1994 annual report [1994]

GEORGIA WORLD CONGRESS C E N T E R AUTHORITY

Mary Rose Taylor, Chairman Community Leader
I. Owen Funderburg, Vice Chairman Retired Citizens Trust Banh
Sharon Adams President The Adams Group
John E. Aderhold, Chairman Emeritus Retired Rayloc
Ovid Davis Retired The Coca-Cola Company

Thomas C. Dowden, Treasurer Chairman Dowden Communications
Rubye Mims Lucas, Secretary Human Resources Administrator Turner Broadcasting System, Inc.
Don W Sands CEO Emeritus Goldhist
Howard J. Spiller President and Operating Officer Mid City Atlanta Partnership, Inc.

Patrick H. Thomas President & CEO First Financial Management Corp.
GWCC LEGISLATIVE OVERVIEW COMMITTEE Senator Charles C. Clay, Chairman
Senator Paul B. Broun Senator Ronald D. Slatin Representative Larry J. Parrish,
Vice Chairman Representative Roger Byrd Representative Louise McBee

DIRECTOR'S REPORT
fiscal year 1993-1994 was an exhilarating period at the Georgia World Congress Center and the Georgia Dome. We managed a strong line-up of trade shows, conventions and consumer shows, sporting and entertainment events, while completing several special projects. We also received legislative approval for a new parking deck and pedestrian plaza and completed our first comprehensive economic impact study of the entire complex.
The year was highlighted by Super Bowl XXVIII, one of the world's most popular sporting events. In addition to the $166 million economic impact it generated, the Super Bowl set a Dome attendance record and gave our complex unprecedented national and international exposure.
Hosting the Super Bowl was not just a single facility effort. While the game was played in the Dome, the World Congress Center hosted the NFL Experience, a four-day carnival of sports with handson exhibits that drew record crowds, and the TNT Super Saturday Night telecast. We hope you get a feel for the excitement when you review the photographs in the middle of this year's report.
Our new economic impact study, completed by the University of Georgia's Selig Center for Economic Growth, reveals that the World Congress Center and the Georgia Dome boosted the state's economy with a total economic impact of $1.6 billion during the last fiscal year. We are excited that the study shows our economic impact actually exceeds our forecasts for both facilities. This impressive impact also helped to generate more than $86 million in new tax revenue for state and local governments.
As we look to the future, we are happy to report bookings remain strong through the Centennial Olympic Games. Next year we will be constructing the Centennial Olympic Park and the Georgia International Plaza, which will allow us to look toward planning a Phase IV expansion.
We hope you find this year's summary informative and look forward to sharing more challenges and accomplishments with you as we continue to work for Georgia.
Dan Graveline Executive Director Georgia World Congress Center Authority

Super Bowl XXVIII and its related activities including the NFL Experience brought
worldwide attention to Georgia and attracted hundreds of thousands of visitors to the two facilities.

IORGIR
ORLD

INCOME AND EXPENSES

fiscal year 1994, ending June 30, was a steady year for the Georgia World Congress Center. A solid combination of trade shows, consumer shows, conventions and corporate meetings delivered a net operating profit of $2.6 million. Again this year, the World Congress Center did not require any state appropriations for operations. In fact, the GWCC produced $55 million in new tax revenue for the state.

INCOME
21%
RENT EXHIBIT UTILITY SERVICE FOOD SERVICE
PARKING HOTEL/MOTEL TAX
OTHER
EXPENSES

Exhibit hall and meeting space rental creates the largest percentage of income
for the World Congress Center.

PERSONAL SERVICES REGULAR OPERATING
EQUIPMENT CONTRACTS/FEES
OTHER

FY 1994
INCOME
Rent ............................................. $ 8,545,694 Exhibit Utility Services .................................. $ 4,289,683 Food Services .................................. $ 2,982,819 Parking ..........................................................$ 1,029,522 Hotel/Motel Tax.............................................$ 1,627,511 Other .............................................................$ 2,018,468 Transfer Reserve ............................................$ 1,526, 910 Sub-Total .................................... $ 22,020,607 Hotel/Motel Tax (ACVB) ...............................$ 6,052,874 TOTAL ..........................................................$ 28,073,481
EXPENSES
Personal Service............................................. $ 11,355,761 Regular Operating .........................................$ 5,089,268 Equipment .....................................................$ 180,642 Contract/Fees ...............................................$ 1,032,787 Other .............................................................$ 329,660 Special Projects ..............................................$ 1,442,616 Sub -Total... ................................................... $ 19,430,734 Hotel/Motel Tax (ACVB) ...............................$ 6,052,874 TOTAL .......................................................... $ 25,483,608 NET GAIN..................................................... $ 2,589,873

INCOME

EXPENSES

The World Congress Center's primary sources of income continue to be building rental, exhibit utility services and catering, which provide 77 percent of our revenue. In fiscal year 1994, building rental remains the largest income generator at 41 percent of the GWCC's total income. Exhibit utility services provided 21 percent, followed by food service at 15 percent. Income derived from parking operations and the hotel/motel tax increased slightly over the previous year.

Operating expenditures were in line with projections for fiscal year 1994. While regular operating, equipment, personal service and contractlfees expenses grew, the GWCC was able to post a $2.6 million profit. "Other expenses" cover telecommunications and computer costs and supplies, equipment leases, travel, printing and minor miscellaneous expenses.

Meeting space rental, technical support and food service are just a few of the services that generate income for the facility.
1994 Annual Reporl

ECONOMIC IMPACT

The Georgia World Congress Center is a state authority created to encourage economic development. This economic impact is generated as new dollars brought into the state by attendees, sponsoring organizations and exhibitors are spent and respent.
This past year, the Authority commissioned a new economic impact study from the Selig Center for Economic Growth at the University of Georgia's Terry College of Business. The study provides the first complete picture of the total financial impact of the World Congress Center and the Georgia Dome on the state's economy since the opening last year of the GWCC's second expansion and the Georgia Dome.
During fiscal year 1994, activities at the World Congress Center generated $642 million "new dollars." As this money circulated- to everything from

hotel rooms, local transportation, restaurants and shopping, it created a total economic impact of approximately $1.4 billion. In addition, GWCC activities generate almost 22,000 full- and part-time jobs to Georgia's economy, an amount roughly equal to Delta Air Lines' work force in Atlanta.
"We are excited that the study shows our economic impact actually exceeds our forecasts," said Dan Graveline, executive director of the Authority. "If you think of the Authority as a company and the residents of Georgia as shareholders, everyone can be enthusiastic about the strong performance and return the GWCC is providing on the state's investment," he explained.
Each year the Authority plans to have the University of Georgia extrapolate the facilities' impact to provide independent verification of our estimates.

!ii:IM;AfED FY 1994 ECONOMIC II\IIPA:c:

GWCC ACTIVITY
"New Dollar" Impact Secondary Impact

$ 642,346,810 $ 768,709,638

Total Economic Impact $1, 4ll,056,447

Personal Income $ 447,553,086

Employment

22,000

TAXES Georgia Sales/Use Local Hotel/Motel Personal Income Corporate Income Total Taxes

$ 36,ISI,453 $ 10,924,171 $ ll,361,764 $ 16,425,198 $ 2,372,031 $ 77,264,617

"New Dollars" Generated Total Impact of New Dollars
TAX REVENUES State Local Hotel/Motel Total Tax Revenue
* estimated

FY 1993 $ 568,599,460
$ 1,249,054,127

FY 1994* $ 642,346,SIO
$ l,4II,056,448

$ 48,666,622 9,669,975 9,832,446
$ 68,169,043

$ 54,987,682 10,924,171 ll,361,764
$ 77,264,617

80 78 - - - - - - - - - - - - - - - - - - - - - -

76 ---------

74 - - - - - -

72 _ _ DIRECJ_B_ENEHT_ TO_GE_ORGlA_

7o _ - ____lOJALfXeEnLS.~E_ __

68

41 DEBT SERVICE EXPENSE
e OPERATING EXPENSE

66

64

TOTAL INCOME

62

8 TAX INCOME
e OPERATING INCOME

60

58

56

54

52

50

48

46
en 44
= 2 42
...I
...I 40
:aE:
38

36

34

32

30

28

26

24

22

20

18

16

14

12

10

8

6

4

2

0
FY83 $3.9

FY84 $11.6

FY85 $16.9

FY86 $22.5

FY87 $21.1

FY88 $37.2

FY89 $43.6

FY90 $49.3

FY91 $47.8

FY92 $34.7

FY93 $37.6

FY94 $33.3

NET PROFIT TD STATE OF GEORGIA IN MILLIONS

SALES AND EVENT ATTENDANCE

Attendance to events at the Georgia World Congress Center grew again this year to 1.5 million guests in FY 1994.
With 64 major trade shows, conventions, consumer shows and scores of smaller events and banquets, attendance at the World Congress Center grew for the fourth straight year. And bookings remain steady through 1996, and beyond. The Congress Center is booked at 85 percent of practical maximum through the year 2004.
To explain, 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 285 days. This number takes into account national holidays plus three days per month for inherent scheduling gaps between major trade shows.
Trade shows and conventions, consumer shows and a myriad of food functions and small events drew 1,558,769 visitors to the World Congress Center, up from 1,542,805 last year. Of that number 715,237 were out-of-town guests.
Among the largest trade shows and conventions was The Super Show; which attracted 105,495. In addition, COMDEX, the Bobbin Show, International Poultry Exposition, National

Home Health Care, TAPPI and Intermodal Exposition rounded out the top trade shows.
The NFL Experience had the highest attendence for public shows with 130,000, followed by the annual Festival of Trees. The Atlanta Area Council of Boy Scouts of America and the Spring edition of the Atlanta Home Show were also among the top public shows.
FY 1994 TOTAL ATTENDANCE
1,558,763
12 %

40%

48%

47 MAJOR TRADESHOWS & CONVENTIONS (749,656)
17 CONSUMER SHOWS (619,113)
MINOR EVENTS (190,000)
OUT OF TOWN ATTENDANCE TOTAL 715,237

Super facllltles glv~,,S,-perr,Bowl XXVIII a supe

''.

'. ):\\

\fhen the Super Bowl came

to Georgia on January 30, it

brought more thah two teams

vying for the Vince Lombardi

trophy. Super Bowl week was an

explosion of special events includ-

ing concerts, fireworks and every

sort of spectacle in betweeri for

more than 100,000

visitors. "It is one of

the mega events in

the world," said

Khalil Johnson,

general manager of the Georgia

Dome.

With 71,594 seats and excel-

lent sightlines, the Georgia Dome

is the largest cable-supported

While the game was played in the Dome, the Georgia World Congress Center hosted the NFL Experience, a four-day carnival of sports with hands-on exhibits and the popular card show, the
S~tu'ra.ay Nighttelec;3.sLas
tpes1COI!FJ.Or<!tf.AQ?PJJ<1l\;:r,,,'" .

attendance ever at

World Congress

Center.

11

1

The Ge ~rld Con,~ess

'I

.,.

\entei\md

eor"; ia Domf are

on he

g1:

h

'REEMAN, INC.

GEORGIA WORLD CONGRESS CENTER
HALL BOOKINGS
PRACTICAL MAXIMUM BOOKINGS

D 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

.HALLS ABC

HALLS DEF

.HALLS GH

INCOME AND EXPENSES
fiscal year 1994, ending June 30, was the Dome's first complete year of operation. The Dome reported a profit of $3.3 million from a strong line-up of Atlanta Falcons football, Peach Bowl, Heritage Bowl, Super Bowl XXVIII as well as college basketball, motorsports and a wealth of trade shows and smaller meetings.

INCOME
29% 43%
6%
RENT FOOD SERVICE (MGR)
PARKING OTHER
LICENSE FEES
9 ADVERTISING
HOTEUMOTEL TAX

EXPENSES
52 %
24%
9 PERSONAL SERVICES
REGULAR OPERATING CONTRACTS/FEES OTHER DEBT SERVICE

FY 1994 INCOME Rent ............................................. $ 3,069,550 Food Services .................................. $ 2,670,272 Parking .......................................................... $ 432,793 Other .............................................................$ 2,042,591 License Fees ................................. $ 15,591,032 Advertising ....................................................$ 2,247,591 Hotel/Motel Tax.............................................$ 10,572,353 TOTAL ..........................................................$ 36,626,182
EXPENSES Personal Service .............................................$ 4,445,305 Regular Operating .........................................$ 2,831,507 Contract/Fees ................................................$ 7,924,954 Other .............................................................$ 569,336 Debt Service ...................................................$ 17,540,458
TOTAL .......................................................... $ 33,311,560 NET GAIN .....................................................$ 3,314,622

The Dome is not just for football. In FY '94, the facility increased income by hosting banquets, trade shows and other sporting events.

INCOME
License fees, building rental and food service combined brought in 58 percent of total income, with advertising fees and parking following closely behind.

EXPENSES
Operating expenses were in line with projections. Debt service on the revenue bonds will continue to be the largest item in this category until the bonds are retired.

1994 Annual Report 15

GIORGJR DOME

SALES AND ECONOMIC IMPACT

Fiscal Year 1994 was an exciting year at the Georgia Dome. Bookings were strong and continue to grow for 1995 and 1996. In addition to hosting Super Bowl XXVlll for a record crowd of 71,645, several physical improvements made arriving at the Dome easier than ever.
The Dome's second actionpacked year included high school and collegiate football, the Peach Bowl, the Heritage Bowl, 10 Atlanta Falcons'

games, the Kuppenheimer Classic, motorsports, the USNMobil Indoor Track & Field Championships, National Taekwondo Championships and FOX 97's Ultimate Oldies Concert. These diverse events plus a myriad of smaller non-ticketed events drew more than one million guests.
Our economic impact study reveals that these Dome visitors pumped more than $171 million into the state's economy.

ome. This e st and most

. ,Eu ;FY 1994 EcoN01111it;:iii[ c~c.-/-,;"_ ,, ,

DOME ACTIVITY "New Dollar" Impact $ 77,669,903 Secondary Impact $ 92,865,036

Total Economic Impact $ 170,534,938

Personal Income $ 52,170,270

Employment

2,750

TAXES Georgia Sales/Use Local Hotel/Motel Personal Income Corporate Income
Total Taxes

$ 4,298,792

$ 1,295,368

$ 1,345,156

$ 1,914,649

$

276,502

$ 9,130,467

"New Dollars" Generated Total Impact of New Dollars
TAX REVENUES State Local Hotel/Motel Total Tax Revenue
* estimated

~w,o,,,:E.AR ECONOMIC SUMMAR , ,/", iC': ,-:,!:~::<, FY 1993 $ 94,534,935 $
$ 207,564,433 $

FY 1994* 77,669,903
170,534,938

$ 8,101,479 $ 1,616,158 1,600,631
$ 11,318,267 $

6,489,943 1,295,368 1,345,156 9,130,467

GEORGIA DOME BOOKINGS
365

300 250
-.=.. 200
=-====
">', 150 ="'
100

50

0

1993

1994

1995

Sporting and Entertainment Events

1996

1997

All Other Events

AUTHORITY BALANCE SHEET
Mary Rose Taylor Chairman
Georgia World Congress Center Authority

ASSETS
Cash Accounts Receivable Prepaid Expense Inventories Advances to Other Funds (Dome) Deferred Charges Fixed Assets:
Equipment /Building
TOTAL ASSETS

GWCC

$

5,382,196

3,260,137

2,126

189,044

11,228,324

0

247,845,020 (2)

$ 267,906,847

DOME

$

57,481,692 (1)

2,373,928

222,700

0

0

4,252,692

204,391,397

$ 268,722,409

TOTAL

$

62,863,888

5,634,065

224,826

189,044

11,228,324

4,252,692

452,236,417

$

536,629,256

LIABILITIES AND FUND BALANCE
Liabilities: Vouchers Payable Debt Service
Term Loan/Bond Payable Interfund Payable
Reserves: Designated Deferred Revenue
Investment in Fixed Assets/Bldg.
Fund Balance-Pre-Depreciation
Less Depreciation

$

1,614,486

0

3,639,798

0

11,310,591 0
247,486,000

3,987,954 (131,982)

TOTAL LIABILITIES & FUND BALANCE $ 267,906,847

$

1,075,778

8,745,237

200,326,676

10,757,000

45,833,375 1,028,000
10,229,926

(865,698) (8,407,885)

$

268,722,409

$

2,690,264

8,745,237

203,966,474

10,757,000

57,143,966 1,028,000
257,715,926

3,122,256 (8,539,867)

$

536,629,256

NOTE:

(1) $ 10,000,000 8,850,625
15,421,500

(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)

1994 Annual Report 19

GEORGIR WORLD CONGRESS CENTER
part-time work slightly in Fisca lowing last year' allowed us to tu
20 1994 Annual Report

HUMAN RESOURCES REPORT

emphasis given to new laws impacting employees such as the Americans with Disabilities Act
Produced a pilot program with the GWCC Engineering Department designed to ensure that all employees within that department understand the basic subjects critical to their jobs.
As ofJune 30, 1994, the World Congress Center had 331 authorized full-time positions and the Georgia Dome had 123. Overall, these employees received more than 8,500 hours of training, while four employees participated in the Tuition Reimbursement Program. Twenty-two employees were promoted within the complex and 125 new employees were hired from more than 1,500 applications. And recruiting efforts within the neighboring Vine City community continue.
In addition, the World Congress Center used 193,355 hours of part-time labor, the equivalent of 93 full-time positions at 40 hours per week; the Dome used 133,380 hours of part-time labor, equivalent to 65 full-time positions. Part-time hours at the Dome decreased approximately 80,000 hours due to increased efficiency from the Dome labor force as they became more experienced. This part-time labor force enabled the World Congress Center and Dome to efficiently cover workload peaks and valleys created by large events.
As in past years, clients continue to cite our veteran work force and outstanding customer service as significant reasons they return year after year. During the past year, four employees were presented 15-year service awards; 10 employees received 10-year awards; and eight received five-year awards.

AUTHORITY WORK FORCE
15%
37% FEMALE MINORITY
FEMALE CAUCASIAN MALE MINORITY MALE CAUCASIAN
METRO ATLANTA WORK FORCE
41 %
34%
FEMALE MINORITY FEMALE CAUCASIAN
MALE MINORITY MALE CAUCASIAN Source: Georgia Department of Labor

Joint Responsibilities

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