DIRECTOR'S REPORT 2 GEORGIA WORLD CONGRESS CENTER 3 Revenue & Expense Statement 5 Estimated Economic Impact 7 Direct Profit to Georgia 9 GEORGIA DOME Revenue & Expense Statement Attendance Estimated Economic Impact - CENTENNIAL OLYMPIC PARK Revenue & Expense Statement 11 13 13 15 17 -.~j 19 GWCC AUTHORITY BOARD OF GOVERNORS 23 We're the Georgia World Congress Center WHERE YOU'RE ALWAYS ON OUR MIND The Georgia World Congress Center The guest list for the much-anticipated enjoyedan eventfulFISCAL YEAR 2003, grand opening gala included many from the grand opening of a 1.4 million- of the center's valued customers, square-foot Phase IV expansion welcomed by local and state officials to the 10th anniversary and the Atlanta hospitality community of International The highlight of the event Woodworking Fair. was an announcement GEORGIA made by Georgia Gov. The transition of Phase VVORLD Sonny Perdue confirming IV from a construction CONGRESS the selection of the project to a state-of-the- CENTER GWCC and Georgia art Building C gave the Dome for the Microsoft Congress Center an Global Briefing Meeting in 2004, additional 420,000-square-feet bringing an estimated economic of exhibit space. International impact of $50 million to the state. Woodworking Fair became the The expansion is projected to largest show ever held at the Georgia generate an additional $1 billion World Congress Center when it utilized the exhibit halls in the partially completed Phase IV expansion early in the year. Bank Administrative in economic impact annually and generate $53 million in new tax revenue. - , Institute (BAI) was the first major event to use the new 25,700- square-foot Georgia Ballroom during its high profile event, featuring keynote addresses from former New York City This year, the GWCC hosted nearly 250 different events, from major trade shows to consumer shows to sporting events. Whether a trade show, corporate product launch or a small meeting, our dedicated staff brings the highest level of professionalism, customer service and friendliness to each event, Mayor Rudy Guiliani and former ensuring a bright future for General Electric CEO Jack Welch. the GWCc. I3 2003 ANNUAL REPORT ~ORL.D CONC.I~f":$S The Building C expansion is expected to generate an additional $1 billion in economic impact annually. RENT, FOOD SERVICE AND UTILITY SERVICES remain the primary sources of operating revenue for the Georgia World Congress Center. When combined, they account for 74 percent of all operating revenue, with rent serving as the largest revenue generator, accounting for 42 percent of the facility's $30,868,814 in total revenue. Operating revenue fell $2.5 million below budgeted projections, but expenses were cut by $5.8 million. A projected loss of $3.1 million was trimmed to $220,059. "Other" expense items include computer, telecommunications, equipment leases, travel, printing and other minor expenses. OPERATING REVENUE Rent .42% Exh. Utility Services ..19% Catering 13% ~ Hotel/MoteL 11% ~ Parking 9% ~Other 6% FISCAL YEAR 2003 GWCC ATIENDANCE 42 major trade shows and conventions 15 public/consumer shows 184 meetings, corporate events and others*** TOTAL 512,194 494,737 169,994 1,176,925 *** Includes fashion shows, licensing exams, graduation ceremonies, sporting events, concerts and other performing arts productions. I5 2003 ANNUAL REPORT OPERATING EXPENSES Personal Services 63% Operating 26% ..J ContractsiFees 6% ..J Other .4% ..J Equipment 1% OPERATING REVENUE '13,116,075 Exhibit Utility Services 5,747,667 Catering 4,112,769 3,458,611 2,718,402 1,715,290 SUBTOTAL '30,868,814 NON-OPERATING REVENUE Transfers from Reserve '2,276,299 Contributed Equipment 606,007 SUBTOTAL ~882,306 Hote1lMotei Tax (ACVB) 8,072,484 TOTAL REVENUE $41,823,604 Personal Services ContractslFee~s --SUBTOTAL Net Operating Gain $18,555)~~ 7/64,468 263,312 1,803,912 1,009,025 '29,396,282 1,472,532 NON-OPERATING EXPENSES Contribution to Centennial Olympic Park '1,280,834 2,455,917 Hote1lMotel Tax (ACVB) 8,072,484 Net Depreciation Expense 838,146 SUBTOTAL '12,647,381 TOTAL EXPENSES $42,043,663 GWCC ACTIVITY "New Dollar" Impact 51,040,871,204 Total Economic Impact 1,718,270,165 Personal Income 666,975,121 Employment 525,432 TAX REVENUES Georgia Sales Tax __ 539,753,260 Local Sales Tax 29,814,945 Hote1lMotel Tax 21,294,342 Personal Income Tax/Other 30,466,648 TOTAL S121,329,195 An estimated $1 billion was generated by the 1.2 million visitors to the Georgia World Congress Center. According to a University of Georgia study conducted by the Selig Center for Economic Growth, these visitors spent "new dollars" in Georgia at restaurants, hotels, retail shops and on entertainment, generating an economic impact of more than $1.7 billion. Events at the Congress Center sustained 25,432 jobs totaling personal income of $30 million for the state's workforce. The facility generated more than $121 million in state and local tax revenue. TWO-YEAR ECONOMIC SUMMARY 2002 2003 "New Dollars" Generated '1,056,756,473 $1,040,871,204 Total Impact of "New Dollars" 1,744,511 ,921 1,718,270,165 State Local Hote1lMotel TOTAL TAX REVENUES '65,230,311 29,959,032 18,150,729 1113,340,072 '70,219,808 _29,814,945 21,294,342 1121,329,195 I7 2003 ANNUAL REPORT The State of Georgia has a vested interest in the Georgia World Congress Center. This year that investment, in the form of paid debt service, totaled nearly $39 million. The return on that investment is significant. The tax revenue generated during Fiscal Year 2003 was over $70 million and the operating profit for the facility was $1.5 million. Subtract the debt service from $71.5 million and the difference is a $32 million direct profit to Georgia. Despite a soft economy, the Georgia World Congress Center continues to generate real dollars for every citizen in the state. OPERATING REVENUE OPERATING EXPENSE 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 020.60 22,812,247 23,742,599 31,729,228 30,030,518 35,613,820 33,967,289 39,893,740 29,298,755 30,868,814 -- --~- --- -- ~~ -- 19,430,734 19,280,328 19,395,316 22,159,684 25,313,630 27,279,653 25,019,091 27,388,214 26,039,749 29,396,282 ~ ~ ~ =.J I OPERAT PROF 89.8 3,531,91 4,347,28 9,659,54 4,716,88 8,334,16 8,948,19 12,595,5: 3,259,00 1,472,53 *Direct Profit to Georgia is calculated by adding the operating profit and the state pro 91 2003 ANNUAL REPORT TAX REVENUE DEBT SERVICE STATE PROFIT DIRECT PROFIT TO GEORGIA 54,978,682 68,472,099 - - ~- 23,360,105 24,559,580~ ~ ~J 31,618,577 43,912,519 34,208,450 47,444,438 -n - 46,160,000 27,343,710 " ~ 61,854,480 - 27,118,841 - 18,816,290 J 34,735,639 23,-163,5- 73 , -- 44,305,183 - 62,548,261 64,490,285 72,846,428 - 79,116,385 -- ~ - - 27,367,073 -- ] 27,777,777 ---~- - 34,418,098 =- _J 44,904,470' h 35,181,188 " 36,71-2,5-08 - 38,428,330 34:211~915. 39,898,-076 45,046,675 ~- - 47,276,528 46,807,441 - _. 65,230,311 70,219,908 - 46,164,521 38,796,511 -, -- 19,065,790 -I 31,423,000 22,324,796 32,895,532 The Georgia Dome hosted everything to Sunday professional football as the from bull riding competition to the team's popularity continued to soar NCAA Women's Final Four to NFL under the leadership of team owner football during FISCAL YEAR 2003 Arthur Blank. Six other football events - and the facility experienced internal - the SEC Football Championship, growth with a number of capital outlay projects the Corky Kell High I G E 0 R G I A School Football Classic, completed or underway. Do ME Atlanta Football Classic, Georgia High School Inside the Dome, 1 million visitors Association playoffs, the Peach State saw $5 million in new technology Classic and the 35th Anniversary of upgrade, including two Megavision the Chick-fil-A Peach Bowl- filled video boards over each football end the Dome during the fall and zone, eight LED message boards winter months. and new football and basketball scoreboards. In the spring, Dome Just a year after hosting the NCAA officials announced the installation Men's Final Four, the Women's of a new artificial playing surface - Championship Tournament came FieldTurf - replacing the ll-year-old to the Georgia Dome in April, Astroturf. putting the stadium in the national sports spotlight. And those weren't the only things new to the Dome in 2003. Two new events The Dome served as host for more than came to the Dome, Honda Battle of 43 major events last year and the the Bands and Professional Bull Riders. staff looks forward to a very bright Both drew record crowds and will future as the Falcons popularity soars, return to the stadium in FY2004. longtime partnerships continue to flourish and Home of the Atlanta Falcons, the new events find success Dome welcomed record crowds at the Georgia Dome. I 11 2003 ANNUAL REPORT Two new events came to the Dome last year. Honda Battle of the Bands and Professional Bull Riders drew record crowds and will return to the stadium in FY2004. Despite a soft economy, the Georgia License agreements from Club Seat Dome exceeded projected revenues and Suite holders accounted for by $8,800 while cutting expenses nearly 60 percent of the Dome's during Fiscal Year 2003 by $324,000, resulting in a net profit of $6.8 million. FY2003 DOME ATIENDANCE 10 Atlanta Falcons Games - - 6 Other Football Games 2 Basketball Events 10 Entertainment Events 15 Other Events*** TOTAL 570,830 256,917 60,577 216,345 91,275 1,195,924 *** Includes conventions, corporate events and meetings I $23 million in operating revenue, followed by rent, sponsorships and parking. OPERATING REVENUE License .57% __ Rent 18% UAdvertising 12% ~ Food Services 8% ..J Other 3% ~ Parking 2% I13 2003 ANNUAL REPORT OPERATING EXPENSES IIPersonal Services .50% o Regular Operating 30% Contract/Fees 15% ~ Other .4% ~ Equipment 1% GEORGIA DOME ACTIVITY "New Dollar" Impact '121,024,635 Total Economic Impact 197,952,737 Personal Income 78,065,683 Employment 3,291 TAX REVENUES Georgia Sales Tax '4,903,595 Local Sales Tax 3,677,697 Hote1lMotei Tax 2,406,133 Personal Income Tax/Other 3,565,949 TOTAL 514,553,374 Home of the 2003 NCAA Women's Final Four Basketball Tournament, the Georgia Dome hosted everything from Falcons Football to Professional Bull Riders to Battle of the Bands, welcoming 1.2 million visitors in Fiscal Year 2003. Those visitors pumped more than $120 million into the state's economy. Based on a study conducted by the University of Georgia's Selig Center for Economic Growth, that $120 million had a total economic impact of $198 million for the State of Georgia. Activities at the Dome sustained 3,291 jobs totaling personal income of $ 78 million for the state's workforce. The stadium generated more than $14 million in state and local tax revenue. TWO-YEAR ECONOMIC SUMMARY "New Dollars" Generated 2002 '119,534,838 Total Impact of "New Dollars" 195,516,127 State Local HoteVMotel TOTAL TAX REVENUES '5,144,248 3,858,186 2,026,752 '11,029,186 2003 '121,024,635 197,952,737 '8,468,540 3,677,697 2,406,133 514,553,374 I15 2003 ANNUAL REPORT Centennial Olympic Park continues On the Bricks returned for its third to be the gathering place for downtown year, entertaining thousands with Atlanta, offering quality family chart-topping bands performing on programming, lively concerts, holiday stage. Fourth Saturday Family Fun fun and a great place to enjoy a little Day, offered April through September, peace and quiet in the continues to grow center of the city. and this year was recognized by the The Park, which opened six years ago, was built as a legacy to the 1996 Centennial Olympic CENTENNIAL OLYMPIC PARK Georgia Festival Events Association as the "Best Community Involvement Program Games, but it has become much in the State." Atlantans and tourists more than that to the community. alike continued to visit Centennial The 2l-acre green space provides a Olympic Park for the annual Holiday wonderful welcome to the 2 million in Lights and ice skating rink, which guests visiting the Georgia World has quickly become an Atlanta tradition. Congress Center and Georgia Dome and is dedicated to providing quality A catalyst for downtown neighborhood family programming for the community. development, the Park anticipates a bright future, as residential properties During FISCAL YEAR 2003, the continue to flourish in downtown Park hosted 150 events, including and great developments, 85 concerts, 13 film shoots, seven including the new Georgia corporate receptions and two Aquarium and World of parades. Wednesday WindDown, Coca-Cola, enhance the a weekly free concert featuring top Centennial Olympic name jazz, R&:B,blues and world Park neighborhood. music drew record crowds and I17 2003 ANNUAL REPORT The Park hosted 150 events, including 85 concerts, 13film shoots, seven corporate receptions and two parades. Situated between the Georgia World Congress Center and the downtown hotel district, Centennial Olympic Park serves as an open-air welcome center for visitors and conventioneers. An integral part of the GWCCA campus, the Park receives the majority ofits funding - $1.32 million - from the Congress Center. Food services, rent and sponsorship account for 90 percent of the $437,359 in operating revenue. A decrease in Park sponsorships and a reduction in the Congress Center contribution resulted in a net loss of $1.4 million. OPERATING REVENUE Food Services .39% :..J'--II Rent 26% -.J Sponsorship 26% -.J Other 6% -.J Utility 3% OPERATING EXPENSES --.J Personal Services ......63% Regular Operating 25% U Contracts/Fees 9% -.J Equipment 2% ~ Other 1% I19 2003 ANNUAL REPORT OPERATING REVENUE Food Services '172,984 Rent 114,342 Sponsorship 112,200 Other 25,378 Utility 12,455 SUBTOTAL 5437,359 NON-OPERATING REVENUE Transfer from Reserves '320,556 GWCC Contribution 1,342,440 SUBTOTAL 1,662,996 $2,100,355 Personal Services Regular Operating guipment ContractslFees SUBTOTAL $1,177,813 467,736 32,606 174,727 22,425 '1,875,307 NON-OPERATING EXPENSES Capital Improvement &. Proiects '365,401 Net Depreciation Expense 1,241,982 1,607,383 '3,482,690 I il~n~nF" 'liTl" "~:'lIIa;r.: ,~ ,,~,)-iC( 'tlaT'- .X"~TiT' oYfTi!lRlI.lmm1, Stephen R. Leeds Partner ROGERS AND HARDIN Bill Archer Executive Vice President GEORGIA POWER COMPANY David G. Kahn President & CEO KAHN &:. COMPANY,INC. R. Elliott Caudell President CAUDELL REALTY Rubye Mims Lucas VP Community Relations TURNER BROADCASTINGSYSTEM,INC. Mark H. Cohen Partner TROUTMAN SANDERS, LLP William Porter Payne Partner GLEACHER AND COMPANY Richard W Cohen, M.D. Surgeon RESURGENS ORTHOPAEDICS Robert S. Prather Jr. President & CEO BULL RUN CORPORATION Lewis J. Cooper Chainnan COOPER BARNETT &:. PAGE C. Jere Sechler Jr. Sole Proprietor SECHLER &:. ASSOCIATES David M. Franklin Chainnan & CEO FRANKLIN &:. WILSON AIRPORT CONCESSIONS J. Thomas Vance Partner TISINGER, TISINGER, VANCE &:. GREER, P.e. Glenn Hicks III Dir. Business Dev. & Community Relations RBC VENTURA BANK Monique Walker Chief Operating Officer & General Counsel THE WALKER GROUP Extraordinary Customer Service '.... Tif""I ..' .lIltllI:11.:!. aTeltt.r_ nT,TI':':,' .I:InenU::IrC. www.centenniaIRarK.com