11 FROM: I MIKE TURNER II

Transcription

1 Agend tem # P e # 1" CHAR AND MEMBERS To: BOARD OF CONTROL MEETNG ON APRL 28,2010! 11 FROM: MKE TURNER DEPUTY CTY TREASURER 11 SUBJECT: 2009 ANNUAL UPDATE ON JOHN LABATT CENTRE RECOMMENDATON Tht on the recommendtion of the Deputy City Tresurer, this report BE RECEVED for informtion. PREVOUS REPORTS PERTNENT TO THS MATTER Bord of Control, August 3, Memorndum of Understnding between London Civic Centre nd the City of London Bord of Control Jnury 8, Finl Closing Documents Between City of London nd London Civic Centre Bord of Control, Mrch 23, Annul Updte on John Lbtt Centre Bord of Control, December 15, Annul Updte on John Lbtt Centre BACKGROUND The John Lbtt Centre opertes s public privte prtnership nd is designted s municipl cpitl fcility under the Municipl Act. The Centre completed its seventh yer of opertion in June The London Civic Centre (LP) is the City's prtner on this project hving provided $9.5 million in privte sector funding. The City's contribution to the project is $32 million, plus the lnd vlued t $10 million of which pproximtely one third serves s municiplly operted public prking lot. The Finncil Del The City's originl contribution to the John Lbtt Centre ws bsed upon n nticipted conservtive pro form produced by London Civic Centre (LP). The pro form nticipted tht pid ttendnce would verge between 350,000 nd 400,000, the gross revenue from the Centre would verge $5.4 million over the first seven yers nd tht net proceeds to the City would verge $126,773. Globl Spectrum hs been ble to produce higher gross revenues in the fcility thn nticipted nd generlly higher net incomes thn budgeted. The net proceeds to the City verged $232,832 for the first seven yers, exclusive of ticket surchrge revenue. London Civic Centre (LP)'s finncil sttements nd the distribution of vilble csh flows re both udited by n externl ccounting firm. t should be noted tht the net proceeds re fter the Centre's debt servicing costs, txes nd contributions to the cpitl reserve fund. The City's shre of the net proceeds vries over the life of the lese. n yers one to five, the City's shre is 20%, yers six to ten 45% nd yers eleven to fifty 70%.

2 Agend tem # P e # 9 The privte sector return on investment in the pro forms ws nticipted to be bout 12%. This return recognizes tht the privte sector ssumes ll operting losses nd cpitl repir risk. The City's return on investment ws estimted to be between 1% nd 2% over the fifty yers, plus the economic spin-offs nd contribution to the downtown revitliztion from the Centre. The City compred this rte of return with other centres in Ontrio t the time of developing the greements nd found tht compred to Guelph, Brmpton nd Srni, three other public privte prtnerships t the time, the City's rte of return ws higher. Brmpton nd Guelph hve both defulted nd re effectively now public fcilities. All municiplly operted centres operte t loss (when cpitl costs re included), mening there is no return on investment other thn the economic spinoffs. Agreements There re dozens of greements ssocited with this project, ll of which were fully vetted through Council, with input from legl counsel nd consultnts. The min greements which govern the opertions of the JLC re the Ground Lese nd the Prticiptory Occupncy Lese. A Trust ndenture greement ws estblished to setup the City of London Aren Trust. The City of London Aren Trust hs entered into fifty yer Ground Lese for the lnd owned by the City of London. The City cts s lndlord over the lnd nd the Trust is the tennt. The London Civic Centre (LP) hs entered into fifty yer Prticiptory Occupncy Lese for the building with the City of London Aren Trust, who is the lndlord nd owns the building for the term of the ground lese, subject to the provisions of the greement. The London Civic Centre (LP) is subject to detiled greements on performnce nd mintining the building t high qulity level. The London Civic Centre (LP) is responsible for cpitl improvements to the building nd hs put in plce fcility fee on tickets which prtilly funds cpitl improvements which begn to ccumulte in cpitl reserve ccount fter yer three of the greement. The London Civic Centre (LP) hs entered into confidentil greement for the mngement of the fcility. This greement ws reviewed by Arthur Anderson nd deemed to be mrket competitive. So How Are We Doing? The John Lbtt Centre continues to outperform pre-build expecttions. Almost 600,000 people ttended events lst yer t the John Lbtt Centre, more thn 50% higher thn pre-build expecttions. The John Lbtt Centre hs scended to world rnking mongst event centres. The Centre is consistently rnked in the top ten in the world by Venues Tody in their nnul rnking of venues of similr size. Pollstr, the industry leder in entertinment news, rted the John Lbtt Centre 58th in their top 100 fcilities in the world regrdless of size. The John Lbtt Centre hs hosted wide rnge of shows nd events since it opened, living up to the multi-purpose function tht the City invested in when it built the fcility including: Both Ntionl Hockey Legue nd NBA exhibition gmes; World clss entertiners such s Shni Twin, Rod Stewrt, Bob Dyln, Dvid Bowie, Bryn Adms, Elton John, Bon Jovi, Divo nd Neil Young performed sold out concerts; Brodwy plys such s Fme, Cts, Grese, nd Sturdy Night Fever hve performed t the Centre; Fmily shows hve been bundnt, including Lord of the Dnce, Dvid Copperfield, Disney on ce nd the Hrlem Globetrotters; The London Knights hockey tem continues to ply to sell out crowds;

3 Agend tem # PY# The Centre hs hosted the Cndin Figure Skting Chmpionships, the Memoril Cup, Cndin Women's Curling Chmpionship Brier nd coming in 201 1, the Tim Horton's Curling Brier for Cndin Men's Curling Chmpionship. On the finnce side, the John Lbtt Centre received ntionl gold medl wrd for finncing on the business del between the City nd the London Civic Centre (LP) from the Cndin Centre for Public Privte Prtnerships. Gross revenues lst yer topped $5,477,187. Totl net profit in 2009 for the Centre ws $300,226, lmost 3 times the budget. The City's totl proceeds from the Centre in 2009 ws $432,554, including ticket surchrges. All of the 38 suites in the Centre re lesed nd there is considerble witing list for the 1,100 club sets. The nming rights for the fcility hve been sold for ten yers to Lbtt Brewing Compny nd the smll thetre seting nming rights hve been sold to RBC Dominion. The Centre continues to ttrct interest from other municiplities nd countries trying to duplicte the success of the John Lbtt Centre. The cities of Oshw, Wndsor, Kingston nd Nigr Flls ll visited the Centre on severl occsions. Visitors from project in Florid nd nother in Lithuni hve lso come to the Centre. The Mngement nd Opertion of the Centre The Centre is mnged by Globl Spectrum on behlf of the prtnership London Civic Centre (LP). Globl is responsible for the sle of nming rights, dvertising, ttrctions, sle of suites nd club sets, nd the opertion of the Centre. Globl receives mngement fee for its services, which in 2009 mounted to $508,162. A lrge prt of the success of the John Lbtt Centre hs to be credited to the mngement services provided by Globl Spectrum. They continue to bring in world clss entertinment, crete the csh flow necessry to support the fcility nd mintin the fcility t high qulity. They lso prticipte in the community through fund rising nd lst yer rised over $100,000 to support locl chrities nd non-profit orgniztions. n Mrch 2010, the Centre ws nmed Cnd's 2009 Mjor Fcility of the Yer during ceremonies of the Cnd's Music Festivl. The Centre topped the Bell Centre in Montrel; GM Plce in Vncouver; MTS Centre in Winnipeg; Northlnds Rexll Plce in Edmonton; Pengrowth Sddledome in Clgry: ScotiBnk Plce in Ottw: nd the Molson Amphithetre in Toronto. n April 2009 the Centre received the Don Hrrison Energy Chmpion Awrd for its diligence nd ttention to reducing energy consumption in the building Performnce Summry Appendix A (ttched) provides performnce summry for the John Lbtt Centre for the first seven yers, events, pid ttendnce, incomes, expenses, net income nd the City's net proceeds. The City retined KPMG to undertke certin procedures nd report its findings in connection with certin prctices nd processes of Globl Spectrum in mnging the John Lbtt Centre to determine complince with the greements between the City nd the London Civic Centre (LP). The greements between the prties contemplte the City undertking reviews periodiclly to determine complince with greements. KPMG completed its work in Februry 2005 nd determined London Civic Centre (LP) hs comprehensive ccounting procedures in plce, tht the vilble csh is clculted in ccordnce with the greements, tht prtnership relted expenses were consistent with the greements, the mngement fee pid is in ccordnce with the greements nd the concession commissions erned were found to be in ccordnce with the license greement. There were no res of concern rised by KPMG with respect to complince with the greements nd ccounting prctices.

4 Agend tem # P e # 4 Appendix B (ttched) is the John Lbtt Centre 2009 Annul Report Working Committee A Working Committee hs been estblished s prt of the Prticiptory Occupncy Lese. There re representtives from the Aren Trust, the London Civic Centre (LP), the City nd the Mnger of the fcility. Mike Turner hs replced Vic Cote on the Working Committee upon Vic's retirement. The Working Committee reviews cpitl repirs nd plns nd monitors the blnces in the cpitl repir fund. They lso review operting budgets, udited finncil sttements nd the vilble csh flow clcultions. They my pprove certin contrctul procedurl elements if required. n ddition, the City's representtive reviews nd uthorizes greements of non-rms length contrcts. They lso must pprove expenditures coming from the cpitl repir fund, ensuring long term vibility of the cpitl repir fund. Agreements Between Globl Spectrum nd Relted Compnies The greements with the London Civic Centre (LP), the City of London nd Globl Spectrum require City concurrence of greements between the London Civic Centre (LP) nd non-rms length relted businesses. The City's concurrence is bsed on whether the greement is competitive nd represents good vlue. The City's concurrence cnnot be withheld unresonbly. Globl Spectrum hs entered into n greement with Ovtion Foods, relted compny. The City hs reviewed tht greement bsed on competitive mrket dt nd found the greement for food services to be competitive. Globl Spectrum hs lso entered into n greement with Front Row Mrketing to ssist in the sle of suites, club sets, dvertising nd nming rights. While owned independently nd seprte from London Civic Centre (LP) nd Globl Spectrum initilly, tht compny ws subsequently purchsed by Globl Spectrum. The Civic Administrtion retined n independent consultnt to ssist in the evlution of this contrct which concluded the contrct ws mrket competitive. Globl held n open bid process for ticketing services nd the service ws wrded to New Er Tickets, full service ticketing nd mrketing product for public ssembly fcilities, which is n ffilited compny. All contrcts meet the terms of the greement with the City nd hve been concurred in, s per our greements with London Civic Centre (LP). Ticket Surchrge The JLC nd Centennil Hll re the only fcilities with user chrges. There is fcility fee for the JLC, which hs been set t $1.75. The fcility fee hs been set up to provide portions of the contribution to cpitl mintennce fund beginning in yer four of the building. n the first three yers of the building, the user fee ws pplied to generl revenues. The 2009 revenue from the fcility user fee t the JLC ws $248,149. This surchrge t the JLC pplies to ll events except London Knights hockey gmes. These gmes re excluded by n greement with the London Knights which ws negotited t the time the Knights entered into lese s the prime tennt. This exclusion is norml for hockey tems in most fcilities. n 2005, Council pproved convenience fee tht ws mended for 2006 to $.50 through internet, telephone nd outlet sles on tickets over $20 nd $50 fcility fee on ll tickets over $20 except for select fmily shows, non-profit events nd London Knights hockey gmes. This fcility fee forms prt of the $1.75 totl fcility fee chrged. The City received $186,816 in 2009 from these fees.

5 Agend tem # P e # t How Much Does the City Contribute Annully to Cpitl Repirs? The City's 2010 cpitl budget contributed $250,000 to Centennil Hll repirs nd $500,000 to the London Convention Centre Reserve Fund for cpitl repirs. Both fcilities will require similr contributions in future yers to mintin the building dequtely. For the Wolf Performnce Hll t the Centrl Librry, the City includes their cpitl mintennce long with the Librry budget of $50,000. The City mkes no contribution to cpitl repirs t the JLC s this is funded from the existing ticket fcility fees nd operting revenue nd is the responsibility of the London Civic Centre (LP). RECOMMENDED BY DEPUTY CTY TREASURER C. J. Fielding M. Hywrd

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9 m 0 rn ) m D 0 m The John Lbtt Centre is multi-purpose entertinment nd sports fcility. The fcility strives to perform significnt role in meeting the needs of the community in its overll progrmming. The John Lbtt Centre shll lso be lndmrk of city civic pride nd community ccessibility, promoting sense of vibrncy nd culture while lso providing wide rnge of public sports nd entertinment. F B B B D B t 3

10 4 Der Friends: On behlf of the City of London, it is plesure to extend wrm congrtultions to Globl Spectrum nd its entire tem, s we celebrte the 7th nniversry of the John Lbtt Centre. The JLC continues to generte energy, enthusism nd excitement nd hs proven to be tremendous investment for our community. Thnks to this unique prtnership, involving the City of London, the community nd business, the John Lbtt Centre is succeeding s gret venue for entertinment cross Southwestern Ontrio nd beyond. This yer we welcomed mny musicl icons, including KSS, Neil Young, Leonrd Cohen, Bryn Adms nd Din Krll, nd proudly hosted the 2009 Euro Cn Cup feturing n mzing exhibition of world hockey. Demonstrting its strong corporte socil responsibility, the JLC erned the Don Hrrison Energy Chmpion Awrd for diligence in reducing energy consumption in vriety of wys throughout the vst building. The Centre lso remins committed to severl other community inititives, including the United Wy nd Ronld McDonld House. As Myor, commend Globl Spectrum for its enterprising pproch to enhncing London's qulity of life nd economic development, nd look forwrd to mny more exciting endevours t the JLC in yers hed! Sincerely, AN De-Grco-DJd+- Anne Mrie DeCicco-Best Myor. City of London London CANADA The Corportion of the City of London 300 Oufferin Avenue PO. Box 5035 London ON N6A4L9 Office X4920 Fx deciccoqlondon.c w.london.c _c,....,....., 4

11 1) m rn m e m ) To our friends t Globl Spectrum Fcility Mngement: The John Lbtt Centre hs completed its sixth yer of opertion. Under the mngement of Globl Spectrum the Centre continues to ttrct "big nmes "in entertinment nd "big" events. Attendnce continues to exceed ll expecttions nd the John Lbtt Centre continues to show strong operting profit. Brin Oh1 nd his stff offer high level of professionlism in delivering sports nd entertinment to Londoners. The building hs become showcse for London nd is model mny cities re trying to emulte. Congrtultions on nother gret yer. 0 b m m B D m b Sincerely, Vic Cote Generl Mnger of Finnce & Corporte Services, City of London b, B B m D The Corportion of the City of London 300 Dufferin Avenue PO. Box 5035 London ON LE$En N6A 419,...,.....~.... D B D b

12 ** ' < Dunds Street London, Ontrio, Cnd N6A 6Kl Der Vic, The seson hs proven to be nother highly successful yer for Globl Spectrum Fcility Mngement t the John Lbtt Centre nd wnted to highlight number of the successes tht we hve experienced. Throughout the pst fiscl yer, the John Lbtt Centre ws proud to host 129 events nd welcomed people through the doors. j i f! As in yers pst, the seson t the John Lbtt Centre ws punctuted by number of significnt shows, including diverse concert series nd wide vriety of events tht showcsed the verstility of this terrific building. Performers such s The Blue Mn Group, Osis nd Leonrd Cohen were prt of the roster of events, while Crrie Underwood, Aln Jckson. Brd Pisley nd Neil Young performed before sell out crowds lst seson. Over its 7 yer history, the John Lbtt Centre hs often been home to world-clss Brodwy shows nd this seson ws no different. Audiences were treted to performnces of Annie nd The Drowsy Chperone. The highlight of the Brodwy in London seson fetured three frewelt performnces of the originl interntionl phenomenon, Riverdnce, which sw close to 6,000 ptrons ttend these high-energy shows. Globl Spectrum Fcility Mngement ws lso proud to host its "hometown" Phildelphi Flyers to the John Lbtt Centre gin this seson s they took on the New York slnders. Fns were treted to hrd-nosed tem effort by the Flyers, feturing London's own Jeff Crter. As the John Lbtt Centre begins the seson, the mngement nd stff of Globl Spectrum Fcility Mngement re delighted to open the doors nd welcome the residents of London nd Southwestern Ontrio to nother gret seson t the John Lbtt Centre. Regrds, Brin E. Oh1 b...

13 D B il, * m e 0 0 ) 0 m * 0 ) ) m D 0 B D Def Lepprd nd Billy dol August 7th Simple Pln August 3ofh TNA Wrestling September 13th Blue Mn Group September 18th Sheryl Crow September 24th NHL: Phildelphi Flyers vs New York slnders September 25th Thoms & Friends Live October2nd Crrie Underwood October 6th Feist October 24th Lenny Krvitz October 25th POP Go The Wiggles Live mober 27th Lipizzner Stllions November 15t & 2nd The Bckstreet BOYS November 8th Bob Dyln November 11 fh Aln Jckson November 13th FMX World Tour Motocross November 15th Brodwy in London "Dirty Rotten Scoundrels" November 29th & 30th Kenny Rogers December 1st Rise Aginst December 8th Osis December 15th SuperDogs! December 28th Jck Frost Cup - uwo lnury24th Disney on ce Yers lnury29th to Februry 1st Jeff Dunhm Februry4th Brd Pisley Februry 12th SO YOU Think You Cn Dnce Februry 18th Oldtimers Hockey Chllenge FebNry 19th Brodwy in London "Movin' Out" Februry 24th & 25th Monster Jm Mrch 7th & 8th Bryn Adms Mrch 14th i Brodwy in London! "Drowsy Chperone" Mrch 15th i Brodw in London "Rt Pczis Bck" Mrch 17th & 18th Gret Big Se Mrch 19th New Kids on the Block Mrch 29th Hrlem Globetrotters April loth Willie Nelson April 1 1 th Neil Young 4pril 15th Din Krll Apn125th Slipknot My 2nd Strs on ce My 3rd 1 Divo My 6th Brodwy in London "Annie" My 23rd Leonrd Cohen My 24th Disturbed My 25th Brodwy in London "Riverdnce" lune 22nd to 24th No Doubt lune 30th

14 i The John Lbtt Centre is the premiere entertinment nd sports fcility for London nd Southwestern Ontrio. The fcility, considered one of the key ctlysts in the redevelopment of London's downtown core, hosts numerous shows ech yer spnning ll genres from rock to country, hockey to fmily shows. The fcility sets 9,090 for hockey nd ice events nd up to 10,500 for concerts, fmily shows nd other events. The fcility hs 1,100 premium club sets, 38 privte luxury suites nd five Group Sles Suites. The John Lbtt Centre incorportes modern nd trditionl rchitecture, combining replic of the fcde of the old Tlbot nn, 19th century inn which stood on the spot of the current fcility, long with stte-of-the-rt rchitecture for the best of both worlds. n ddition to hving the bility to ccommodte both End nd Centre-Stge concerts nd shows, the fcility ws lso designed with the rts ptron in mind, thnks to the 3,199-guest RBC Thetre, which ws designed to ccommodte touring Brodwy shows nd smller concerts. The RBC Thetre is lso complete with 30-line fly grid which llows for ese in movement for stge productions, setting the thetre prt from other venues. The John Lbtt Centre is lso the home to the Ontrio Hockey Legue's London Knights, the 2005 Memoril Cup Ntionl Hockey Chmpions nd primry tennt in the fcility. i i! i i i c 4 c ( c c c (r ( cr m c c c e Y Y Q e e

15 c _ Hockey Sertin RBC Thetre Mode 4

16 Our people re wht mke us gret. This is certinly true of the stff of Globl Spectrum Fcility Mngement t the John Lbtt Centre. Globl Spectrum Fcility Mngement hs continued to exceed expecttions nd our people re the reson why. Whether it ws clening up the block with our collegues, prticipting in our nnul Christms toy drive, or simply smiling with "How you Doin'?" to our loyl customers, our mngement nd stff re proud to give bck to the community nd know wht the fcility mens to the people of London nd Southwestern Ontrio. The Globl Spectrum Fcility Mngement stff hs lso contributed to the community of London through vrious chrity nd environmentl inititives, becoming vluble members of the community nd not just the stff of n entertinment nd sports fcility. These efforts by our dedicted stff only underline the success tht we re proud to enjoy. This success is result of the dediction nd pride tht the entire Globl Spectrum Fcility Mngement stff hve for the John Lbtt Centre.

17 4 j The "How YOU Doin'?" progrm is one of the key stndrds tht the stff of Globl Spectrum Fcility Mngement prides itself in following t the John hbtt Centre. This philosophy is more thn greeting; it is benchmrk for mesuring the stisfction of our guests during ech event t the John Lbtt Centre. Every one of our stff members, from concession stff to security, mke sure tht our guests re greeted t'every turn with welcoming smile nd sk the question "How YOU Doin'?" The success of this progrm is mgnified with the doption of its stndrds by our prtners, the London Knights, Ovtions Food Services, Bee Clen nd.a.t.s.e. The philosophy is simple yet effective. t is bsed on 10 common-sense prctices which re esy to follow nd show strong returns...i:\*. Customer First! Use ll resources vilble to sene internl $ nd externl customer interctions 1 is Golden Rule Tret co-workers nd customers with complete respect, firness nd courtesy Listen Ask open-ended questions, be ttentive nd clrify understnding to improve ccurcy of responses Think "YES" Consistently demonstrte cn-do pproch in thoughts nd ctions Be Professionl Represent Globl Spectrum Fcility Mngement in n ethicl nd positive mnner with ll interctions ; ; '. >, f., _ -_-. Positive Attitude Solve problems cretively by mking decisions tht positively impct the entire orgniztion 24-Hour Rule Act with n pproprite sense of urgency when responding to ny nd ll requests Everybody Sells Suggest nd implement new wys to drive nd improve our business Enthusism Work with pssion towrds chieving individul, tem nd orgniztionl growth nd success nd encourge others to do the sme DotNow! Deliver on the things you hve committed to doing nd/or re ccountble for producing

18 Brin Oh1 Generl Mnger ", '. i..:... (3..1 " '. 1 ( ( 2 Krl Loeb Accounting Clerk Heidi Christensen Mrketing Assist Lis Zechmeister Mrketing Assistnt Ntsh Fritzley Group Sles Assistnt Kristen Johnson 4 Premium Seting Coordintor ' i

19 m e.e ) Judy Sullivn Executive Assistnt Shnn Pinnell Receptionist 0 Trent Merritt Assistnt Generl Mnger Grv Turrell b Senior BOX Office Opertions Mnger Event Mnger Event Mnger Brin Brown Box Office Mnger Jim Broudi AudioNisul T Denny Vervet Crystl Young Justine Tilemns Event Services Mnger Event Services Mnger Event Services Mnger Ntlie Mnin BOX Office Supervisor Bob Burn, Assistni Ooertions Mner Lee Bryr Senior Assistnt Ooertions Mner

20 Globl Spectrum Prtnerships To ensure the success of the John Lbtt Centre, Globl Spectrum Fcility Mngement utilizes severl prtnerships which support nd ssist stff to mximize the cre, control nd sfe nd efficient opertion of the fcility. These prtnerships re mde up of both long-term nd short-term commitments which re governed by collective greements or service greements....*"--.,*."----..". ".., ,, ,.,,.,.. i i t? v tions Ctering to the Highest Acclim n keeping with their dge "Performnces not Promises", Ovtions Food Services continues to deliver qulity service to the thousnds of ptrons which visit the John Lbtt Centre. Ovtions focuses on mny res of service, from the ptron ttending tht evening's show, to the fn t the hockey gme nd even the performer which plys the John Lbtt Centre. Ovtions delivers on their commitment to provide n enjoyble dining experience for ll. 1 Ovtions lso provides opportunities for groups nd orgniztions such s school groups, dnce clubs, minor sports tems nd privte clubs in the community to grow nd expnd their fundrising efforts. Monies rised from concession sles go directly to these orgniztions to ssist them in their gols. One of the gols within the Ovtions fmily is to "think green". Ovtions hs committed to bringing in eco-friendly products, reducing wste nd going locl with s mny purchses s possible. By prtnering with industry-leding compnies, Ovtions hs helped trnsform the John Lbtt Centre into true "House of Green". L g With concentrted efforts on guest stisfction, Ovtions stys hed of the industry stndrd in terms of food qulity, presenttion nd customer service. By stying true to the vlues of the "How You Doin'?" progrm, Ovtions ensures tht ll guests enjoy ech nd every visit to the John Lbtt Centre. The continued dvncement of Ovtions Food Services s compny hs llowed mny of its employees t the John Lbtt Centre the opportunity to expnd their knowledge by trveling nd ssisting other venues throughout North Americ.

21 ~~,. * %.. From dining in The Tlbot Br & Grille to booking privte function in The Tlbot Lounge or Sports Br, Ovtions offer you the opportunity to dine where the ction is.! *,. (.... ) 0 $4 Johnson c) Controls r (1, 8 d) m.1 r) C +?4 i cd r) cd 4 3!B 9 9 c) B B 6' B...,.. :.., Johnson Controls ncorported provides n extensive Service Pln Agreement which is currently in the seventh yer of 25-yer term. The greement is founded on n extensive nd comprehensive service pln which provides full-time opertor to the John Lbtt Centre. Johnson Controls ncorported is chrged with mny tsks crucil to the dy-to-dy building opertions, including comprehensive opertion nd mintennce progrm for ll Heting Ventiltion nd Air Conditioning (HVAC) equipment..a.t.s.e. Locl 105.A.T.S.E. Locl 105 provides skilled lbour necessry to undertke those functions ssocited with the rrivl, performnce nd deprture of concerts, speking enggements nd/or thetricl performnces. Such skilled lbour includes the movement nd set up of lighting nd sound equipment, set up of props, sets, wrdrobe, nd rigging of ll show-relted rnterivequipment. Lbour force requirements re governed by the size nd/or specifictions ssocited with the event. The cost of this service is dependent on the stffing requirements for ech event nd the number of hours employed. Globl Spectrum Fcility Mngement is extremely plesed with the reltionship, effort nd qulity of work provided by.a.t.s.e...'...~... " ~!*..,,... ~.,...,.,..,.l.,..,!., $, C

22 BULDNG MANTENANCE Jnitoril Services throughout the John Lbtt Centre re provided by Bee Clen Jnitoril Services. Bee Clen provides four mjor components which comprise the clening requirements for the fcility. Non-Event Clening is comprised of two full-time weekdy cleners who ddress the dy-to-dy nd preprtory clening requirements of the venue. Event Clening involves n event clening crew which, number dependent on the size, type nd demogrphic of the event, ddresses ll ongoing clening requirements during n event to ensure clen nd sfe event environment. Post-Event Clening involves crew which, number dependent on the size, type nd demogrphic of the event, clens the venue in its entirety upon the completion of n event. The finl component is Periodic Clening which, number dependent on tsks t hnd, will clen specific item(s) in need of ttention due to ongoing use nd/or s result of n event (i.e. cup holders in premium seting; bowl sets fter dirt event). SECURTY nnovtive Security Mngement (1998) nc. provides licensed uniformed contrcted security for the venue nd its events. Security needs will vry depending on the nture of the event nd my include presence in the following positions; brricde, wings, dressing roomsbck of house, prking lot, mot, mix, romer, gtes for pt down, smoking res, nd/or other sttic positions in the venue.

23 i i John Lbtt Centre Finncil Performnce Yer Ending June 30, 2009 Actul Events 129 Pid Attendnce 574,531 Budget Vrince ,235 5,296 Direct Event ncome $857,826 Totl Event ncome t $2,661,141 Other ncome $2,816,046 $1,058,623 $(ZOO, 797) $785,427 $175,458 $2,671,537 1 $ (10,396) $2,752,210 1 $63,836 Totl ncome $5,423,747 1 $53,440 ndirect Expenses 1 $5,176,961 $5,306,672 $129,711 Net ncome $300,226 $117,075 $183,151

24 The John Lbtt Centre hosted totl of 129 events in the pst yer. The London Knights ppered in 44 event dtes ccounting for 34.1 % of the results. Concerts were second with 28 dtes or 22% Fmily shows held 21 dtes during the fiscl yer or 16.3% Fmily shows typiclly occupy the fcility for multiple dys with nywhere from one to eight shows during tht time. f there were three performnces of the sme show in one dy, then this figure is counted s three events. Brodwy shows lso comprised 9% with 12 performnces in the pst fiscl yer. Other events ccounting for 16.3% of the totl events t the John hbtt Centre included Guts on ce, Pst Fest, French Stock nd the Thmes Vlley District School Bord Vriety s Concert nd Wrpped Around the Clock. Miscellneous Sporting Events ccounted for 2.3% of totl events reported in the lst fiscl yer including the NHL Preseson Gme, The U.W.0 Jck frost Cup nd the NHL Old timers Hockey Gme. Events not included in the totl number of events included over 120 ice rentls. Also not included in this figure re number of chritble, community nd press events..

25 1 Globl Spectrum Brought the World s Best to the John Lbtt Centre in Globl Spectrum Fcility Mngement brought spectculr line up of entertinment in Artists such s Osis, Lenny Krvitz. No Doubt nd New Kids on the Block grced our stge. We lso were ble to feture mny Cndin musicl icons with Neil Young, Leonrd Cohen, Din Krll nd Bryn Adms to nme few.

26 mllm. %--+=----- ndustry leder Pollstr Mgzine once gin rted the John Lbtt Centre mong the top-100 rens for worldwide ticket sles, plcing the fcility t number 58 in the world. This rnking sw the John Lbtt Centre finish hed of such mjor fcilities s the Vn Andel Aren in Grnd Rpids, Michign nd the Pepsi Center in Denver. POLLSTAR MAGAZNE Yer End Top 100 Worldwide Aren Venue Tic&et Sles Rnk Aren Venues Loction Aren Mdison Squre Grden Aren Mnchester Evening News Aren Sportpleis Antwerpen Air Cnd Centre Bell Centre Scotibnk Plce John Lbtt Centre Vn Andel Aren Pepsi Center London, Englnd New York, NY Mnchester, Englnd Merksem, Belgium Toronto, ON Montrel, PQ Ottw, ON London, ON Grnd Rpids, M Denver, CO Tickets 1,806,447 1,161,035 1,157, , , , , , , The rnkings for the top ticketed Cirque du Soliel performnces were published in the fll of 2008 during this pst fiscl yer. The John Lbtt Centre ws rnked s 5th for Cirque du Soliel's Sltimbnco This spring Cirque returned to the John Lbtt Centre, selecting the venue s the idel loction to reherse Alegri in the spring of VENUES TODAY Dte Totl Gross (US$) Attendnce Shows 1. WMu Theter, New York Nov 1/07-Jn 6/08 $35,192, , WMu Theter, New York Oct 29/08-Jn 4/09 $23,109, , Grn Crp Snt Fe, Mexico City Dec 14/07-Jn 13/08 $4,990,213 82, Americn Airlines Cntr., Dlls Mr 27-28/06 $ , John Lbtt Centre July 31/07 $1,653,565 26,130 20

27 i i RVERDANCE, the thunderous celebrtion of rish music, song nd dnce tht hs tpped its wy onto the world stge thrilling millions of people round the globe; plyed three frewell performnces t the RBC Thetre t the John Lbtt Centre June 22-24th Composed by Bill Wheln, produced by Moy Doherty nd directed by John McColgn. to dte, RVERDANCE hs plyed over 10,000 performnces, been seen live by more thn 21 m;llion people in over 300 venues rhrougholt 32 comtries cross 4 continents. They hve trveled well over mks (or to the moon nd bckl). plyed to worldwlde te.evtston udience of nerly 2 b,llion. : UNE2224,2009 n April 2009 John Lbtt Centre received the Don Hrrison Energy Chmpion Awrd for its diligence nd ttention to reducing the energy consumption in the building by reducing the number of hours tht our refrigertion plnt runs The John Lbtt Centre strted these conserving mesures in September 2007 nd relized 26% reduction in the first month lone. Moving forwrd the John Lbtt Centre ws sure they would be ble to ccomplish more nd in the 2nd month relized 40% reduction, nspired by the results they strive to continully meet or exceed the reduction percentges in the run hours.,*.,.'.1,4 - --"-.-,-*- *_-*

28 -... home wy from home to fce off ginst the New York slnders. The NHL Preseson Event on September 25th fetured n outdoor block prty nd gret chritble component. Globl Spectrum Fcility Mngement's officil chritble cuse for the night ws "The Ronld McDonld House".,., ~ ~ 22 Premium Seting continues to be in high demnd t the John Lbtt Centre. The renewl rte in the lst fiscl yer ws 95%. The remining sets were sold very fst to witing list tht is over 930 people long. There were lso 13 Luxury Suites up for renewl this yer with ll but one renewing for seven yer term. The open suite sold quickly to Rogers Cble from witing list of over 118..,..- T".~ " , ~. -,.. _.,..,..,,... " ,, ~ 1. _ j,, <:..:*,' r, :( 1 :.*, ".~ 1 -,%r ( (

29 ~ The Stff of Globl Spectrum Fcility Mngement Supports the Community Globl Spectrum Fcility Mngement nd the John Lbtt Centre donted over $100,000 worth of dontions, goods nd services to lrge number or locl chrities nd community cmpigns. This mount hd tremendous impct in the London community s in mny cses premium tickets to events including luxury suite dontions were ble to generte significntly more dollrs in dontions thn the ctul vlue. Our chritble focus nd community involvement in included thousnds of ticket dontions, over $30,000 pid out by Ovtions to locl not-for-profit orqniztions - who worked concession stnds, nd gift certifictes. i i i f We were lso proud to continue our trdition of fundrising t our NHL preseson gme in the fll of 2008 rising significnt mount of money for Ronld McDonld House. Mny chritble events returned to the John Lbtt Centre including "Wrpped Around the Clock", which rises money for needy fmilies in the London re, "Pst Fest", which rises money for the Kidney Assocition of Cnd nd our nnul toy drive for the Slvtion Army..".~.~..,....,... ~...,~ ~ John Lbtt Centre nd Scotibnk donte over $17,000 to locl Ronld McDonld House Globl Spectrum Fcility Mngement, opertors of the John Lbtt Centre, nd Scotibnk proudly presented cheque for $1 7,848 to the London, Ontrio Ronld McDonld House on October 31 st, This money ws rised during the nnul NHL preseson gme feturing the Phildelphi Flyers t the John Lbtt Centre on September 25th. 2008, mrking Scotibnk's 6th yer of sponsorship for the event. Ronld McDonld House ws this yer's chosen chrity to receive the proceeds from,..", ~ '. -111,... the 50/50 drw, Bttle of the Sections nd the Scotibnk Chrity Shootout. Globl Spectrum contributed $ , mtched by Scotibnk, with n dditionl $2000 donted by Scotibnk for the shootout..

30 John Lbtt Centre "Fill the Zmboni" cmpign which collects toys,! 1 clothes nd other gifts to help out needy childern during the holidys ws the most successful to dte. t included Rffle for Suite for London Knights Hockey gme. An "open house" skte tht brought in over 200 London residents to the building. Dontions from those two events s well s our Premium Skte prty rised over $1 5,000 worth of toys for the Slvtion Army. 3 The John Lbtt Centre Group Sles Deprtment worked closely with non profit, chritble nd youth groups to help rise much needed funds for their orgniztions. Fundrising tickets were offered for vriety of fmily shows including Disney on ce nd Hrlem Globetrotters, these progrms rised over $7000 for locl groups. The Group Sles Deprtment lso worked with locl children's groups nd donted over $1000 worth of tickets. i, 1!... " i?",' Q 6 ( 1 Q G 6 6 i c C C b L C C c c ( c Q ' ( Q ( e 6 ( ti c

31 .

32 .1 The John Lbtt Centre strts the next fiscl yer off BG! After 65 million yers they re bck... Dinosurs return to the erth in live thetricl ren show, WALKNG WTH DNOSAURS -The Aren Spectculr, bsed on the wrd-winning BBC Television Series. n WALKNG WTH DNOSAURS, fifteen roring, snrling live dinosurs mesmerize the udience -nd re s we-inspiring s when they first wlked on erth. The show is now on n ongoing North Americn ren tour nd will perform 8 performnces t the John Lbtt Centre in London, Ontrio -AUGUST 12th to 16th This show will be huge success t the John Lbtt Centre nd we re very excited to bring show of this mgnitude to London 2b

33 i 1! Club Cmbri t the John Lbtt Centre Cmbri, the only producer of nturl qurtz surfces in the United Sttes, first contcted ws the Corporte Sles Tem t the John Lbtt Centre in April Over the course of one clendr yer, representtives from Cmbri Cnd were educted on the building, the city nd of course the sponsorship/prtnership opportunities t the John Lbtt Centre. A strong reltionship ws formed nd soon fterwrds verbl commitment to proceed with renovtion project of the Sports Br ws mde. When completed in August 2009 this former Sports Br re will be the first Club Cmbri in Cnd. The John Lbtt Centre, The London Knights nd Ovtions Food Services re excited to showcse this renovtion on August 24th t the grnd opening? f 111, 1D Q 0 m R m - More qret events on the wy Some of the tremendous cts coming to London this fll include the legendry KSS, up nd coming bnds like KNGS OF LEON, rp senstion JAY Z mong other gret cts. We lso nticipte sold out crowd s our home town Phildelphi Flyers fce off ginst the Toronto Mple Lefs nd the NBA returns to London for the second time since 2004 s the 76ers fce the Toronto Rptors. i j As we move into new fiscl yer, Globl Spectrum Fcility Mngement nticiptes tht it will fill even more sets, produce more revenue nd continue to be n importnt force driving tourism to London, Ontrio. We lso look forwrd to working with mny more chritble nd community! orgniztions nd sustining our importnt plce in London's community.