GREATER BOISE AUDITORIUM DISTRICT REGULAR BOARD MEETING OF THE BOARD OF DIRECTORS AGENDA Revised September 20, 2016 BOISE CENTRE Willows Room 2:00 p.m. I. Call to Order II. III. IV. Changes or Additions to the Agenda Agenda A. Chairman s Comments Jim Walker B. Approval of minutes Judy Peavey-Derr 1. August 25, 2016 Regular Board Meeting C. Executive Director Report, Pat Rice Other Business Action Items A. Finance Committee Judy Peavey-Derr B. Consider changes to ESI, Phase 2, CM/GC agreement to include Phase 3 Pat Rice V. Executive Session Pursuant to Idaho Code Section 74-206 (1) (b) To consider the evaluation, dismissal or disciplining of, or to hear complaints or charges brought against, a public officer, employee, staff member or individual agent, or public school student, and VI. VII. Pursuant to Idaho Code Section 74-206 (1) (c) To conduct deliberations concerning labor negotiations or to acquire an interest in real property which is not owned by a public agency, and Pursuant to Idaho Code Section 74-206 (1) (f) To communicate with legal counsel for the public agency to discuss the legal ramifications of and legal options for pending litigations, or controversies not yet being litigated but imminently likely to be litigated. The mere presence of legal counsel at an executive session does not satisfy this requirement. Correspondence/Other Business Adjournment
AGENDA District Recent Activity Expansion Update Hotel Update District Performance Boise Centre Performance 1
EXECUTIVE DIRECTOR REPORT AUGUST 2016 2
D ISTRICT R ECENT A CTIVITY Budget preparation for 2017 under way. Meeting rooms open; first convention started September 11, 2016 Dates of note: temporary Certificate of Occupancy Ballroom week of September 19; October 24 th Board Meeting date change (from October 25); and ribbon cutting for City Center Plaza could be mid October; Client Reception for Boise Centre East date to be determined, probably December. Working on updating bylaws and board training for November, December and January Working with Boise State on updating the Economic Impact Study 3
Kitchen equipment moving in. KEY EXPANSION MILESTONES Elevator, escalator and kitchen issues being worked out. Clearwater elevator issues being worked out. Concourse (Phase 2) under way. Phase 3 planning almost complete. 4
KEY EXPANSION TIMELINE Phase I Boise Centre East Equipment Move In Occupancy and Grand Opening July 18, 2016 August 2016 August 2016 September 2016 December 2016 April 2017 Phase II - Concourse Phase II Start Crane on Plaza Crane off Plaza Completion 5
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H OTEL U PDATE Hyatt Place: interior work progressing. Residence Inn framing practically completed; exterior work beginning. Inn at 500 Capital enclosed and continues to plan on a New Year s Eve 2016 opening. 11
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HOTEL TAX RECEIPTS Average Daily Rate 2016 $100.86 compared to prior year $101.64; YTD $100.39 compared to $94.74 Occupancy 2016 84.6% to 2015 85.5%; YTD: 76.9% compared to 72.4% Hotel Tax Receipts of $570K < $598K to Prior Year, <$5K to Budget; YTD $4.393M>$436K to PY Demand 2016 129.9K 2015 129.5K; YTD 799.5K compared to 760.0K Room Supply 2016 153.5K to 2015 151.4K YTD 1.039M compared to 1.045M 13
Tax revenues spiked in July 2015 and 2016 from the Far West Soccer and Jaialdi events, which resulted in record hotel ADR $104 and $115, and occupancy > 85.5%. 14
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18 Funds decreased due to $750K payment to CCDC and $280K transfer to Boise Centre for cash flow needs
Includes all funds, committed and uncommitted 19
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YTD Tax revenues > budget 21
22 Transfers budgeted higher in 2016 due to $450K lease payments and $2 million expansion capital transfers.
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Sales, General and Administrative expenses < budget, > than 2015 due to increases in staffing and marketing related to the expansion. YTD Revenue > Expenditures $500K better than budget for YTD 2016. See comments regarding gross profit, and sales, general and administrative expenses. Gross margin is 35%; budget is 30%. Costs have been managed to lower sales levels. As a result, the gross profit > budget $78K. 25
THIRD QUARTER CAPITAL EXPENDITURES CURRENT FACILITY Refinish Exterior Steps Fan Coil Pneumatic Controls Co-Mingler Bay Door Portable Video Switchers Total $ 16K $ 9K $ 5K $ 3K $ 33K Year to Date Capital Expenditures $260K Budget $303K Remaining to be Spent $ 43K 26
August Event Summary - 3 Year Comparison 2014 2015 2016 Attendance 7,135 3,614 3,790 Event Days 20 21 25.5 Type of Events: Convention 3 2 2 Other 6 6 14 Tradeshow 1 1 1 Total 10 9 17 27
69% 68% 28
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31 * Source: 50%-70% based on CSL Feasibility Study, March 22, 2010
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SALES & MARKETING August Marketing & Sales Highlights 5 Convention groups confirmed. 1 for 2016, 3 for 2017 and 1 for 2018. 8 proposals were generated for new business. 72 YTD. 18 new Qualified Leads secured. 124 YTD. 15 local events confirmed. Sales Team attend 2 tradeshows (ASAE/American Society of Association Executives Annual Convention and Connect Marketplace). Sales efforts remain strong for both facilities. The Sales Managers are focusing on 2017, 2018 and 2019. 33
Projects SALES & MARKETING (CONTINUED) Hosted a Lunch & Learn campaign for the Taxi and Shuttle drivers on August 24. Will provide visitor materials to all cab companies in September. Working to complete the 2017 marketing budget. Developing the 2017 marketing, sales and communications plans. Updating the Boise Centre Event Guide. Working with Centre management to develop the Boise Centre s Wowgistics program and campaign. Continue to hold sales coordination meetings monthly with the CVB. Boise Centre East Grand Opening gift items have been completed. 34
Boise Centre Conventions - Rolling 6 Years 70 60 50 40 30 Tracking Tentative Confirmed 20 10 0 2016 2017 2018 2019 2020 2021+ Total Tracking 0 11 18 12 6 2 49 Tentative 0 11 16 13 5 8 53 Confirmed 45 26 6 0 1 0 78 Total 45 48 40 25 12 10 180 35
Boise Centre Non-Convention (Local) - Rolling 6 Years 180 160 140 120 100 80 Tracking Tentative Confirmed 60 40 20 0 2016 2017 2018 2019 2020 2021+ Total Tracking 4 7 5 1 1 1 19 Tentative 5 57 44 27 21 9 163 Confirmed 158 40 0 0 0 0 198 TOTAL 167 104 49 28 22 10 380 36
COMMUNICATIONS & PUBLIC RELATIONS August 2016 Highlights Boise Centre website: Communicated several times a week with Drake Cooper regarding content and design. Coordinated with human resources, accounting and operations on content and functions needed on the website. Placed photos of events and city shots on the website. Worked with Boise Airport, BCVB and Warren Lassen to secure photos. Worked with Drake Cooper on several forms for submittal Event Inquiry, Lost and Found and Contact. Continued to work with programmer on the interactive Boise Centre floor plan to be featured on the website. Added photos and room diagrams to each of the 29 rooms and text to the four levels. Prior to launch reviewed all pages for content, photos and checked links. Worked with Svend to coordinate technology details for launch. 37
COMMUNICATIONS & PUBLIC RELATIONS (CONTINUED) Media Relations Worked on Idaho Business Review, 2016 Corporate Guide to Event Planning two page Boise Centre feature. Submitted sponsored content (400 words) and images to Meetings Media Group for NW Meetings & Events. Idaho Statesman, Guest Opinion Development Financing by Peter Oliver. Submitted editorial (400 words) to Facilities and Destinations for the Mid-Market Review publication. 8/30 Spoke with Dean Johnson, KTVB reporter regarding a story he was researching about the announcement of a hotel at 6 th and Front Streets. 8/30 Visited with Sven Berg regarding the expansion progress and will update again in two weeks. Will schedule a tour and photos in mid-september. General Communications 8/1 Met with Meeting Systems to discuss opening party, electronic invitations and responses. 8/2 Worked with Camp Rainbow Gold to generate interest in media stories for the Shine fundraiser in September. 38
Master Timeline of Current Marketing & Communications Projects Dec. Jan. Feb. As of 3/21/2016 2016 Travel Industry Excellence Award Notes: Due to Boise Metro Chamber on April 1 Boise Centre Website Redesign Notes: RFQ awarded in March to Drake/Cooper. Project completion is estimated for 120 days. Event Coordinator Position Search Notes: Interviews to take place weeks of March 21 and March 28 / Position slated to be hired in early April Economic Impact Study Notes: Investigating with BSU College of Business & Economics 2015 Financial Highlights and Major Operational Results Notes: To be presented at the April District Board Meeting Boise Centre Expansion Grand Opening Notes: Continuous planning through late October Expansion / Construction Hard-Hat Tours Notes: Ongoing through the construction process Development of I-MAP plans for the website Notes: Secure contract with I-Map in March. Development of pages to be completed in advance of website launch. Hosted lunch for Taxi/Cab and Hotel Shuttle Drivers Notes: Create invitations and program to educate the taxi drivers about the expansion Social Media Training Notes: Learn about our social media platforms. Create content and use as a tool to help promote the grand opening as well as other facility services. Development of a Crisis Management Communications Plan Notes: Master Timeline of Current Marketing & Communications Projects Dec. Jan. Feb. Page 2. New Photography of all Boise Centre East Spaces Notes: To build photo library to service media requests and to support editorial features District Newsletters to key stakeholders Notes: Press Release to promote Boise Centre Sustainability programs Notes: PR Opportunity with Boise Rescue Mission Denver Sales Mission Notes: Annual Sales Mission will be to Denver and Colorado Springs. Collaborating with the CVB to help in planning and organizing.
Development of new Boise Centre Promotional Video Notes: To be used on the website and in sales efforts 2017 Budget Notes: Final budget due in October
Mar. April May June July Aug. Sept. Oct. Nov. Mar. April May June July Aug. Sept. Oct. Nov.
Master Timeline of Current Marketing & Communications Projects Dec. Jan. Feb. Mar. Apr. May June As of 9/9/2016 2016 Travel Industry Excellence Award Boise Centre Website Redesign Event Coordinator Position Search Economic Impact Study Notes: Investigating with BSU College of Business & Economics. Awaiting proposal from BSU 2015 Financial Highlights and Major Operational Results Boise Centre Expansion Grand Opening Notes: Continuous planning through late October Expansion / Construction Hard-Hat Tours Notes: Ongoing through the construction process Development of I-MAP plans for the website Hosted lunch for Taxi/Cab and Hotel Shuttle Drivers Social Media Training Notes: Learn about our social media platforms. Create content and use as a tool to help promote the grand opening as well as other facility services. Development of a Crisis Mgmt. Communications Plan Notes: New Photography of all Boise Centre East Spaces Notes: To build photo library to service media requests and to support editorial features District Newsletters to key stakeholders Notes: Next issue to be distributed by end of April. Press Release to promote Centre Sustainability programs Notes: PR Opportunity with Boise Rescue Mission Denver Sales Mission Development of new Boise Centre Promotional Video Notes: To be used on the website and in sales efforts 2017 Budget Notes: Final budget due in October 2017 Marketing/Sales/Communications Plan Notes: Media Tours Notes: Work with the CVB and Fahlgren Mortine (PR agency) to host key media publications in Boise to showcase the new expansion Boise Centre Event Guide Update Notes: Update to include BC East RED text indicates project completed
July Aug. Sept. Oct. Nov.