arena monthly status december 2010

8/7/2019 Arena Monthly Status December 2010

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Monthly Status Report

December 2010

Presented by Ron Holt


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Goals

OversightMeet with SMG staff monthly to monitor

all financial and usage reports asallowed by contract.

Transp

arencyProvide monthly update to Board ofCounty Commissioners to promote

accountability by providing the publicwith information about the operations ofthe INTRUST Bank Arena.

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Discussion Points

SMG Agreement Contract Administration

City of Wichita

Arena Parking Coordination Agreement

Arena Transit Services CoordinationAgreement

Arena Sales Tax Reserves

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SMG Agreement

Contract Administration Project Management Team

Goals/Objectives of the SMG Agreement

Management and Renewal Terms

Compensation

Reporting Requirements

Monthly Reports Community Affairs

Financial Summary

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Contract Administration

Project Management TeamSedgwick CountyRon Holt,Assistant County Manager and Project ManagerBill Buchanan, County Manager

Chris Chronis, Chief Financial Officer

Kristi Zukovich, Director of Communications and Community InitiativesMike Pepoon,Assistant County Counselor

SMG INTRUST Bank ArenaGeneral ManagerDirector of Finance

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Goals/Objectives Goal

SMG will promote, operate and manage the

INTRUST Bank Arena to ensure high qualityservices.

Objective

SMG will beresponsible foranynetoperating

lossesincurredduringany fiscalyearofthecontractperiod.

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Management and Renewal Terms Management term commences when the

facility hosts the first event that is open to the

public. 01/02/2010

Management term will continue throughDecember31 of the 5th full year of operation.

12/31/2015

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Compensation**Very Unique Arrangement forSMG Managed Facilities

Should there be a net operating income These items will be paid in order until the money runs out.1. If SMG has funded any previous years net operating

deficit that amount will be reimbursed.2. SMG will retain the first $450,000 after item 1.3. Sedgwick County will retain the next $450,000.4. If Sedgwick County has purchased capital improvements

in excess of $250,000, that amount will be reimbursed.5. Any additional profit will be allocated, 60% to Sedgwick

County and 40% to SMG.

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Reporting Requirements Monthly report by 25th of month on prior

months activities and finances

Management plan by October 1 each year Audit by April 1 each year

Capital improvement and equipment requestsby October 1 each year

Funding request for emergency repairs asneeded

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Contract Administration Community Affairs

Event Attendance/Ticket Sales

Employee Wages & Benefits/Employment

Community Groups, Presentations, Tours,Local Events & Activities

Upcoming Events

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Dec. 2010 Report - Community Affairs

Event/ # of Performances Date AttendanceTickets

Sold GrossTickets SalesAverage Costper

Ticket Sold

Wichita Thunder vs. Missouri 12/26 2,458 2,592 $25,663 $9.90

Wichita Thunder vs. Missouri 12/27 3,110 3,022 $30,859 $10.21

Cirque du Soleil: Alegria12/29-

12/31 10,086 9,805 $594,638 $60.65

Total 11 Evts/ 16Performances 57,251 51,746 $1,563,368 $30.21

Average Attendance perPerformance 3,578

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YTD thru December ReportCommunity Affairs

Month/# of Performances Attendance

TicketsSold

GrossTicketSales

Average CostperTicket Sold

Jan. Nov.93 Performances 435,281 402,822 $15,893,604 $39.46

December16 Performances 57,251 51,746 $1,563,368 $30.21

Jan. Dec.

109 Performances 492,532 454,568 $17,456,972 $38.40

AverageAttendance perPerformance 4,519

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December 2010 ReportCommunity Affairs

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NetEmployee

Wages & Benefits $270,915

Employment

Full Time Employees 48Part Time Employees 384


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NetEmployee

Wages & Benefits $2,929,143

Employment

Full Time Employees 44 - 50Part Time Employees 384 - 441

YTD thru December ReportCommunity Affairs

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December 2010 ReportCommunity Affairs

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Total # of Community GroupsVolunteering in Concession Stands 22

Amount Paid to Community Groupsfor Volunteering in Concession Stands $41,812

Spending with Sedgwick County/Kansas Companies $278,946*

Arena Presentation/Arena Tours 0

Local Events/Activities 2

*Does not include various expenses paid directly by promoter for some event relatedexpenses.


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Contract AdministrationYTD thru December Report

Community Affairs

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Total # of Community GroupsVolunteering in Concession Stands 168*

Amount Paid to Community Groupsfor Volunteering in Concession Stands $336,699

Spending with Sedgwick County/Kansas Companies $2,743,747**

Pre-Opening Events 7***

Arena Presentation/Arena Tours 44Local Events/Activities 14*Some groups repeat from event to event and are counted multiple times**Does not include various expenses paid directly by promoter for some event related expenses.

***4 additional events were held in December


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Contract AdministrationDecember 2010 Report

Community AffairsAnnounced Upcoming Events

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Month # ofEvents # of Performances

February 7 7March 8 12

April 2 7

May 1 1

August 1 1


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Contract AdministrationDecember 2010 Report

Financial Summary

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Event Category# of

Performances# of

Events

NetDirectEvent

Income

NetFood

BeverageMerchandise

OtherNet

Income

GrossBuildingIncome

Concerts 1 1 $16,901 $22,129 $66,302 $105,332

Family Shows 7 2 $19,250 $29,571 $88,817 $137,638

Sporting Events 1 1 $12,210 $49,657 $20,733 $82,600

Wichita Thunder Hockey 7 7 $41,872 $58,552 $28,864 $129,288

Other 2 2 $374 $237 - $611

Monthly Total 18 13 $90,607 $160,146 $204,716 $455,469

Other Operating Income $118,875

Total Gross Building

Income $574,344

*Building OperatingExpenses ($503,612)

Net Building Income $70,732

* Includes - Net Salaries & Benefits, Contracted Services, General & Administrative, Operating, Repairs &Maintenance, Operational Supplies, Insurance, Utilities, Other. Does not include any direct services expenses.


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Contract AdministrationYTD thru December Report

Financial Summary

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Event Category# of

Performances# of

Events

NetDirectEvent

Income

NetFood

BeverageMerchandise

OtherNet

Income

GrossBuildingIncome

Concerts 24 24 $503,081 $1,186,934 $1,914,305 $3,604,320

Family Shows 44 10 $41,415 $272,849 $474,960 $789,224

Sporting Events 12 7 $149,552 $259,165 $223,926 $632,643

Wichita Thunder Hockey 29 29 $180,289 $284,972 $138,646 $603,907

Other 10 10 $16,237 $22,925 - $39,162

YTD Total 119 80 $890,574 $2,026,845 $2,751,837 $5,669,256

Other Operating Income $1,335,979

Total Gross BuildingIncome $7,005,235

*Building OperatingExpenses ($4,994,499)

Net Building Income $2,010,736

* Includes - Net Salaries & Benefits, Contracted Services, General & Administrative, Operating, Repairs &Maintenance, Operational Supplies, Insurance, Utilities, Other. Does not include any direct services expenses.


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City of Wichita

Arena Parking and CoordinationAgreement

Arena Event Transit Services

Coordination Agreement

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City of Wichita

Arena Parking Coordination Agreement Goals/Objectives of the Agreement

Terms

Services Compensation

Reporting Requirements

Activity Report

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Goals/Objectives of the Agreement Align with the recommendations of the Arena

Neighborhood Redevelopment Plan.

To establish cooperative actions regarding parking forArena events.

Terms

Effective December 1, 2009

Will continue in effect on a year to year basis fromJanuary 1 to December31 unless either party provides

written policy by at least September30 of the intent toterminate the agreement as of the followingDecember31.

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Arena Parking and Coordination Agreement


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Services Implements the Arena Event Section of the 2009

Downtown Parking and Mobility Management Plan.

Mandates that all sales of spaces in Lots A, B, C and Dshall be made available to the arena operator on a first

right of refusal for arena patrons for each arena event. Compensation

The County agrees to cover any shortfall between grossrevenue and the Citys actual expenses associated withoperating and maintaining Lots A, B, C and D for

exclusive use during arena events for a not to exceedamount of $225,000.

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Reporting Requirements The parties will meet to review parking revenue and

operating/maintenance expenses on or about July 1each year.

If the review indicates an anticipated loss, then the

parties will negotiate a solution to enable the parkingassets to be revenue neutral.

The parties will meet on or about April 1 each year toreview projected revenues and operating/maintenancecosts in preparation of the annual renewal.

The parties may meet at other times during the year asnecessary to address projected revenue and expenseissues that arise during the year.

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City of Wichita Operated Parking Lots

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City of Wichita Operated Parking LotsLot Location Spaces

A State Office Building Garage -

NW Corner of Emporia and William

457

B State Office Building Surface Lot -

SW Corner of William and Topeka

175

C New Surface Lot

SE Corner of Lewis and Emporia

196

D Expanded Surface Lot

SW Corner of Waterman and Mead

470

TOTAL 1298

Employee New Surface Lot

Underneath Kellogg Overpass at St. Francis

103

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December Activity Report*Total

RevenueOperating

CostNet

Income

Lot A $4,383 $3,986 $397

Lot B $1,637 $1,742 ($105)

Lot C $1,745 $1,638 $107

Lot D $5,276 $3,588 $1,688

Total $13,041 $10,954 $2,087

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*These numbers are for City owned lots A-D only and does not represent the net income of the entire arenaparking system which is less than for these 4 lots and none of the parking income includes the cost to providepublic safety.


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TotalRevenue

OperatingCost

NetIncome

Lot A $34,760 $17,816 $16,944

Lot B $28,584 $14,888 $13,696

Lot C $31,116 $13,385 $17,731

Lot D $79,645 $24,540 $55,105

Total $174,105 $70,629 $103,476

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January December YTD Activity Report*

*These numbers are for City owned lots A-D only and does not represent the net income of the entire arenaparking system which is less than for these 4 lots and none of the parking income includes the cost to providepublic safety.


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City of Wichita

Arena Event Transit ServicesCoordination Agreement

Goals/Objectives of the Agreement

Terms Services

Compensation

Monthly Activity Report

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Goals/Objectives of the Agreement Provide transit services for all arena patrons who chose to

park outside of a reasonable walking distance.

The City and County agree that transit services for alldowntown events is critical to enhanced accessibility and the

orderly movement of vehicles and pedestrians. The City andCounty also agree that transit services are a criticalcomponent to the success of arena operations and downtownredevelopment.

Terms This agreement commenced on January 1, 2010 and will be

adjusted as needed then renewed on January 1 of eachsubsequent year.

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Arena Event Transit Services Coordination Agreement


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Services Establishment of Base Service: The County agreed to

participate in funding the Downtown Circular Route afterJanuary 1, 2010 to establish regular service inaccordance with Federal Regulations. This base

service results in a total of52 operating hours a week.

Additional Event only Service: The City and Countyagree that flexibility in transit services is necessary andthat actual service will be based on the needs of the

Arena and the ability of the city. Additional transit needsas they specifically relate to arena events will bedetermined and paid for by SMG on an event by event

basis.

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Compensation

The County agrees to provide $32,000* eachyear to support the cost of transit service.

Yearly Cost

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Proposed Expansion to Monday-Saturday DowntownCircular All Year

$159,120

Seasonal Thursday-Saturday Q-Line service from Mayto October (city budgeted funding)

$66,000

Additional Costto Facilitate Arena (proposedexpansionminusthecurrentseasonal) $93,120

*Cost reduced the first three years due to federal grant, $93,120 down to $32,000.



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Monthly Activity Report Q-Line Ridership

December 2010 5,011

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Jan December YTD Activity Report

Q-Line Ridership

January thru December 2010 48,937

Q-Line ridership for all of 2009 was 7,500.

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Arena Sales Tax Reserves

Includes remaining sales tax funds as well asnaming rights revenues, reimbursements ofsignage infrastructure costs as appropriate, andproceeds from the sale of property acquired for the

project but subsequently determined to beunnecessary

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Arena Sales Tax Revenues

O&M reserve as of Dec. 31, 2010 is $14,614,472 for adifference of ($1,008,591) compared to Nov. 30, 2010.

$295,000 revenue, arena naming rights

$696,789 expenditures, administrative charges

$600 expenditure, fees for Coleman property ($2,285) refund


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Arena Sales Tax Revenues

Authorized Uses

Major repairs/capital equipment for the Arena. $11,251 expenditures, arena carpet and labor for remodel of

storage from pre-function room

Up to $93

,120 annually for the City to provide Q-Line Services. Up to $225,000 annually for the City to provide parkingoperating and maintenance on Lots A, B, C and D.

Major repairs/capital equipment at the Kansas Pavilions. $12,247 expenditure, design of remote restroom/shower building

Any operating deficit at the Kansas Pavilions. $584,989 expenditure for 2010 operating subsidy


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arena monthly status december 2010

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