1999 annual report [1999]

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Contents

Mission Statement

2

Director's Report

3

GWCC Revenue

6

GWCC Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7

GWCC Sales & Event Attendance

8

GWCC Economic Impact

9

GWCC Direct Benefit to Georgia . . . . . . . . . . . . . . . . . . . . . .

10

Phase IV Expansion

11

Georgia Dome Revenue

15

Georgia Dome Expense

15

Georgia Dome Sales & Event Attendance

16

Georgia Dome Economic Impact

17

Centennial Olympic Park Revenue

20

Centennial Olympic Park Expense

21

Human Resources Report . . . . . . . . . . . . . . . . . . . . . . . . . . . .

22

Authority Balance Sheet

23

Authority Board of Governors . . . . . . . . . . . . . . . . . . . . . . . . .

24

Mission Statement
Mission: The State of Georgia established the Georgia World Congress Center Authority to develop and operate the Georgia World Congress Center, the Georgia Dome, Centennial Olympic Park, and related facilities. These facilities exist for the primary purpose of promoting and facilitating events and activities that generate economic benefit to the citizens of the State of Georgia and the City of Atlanta, as well as enhancing the overall quality of life for every Georgian.
Vision: Our vision is to constantly earn our reputation as one of the world's finest convention, sports and entertainment venues. Every day we exemplifY our steadfast commitment to excellence in our expertise, efficiency and quality of service. Our vision is to lead our industry through innovation; to operate successfully in an ethical manner; to satisfY our customers' expectations with motivated, service-oriented employees; to provide a safe, clean environment; and to foster both the personal and professional growth of our people.
Values: To achieve our vision, we make our customers the focus of everything we do. We take pride in providing friendly and courteous service to our guests and customers. We strive constantly to improve productivity and to promote the best interests of the Georgia World Congress Center, the Georgia Dome and Centennial Olympic Park.
Our vision is to constantly earn our reputation as one of the world's finest convention, sports and entertainment venues.

Director's Report
Fiscal Year 1999 proved to be one of the busiest and best years ever for the Georgia World Congress Center Authority with both the Georgia World Congress Center and the Georgia Dome setting new records for profitability.
We had more than a million out-of-town visitors attend events at the Georgia World Congress Center, Georgia Dome and Centennial Olympic Park. Money they spent while in Atlanta meant $1.3 billion new dollars went directly into the State's economy.
Those new dollars in turn created a ripple effect that produced a $3.2 billion economic impact and generated a total of more than $164 million in tax revenues for the benefit of every Georgian.
We achieved these results by focusing on customer service, by controlling costs, by refurbishing and upgrading our facilities, and by introducing operating efficiencies.
We were pleased that the 1999 Georgia General Assembly approved $220 million for our Phase IV expansion, the largest single brick-and-mortar project ever approved by the State. The addition of 450,000 square feet of exhibit space and more meeting rooms will give us the flexibility and stateof-the-art amenities we need to serve our varied customers' needs and to stay competitive in the new century.
The hundreds of men and women who work for the Authority are proud of our FY 99 financial results, our professional achievements and our service to the citizens of Georgia. We believe we have demonstrated once again - and are committed to doing so in the future - that the Georgia World Congress Center Authority is a world-class hospitality industry leader.
By so doing, we make a significant monetary contribution to Georgia's economy and enhance our State's image - one guest at a time.
Daniel A. Graveline Executive Director Georgia World Congress Center Authority

Georgia World Congress Center
The Georgia World Congress Center produced a record year in FY 1999. We generated operating revenues of $35,613,820, a net gain of
$11,967,903 and new tax revenues of $127,811,603. The growth of trade show attendance and bookings combined with a
sharp increase in corporate events and catering helped us exceed our ambitious projections to the point where no other convention center in North America outperformed the Georgia World Congress Center in number of events and net operating profits.
With the Phase IV addition of 450,000 square feet of exhibit space in 2002 and events now booked as far out as the year 2017, we have the momentum and capability to continue to earn our reputation as one of the nation's most successful, well-utilized and customer-focused convention centers in the country.

GWCC 1999 Revenue Statement
The Georgia World Congress Center's primary sources of operating revenue remained rent, utility services and food service, which combined made up 76% of our operating revenue. We managed to increase total operating revenues approximately 18.5% over FY 98.
Careful management and strict cost controls held operating costs to 7.7% increase without sacrificing the high quality of service our customers have come to expect from us.
The "Other" expense item refers to telecommunications, computers, supplies, equipment leases, travel, printing, and miscellaneous expenses necessary to effectively conduct our business.
"Capital Improvements and Projects" include costs associated with roof refurbishment, five replacement heating-ventilation-airconditioning units and exterior electronic message signs.

REVENUE

OPERATING REVENUE
Rent Exhibit Utility Services. Food Service Parking Hotel/Motel Tax Other Subtotal

$ 14,553,728 . . . . . . . . . . . . . . . . . . . . . . . 7,337,949
4,914,226 2,530,260 3,807,245 2,470,412 $ 35,613,820

NON-OPERATING REVENUE
Transfers from Reserve Contributed Equipment Subtotal
Hotel/Motel Tax (ACVB) Total

4,722,015 5,043,680 $ 9,765,695
8,886,205 $ 54,265,720

Rent 41% Other 7%

OPERATING REVENUE

Exhibit Utility Services 21%
Food Service 14%

Parking 7%

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GWCC 1999 Expense Statement

EXPENSE
OPERATING EXPENSE
Personal Services Regular Operating Equipment Contracts/Fees Other Subtotal

$ 14,639,436 10,290,973 284,431 1,578,349 486,464
$ 27,279,653

NON-OPERATING EXPENSE
Contribution to Centennial Olympic Park 111 Capital Improvements and Projects Subtotal

1,409,944

.

4,722,015

$ 6,131,959

Hotel/Motel Tax (ACVB) Total Net Gain

.

8,886,205

$ 42,297,817

$ 11,967,903

111 Contribution to Centennial Olympic Park to assist funding of next year Operating Expenses.

Personal Services 53%

OPERATING EXPENSE Regular Operating 38%
Equipment! Contracts & Fees 7%

Other 2%

GWCC 1999 Attendance

723,285 402,900 281,247
1,407,432

49 Major Trade Shows & Conventions 20 Public/Consumer Shows 241 Meetings, Corporate Events and Others* Total Attendance**

* Includes fashion shows, licensing exams, graduations, sports events, concerts, and other performing arts productions.
** Includes events that also used Georgia Dome space.

Of the 1,407,432 people who attended 310 events, we estimate 721,328 came from out of town. Based upon an average stay of 4.25 days for out-of-town visitors, the Georgia World Congress Center Total Daily Attendance came to 3,752,348 for FY 99.

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Total Out-of-Town Attendance Total Daily Attendance

721,328 3,752,348

I GWCC Exhibit Hall Bookings

Days Booked
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1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

HALLS ABC

HALLS DEF

HALLS GH

HALLS JKLM (Phase IV expansion)

Exhibit Hall Days
The Georgia World Congress Center measures bookings in terms of Exhibit Hall Days for each of three exhibit hall groupings (i.e., Halls A, B and C; Halls D, E and F; Halls G and H). When our Phase IV expansion opens in 2002, we will add a fourth grouping (i.e., Halls], K, Land M).
One "Exhibit Hall Day" is the equivalent to all space booked in either Halls ABC, Halls DEP or Halls GH for one full day.
"Practical Maximum Bookings" is equivalent to all exhibit hall space booked at capacity for 285 days of the year. This number takes into account national holidays and seasonal slow periods, plus an average loss of three days per month for inherent scheduling gaps between major events.

GWCC Estimated FY 99 Economic Impact
GWCC ACTIVITY "New Dollar" Impact* Total Economic Impact Personal Income Employment
TAXES Georgia Sales Local Hotel/Motel Personal Income Total

. 1,020,859,452

. 2,450,062,685

. 939,190,696

.

45,517

. 66,151,692 . 16,231,665 . 21,233,877 . 24,194,369 $ 127,811,603

TWO-YEAR ECONOMIC SUMMARY
"New Dollars" Generated Total Impact of "New Dollars"

1998
704,372,305 1,690,493,532

1999
1,020,859,452 2,450,062,685

TAX REVENUES
State Local Hotel/Motel Total

. 62,548,261 . 11,269,957 . 14,791,818 $ 88,610,036

90,346,061 16,231,665 21,233,877 $ 127,811,603

* New dollar calculation uses the International Association of Convention and Visitor Bureaus' average of $333 spent per day by out-of-town visitors.

GWCC Direct Benefit to Georgia

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FY88

FY89

FY90

FY91

FY92

FY93

FY94

FY95

FY96

FY97

FY98

FY99

$37.2

$43.6

$49.3

$47.8 $34.7 $37.6

$33.3 $47.3

$23.2

$44.4

$40.2 $70.9

Net Profit to State of Georgia in Millions

TOTAL EXPENSE
Debt Service Expense
On~ratin!Y Fxn~ns~

TOTAL REVENUE
Tax Revenue
On~ratin!Y R~v~nllf'

The opening of Phase IV in Summer 2002 will give the GWCC a competitive advantage in serving current customers and attracting new ones.
Phase IV Expansion
The 1999 Georgia General Assembly approved $220 million to fund construction of the Phase IV expansion of the Georgia World Congress Center.
A Price Waterhouse feasibility study indicated such an expansion would attract 500,000 additional out-of-town visitors, generate $1 billion in economic impact, produce $53 million in new tax revenues, and sustain up to 19,000 new jobs annually in Georgia.
The expansion will include an additional 450,000 square feet of exhibit space, 25 meeting rooms, two lecture halls, a 46,000-square-foot ballroom with a dramatic pre-function space, and an impressive new entrance on the west side of the facility. It will be built along Northside Drive adjacent to existing GWCC exhibit halls D through H.
The use of a construction management team will ensure the most cost-effective approach to this project. It will allow bid packages to be done in stages and tailored to take maximum advantage of market conditions. The construction management method will also allow for greater opportunities for Minority Business Enterprises' participation.
Phase IV will help us meet the demands of shows needing more space as well as offer us new opportunities for hosting multiple shows simultaneously.
Easy access to these new facilities via a landscaped plaza and covered parking will increase the potential for Dome event-related functions, too.
All of this will work to our benefit as we strive to be America's most utilized convention and trade show facility.
Ph:lse TV will onen for hllSiness the Summer 2002.

Georgia Dome
The Georgia Dome had another terrific year. It set a record net gain of $7,559,071, thanks in large measure to the success of the 1998 National Football Conference Champion Atlanta Falcons and to the National Basketball Association's Atlanta Hawks, who played in the Dome while their new arena was under construction.
In addition to being the Falcons' home field, the Dome continued to host a broad array of events. The following serve as an example of that variety: Chick-fil-A Peach Bowl, McDonald's Heritage Bowl, SEC Football Championship, Holyfield vs. Bean heavyweight boxing championship fight, Supercross, the Fox 97 Ultimate Oldies concert, the Society for the Preservation of Barbershop Quartet Singing, religious rallies, trade shows, and corporate meetings.
Led by such headline events as Super Bowl XXXIV and the Backstreet Boys concert in 2000, the SEC and ACC Men's Basketball Championships, the NCAA Men's Final Four Basketball Championship in 2002 and 2007, and the NCAA Women's Final Four announced this year for 2003, the future holds great promise for our premier sports and entertainment venue in keeping and attracting business.
The Georgia Dome turned in another terrific year with a record net gain of more than $7.5 million.

Dome 1999 Revenue Statement
Total revenues were up 4% in FY 99, with food service and rent enjoying 15.4% and 23.4% respective increases. Fees from executive suite and club seat licenses remained our largest source of operating revenue.
Total expenses stayed at the same level as the previous year, thanks in particular to the $2.7 million drop in debt services realized as a result of our bond refinancing in FY 98.

REVENUE

OPERATING REVENUE

Rent

$ 4,706,092

Food Service

3,490,276

Parking

550,062

License Fees. . . .

.....

.....

14,746,100

Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,938,493

Other

3,272,042

Subtotal

$ 28,703,065

NON-OPERATING REVENUE
Transfer from Reserves Hotel/Motel Tax Contributed Equipment Subtotal Total

189,925 15,521,237
1,944,962 17,656,124 $ 46,359,189

Rent 11% Food Service 8% Parking 1% License Fees 33%

TOTAL REVENUE

Advertising 4% Hotel!
Motel Tax 35%
Other 8%

Dome 1999 Expense Statement

EXPENSE
OPERATING EXPENSE
Personal Services Regular Operating Equipment Contracts/Fees Other Subtotal

. 5,765,939

. 5,254,183

.

92,346

. 12,461,671

.

266,834

$ 23,840,973

NON-OPERATING EXPENSE

Debt Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 14,948,079

Refinancing Expense

11,066

Subtotal

14,959,145

Total. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 38,800,118

Net Gain

$ 7,559,071

TOTAL EXPENSE

Regular Operating 14%
Contracts/Fees and Equipment 31%

Debt Service 39% Other 1%

15

Georgia Dome 1999 Attendance

1,397,563 136,946 10,500 359,494 1,904,503

47 sporting events 5 entertainment events 1 trade/public show 27 other events* Total Attendance**

Includes convenrions, corporate events, meetings and religious assemblies.
Does not include Georgia World Congress Cenrer events that also used Dome space.

Total Out-of-Town Attendance Total Daily Attendance

290,463 2,485,429

Total daily attendance equals one visit by each local resident plus an average three-day visit for out-of-town visitors to multiple day events.

Approximately 290,463 of the 1,904,503 people who attended

I

events in the Dome last year were from out of town. Adding the number of single-day-event attendees to an average three-day stay for out-of-town visitors, the Georgia Dome Total Daily Attendance came to an estimated 2,485,429 in FY 99.

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16

Georgia Dome Bookings Days Booked

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1999 2000

2001

2002 2003

Sporting & entertainment events All other events

Georgia Dome Estimated FY 99 Economic Impact

DOME ACTIVITY
"New Dollar" Impact* Total Economic Impact Personal Income Employment
TAXES
Georgia Sales Local Hotel/Motel Personal Income Total

$ 290,172,537 696,414,089 266,958,734 12,938
$ 18,803,180 . 4,613,743 . 6,035,589 . 6,877,089 $ 36,329,602

TWO-YEAR ECONOMIC SUMMARY
"New Dollars" Generated Total Impact of "New Dollars"

1998
137,016,005 298,694,891

1999
290,172,537 696,414,089

TAX REVENUES
State Local Hotel/Motel Total

. 9,591,120 . 2,192,256 . 2,329,272 $ 14,112,648

25,680,270 4,613,743 6,035,589
$ 36,329,602

* New dollar calculation uses the International Association of Convention and Visitor Bureaus' average of $333 spent per day by out-of-town visitors.

I

Centennial Olympic Park
The State's 21-acre Centennial Olympic Park completed its first full year of operation in FY 1999 and reinforced its multi-purpose role as a permanent legacy of the 1996 Olympic Games, a catalyst for surrounding area development, neighborhood business facilitator, pedestrian traffic enhancer, and family-friendly events venue.
The Park sponsored 38 events such as Park Fest, Fourth of July celebration, Wednesday Wind Down concerts, and Fourth Saturday Family Fun Days, as well as hosting almost 50 events like festivals, corporate receptions, cultural activities, weddings, reunions, and special fundraisers.
These events, plus the normal day-to-day traffic, resulted in more than three million visitors who came to or at least passed through this urban oasis.
Approved this year, a children's playground and the Paralympic Legacy Monument will soon be significant additions to the Park.
While the Park generated $474,362 to apply to its own operating budget, its greatest value will always derive from the intangible benefits it contributes to the strength of our community.

I

Centennial Olympic Park 1999 Revenue Statement

REVENUE

OPERATING REVENUE

Rent Exhibit Utility Food Service Other Subtotal

Services

. 122,118

.

23,270

. 215,048

. 113,926

$ 474,362

NON-OPERATING REVENUE
Transfers from Reserve GWCC contribution 111 Subtotal Total

. 285,069
1,251,950 . 1,537,019 $ 2,011,381

(1) Contribution from GWCC to assist funding of Operating Expenses.

Rent 26%

TOTAL REVENUE

Exhibit Utility Services 5%
Food Service 45%

Other 24%

Centennial Olympic Park 1999 Expense Statement

EXPENSE
OPERATING EXPENSE
Personal Services Regular Operating Equipment Contract/Fees Other Total

. 945,074

. 461,445

.

36,548

. 406,777

.

104,618

$ 1,954,462

The Park's greatest value will always be the intangible benefits it contributes to strengthening our community.
TOTAL EXPENSE
Regular Operating 24%
Equipment! Contracts/Fees 23%
Other 5%

Human Resources Report

Our diverse, professional employees continue to be one of our most

valuable assets.

We had 508 full-time employee positions authorized in FY 1999

assigned as follows: 347 with the Georgia World Congress Center, 133

I

with the Georgia Dome, and 28 with Centennial Olympic Park. We supplemented our full-time staff with 407,485 hours of part-
time help. That is the equivalent of 196 full-time jobs.

Last year 41 of our employees celebrated service milestones that com-

bined represented 340 years of experience. Nine employees completed 15

years. Nine completed ten years. Twenty-three completed five years.

Because our employees' personal and professional development helps

keep us competitive, we invested in 70,762 hours of training. Topics

ranged from customer service techniques to first aid to computer skills.

Last year 41 of our employees celebrated service milestones that combined represented 340 years of experience.

Work Force Distribution

Female Minority

GWCCA 22 %

Female Caucasian Male Minority Male Caucasian

11 % 38 % 29 %

METRO ATLANTA 12 % 35 % 12 % .41 %

Georgia World Congress Center Authority Balance Sheet June 1999

ASSETS
Cash Accounts Receivable Prepaid Expense Inventories Advances to Dome Deferred Charges

GWCC

DOME

27,820,387 3,566,327 37,366 270,515 2,717,086 -

56,887,656 3,520,642 14,815 -
2,985,564

PARK

TOTAL

462,448 267,583
16,100
-

85,170,491 7,354,552 68,281 270,515 2,717,086 2,985,564

FIXED ASSETS

Equipment Land and Buildings
Total Assets

340,314,872
11}
374,726,553

165,348,994 228,757,671

LIABILITIES

& FUND BALANCE

LIABILITIES
Accounts Payable Debt Service Term Loan/
Bonds Payable Interfund Payable

1,511,840 289,590 -

15,057,990 188,233,927
2,717,086

72,315,923 577,979,789 73,062,054 676,546,278

107,097

16,676,927

61,847 188,585,364

-

2,717,086

RESERVES

Designated Deferred Revenue Investments
in Land and Buildings

25,626,706 2,065,291
338,774,517
11}

15,248,753 18,839,824
9,452,564

614,530 14,625
72,092,643

41,489,989 20,919,740 420,319,724

FUND BALANCE
Pre-depreciation Less Depreciation
Expense

9,043,928 (2,585,319)

30,218,521 (51,010,994)

261,320 (90,008)

39,523,769 (53,686,321)

Total Liabilities & Fund Balance

374,726,553

228,757,671

73,062,054 676,546,278

11} $338,705,000 Land & Buildings funding provided by State of Georgia general obligation bonds.

GWCC 1999 Authority Board of Governors

CHAIRMAN
Robert S. Prather Jr. President & CEO Bull Run Corporation

VICE CHAIRMAN
Alfred K. Barr Regional Vice President Simon Property Group

SECRETARY
Howard J. Spiller President & CEO Urban Resources

Bill Archer Executive Vice President Georgia Power Company
Mark H. Cohen Partner Troutman Sanders
David M. Franklin Chairman & CEO Franklin & Wilson Airport Concessions, Inc.
Glenn E. Hicks III Managing Director Eagle Bancshares, Inc. Capital Group

TREASURER
C. Jere Sechler Jr. Chairman & CEO Eagle Bancshares Inc.
Stephen R. Leeds Partner Rogers & Hardin
Rubye Mims Lucas Vice President, Community Affairs Turner Broadcasting System, Inc.
William P. Payne Chairman Premier Technologies, Inc.

Legislative Overview Committee

CHAIRMAN
Senator Paul C. Broun

VICE CHAIRMAN
Representative Louise McBee

Senator Jack Hill

Representative Roger Byrd

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Georgia World Congress Center Authority

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DOME
~ CENTENNIAL
OLYMPIC PARK