2004 annual report [2004]

GEORGIA WORLD CONGRESS CENTER AUTHORITY ANNUAL REPORT

20 04

GWCC AUTHORITY

D I R E C T O R' S R E P O R T , P A G E T H R E E GWCC, PAGE FOUR REVENUE AND EXPENSE STATEMENT, PAGE SIX ESTIMATED ECONOMIC IMPACT, PAGE EIGHT DIRECT PROFIT TO GEORGIA, PAGE TEN
G E O R G I A D O M E , PAGE TWELVE REVENUE AND EXPENSE STATEMENT, PAGE FOURTEEN ATTENDANCE, PAGE FOURTEEN ESTIMATED ECONOMIC IMPACT, PAGE SIXTEEN
C E N T E N N I A L O LY M P I C PA R K , PAGE EIGHTEEN REVENUE AND EXPENSE STATEMENT, PAGE TWENTY
GWCC AUTHORITY BOARD OF DIRECTORS, PAGE TWENTY FOUR

Georgia Governor Sonny Perdue at the Atlanta Journal-Constitution International Auto Show.

Mission Statement

PAGE TWO

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 benefits to the citizens of the State of Georgia and the City of Atlanta, as well as enhance the 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 all 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.

Staff greeters welcome guests to the convention center campus.

Director's Report
Daniel Graveline, Executive Director, Georgia World Congress Center Authority

The 200-acre campus of the Georgia World Congress Center Authority serves as an economic catalyst for the community, generating economic benefits to the citizens of the state, as well as enhancing the overall quality of life for every Georgian.
An estimated 5 million visitors attended over 500 events at the Georgia World Congress Center, the Georgia Dome and Centennial Olympic Park. According to a University of Georgia study conducted by the Selig Center for Economic Growth, those visitors spent over $1 billion new dollars, which generated an estimated economic impact of well over $2 billion. Trade shows, conventions, sporting events and concerts also helped generate an estimated $130 million in new tax revenues for the city and state. Additionally, the GWCCA contributes to the region's economy by creating jobs. This year alone, events and activities held on campus sustained 30,663 jobs.

helped reduce expenses by $2.6 million at the GWCC while revenue exceeded budget projections by $2.3 million. The bottom line -- staff initiatives turned a $5 million projected loss into a modest profit for the Georgia World Congress Center. Similar initiatives at the Georgia Dome and Centennial Olympic Park resulted in strong fiscal performances at both venues.
During this same period, staff at all three facilities rededicated themselves to providing the best customer service in the industry. Full and part-time employees participated in a variety of customer service workshops designed to enhance and improve the delivery of customer service on our campus. The result. focused attention on the needs of the customer and an incredible list of new customer service initiatives. Not only did the GWCCA renew its commitment to the customer, our staff also emerged with a renewed sense of pride and enthusiasm.

With the convention industry still rebounding from a slow economy, the GWCC forecast a $4.7 million operating loss for Fiscal Year 2004. Staff immediately began developing ways to both control expenses and enhance revenues a difficult task in an industry that traditionally books events three or more years in advance. Resource, space and energy management

The following report offers detailed information on the operations of the Georgia World Congress Center Authority during Fiscal Year 2004. The Georgia World Congress Center, the Georgia Dome and Centennial Olympic Park will continue to serve the citizens of the State of Georgia while maintaining three of the finest special event venues in the nation.

Former President George Bush greets Helmut Kohl and Mikhail Gorbachev at Unification Conference.

Year In Review
Georgia World Congress Center

PAGE FOUR

The Georgia World Congress Center experienced growth in Fiscal Year 2004, hosting more than 70 major events and seeing renewed attendance at tradeshows and conventions. The year also marked the completion of several major construction projects, including the East Plaza and Andrew Young International Boulevard and the first full year of operation for the completed Building C.
During Fiscal Year 2004, the GWCC rode a new wave of conventions, tradeshows and meetings, hosting a diverse selection of events. From the FIRST Robotics Competition, an international competition and spectator sport where teams solve engineering design problems, to the CowParade Atlanta Auction, an international public art exhibition that has raised more than $9 million for charitable organizations, the GWCC experienced one-of-a-kind events that made national headlines. The Congress Center also hosted visits from President George W. Bush, former Presidents George Bush and Jimmy Carter and former Soviet President Mikhail Gorbachev.
A grand total of 292 events called the Georgia World Congress Center home during Fiscal Year 2004. The GWCC hosted 55 conventions, including 16 of Tradeshow Week's Top 200, the nation's largest conventions. The Congress Center was also host to 19 consumer shows and 195 corporate events and meetings.
After years of planning and expanding, the Georgia World Congress Center can now reap the benefits of a construction-free campus. Andrew Young International Boulevard, the entryway to the Georgia World Congress Center from the downtown hotel district, reopened with a brand new look. The new road is a four lane, pedestrian-friendly path to the convention center and the Georgia Dome. Just steps away from International Boulevard is a newly landscaped plaza that welcomes visitors to the GWCC. East Plaza, which re-opened after several months of renovation, is the campus's newest landscape feature. It encompasses 3.5 acres of walkways, sitting areas, planters and green space. East Plaza links the Georgia World Congress Center to Centennial Olympic Park, the CNN Center and the downtown hotel district.

CTIA Wireless 2004 features the latest in the wireless telecommunications industry.

The center hosts many annual consumer shows, including the Atlanta Boat Show.

Revenue and Expense Report
GWCC

PAGE SIX

During Fiscal Year 2004, the primary sources of operating revenue for the Georgia World Congress Center were rent, catering and utility service, accounting for 74 percent of all operating revenue. With a total operating revenue of $29.6 million, the Congress Center exceeded budget projections by more than $2 million. Additionally, operating expenses were reduced by more than $2.5 million enabling the GWCC to produce an operating profit of $1.5 million. "Other" expense items include computers and telecommunications, equipment leasing, travel, printing and other minor expenses.

The popular coffee caf Starbucks opened in Spring 2004.

Fiscal Year 2003-04 GWCC Attendance

55 Major Trade Shows and Conventions 19 Public/Consumer Shows 218 Meetings, Corporate Events and Others***

567,805 425,612 177,369

TOTAL (292)

1,170,786

*** Includes fashion shows, licensing exams, graduation ceremonies, sporting events, concerts and other performing arts productions.

OPERATING REVENUE Rent....................... .40% Exh. Utility Services.....14% Food Services...........20% Parking......................9% Hotel/Motel. . . . . . . . . . . . . .12% Other.........................5%
OPERATING EXPENSES Personal Services.. . . . .60% Operating. . . . . . . . . . . . . . . . . .29% Equipment. . . . . . . . . . . . . . . . . . . .1% Contracts/Fees. . . . . . . . . . . . 7% Other. . . . . . . . . . . . . . . . . . . . . . . . . . 3%

Operating Revenue

Rent Exhibit Utility Services Food Services Parking Hotel/Motel Other
SUBTOTAL

$ 11,758,419 4,360,970 5,877,403 2,634,961 3,503,872 1,492,500
$29,628,125

Non-Operating Revenue

Transfers from Reserve Contributed Equipment
SUBTOTAL
Hotel/Motel Tax (ACVB)
TOTAL REVENUE

875,767 1,455,368 $ 2,331,135 8,178,130 $ 40,137,390

Operating Expenses

Personal Services Operating Equipment Contracts/Fees Other
SUBTOTAL
NET OPERATING GAIN

$ 16,846,610 8,209,420 160,576 1,891,372 996,762
$ 28,104,740 $ 1,523,385

Non-Operating Expenses

Contributed to Centennial Olympic Park ( 1 )

$1,297,597

Capital Improvements and Projects

1,043,711

Net Depreciation Expense

1,548,223

Hotel/Motel Tax (ACVB)

8,178,130

SUBTOTAL

$12,067,661

TOTAL

$40,172,401

NET GAIN

$ (35,011)

(1) Contribution to Centennial Olympic Park to assist in funding of next year operating expenses.

Attendance at tradeshows and conventions increased in 2004.

Former President Jimmy Carter delivers the keynote address at a religious conference.

Youth conferences and events bring fresh faces to the Congress Center.

With 105 meeting rooms, the GWCC is well suited for conferences and tradeshows with strong educational components.

Economic Impact
Georgia World Congress Center

PAGE EIGHT

GWCC Economic Activity

"New Dollar" Impact Total Economic Impact Personal Income Employment

$ 1,102,090,496 $ 1,819,304,971 $ 706,210,578
26,412

Tax Revenues

Georgia Sales Tax

$ 43,569,171

Local Sales Tax

$ 32, 676,879

Hotel/Motel Tax

$ 22,564,086

Personal Income Tax/Other $ 32,258,879

Total

$ 131,069,015

The Georgia World Congress Center continues to have a significant impact on Georgia's economy. The 1.1 million visitors attending events at the premier convention facility generated more than $1 billion during Fiscal Year 2004. According to a University of Georgia study conducted by the Selig Center for Economic Growth, these visitors spent "new dollars" in Georgia restaurants, hotels, retail shops and on entertainment, generating an economic impact of more than $1.8 billion. The facility generated $131,504,929 in state and local tax revenue. The Georgia World Congress Center also boosts the economy by creating jobs. Events held at the GWCC sustained 26,412 jobs totaling personal income of $706 million for the state's workforce.

3 Year Economic Summary

"New Dollars" Generated

2002

2003

2004

$1,056,756,473 $1,040,871,204 $1,102,090,496

Total Impact of "New Dollars" $1,744,511,921 $1,718,270,165 $1,819,304,971

State Local Hotel/Motel Total

Tax Revenues

2002

2003

2004

$ 65,230,311 $ 70,219,808 $ 75,828,050

$ 29,959,032 $ 29,814,945 $ 32,676,879

$ 18,150,729 $ 21,294,342 $ 22,564,086

$ 113,340,072 $ 121,329,195 $ 131,504,929

The center hosts many community events, like the popular CowParade auction.

International Plaza plays host to a variety of corporate and convention receptions.

PAGE TEN

Direct Profit to Georgia
GWCC
In an industry that's largest facilities typically operate at a loss, or require government subsidies to break even, the Georgia World Congress Center has operated at a profit for more than 20 years. This allows the tax revenue generated by visitors to Atlanta to go straight to where it is needed the most... making Georgia a better place to live, work and play. When combined, the operating profit of $1.5 million and the state profit of $36 million create a $37.5 million direct profit to Georgia. This money contributes to public schools, libraries, new roads and more, providing an excellent return on the state's investment in the Georgia World Congress Center.
AT L A N TA
9

Operating Revenue

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

22,812,247 23,742,599 31,729,228 30,030,518 35,613,820 33,967,289 39,863,740 29,298,755 30,868,814 29,628,125

Operating Expense
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 28,104,740

Operating Profit
3,531,919 4,347,283 9,659,544 4,716,888 8,334,167 8,948,198 12,595,526 3,259,006 1,472,532 1,523,385

Tax Revenue
68,472,099 46,160,000 61,854,480 62,548,261 64,490,285 72,846,428 79,116,385 65,230,311 70,219,908 76,246,050

Debt Service
24,559,580 27,343,710 27,118,841 27,367,073 27,777,777 34,418,098 44,904,470 46,164,521 38,796,511 40,207,304

State Profit
43,912,519 18,816,290 34,735,639 35,181,188 36,618,577 38,428,330 34,211,915 19,065,790 31,618,577 36,038,746

Direct Profit To Georgia*
47,444,438 23,163,573 44,305,183 39,898,076 45,046,675 47,276,528 46,807,441 22,324,796 32,895,532 37,562,131

* Direct Profit to Georgia is calculated by adding the operating profit and the state profit

New FieldTurf is prepped for pre-season play. PAGE TWELVE

Year In Review
Georgia Dome
The Georgia Dome welcomed over 1.4 million visitors during 43 events in Fiscal Year 2004 an incredible year that defied even the most optimistic expectations. More people came to events at the Georgia Dome than in any other year before or after the 1996 Centennial Olympic Games. The variety of events held at the Georgia Dome in 2004 were of Olympic proportions, from NFL and college basketball to religious gatherings and a robotics competition.
Excitement continued to build around the Atlanta Falcons franchise, where records are being broken on an annual basis. All 10 Atlanta Falcons home games sold out for the first time in Dome history, making NFL football the hottest ticket in town.
Georgia Dome is home to a number of annual events, all of which did their share to make history, too. The SEC Football Championship, established as one of the Georgia Dome's premier events, welcomed over 74,000 as the University of Georgia played Louisiana State University. The Chick-fil-A Peach Bowl broke with tradition and held its game after New Years' Day, and on Jan. 2, 2004, set a Dome attendance record for a football game with 75,125 passionate SEC and ACC college football fans cheering on Tennessee and Clemson. The Atlanta Football Classic, Supercross, Monster Jam and Professional Bull Riders all continue to call the Georgia Dome home, enjoying very successful events in Fiscal Year 2004.
The impact of religious meetings grew last year, with over a quarter of a million gathering for the Evangelical Lutheran Church of America's annual youth retreat, T.D. Jakes and Mega Fest 2004. Mega Fest, a four-day family event, saw, for the first time, T.D. Jakes' Woman, Thou Art Loosed, ManPower and the all-new kids' workshop, Youth 3D Experience, taking place in one city. The Dome also hosted an increasing number of corporate meetings, parties and retreats, and that number is expected to increase again this year.
The facility saw two significant capital improvement projects completed in Fiscal Year 2004. The first was the installation of the new FieldTurf, a permanent artificial turf system for the floor of the Dome. Cost was approximately $1.2 million, including turf maintenance equipment. Dome Productions, the stadium's in-house production studio, was redesigned and augmented with the latest in front-end production equipment, costing $750,000 and maintaining the status as a state-of-the-art facility.

Wearing their new uniforms, Atlanta Falcons huddle up before the start of the 2003 season.

The Dome hosts a variety of corporate functions. PAGE FOURTEEN Thousands gather at the Georgia Dome for ManPower.

Revenue and Expense Report
Georgia Dome
Despite a slow recovery to the nation's economy, a significant reduction in the hotel/motel tax revenue and lingering fears about security, Fiscal Year 2004 proved to be a solid year financially for the Georgia Dome.
Rent and Licensing, which total 70 percent of the Georgia Dome's operating revenue, increased by $2.5 million to $19.3 million while food service revenue rose $2 million to $3.9 million marking significant increases.
The Dome invested in two significant projects acquisition of a new turf system at a cost of $1.2 million and an upgrade to the in-house production studio at a cost of $750,000. Both investments were well received by the Dome's sports and entertainment clients.

Fiscal Year 2003-04 Georgia Dome Attendance

10 Falcons Games 6 Other Football Games and Events 2 Basketball Game Events 10 Entertainment Events 15 Other Events***

568,318 279,001
45,591 248,255 264,896

TOTAL (43)
*** Includes conventions, corporate events and meetings.

1,406,061

OPERATING REVENUE License.....................51% Advertising. . . . . . . . . . . . . . . 12% Rent.........................19% Food Services...........14% Parking.....................2% Other........................2%
OPERATING EXPENSES Personal Services.....44% Regular Operating....32% Equipment...................1% Contracts/Fees.........20% Other. . .. . . . . . . . . . . . . . . . . . . ..3%

Operating Revenue

Advertising Rent Food Services Parking Other License
SUBTOTAL

$ 3,170,054 5,263,463 3,975,469 414,368 684,856 14,016,510
$27,524,720

Non-Operating Revenue

Hotel/Motel Transfer from Reserves Contributed Equipment
SUBTOTAL TOTAL REVENUE

$ 14,284,464 2,096,355 985,469
$17,366,288 $ 44,891,008

Operating Expenses

Personal Services Operating Equipment Contracts/Fees Other
SUBTOTAL

$ 6,064,336 4,390,442 132,442 2,733,738 444,982
$ 13,765,940

Non-Operating Expenses

Debt Service Falcons Contract Contracts/Projects
SUBTOTAL TOTAL EXPENSES
NET GAIN (BEFORE DEPRECIATION)
NET DEPRECIATION EXPENSE NET GAIN

$ 9,891,495 5,730,453 7,077,499
$22,699,447 $ 36,465,387
8,425,621 7,148,743 1,276,878

The Southeastern Conference Championship and NCAA Regionals called the Dome home in 2004.

Marching band competition is growing in popularity as a spectator sport. Events like Monster Truck and Supercross are annual entertainment favorites.

The Georgia Dome is a stop on the Professional Bull Riders tour. PAGE SIXTEEN Florida A&M and Tennessee State face off at the Atlanta Football Classic.

Economic Impact
Georgia Dome

Georgia Dome Economic Activity

"New Dollar" Impact Total Economic Impact Personal Income Employment

$ 159,391,314 $ 260,706,860 $ 102,813,790
4,251

Tax Revenues

Georgia Sales Tax

$

Local Sales Tax

$

Hotel/Motel Tax

$

Personal Income Tax/Other $

Total

$

6,787,885 5,090,913 3,168,788 4,696,414 19,744,000

3 Year Economic Summary

During Fiscal Year 2004, the Georgia Dome welcomed more than 1.4 million visitors to a wide variety of events including Atlanta Falcons games, the Southeastern Conference Football and Basketball Championships, the Atlanta Football Classic, the Chick-fil-A Peach Bowl, Supercross, Monster Jam, NCAA basketball and a host of others. The high attendance drawn at these and other events helped the Georgia Dome generate $159 million for the state of Georgia. A study conducted by the University of Georgia's Selig Center for Economic Growth estimated this sum had a total economic impact of $261 million for the state of Georgia. Additionally, the Georgia Dome raised more than $19 million in state and local tax revenue and sustained 4,251 jobs totaling personal income of more than $102 million for the state's workforce.

"New Dollars" Generated

2002

2003

2004

$ 119,534,838 $ 121,024,635 $ 159,391,314

Total Impact of "New Dollars" $ 195,516,127 $ 197,952,737 $ 260,706,860

State Local Hotel/Motel Total

Tax Revenues 2002
$ 5,144,248 $ 3,858,186 $ 2,026,752 $ 11,029,186

2003

2004

$ 8,468,540 $ 11,484,299

$ 3,677,697 $ 5,090,913

$ 2,406,133 $ 3,168,788

$ 14,552,370 $ 19,744,000

Large religious conferences continue to fill both the Georgia Dome and the Georgia World Congress Center during the summer months.

Centennial Olympic Park is Atlanta's holiday gathering place. PAGE EIGHTEEN

Year In Review
Centennial Olympic Park
Centennial Olympic Park, located in the heart of downtown Atlanta, continues to serve as the community's gathering place, welcoming thousands of visitors from around the world to the Georgia World Congress Center and Atlanta each year.
The Park, which was dedicated seven years ago as a legacy to the 1996 Centennial Olympic Games, enjoyed growing popularity, with many patrons making its free programming a family tradition. In 2004, visitors continued to be attracted to the Park's Fountain of Rings, the 21 acres of manicured lawns, family-friendly concerts, festivals and special events. The summer concerts Music at Noon, Wednesday WindDown and On the Bricks are becoming wildly popular, and brought local and national artists to the Park for weekly concerts throughout the summer. Fourth Saturday Family Fun Day, the 4th of July Celebration and Holiday in Lights continued to draw families looking for inviting and affordable entertainment throughout the year.
The Gold Medal Garden is the newest addition to the Park's landscape, and is located in North Park near the site for the Georgia Aquarium. Planted last fall, the Garden consists of award-winning plants, as chosen by the Georgia Gold Medal Winners Program annually. The Garden is a project of the Central Fulton Master Gardeners, who maintain the area throughout the year, bringing in new plants as winners are selected. The Park's striking features and regular programming, coupled with company picnics, weddings and corporate events showcase the venue's versatility, securing the GWCCA as a top-destination for meeting planners and tourists alike.

The Park's Fountain of Rings continues to be Atlanta's top outdoor tourist destination.

Jazz concerts are a favorite with downtowners. PAGE TWENTY

Revenue and Expense Report
Centennial Olympic Park
Created as the world's gathering place for the 1996 Olympic Games, Centennial Olympic Park is nestled in the convention corridor and the downtown hotel district. The Park welcomes millions of visitors and conventioneers from around the world each year.
The Park receives the majority of its funding $1.32 million from the Congress Center. Food services, rent and sponsorship account for more than 90 percent of the $550,597 operating revenue. A decrease in Park sponsorships and a reduction in the Congress Center contribution resulted in a net loss of $1.1 million.

Free family programming gives kids of all ages the opportunity to enjoy the park.

OPERATING REVENUE Rent....................... 22% Utility....................... ..4% Food Services..........53% Sponsorship.............16% Other........................5%
OPERATING EXPENSES Personal Services...... .61% Regular Operating......28% Contracts/Fees. . . . . . . . . . . 9% Other........ . . . . . . . . ........2%

Operating Revenue

Rent Exhibit Utility Services Food Services Sponsorship Other
SUBTOTAL

$ 121,750 21,125
293,745 86,683 27,294 $ 550,597

Non-Operating Revenue

Transfers from Reserve GWCC Contribution
SUBTOTAL TOTAL REVENUE

230,343 1,300,200 $ 1,530,543 $ 2,081,140

Operating Expenses

Personal Services Regular Operating Equipment Contracts/Fees Other
SUBTOTAL

$ 1,096,669 493,858 1,596 181,824 37,303
$ 1,811,250

Non-Operating Expenses

Capital Improvements & Projects 161,353

Net Depreciation Expense

1,260,263

SUBTOTAL

$ 1,421,616

TOTAL EXPENSES

$ 3,232,866

NET GAIN

- $ 1,151,726

Please supply new title for this photo. Children cool off in the Olympic Fountain of Rings.

Elephants with the Greatest Show on Earth enjoy a buffet breakfast in the Park. PAGE TWENTY TWO Please supply caption for the above. Thanks.

The Park is Atlanta's community gathering place.

PAGE TWENTY FOUR

Membership 2004
GWCC Authority
Chairman Of The Board Bill Archer Executive Vice President Georgia Power Company
David Allman Regent Partners LLC Richard W. Cohen, M.D. Resurgens Orthopaedics Nancy N. Coverdell Harold Allen Dawson, Jr. President Harold A. Dawson Company James C. Edenfield President & CEO American Software Inc. Anne Griffith Hennessy Hennessy Investment Glenn Hicks III President, Dir. Business Dev. & Community Affairs RBC Centura Bank Martin N. Kogon MMA Management Rubye Mims Lucas William "Billy" Porter Payne Partner Gleacher and Company Robert S. Prather Jr. President & CEO Bull Run Corporation C. Jere Sechler Jr. Sechler & Associates J. Thomas "Tommy" Vance Partner Tisinger, Tisinger, Vance & Greer, P.C.

Extraordinary Customer Service That Leaves A Lasting Impression.

GWCC AUTHORITY

GEORGIA WORLD CONGRESS CENTER AUTHORITY
285 Andrew Young International Boulevard, N.W. Atlanta, Georgia 30313-1591
www.gwcc.com www.gadome.com www.centennialpark.com