GEORGIA W 0 R L 0 CON G RES S CENTER AUTHORITY Don W Sands, Chairman CEO Emeritus Goldkist Mary Rose Taylor, Vice Chairman Community Leader I. Owen Funderburg, Secretary Retired Citizens Trust Bank Paula Lawton-Bevington, Vice President Servidyne Inc. Treasurer John E. Aderhold, Chairman Emeritus Co - Chairman, Committee for Olympic Development in Atlanta Ovid Davis Retired The Coca-Cola Company Harold A. Dawson, Sr. President Harold A. Dawson Co., Inc. Thomas @. % ChaIrman Dowden Com)nunications Rubye Mims':,L.ucas Human Resource~~Administrator Turner Broadcasting System, Inc. Jeanette G. Garrison President &, GEO Healthmaster, Ii1~. G wee LE G I stoAT I V E OVERVIEW COMMITTEE Senator Charles C. Clay, Chairman Senator Paul B.Broun Senator Ronald D. Slotin Representative,., Larry J. Parrish, Vice Chairman Representative Roger Byrd Representative Louise McBee CON TEN T S 2. Director's Report 4. GWCC Income and Expenses 6. GWCC Economic Impact 8. GWCC Sales and Event Attendance 10. DOME Income and Expenses 12. DOME Sales and Economic Impact 14. Authority Balance Sheet 16. Human Resources Report w c: c: G e c G A o c M e 2 1993 Annual Reporl DIRECTOR'S REPORT Fiscal year 1992-1993 was a year of dramatic growth for the Georgia World Congress Center Authority. With the August opening of both the 71 ,SOO-seatGeorgia Dome and the Congress Center's 310,000 square foot Phase III expansion, we became one of the world's largest sports, entertainment and convention complexes virtually overnight. The spectacular opening of the Georgia Dome included a public weekend entitled "Roam the Dome" that drew more than 230,000 visitors from around the state and region, as well as a gala dinner to honor the people who contributed to the success of the project. From there, the Dome immediately moved into its first season and hosted more than one million guests in its first three months of operation . Phase III, with its dramatic new concourse, will allow the Congress Center to keep up with growth demands of events and host larger events as well as increase the number of simultaneous activities the faCility can host. Overall, the Congress Center is booked at 87 percent of its practical maximum occupancy for the next 10 years. Both of these new additions are major assets the state of Georgia can be proud of for years to come. The primary goal is for these facilities to serve as economic catalysts for the entire state. Moving into the next year and beyond, we forecast that both the expanded World Congress Center and the new Georgia Dome will be major factors in the success of the state's hospitality industry. Elsewhere in this report you will note these developments were accomplished with a dedicated staff who continued to offer excellent service to our ongoing business, thus allowing us to post another strong year of financial performance with steady attendance figures. And the coming year brings new challenges. We are excited about hosting Super Bowl XXVIII for the National Football League. The Dome is the NFL's newest host stadium and allows Atlanta to become one of only 10 cities to host the NFL's ultimate matchup. The Super Bowl is the perfect event to showcase our facilities to the world. In addition, the proposed development of a much-needed parking deck and pedestrian circulation plaza will help alleviate traffic congestion and allow the complex to go forward with planning for continued expansion. We hope you enjoy this progress report, and we look forward to continuing to playa role in the growth and development of Georgia and our capital city Atlanta. c;)#~/!:- Dan Graveline Executive Director Georgia World Congress Center Authority As part of the grand opening activities, more than 230,000 guests visited the Georgia Dome during "Roam the Dome" weekend. The open house featured indoor parades, high school bands from across Georgia, competitions for non-athletes and much more. e c G A w c L o c: c N G e 55 55 c: e N T e 4 1993 Annual Reporl INCOME AND EXPENSES Fiscal year 1993, ending June 30, was another strong year for the Georgia World Congress Center. A successful combination of large trade shows, consumer shows, conventions and corporate meetings resulted in a net operating profit of $4.7 million. Even in a less than robust economy, the World Congress Center required no state appropriations for operations. In fact, the GWCC generated $S6 million in new tax revenue for the state. INCOME 15% 45% 22 % RENT EXHIBIT UTILITY SERVICE FOOD SERVICE PARKING HOTEL/MOTEL TAX OTHER EXPENDITURES 6% 3% 26% MGR Food Services, the exclusive 64% caterer of the Congress Center and Georgia Dome, provides a vast array of dining options from casual box lunches to lavish receptions and sit-down dinners. PERSONAL SERVICES REGULAR OPERATING EQUIPMENT CONTRACTS/FEES OTHER INCOME AND EXPENDITURES STATEIVIENT,~01'j ill"! INCOME Rent Exhibit Utility Services Food Services Parking HoteI!Motel Tax Other Sub-Total HoteI!Motel Tax (~CVB) TOTAL EXPENDITURES Personal Service Regular Operating Equipment ContractlFees Other Sub -Total... HoteI!Motel Tax (ACVB) TOTAL NET GAIN FY 1993 $ 9 ,600 , 114 $ 4,747,691 $ 3 ,247,889 $ 902,869 $ 1,433,436 $ 1,41S,694 $ 21,347,693 $ S,313,39S $ 26,661,088 $ 10,S42,833 $ 4,299, S7 S $ 169,6S6 $ 1,030,349 $ S40,971 $ 16,S83,384 $ S,313,39S $ 21,896,779 $ 4,764,309 Meeting space rental, security and technical support are just a few of the services that provide income for the facility. GWCC INCOMES RENTAL Exhibit Hall Rent.. Meeting RoomslBallroom/ Auditorium/Conference Miscellaneous Rent. TOTAL RENT Center FY 1993 $ 8,61S,943 $ 697,399 $ 286,772 $ 9,600,114 UTILITY SERVICE GROSS INCOME $ 4,747,691 INCOME BUilding rental income increased slightly, providing 45 percent of the GWCCs total income in fiscal year 1993. Exhibit utility services provided 22 percent of the GWCCs income at $4.7 million. Income derived from food service operations, parking and the hotel/motel tax decreased slightly. EXPENDITURES In general, operating expenses were in line with projections. The GWCC held regular operating expenses and equipment expenditures steady, while personal services and contract fees grew slight1y. "Other expenses" cover telecommunications and computer costs as well as supplies, equipment leases, travel, printing and minor miscellaneous expenses. 1993 Annual Reporl 5 e I c 'I FI A w c Events held in the Congress Center FI contributed more than $ 1.04 billion into Atlanta's and L Georgia's economy. o c: c N FI e 55 55 c: e N T e FI 8 1993 Annual Reporl ECONOMIC IMPACT T he Georgia World Congress Center Authority is a state authority created to generate economic development. By attracting out-of-town visitors to conventions and trade shows, the state of Georgia realizes millions of "new dollars" as money they spend circulates through the economy. During FY 93, $62S million "new dollars" were generated from Georgia World Congress Center activity. As this money circulated, it created a total economic impact of appro xima tely $1. 04 billion. Each out-of-town guest spends approximately $214 per day in Atlanta during the average 4.2S days a visitor stays while attending a convention or trade show. This amount includes everything from hotel rooms and local transportation to restaurants and shopping. To calculate the "new dollars" generated by GWCC activity, multiply $214 (average spending per day) x 4.2S (average stay) x 686,739 (the number of FY 1993 out -of-town guests). The total economic impact is calculated by multiplying the "new dollars" by 1.66. This figure indicates the approximate number of times these "new dollars" generated by the GWCC are turned over in the community to stimulate the economy. Personal Income Retail Sales Total Dollars GWCC Activity "New Dollar" Impact $ llS,S48,987 S09,040,134 $ 624,S89,121 Secondary Impact $ 76,262,331 33S,966,489 $ 412,228,820 Total Economic Impact $ 191,811,318 845,006,623 $1,036,817,941 EMPLOYMENT S,706 9,301 15,007 TAXES Retail Sales Concessions HotellMotel Personal Income Corporate Income Total Taxes $ 30,S42,408 30S,424 23,61S,091 2,426,S29 S44,673 $ S7,434,125 $ 20,lS7,989 0 0 1,601,S09 3S9,484 $ 22,118,982 $ 50,700,397 305,424 23,615,091 4,028,038 904,157 $ 79,S53,l07 "New Dollars" Generated Total Impact of New Dollars FY90 FY91 FY92 FY93 " $ 613,1l3,OSO $S80,468,366 $S22,94S,220 $ 624,589,121 1,017,767,663 963,S77,488 868,089,06S 1,036,817,941 TAX REVENUES Georgia State Tax $ Atl. HotellMotel Tax Total Tax Revenue $ 41,633,290 19,734,032 61,367,322 $ 39,416,S62 $ 3S,SI0,467 $ S5,938,016 21,40S,664 21,296,3S6 23,615,091 $ 60,822,226 $ S6,806,823 $ 79,553,107 80 78 ECONOMIC IMPACT 78 -------------------~-----~--~---"--"------------------ 74 10T~tf1(PENSl TO GEORGIA "_ 72 DEBT SERVICE EXPENSE OPERATING EXPENSE 70 88 TOTAL INC O~M"",E,----__ TAX I N C=-.;O=-:.M~E=---_ 88 OPI :RATING INCOME 64 82 NET PROFIT 58 -----------------------------"------------------ 58 54 52 50 48 46 1M! 44 =2 - 42 ....I -....I 40 ::E 38 38 34 32 30 28 28 24 22 20 18 18 14 12 10 8 8 4 2 0 FY82 $13.4 FY83 $3.9 FY84 $11.6 FY85 $16.9 FY86 $22.5 FY87 $21.1 NET PROFIT TO STATE FY88 $37.2 FY89 $43.6 FY90 $49.3 FY91 $47.8 OF GEORGIA IN MILLIONS FY92 $34.7 FY93 $37.6 e c FI A w c FI L o c: c The Festival of Trees, benefitting Egleston Children's Hospital, is the N largest annual public event held in the Congress Center attracting more than 12S,OOO FI attendees over the e nine-day celebration. 55 55 c: e N T e FI 8 1993 Annual Reporl SALES AND EVENT ATTENDANCE A ttendance to events at the Georgia World Congress Center grew for the third straight year in FY 19921993. The center hosted more than SO trade shows, 22 consumer shows and a myriad of smaller events and banquets of all types and sizes, and bookings for the future are holding steady. Currently, the center is booked at 87 percent of practical maximum through the year 2003. With the addition of Phase III, which added 310,000 square feet of exhibit space to the west side of the building in August, we expect these numbers to continue to rise. This year's expansion generated excitement in the industry and will make it possible to secure more and larger events for the GWCc. An "Exhibit Hall Day" is equivalent to all space booked in either exhibit halls ABC, DEF or GH for one full day. "Practical Maximum Bookings" are equivalent to all exhibit hall space booked for 28S days. This number takes into account national holidays, weak seasonal periods in July, August and December, plus three days per month for inherent scheduling gaps between major trade shows. Conventions, consumer shows and a variety of small meetings and food functions attracted I,S42,80S visitors to the Congress Center, up from 1,330,248 last year. Of that number, 686,739 were out-of-town guests. Among the largest trade shows and conventions was The Super Show, drawing 9S,977 attendees. The Super Show - the largest trade show in the world for the sporting goods industry and one of the top five largest tradeshows in the United States - was the first event to occupy both the GWCC and the Georgia Dome. In addition to Comdex, with an attendance of 89,108, Bronner Brothers International Beauty Show and the International Woodworking Machinery &: Furniture Supply Fair - U.S.A. rounded out the top four shows by attendance. The Festival of Trees had the highest attendance for public shows with 12S,000 visitors, followed by the Atlanta Area Council of Boy Scouts with 86,000. The Atlanta Boat Show, National Sports Collectors and the Spring edition of the Atlanta Home Show were also among the top public shows. FY 1993 TOTAL ATTENDANCE 1,542,805 11% 44% 45% 50 MAJOR TRADESHOWS & CONVENTIONS (677,332) 22 CONSUMER SHOWS (690,473) MINOR EVENTS (175,000) OUT OF TOWN ATTENDANCE TOTAL (686,739) GEORGIA WORLD CONGRESS CENTER HALL BOOKINGS 385 300 285 250 i--- - -- - r-- - PRACTICAL MAXIMUM BOOKINGS r---- r- 200 - '--- ,- r-- - f..-.- f.--. - f.--. - - r---- - i- - f..-.- f.--. I- f.--. - 100 '--- f.--. - f..-.- f.--. f..-.- r-- r-- 50 r-- f.--. r-- r-- - f..-.- - f..-.- I- f.--. o 1992* 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 HALLS ABC HALLS DEF HALLS GH * Days booked for halls G & H reflect bookings August through December 1992 ..',. . .. . .d,.~. !.I,lti',.' n,,\ J"....,... :~. ." T~ G e Natalie Cole provided "An Unforgettable Evening" during c the Georgia Dome dedication ceremonies. G INCOME AND EXPENSES Fiscal year 1993, ending June 30, was the Georgia Dome's first year of operation. Even in an abbreviated year, an exciting combination of Atlanta Falcons football games, the Peach Bowl, concerts, tradeshows, basketball and business meetings, the Dome exceeded expectations and produced a profit. INCOME A 10% o 1% ...- 15% c 4% M e 45% RENT FOOD SERVICE (MGR) PARKING OTHER LICENSE FEES ADVERTISING HOTEUMOTEL TAX EXPENDITURES 12% 51 % 4% PERSONAL SERVICES REGULAR OPERATING CONTRACTS/FEES OTHER DEBT SERVICE 10 1993 Annual Reporl INCOME AND EXPENDITURESJTATEMENT INCOME Ren.t. , FoodServices Parking Othe,r License Fees Advertising HotellMoteTlax TOTAL FY 1993 $ 3,283,S90 $ 2,92S,699 $ 3S9,921 $ I,S49,434 $ IS,S61,678 $ 1,473,898 $ 9,280,731 $ 34,434,9S1 EXPENDITURES PersonaSlervice RegulaOrperating ContractlFees Other., DebtService TOTAL , $ 4,199,294 $ 3,081,698 $ 8,066,269 $ 1,426,276 $ 17,SIS,246 $ 34,288,783 NET GAIN $ 146,168 INCOME License fees and advertising brought in more than 49percentof total income, with building rental, food services and parkingfollowing closely behind. EXPENDITURES Operating expenses were in line with projections. Debt service on revenue bonds, at 51 percent, will continue to be the largest single item in this category until the bonds are retired. As host to a variety of public and private events, the Georgia Dome offers outstanding service with a knowledgeable staff in the Dome Service Centers. Dining options also run the gamut from game day fare to fine dining in the "In-Zone Restaurant. II 1993 Annual Reporl 11 IG I tl e Iii c I G A o c M e SALES AND ECONOMIC IMPACT Fy 1993 was an excellent initial year for the Georgia Dome. In addition to grand opening events, the Dome hosted its first season with 10 Falcons' games, high school and collegiate football, the Peach Bowl, the Kuppenheimer Basketball Classic as well as three major concerts and a variety of other sporting and entertainment events. These events attracted nearly two million fans. Currently, the Dome is booked at 87 percent of its practical maximum capacity for 1994 and at S8 percent through the year 2000. The Georgia Dome's mission, like the adjacent World Congress Center's, is to serve as an economic catalyst for the state of Georgia. In helping to attract major sporting events like Super Bowl XXVIII, the Olympic Games and NCAA basketball tournaments, the Dome is successfully fulfilling its mission. The economic impact of these events cannot be calculated in the same way as events at the Georgia World Congress Center. Consequently, we ~~~~~~'&.. Jeffrey Humphreys of the Selig Center for Economic Growth at the University of Georgia to develop an econometric modelfor delcrmiDj~1he imy.aCl of Dome events. The resu(ts from hi's report are expected early in 1994 and will give the Authority specific figures as well as a formula to calculate economic impact for succeeding years. 12 1993 Annual Reporl GEORGIA DOME BOOKINGS 385 300 PRACTICAL MAXIMUM BOOKINGS 285 250 -: 200 .or: co co l:1l:I .:.. 150 1:1 100 50 o 1992* 1993 1994 1995 1996 1997 1998 1999 2000 Sporting and Entertainment Events All Other Events * Days booked reflect August through December only w c: c: II: G e c G A o c M e AUTHORITY BALANCE SHEET Don W. Sands Chairman Georgia World Congress Center Authority 14 1993 Annual Reporl ASSETS Cash Accounts Receivable Prepaid Expense Inventories Advances to Other Funds (Dome) Deferred Charges Fixed Assets: Equipment !Building TOTAL ASSETS GWCC $ S,1S6,676 2,S02,689 1,000 148,624 11,8S9,4S0 0 247,S72,922 (2) $ 267,241,361 DOME $ S3,241,4S8 (1) 3,009,776 0 0 0 4,416,264 212,303,62S $ 272,971,123 TOTAL $ 58,398,134 S,S12,46S 1,000 148,624 11,8S9,450 4,416,264 4S9,876,S47 $ S40,212,484 LIABILITIES AND FUND BALANCE lia bili ties: Vouchers Payable $ 1,236,084 Term LoanIBond Payable 4,216,4S9 Interfund Payable 0 Reserves: Designated 11,86S,696 Deferred Revenue 0 Investment in Fixed Assets!Bldg. 247,479,91S Fund Balance 2,443,207 TOTAL LIABILITIES &: FUND BALANCE $ 267,241,361 $ I,S37,226 200,411,771 11,68S,284 40,816,766 3,199,438 10,400,986 4,919,6S2 $ 272,971,123 $ 2,773,310 204,628,230 11,68S,284 S2,682,462 3,199,438 2S7,880,901 7,362,8S9 $ S40,212,484 NOTE: (1) $ 10,000,000 8,850,625 15,426,099 (2) 244,150,000 Investment of Debt Service Reserve Debt Service Interest and Credit Enhancement Fee Security Deposits (Suites and Seats) Land and Building (Funding provided by State of Georgia General Obligation Bonds) 1993 Annual Reporl 15 HUMAN RESOURCES REPORT fiscal year 1992-1993 saw a dramatic increase in the number of G full- and part-time personnel em- w ployed by the Georgia World Congress Center Authority. These increases c: accommodated the opening of the Georgia Dome and completion of the c: Congress Center's Phase III expansion. During this time, the Human Resources Department processed more than S,OOOapplications from candi- dates nationwide. In addition to the normal recruiting efforts, a job fair was held in the adjacent Vine City community to inform the neighboring G area about employment opportunities. e As ofJune 30,1993, the World Congress Center had 327 authorized c full-time positions and the Georgia Dome had 109. In addition, the Con- gress Center used 192,SSO hours of part-time labor, equivalent to approxi- G mately 92 full-time positions at 40 hours per week; the Dome used 213,6S9 hours of part-time labor, equivalent to approximately 103 full- A time positions. This part-time labor force enabled the Congress Center and Dome to cover workload peaks and o valleys created by large events in an efficient manner. During the past c year, several interns were also employed in various departments. M Our personnel continued to exhibit dedication and commitment to e excellence in their job performance. Clients conSistently cited quality cus- tomer service and the "can-do" atti- tude of our veteran work force as rea- sons they return to our facilities year after year. During this past year four employees received IS-year service awards; 10 employees received lO-year awards and 17 received five year awards. Impeccable customer service from the entire Congress Center and Georgia Dome staff is the key to the success of both facilities. The Congress Center and Dome continue to stress the importance of training and education in maintaining our industry position. Personnel participated in seminars familiarizing them with the operations of all departments; six employees partiCipated in the Tuition Reimbursement Program; and the Security Department utilized 1O,6S8 hours of training, with five officers earning post certification. Twenty-eight other staffers participated in job-skill and management training courses. At the same time, the Dome conducted initial departmental training for their new work force and held several allstaff town meetings. Also during the year, the Human Resources Department consolidated their operations for the Congress Center and the Georgia Dome to provide more efficient personnel and training services for all Authority personnel. AUTHORITY WORK FORCE 14% 39% FEMALE MINORITY FEMALE CAUCASION MALE MINORITY MALE CAUCASION METRO ATLANTA WORK FORCE 41 % 11% FEMALE MINORITY FEMALE CAUCASION MALE MINORITY MALE CAUCASION Source: Georgia Department of Labor 18 1993 Annual Reporl GWCC AUTHORITY EXECUTIVE DIRECTOR Joint Responsibilities Designed by James Whitely/Covenant Communications :.:, ;-.,;,. ~:-.'. 7::