"0' :.A. D Annual Report 0J.!J7 {9Y7 Annual Report Rubye Mims Lucas, Chair Human Resources Administrator Turner Broadcasting System, Inc. Sharon Adams, Vice Chair President The Adams Group Alfred Kile Barr, Treasurer Executive Director of Leasing Corporate Property Investors John E. Aderhold, Chairman Emeritus Aderhold Properties Thomas W Dortch, Jr. Chairman & CEO TWO, Inc. Robert S. Prather, Jr. President Bull Run Corporation Howard J. Spiller President & CEO Mid-City Atlanta Partnership, Inc. Mary Rose Taylor Chairman & CEO The Margaret Mitchell House, Inc. Patrick H. Thomas Chairman Good Company Plantation In memory: Ovid Davis who served on the Authorjty 1991 - 1997 Senator Paul C. Broun, Chairman Senator Charles C. Clay Senator Steve Henson Representative Grace W Davis, Vice Chair Representative Roger Byrd Representative Louise McBee Annual Report {9.!}7 Director's Report 04 GWCC Revenue & Expense 06 GWCC Economic Impact 09 GWCC Sales and Event Attendance 10 Georgia Dome Revenue & Expense 12 Georgia Dome Sales and Economic Impact 14 Authority Balance Sheet 16 Centennial Olympic Park Update 17 Human Resources Report 18 MISSION STATEMENT THE GEORGIA WORLD CONGRESS CENTER AUTHORITY WAS ESTABLISHED BY THE STATE OF GEORGIA TO DEVELOP AND OPERATE THE GEORGIA WORLD CONGRESS CENTER, THE GEORGIA DOME AND RELATED FACILITIES. SUCH FACILITIES WERE DEVELOPED WITH THE PRIMARY OBJECTIVE OF PROMOTING AND FACILITATING EVENTS AND ACTIVITIES THAT GENERATE ECONOMIC BENEFITS TO THE STATE OF GEORGIA AND THE CITY OF ATLANTA, AS WELL AS ENHANCE THE OVERALL QUALITY OF LIFE FOR ALL GEORGIA CITIZENS. VISION OUR VISION IS TO SUSTAIN A REPUTATION AS ONE OF THE FINEST CONVENTION, SPORTS AND ENTERTAINMENT FACILITIES IN THE WORLD EVERY DAY THROUGH A RELENTLESS COMMITMENT TO EXCELLENCE - IN OUR EXPERTISE, EFFICIENCY AND QUALITY OF SERVICE. To BE A LEADER IN OUR INDUSTRY THROUGH INNOVATION. To GENERATE PROFIT IN AN ETHICAL MANNER. To MEET OUR CUSTOMERS' NEEDS WITH MOTIVATED SERVICE-ORIENTED PERSONNEL. AND TO PROVIDE AN ENVIRONMENT THAT FOSTERS GROWTH BOTH PERSONALLY AND PROFESSIONALLY. VALUES To ACHIEVE THIS VISION, WE BELIEVE OUR CUSTOMERS ARE THE FOCUS OF EVERYTHING WE DO - WE MUST PROVIDE FRIENDLY AND COURTEOUS SERVICE FOR OUR GUESTS AND CUSTOMERS, WE BELIEVE IN CONSTANTLY STRIVING FOR IMPROVED PRODUCTIVITY, AND IN REFRAINING FROM ANY ACTIVITIES THAT WOULD CONFLICT WITH THE BEST INTERESTS OF THE GEORGIA WORLD CONGRESS CENTER, THE GEORGIA DOME AND CENTENNIAL OLYMPIC PARK. {9.!}7 Annual Report Fiscal year 1997 was a memorable year for the Georgia World Congress Center Authority. It began in the summer of 1996 with the Centennial Olympic Games - the world's largest peace-time gathering. More than two million sports fans visited our campus as we hosted more than one-fourth of the events of the 1996 Summer Olympics. The Congress Center hosted the International Broadcast Center as well as table tennis, judo, wrestling (Greco-Roman and Freestyle), team handball, weightlifting and fencing. The Georgia Dome hosted gymnastics and basketball and the finals of team handball. In addition, Centennial Olympic Park debuted - with its Fountain of Rings - and became the most popular and photographed place in Atlanta. And while the bombing in Centennial Olympic Park will forever be etched in our memoty, we were immensely gratified that literally millions of citizens and visitors came back to the Park when it was reopened. That outpouring showed the world that Centennial Olympic Park is as much an ideal as it is a place. Following the Olympics, we quickly moved into another busy year of trade shows and sporting events. We also worked with the Atlanta Committee for the Olympic Games to dismantle the Festival of the American South and begin transforming the space into the beautiful Park that it will become. We plan to unveil a spectacular park in Spring of 1998 that will establish the Park as the most outstanding legacy of the Centennial Olympic Games. Again this year, the Authority was able to sustain operations without public subsidy. Our attendance figures are nearly double a typical year due to the huge draw of the Centennial Olympic Games in July and August. Activities for the year produced $2 billion in total economic impact. While last year was a tremendous time of opportunity, we face a growing competitive threat. So as we move forward, our focus will be on expansion of the Georgia World Congress Center. Hospitality is the second-largest industry in Georgia and touches the economy of the state in a myriad of ways. We hope you enjoy this year's report as well as the story of how conventions impact the state's economy. Daniel A. Graveline Executive Director Georgia World Congress Center Authority Annual Report = Success for Georgia As we work toward our third expansion, we thought it would be interesting to give you a behind-the-scenes look at how trade shows impact not only the city of Atlanta, but also the entire state of Georgia - making our business a win-win situation for Georgians. To do this, we chose to take you on a journey to demonstrate how The Super Show - the world's largest sports products and apparel event and the GWCC's largest trade show - touches lives and businesses throughout our state. Since 1986, the show has grown to encompass the entire World Congress Center, the adjacent Georgia Dome as well as temporary pavilions built in Dome parking lots. In the span of two weeks, it moves in, builds a virtual global village for commerce, conducts the trade show, then dismantles and leaves town. And, the numbers are as phenomenal as the event itself: _ The Georgia World Congress Center has hosted the Super Show since its inception in 1986 _ It has almost doubled in total attendance from 55,000 in 1986, to 103,812 in 1997 _ 104 countries are represented - 3,200 companies exhibit their products - 10,000 exhibit booths are erected _ More than 3 million square feet was used in 1997 in the Georgia World Congress Center and Georgia Dome - including the temporary pavilions erected in the Dome parking lots C3 "But the numbers don't tell the whole story. As you ~ review this year's report, you will learn how a trade show o affects the city and the state and how it positively impacts the people of Georgia. )) Daniel A. Graveline, Executive Director Georgia World Congress Center Authority Annual Report = Success for Georgia As we work toward our third expansion, we thought it would be interesting to give you a behind-the-scenes look at how trade shows impact not only the city of Atlanta, but also the entire state of Georgia - making our business a win-win situation for Georgians. To do this, we chose to take you on a journey to demonstrate how The Super Show - the world's largest sports products and apparel event and the GWCC's largest trade show - touches lives and businesses throughout our state. Since 1986, the show has grown to encompass the entire World Congress Center, the adjacent Georgia Dome as well as temporary pavilions built in Dome parking lots. In the span of two weeks, it moves in, builds a virtual global village for commerce, conducts the trade show, then dismantles and leaves town. And, the numbers are as phenomenal as the event itself: _ The Georgia World Congress Center has hosted the Super Show since its inception in 1986 _ It has almost doubled in total attendance from 55,000 in 1986, to 103,812 in 1997 _ 104 countries are represented - 3,200 companies exhibit their products - 10,000 exhibit booths are erected _ More than 3 million square feet was used in 1997 in the Georgia World Congress Center and Georgia Dome - including the temporary pavilions erected in the Dome parking lots C3 "But the numbers don't tell the whole story. As you ~ review this year's report, you will learn how a trade show o affects the city and the state and how it positively impacts the people of Georgia. )) Daniel A. Graveline, Executive Director Georgia World Congress Center Authority 0J.!J7 Georgia World Congress Center Revenue OPERATING REVENUE EXHIBIT UTILITY SERVICES , , ""FOOD SERVICES (MGR) . ... PARKING HOTEL/MOTEL TAX ............. SUBTOTAL NON-OPERATING REVENUE CENTENNIAL OLYMPIC PARK TRANSFER FROM RESERVES* SUBTOTAL ......... I-IOTELllvIoTEL'TAX(Ac:yB) . TOTAL """""""""""",$ ",14,277,566, '" "",,7,587,082 ,3,556,480 """""""". "",,1,569,118 3,235,292 """""""",1,503,690, $ 31,729,228 ........... .97~97 ... 9.~9.28.~27... $ 41,755,468 ........),766,736 $ 49,522,204 Expense OPERATING EXPENSE ,,, PERSONAL SERVICES.. .. . .REC;ULAR9PERATINC; ....... E:QUIPMENT .. CONTRACTS/FEES OTHER SUBTOTAL NON-OPERATING EXPENSE ..J .13,369,622 ...... 6,l}5,508 ......... 60,}O} .........2,ln,65~ $ CENTENNIAL OLYMPIC PARK SPECIAL PRO]ECTS* SUBTOTAL ......... floTEL/MOTEL.'TAX.(Ac:yB) .. TOTAL NET GAIN $ 10,628,224 .. 7,766,736 $ 40,554,644 $ 8,967,560 * Transfer from Reserves to Special Projects included $7,261,812 for Georgia International Plazaand $2,250,000 for Centennial OlympiC Park The World Congress Center's primary sources of operating revenue continue to be facility rent, utility services and food services, which combine to provide 80 percent of total operating revenue, Fiscal year 1997 saw particularly strong revenue increases as hosting the Summer Olympic Games pumped earnings into the normally quiet portion of our schedule. expenditures were line with prOjections for fiscal year 1997. "Other expenses" include telecommunications, computer costs, supplies, equipment leases, travel, printing and minor miscellaneous expenses. Georgia World Congress Center 0J.!J7 Fiscal year 1997, ending June 30, marked a record-breaking year for the Georgia World Congress Center. Adding the Centennial Olympic Games to an already exciting stream of large trade shows, consumer shows, conventions and corporate meetings led to a record profit of nearly $9 million. In addition, operations generated $87 million in new tax revenues for the state of Georgia. REVENUE Rent Exhibit Services Food Services (MGR) Parking Hotel/Motel Tax Other 45% 24% 11% 5% 10% 5% Personal Services ............ Regular()perating ........ ...Equipl11entIContracts/Fees Other -IThe Super Show Story ... continues The Atlanta Convention & Visitors Bureau markets the city and lays the ground work for trade shows that ultimately book the Georgia World Congress Center. The ACVB ensures the events' success by serving as a liason between the shows and the city's hospitality partners. >aJ f 'Trade shows, including The Super Show, are the lifeblood of the city. Not ~ only do they impact our hotels and restaurants, but they give us the opportunity to showcase our rich history and wealth of cultural activities. " Spurgeon Richardson, President ACVB -1 0'l '" Direct Benefit tn Genroia ~~ TOTAL EXPENSE 94 - Debt Service Expense III Operating Expense 93 - 92 90 88 TOTAL REVENUE Tax Revenue Operating Revenue 86 84 82 80 78 -.. 76 :; 74 J. 72 70 :..;.. ~ Z , 68 : I 66 ~ 1 I z I, 64 62 60 " 58 56 .. ..1:::0 .'!:: 0 ....1- ..... :; ... :; 0 a. 0 a. J. I:: ',,", i .! ~.. , a.... Q) 54 52 :; 0 ci: ~ z Z ~ z ----; 50 ] , 48 46 ...'!:: 0 44 a.... Q) 42 40 ... .. :; Z 38 :; 0 r ~ ----i I -----'I -' 36 J. a. ~i i~ I -----' 34 ~ .: 32 Z ~ i, .~j;ldl~ - :J 30 I 28 ..l) I I; \1 ,'I -~ I. I- 26 f I- o 24 22 l. i - - I e----- ---' 20 i~ I - 18 I,} ~ I, .% 16 I 14 'I \) 12 '---- f---: ~ \ 10 ~ e----- i--- i--- e----- - - - e----- - - - ~ ~ I I ~ ~ 8 - ! - - -----; !II 6 c:: 0 4 -:-.-: 2 0 - - - - - - - - - - - - - ""''" -- - - - ----.J ~ I 1 -----; FY86 FY87 FY88 FY89 FY90 FY91 FY92 FY93 FY94 FY95 FY96 FY97 $22.5 $21.1 $37.2 $43.6 $49.3 $47.8 $34.7 $37.6 $33.3 $47.3 $23.2 $44.4 Net Profit to State of Georgia in Millions , Georgia World Congress Center 0{97 '- The Georgia World Congress Center's primary mission is to generate economic benefit for the state of Georgia. Economic benefit is created as new dollars brought into the state by attendees, sponsoring organizations and exhibitors are spent and respent. During 1997, $693 million in "new dollars" was generated from activities at the Georgia World Congress Center. As this money circulates to hotels, auto rentals, restaurants, retail shops and amusements, it created a total economic impact of $1.6 billion. In addition, GWCC activities generated more than $87 million in new tax revenue as well as sustaining more than 30,000 jobs. GWCC ACTIVITY I}:te~T~:;:J~{~J~;:ct Personal Income E:11p1loYl11ent d TAXES ..,GeorgiaSales I~v~u, d... Hotel/Motel Personal Income TOTAL TWO-YEAR ECONOMIC SUMMARY "New Dollars" Generated "1 "'"To""t"al ",',,'Impa",ct.. ,"'" of""""""""New D,,' o"l""l"a'" r" TAX REVENUES State Local Hotel/Motel TOTAL TAX REVENUE Economic Impact ....... $693.,353,520 $ 1,661,550,420 I........ $d635,08),000 .:30,700.. .lj11,223,()()() 1996 $ 45,343,000 $ 14,665,000d $ 16,511,480 $ 87,742,480 1997 $ 517,428,000 $ 1,239,963,000 $ 693,353,520 $ 1,661 50,420 $ ...... 46,160,000 $ .8,375,00 .. $ ...10,944,000 $ 65,479,000 $ 61,854,480 ............................... $ ...1. 1,223,000 $ ......14~.665,000.. $ 87,742,480 -!The Super Show Story ... continues The Super Show begins with a two-week move-in. Decorators and exhibitors work around the clock to turn the Georgia World Congress Center into the world's largest global village for sporting goods and apparel. "Delta Air Lines provides Atlanta with more than 600 flights per day and is a major component of the GWCCs ability to attract conventions as large as The Super Show. Both domestic and international attendance at The Super Show co!Ztinuesto grow year after year, and Delta provides the worldwide transportation accessto meet their growing needs. " Norma Dean, National Account Manager Meetings & Association Sales Delta Air Lines Fiscal year 1997 was an exciting year at the Georgia World Congress Center. The Olympic Games along with 46 major trade shows and 14 consumer shows pushed attendance to exceed two million for the first time in our history. This increase was not unexpected as the GWCC hosted more than one-fourth of the Games of the Centennial Olympics and the International Broadcast Center. The Olympic Games led attendance for public events with 1.2 million over the 17 -day period of the Games, followed by The Festival of Trees, The Boy Scouts of America, The Atlanta Home Show and The Atlanta Journal-Constitution International Auto Show. A.mong the largest trade shows were The Super Show with a total attendance of 103,812, Comdex, Networld + Interop and Electronic Entertainment Expo. Bookings at the Georgia World Congress Center are strong through 2000 and beyond. The chart depicts practical maximum bookings. To explain, an "Exhibit Hall Day" is the 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. ATTENDANCE TRADE SHOWS AND CONVENTIONS CONSUMER SHOWS MEETINGS AND CORPORATE EVENTS OLYMPIC GAMES 34 % 11 % 7% 48 % TOTAL ATTENDANCE IZT [4 6] . Iv1AJ() RApE SI-I()\X'S J\]\J [)C()]\J\lE]\J"[I ()]\JS d CONSUMER SHOWS* MEETINGS AND CORPORATE EVENTS 837,752 plus Total daily attendance for 1997 [ 6,657,296 Total daily attendance is calculated at 4.25 visits per out-of-town attendee one visit for area residents attending seminars or public shows. * Number includes attendance at Centennial Olympic Games, However, that number was not included in calculating out-of-town attendance as the GWCC was not the sole driving force for the event. Georgia World Congress Center U!!)7 -: .. - ..- E 350 300 -~ - 285 ,. 250 - :-- 200 - ,.--- - L '------ 1,- '------ f----- '------ Practical Maximum 150 - ,........-- - !---- :--- ~ i--- f----- :--- >--- !- - 100 - :-- ,- !---- !- :- i--- i--- ~ - >------ f...-- 50 - - - '----- :--- !---- --- :--- :--- >--- - f--- o 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 .Halls ABC .Hall' DEF .Hall' GH I -IThe Super Show Story ... continues One of the first groups to feel the impact of The Super Show is the metropolitan area's hotels. With more than 70,000 hotel rooms available, Atlanta ranks fourth among major U.S. cities. The Super Show exhibitors and buyers book more hotel rooms than any other trade show that visits the city. -o Yuillermina BartalzaH, ousekeeping Atlanta Marrion Marquis (!{!}7 Georgia Dome Revenue OPERATING REVENUE RENT IZ) .. .......... FOOD SERVICES .(Jy1c; PARKING OTHER LICENSE FEES ADVERTISING SUBTOTAL NON-OPERATING REVENUE TRANSFER FROM RESERVES SUBTOTAL HOTEL/MOTEL TAX TOTAL Expense OPERATING EXPENSE PERSONAL SERVICES REGULAR OPERATING CONTRACTS/FEES OTHER SUBTOTAL NON-OPERATING DEBT SERVICE EXPENSE TOTAL NET GAIN $ $ 28,865,804 336,344 $ 29,202,148 $ 42,768,046 ...... ........12,137,24 .230,315 $ 20,646,197 Suite and club seat license fees continue to be the Dome's largest source of revenue during fiscal year 1997, Food sales and parking revenues also rose this year. Debt service on revenue bonds will continue to be the largest expense until the bonds are retired. $ 37,380,250 $ 5,387,796 Georgia Dome (!{j7 Fiscal year 1997, ending June 30, was an excellent year for the Georgia Dome. With a variety of events scheduled including Atlanta Falcons football, Olympic basketball and gymnastics, the SEC Football Championship, Supercross and motorsport shows, Peach and Heritage bowl games, concerts, trade shows and corporare meetings, the Dome had its greatesr net profit to date, $5.4 million. REVENUE Rent License Fees ...... Advertising. ..... Hotel/IvlorelTax Other"" ,,', 10% % 2 ,::1 ..' , EXPENSE 13 % 9% 32% 45% 1% Personal Services .............. ~egular.()peraring. Conrracts/Fees Debr Service Other -!The Super Show Story ... continues With exhibitors selling everything from tennis shoes to car mats from every corner of the world, The Super Show boasts 10,000 booths spread across more than three million square feet of exhibit space. "Each year we srengthen our customer base because of The Super Show. we see buyers from all over the United States and the world. we especially like the foct that the show is located less than one hundred miles from our operation. )) Debbie Famber, Office Manager Signature Design UL97 Georgia Dome .[.~al~~ ..a~~ ..~. ~()~Ol11i~..I.~.p. .~.<.::.t. Fiscal year 1997 brought a busy schedule to the Georgia Dome and bookings continue to grow through 2000. As host of the basketball, gymnastics and finals of team handball evenrs during the Cenrennial Olympic Games, the Georgia Dome attracted more than l.5 million guests over 17 days. Along with the regular schedule of Atlanra Falcons, collegiate, bowl and high school football games, the Holiday Classic, USA Indoor Track & Field Championships, motorsports, concerrs, rrade and consumer shows and a myriad of smaller events, the Georgia Dome drew almost 2.4 million guests. Dome visitors spent more than $190 million in "new dollars," which when circulated through the state's economy, generated a total economic im pact of more than $414 million. Additionally, $20 million in new tax revenue and 7,130 full- and part-time jobs where added to Georgia's economy. Estimated FY 1997 Economic Impact DOME ACTIVITY Ij;te~;~~I~~'~i~J:;~C( Perso...n..a..l......I.n...c..o.me TElTlploYlTlent TAXES ....... Ge:()rgi