 to current, noting that this year is the highest amount in the facility's history. Wolters commented on the positive numbers and stated that the increased number of events at the facility have resulted in some very good revenues. He noted some of the items that impacted the facility negatively and how things have turned around. He noted that the facility is beginning to show some wear and.tear and there have been over 2 million visitors. He noted that the maintenance expenditures will begin to go up as the facility needs some maintenance taken care of. He thanked the SMG and the Seattle Thunderbirds for all their work. Chair Miller on the excellent condition of the facility and noted that he was on a tour with a prospective suite client who was very impressed with it. III. Operations Update. a. General Manager/Marketing Update. Ryan Hart, Director of Marketing communicated that 2016 was a banner year and there were 223 events in 2015 and approximately 300,000 tickets sold in 2015. This year there have been over 41,501 attending events so far this year. He added that there were 40,000 more people who attended events in 2015. He noted that Venue Today and Pollstar reported that the ShoWare is ranked in the top 20 for all facilities in the world of similar capacity. He also noted that the ShoWare has received the #1 ranking in the Pacific Northwest. Higgins also communicated that the ShoWare Center is ranked #181 when it comes to all venues in the world, regardless of size, based on ticket sales and #95 when it comes to the United States. 2 Public Facilities District Board Special Meeting Minutes January 28, 2016 Hart noted that there were six sold out shows in this year and Campbell added that the Seattle Thunderbirds sold out six games last season and three so far this season. Hart communicated that the Tacoma Stars average 2,000 people at each game. He highlighted several upcoming shows to include Disney on Ice, Ladies Night Out #7, The Avett Brothers, Seattle University basketball, the ShoWare Shootout Basketball tournament, the Kent Technology Expo, and the Washington FIRST Robotics. Higgins communicated that the 2016 Budget has been submitted and approved by the City. He noted that the budget that was submitted is conservative. Campbell stated that one of the challenges is not knowing how many games the hockey team will have. It all depends on how well they do and if they get into the playoffs. Hart communicated a press release is being prepared to communicate how well 2015 went. Chair Miller confirmed that the operating numbers don't include the admission tax. Wolters highlighted that there is a return of business spending that has turned into suite sales and advertising sales, which is a positive trend. He noted that the facility now has a second home team with the Tacoma Stars. He noted that the ownership of the team is a solid group and it may create more opportunity for the facility. He stated that there have been shows that are being considered and it isn't about the shows, it's about the positive relationships that are occurring and growing with promoters. He added that every positive show puts the facility on the map and leads promoters to call the ShoWare first when it comes to facilities in this region. He also communicated that we are doing very well with family shows and it is exactly what the facility wants to see. He also noted that catering is doing very well and that business will continue to be developed. Higgins confirmed that the new digital boards and LED sports lighting is going in from March 6 - 10. He noted that the facility is getting a rebate from PSE on the LED lights. b. Seattle Thunderbirds Update. Campbell communicated that the team will have a great run to the playoffs. He noted that there is an 11 percent growth in ticket sales and a 5 - 10 percent growth every year. Two-for-Tuesdays are pushing 5,500 attendees each Tuesday and the Pink-the-Rink event was in October with $26,000 raised that night. In November, the Thunderbird Community Sports Foundation night took place. The foundation is pushing $440,000 going to Kent youth sports. This Sunday is Communities in Schools night and on the 50/50 raffle is February 15. February 27, he said, is the 3 Public Facilities District Board Special Meeting Minutes January 28, 2016 hockey challenge to support the Ronald McDonald House. He added that they are excited about the growth. Sellers inquired how many of the Thunderbird season ticket holders were holders in KeyArena and Campbell noted that he would get the response. He also noted that the Portland area gets the games televised and they are working to get the Thunderbird games televised locally. Councilmember Berrios stated that two years ago he was very concerned about the ShoWare Center and he is happy to say that the team that works on this facility has helped achieve the City's goals. He stated that it has been a rough ride and this is the beginning of some real positive things happening. Meeting adjourned at 4:52 p.m. Ronald F. ore, C City CI 4