Monthly Status Report

December 2010
Presented by Ron Holt

1
 Goals
Oversight
Meet with SMG staff monthly to monitor
all financial and usage reports as
allowed by contract.
Transparency
Provide monthly update to Board of
County Commissioners to promote
accountability by providing the public
with information about the operations of
the INTRUST Bank Arena.

22
 Discussion Points
SMG Agreement
• Contract Administration
City of Wichita
• Arena Parking Coordination Agreement
• Arena Transit Services Coordination
Agreement
Arena Sales Tax Reserves

33
 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

44
 Contract Administration
Project Management Team
Sedgwick County
Ron Holt, Assistant County Manager and Project Manager
Bill Buchanan, County Manager
Chris Chronis, Chief Financial Officer
Kristi Zukovich, Director of Communications and Community Initiatives
Mike Pepoon, Assistant County Counselor

SMG – INTRUST Bank Arena

General Manager
Director of Finance

55
 Contract Administration
Goals/Objectives
• Goal
– SMG will promote, operate and manage the
INTRUST Bank Arena to ensure high quality
services.
• Objective
– SMG will be responsible for any net operating
losses incurred during any fiscal year of the
contract period.

66
 Contract Administration
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 through
December 31 of the 5th full year of operation.
– 12/31/2015

77
 Contract Administration
Compensation*
*Very Unique Arrangement for SMG 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.

88
 Contract Administration
Reporting Requirements
• Monthly report by 25th of month on prior
month’s activities and finances
• Management plan by October 1 each year
• Audit by April 1 each year
• Capital improvement and equipment requests
by October 1 each year
• Funding request for emergency repairs as
needed

99
 Contract Administration
Monthly Reports
• Community Affairs
• Financial Summary

1010
 Contract Administration
• Community Affairs
– Event Attendance/Ticket Sales
– Employee Wages & Benefits/Employment
– Community Groups, Presentations, Tours,
Local Events & Activities
– Upcoming Events

1111
 Contract Administration
Dec. 2010 Report - Community Affairs
Tickets Average Cost per
Event/ # of Performances Date Attendance Sold Gross Tickets Sales Ticket Sold
Wichita Thunder vs. Rapid City 12/01 3,129 1,842 $15,325 $8.32
Wichita Thunder vs. Colorado 12/03 2,534 2,411 $22,891 $9.49
Wichita Thunder vs. Fort
Wayne 12/10 2,503 2,644 $25,016 $9.46
Wichita Thunder vs. Tulsa 12/11 3,345 3,098 $31,882 $10.29
Trans-Siberian Orchestra 12/15 10,325 9,860 $452,181 $45.86
Wichita Thunder vs. Tulsa 12/17 3,254 2,680 $24,698 $9.22
12/18-
Barney’s Birthday Bash 12/19 2,395 1,857 $40,875 $22.01
WSU Men’s Basketball vs.
Tulsa 12/21 14,112 11,935 $299,340 $25.08

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 Contract Administration
Dec. 2010 Report - Community Affairs
Tickets Average Cost per
Event/ # of Performances Date Attendance Sold Gross Tickets Sales 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

12/29-
Cirque du Soleil: Alegria 12/31 10,086 9,805 $594,638 $60.65
Total 11 Evts/ 16
Performances 57,251 51,746 $1,563,368 $30.21

Average Attendance per

Performance   3,578      

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 Contract Administration
YTD thru December Report
Community Affairs
Month/ Tickets Gross Ticket Average Cost
# of Performances Attendance Sold Sales per Ticket Sold
Jan. – Nov.
93 Performances 435,281 402,822 $15,893,604 $39.46
December
16 Performances 57,251 51,746 $1,563,368 $30.21

         
Jan. – Dec.
109 Performances 492,532 454,568 $17,456,972 $38.40
Average
Attendance per
Performance 4,519      

1414
 Contract Administration
December 2010 Report
Community Affairs
Net Employee
Wages & Benefits $270,915
   
Employment  
Full Time Employees 48
Part Time Employees 384

1515
 Contract Administration
YTD thru December Report
Community Affairs
Net Employee
Wages & Benefits $ 2,929,143
   
Employment  
Full Time Employees 44 - 50
Part Time Employees 384 - 441

1616
 Contract Administration
December 2010 Report
Community Affairs
Total # of Community Groups
Volunteering in Concession Stands 22
   
Amount Paid to Community Groups
for 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 related
expenses.

1717
 Contract Administration
YTD thru December Report
Community Affairs
Total # of Community Groups
Volunteering in Concession Stands 168*
   
Amount Paid to Community Groups
for Volunteering in Concession Stands $336,699
Spending with Sedgwick County/Kansas Companies $2,743,747**
Pre-Opening Events  7***
Arena Presentation/Arena Tours 44
Local 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

1818
 Contract Administration
December 2010 Report
Community Affairs
Announced Upcoming Events
Month # of Events # of Performances
February 7 7
March 8 12
April 2 7
May 1 1
August 1 1

1919
 Contract Administration
Financial Summary
• Definitions
– Net Direct Event Income is rental income and service revenue
less service expenses.
– Net Food Beverage & Merchandise Income is food & beverage
concessions, food & beverage premium seating, percent of
merchandise sales less cost of goods sold and labor.
– Other Net Income includes luxury box ticket sales, ticket service
fees & facility fees.
– Other Operating Income includes Select-A-Seat, other venue
ticket service fees, loge box and club seat agreements, &
advertising and sponsorships.
– Gross Building Income is net direct event income + net food,
beverage and merchandise income + other net income + other
operating income.
– Net Building Income is gross building income & other operating
income less building operating expenses.

2020
 Contract Administration
December 2010 Report
Financial Summary
Net Net
Direct Food Other Gross
# of # of Event Beverage Net Building
Event Category Performances Events Income Merchandise Income Income
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 Operating
Expenses           ($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 Administration
YTD thru December Report
Financial Summary
Net Net
Direct Food Other Gross
# of # of Event Beverage Net Building
Event Category Performances Events Income Merchandise Income Income
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
  10 
 Other 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 Building
Income $7,005,235
*Building Operating
Expenses           ($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.
2222
 City of Wichita
• Arena Parking and Coordination
Agreement
• Arena Event Transit Services
Coordination Agreement

2323
 City of Wichita
• Arena Parking Coordination Agreement
– Goals/Objectives of the Agreement
– Terms
– Services
– Compensation
– Reporting Requirements
– Activity Report

2424
Arena Parking and Coordination Agreement
• Goals/Objectives of the Agreement
– Align with the recommendations of the Arena
Neighborhood Redevelopment Plan.
– To establish cooperative actions regarding parking for
Arena events.
• Terms
– Effective December 1, 2009
– Will continue in effect on a year to year basis from
January 1 to December 31 unless either party provides
written policy by at least September 30 of the intent to
terminate the agreement as of the following
December 31.

2525
Arena Parking and Coordination Agreement
• 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 D
shall 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 gross
revenue and the City’s actual expenses associated with
operating and maintaining Lots A, B, C and D for
exclusive use during arena events for a not to exceed
amount of $225,000.

2626
Arena Parking and Coordination Agreement
• Reporting Requirements
– The parties will meet to review parking revenue and
operating/maintenance expenses on or about July 1
each year.
• If the review indicates an anticipated loss, then the
parties will negotiate a solution to enable the parking
assets to be revenue neutral.
– The parties will meet on or about April 1 each year to
review projected revenues and operating/maintenance
costs in preparation of the annual renewal.
– The parties may meet at other times during the year as
necessary to address projected revenue and expense
issues that arise during the year.

2727
Arena Parking and Coordination Agreement
City of Wichita Operated Parking Lots

2828
Arena Parking and Coordination Agreement
City of Wichita Operated Parking Lots
Lot Location Spaces
A State Office Building Garage - 457
NW Corner of Emporia and William
B State Office Building Surface Lot - 175
SW Corner of William and Topeka
C New Surface Lot – 196
SE Corner of Lewis and Emporia
D Expanded Surface Lot – 470
SW Corner of Waterman and Mead
TOTAL 1298
Employee New Surface Lot – 103
Underneath Kellogg Overpass at St. Francis

2929
Arena Parking and Coordination Agreement

December Activity Report*

Total Operating Net
  Revenue Cost 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

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

3030
Arena Parking and Coordination Agreement

January – December YTD Activity Report*

Total Operating Net
  Revenue Cost Income

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

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

3131
 City of Wichita
• Arena Event Transit Services
Coordination Agreement
– Goals/Objectives of the Agreement
– Terms
– Services
– Compensation
– Monthly Activity Report

3232
Arena Event Transit Services Coordination Agreement

• 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 all
downtown events is critical to enhanced accessibility and the
orderly movement of vehicles and pedestrians. The City and
County also agree that transit services are a critical
component to the success of arena operations and
downtown redevelopment.
• Terms
– This agreement commenced on January 1, 2010 and will be
adjusted as needed then renewed on January 1 of each
subsequent year.

3333
Arena Event Transit Services Coordination Agreement

• Services
– Establishment of Base Service: The County agreed to
participate in funding the Downtown Circular Route after
January 1, 2010 to establish regular service in
accordance with Federal Regulations. This base
service results in a total of 52 operating hours a week.
– Additional Event only Service: The City and County
agree that flexibility in transit services is necessary and
that actual service will be based on the needs of the
Arena and the ability of the city. Additional transit needs
as they specifically relate to arena events will be
determined and paid for by SMG on an event by event
basis.

3434
Arena Event Transit Services Coordination Agreement

• Compensation
– The County agrees to provide $32,000* each
year to support the cost of transit service.

Yearly Cost
Proposed Expansion to Monday-Saturday Downtown $159,120
Circular All Year
Seasonal Thursday-Saturday Q-Line service from May $66,000
to October (city budgeted funding)
Additional Cost to Facilitate Arena (proposed $93,120
expansion minus the current seasonal)

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

3535
Arena Event Transit Services Coordination Agreement

Monthly Activity Report

• Q-Line Ridership
– December 2010 5,011

3636
Arena Event Transit Services Coordination Agreement

Jan – December YTD Activity Report

• Q-Line Ridership
– January thru December 2010 48,937

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

3737
 Arena Sales Tax Reserves
• Includes remaining sales tax funds as well as
naming rights revenues, reimbursements of
signage infrastructure costs as appropriate, and
proceeds from the sale of property acquired for the
project but subsequently determined to be
unnecessary

3838
 Arena Sales Tax Revenues
• O&M reserve as of Dec. 31, 2010 is $14,614,472 for a
difference 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

3939
 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 parking
operating 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

4040
 Upcoming Events
• Thunder Hockey – February – March 27
• Winter Jam – February 27
• Arena Cross – March 5-6
• WWE Raw “Road to Wrestlemania” – March 12
• NCAA 2011 Women’s first and second round
Basketball tournament – March 20-22

4141
 Upcoming Events

• Sesame Street Live

“Elmos Healthy Heroes” – April 1-3
• Kenny Chesney – April 13
• James Taylor – April 30
• Tim McGraw – May 19
• Keith Urban – August 16
www.selectaseat.com
www.intrustbankarena.com
www.parkdowntown.org

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