HomeMy WebLinkAboutCity Council Committees - Public Facilities District Board - 04/29/2009 i
KENT
WASHINGTON
Public Facilities District
March 26, 2009
Board Members Present: Chair Mike Miller, Greg Haffner, Lew Sellers, Cass Prindle,
Randall Smith
Others Present: Bob Nachlinger, Ben Wolters, Colin Campbell, Tim Higgins,
Councilmembers Ron Harmon and Debbie Raplee, and Julie Pulliam
I. Call to Order.
a. Introductions. The meeting was called to order by Mike Miller at the
ShoWare Center Club Lounge at 3:30 p.m.
b. Approval of Minutes. Sellers moved to approve the minutes of the
January 29, 2009, meeting. Prindle seconded and the motion carried.
II. Finance Report.
a. Financial Update. Finance Director Nachlinger outlined revenues and
expenditures and noted that the ending fund balance as of February 28,
2009, was $166,327.
b. State Sales Tax Revenues. Nachlinger reported that the streamlined sales
tax has impacted revenues by 15%. Regarding mitigation monies, he said
that the tax rate can be raised from .033% to .037% after the Department of
Revenue has determined that there has been a loss, and that he plans to ask
this Board to pass a resolution raising the tax rate to .037% this summer, so
that it will be available as soon as the Department of Revenue's determin-
ation is made in September. He noted that results will be seen in December
and that it won't be retroactive. He noted for Miller that the $2.4 million in
debt service is for all the bonds, not just those serviced by the sales tax. He
distributed copies of the monthly sales tax revenue for 2008 plus January and
February 2009 and noted that before the economy went down, the sales tax
for 2009 was anticipated to be $980,000 but is now anticipated to be
$850,000 to $880,000. Nachlinger responded to Haffner's questions about
mitigation money and noted for Smith that if revenues are insufficient, the
City must cover it from capital funds.
III. Proiect Overview and Update.
a. Final Project Budget. Ben Wolters gave an update on the completion of
construction, noting that although some savings and some expenses are still
being found, the $83,717.92 variance to the budget is expected to remain
much the same.
a. Closeout of Project. Wolters said there is one final draw in the amount of
$2.4 million for retainage, and that the final tally will be presented at the May
meeting. He then described the two minor construction activities which need
to be completed. A brief discussion on signage was then held.
Public Facilities District March 26, 2009
Page Two
c. LEED Certification. Wolters noted that Mortenson Construction, Shiels
Obletz Johnsen, and lead consultant Palladino & Company all feel there are
enough points for a gold designation in terms of LEED certification for the
building, which would make this facility the only one in North America to have
a gold certification. He said an amended certification request has been
submitted and he expects to hear from the Green Building Council in May or
June.
IV. Operator Update.
a. First 90 Days of Operations. Tim Higgins noted that 140,000 guests
have come through the building in the first three months to attend 60 events.
He estimated that 350,000 to 400,000 people will come to the facility in 2009
to just the events that have been scheduled so far. He noted that revenues
from the Chris Thomas concert came in right on target, and that the Harlem
Globetrotters brought in more revenue than expected.
b. Event Bookings/Marketing. Higgins outlined events which they are
currently working on and noted that 100 event days have been confirmed,
including hockey. It was noted that there have been parking issues, and a
lengthy discussion of potential solutions followed.
c. Operation Budget. Higgins said the operating budget is upside down by
about $57,000, due to the fact that a number of suites have not been sold
and that two concerts projected for the first quarter did not happen. Wolters
advised that a more clear picture of the overall operating budget will be
available at the next meeting. He said there has been a phenomenal
response from the community for graduations, dinners, and so forth, which
cover the standard operating costs, but that events which generate large
numbers of ticket sales are needed. Higgins added that the number of
staff will gradually be decreased by 25%.
V. Seattle Thunderbirds Update.
a. Attendance, Sales and Marketing. Colin Campbell stated that some of the
hockey games had been televised in Texas, Mexico, Canada, and Alaska, and
that they are currently working on a 3 year television commitment. He noted
that the average attendance at hockey games was 4245, which was lower
than the 5200 estimate but that the tickets sold were higher priced, making
the estimate very close. He emphasized that there will be more games per
year in the future. He reported on the food service and its continuing
development including food service to club seats and rail seats. He said they
have received many favorable comments about the food, the staff, the
building, and the events.
Campbell noted that suite revenue did not come in as expected, but that
there are currently twelve different companies looking at suites. He noted
that the empty suites have been used for promotion to potential new clients
and promoters.
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Public Facilities District March 26, 2009
Page Three
Higgins explained that they are pursuing catering with the Department of
Health. It was noted that season tickets are on sale now and that staff is
contacting people on their database. Campbell noted that there will be one or
two games per week next season and that ticket prices will not change. He
said he is working on renewal of the 350 club seats and a plan to sell the
remaining 150, and said that advertising sales are picking up. He named a
few sponsorship and signage possibilities which are in the works, and said
that prices on these are firm.
VI. Other Business.
a. 2009 Meeting Dates. It was confirmed that the next meeting will be held
on May 28, 2009.
VII. Adiournment. Sellers moved to adjourn at 4:40 p.m. Smith seconded and
the motion carried.
Brenda Jacober, CMC
City Clerk
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