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Home My WebLink About080806 Sandler CenterCITY COUNCIL SEMI-ANNUAL UPDATE August 8, 2006 FOUNDATION PROGRESS Achievements: •Received over $8.5 million in cash and pledges •Raised almost 70% of fundraising goal •Secured naming rights for Grand Staircase Current Activities: •Cultivating other named gifts •Expanding Capital Campaign leadership and gifts •Developed virtual tour of facility •Developed newsletter PROJECT STATUS November 2004: Design-Build Team chosen using PPEA Budget Land $ 0.4 Garage3.9 Clancy & Theys Contract40.3 Contingencies2.1 Total Budget$46.7 million Funding City $35.0 Other/Private11.7 million PROJECT STATUS DESIGN-BUILD TEAM Clancy & Theys Clancy & Theys Construction Manager Construction Co. Construction Co. Architect –Site Design & CMSS Architects CMSS Architects Theatre Shell Philip Johnson•Alan Ritchie Philip Johnson•Alan Ritchie Architect – Architects Architects Theatre Interior Auerbach•Pollock•Friedlander Auerbach•Pollock•Friedlander Theatre Consultant Kirkegaard Associates Kirkegaard Associates Acoustic Consultant CONSTRUCTION STATUS AS OF 7/31/06 BACKGROUND: MANAGEMENT OPTIONS MANAGEMENT OPTIONS City Managed • City Managed with Outside Programmer • Outside Manager • RFP SELECTION PROCESS Selection Committee made up of volunteer leadership from • the Theatre Advisory Committee, Virginia Beach Performing Arts Center Foundation and City Staff RFP Issued on April 4, 2005 • Interviewed proposers • Involved local arts organizations • Established criteria by which we will preserve booking • priorities for local arts groups 2004 RECOMMENDATION RECOMMENDATION Contract with Global Spectrum for following reasons: •Extensive facility management experience •Extensive booking experience –established contacts •Does not add numerous, permanent City staff •Corporate competitive advantage –numerous facilities for multiple bookings •Established software systems Global Spectrum –Member of the Comcast Family of Companies A subsidiary of Comcast-Spectacor •Comcast-Spectacor owns Wachovia Center & Spectrum NHL Philadelphia Flyers NBA Philadelphia 76ers AHL Philadelphia Phantoms *** 2005 Calder Cup Champions Flyers Skate Zone Comcast SportsNet Ovations Food Services New Era Tickets Who We Are… Fastest growing private management company 2000Now # of Managed Facilities747 # of Events7245,783 # Gross Ticket Sales$39,900,000$266,539,212 # of Attendees1,596,00012,037,249 Total Sales$57,760,000$421,128,658 Theatrical Experience •7 Global Spectrum managed facilities present theatrical events on a regular basis: -FARGODOME Gate City Bank Theater(4,200 seats) – -John Labatt Centre RBC Theatre(2,800 seats) – -Old Dominion University Ted Constant Convocation Center/Theater theatrical set-up (4,000 seats) – -Portland Rose Quarter Theater of the Clouds(6,300 seats) – -Sovereign Bank Arena theatrical set-up (3,500 seats) – -Temple University Liacouras Center Ester Boyer Theater – (1,960 seats) -University of Massachusetts Mullins Center theatrical set- – up (4,000 seats) Best Relationships in the Industry •We know and work with : -Clear Channel -Feld Entertainment Entertainment -United Talent Agency -Concerts West -Princeton Entertainment -Jam Theatricals -Vee Corp -Artist Group -Joe Fletcher Presents International -AEG -Creative Artist Agency -Evolution Talent Agency -Howard Rose Agency Global Spectrum’s Relationship with Virginia Arts Festival Virginia Arts Festival will work collaboratively with Global • Spectrum on the management of the Sandler Center for the Performing Arts. Global Spectrum will be the contracting entity with the • City of Virginia Beach. The Virginia Arts Festival will be a sub-contactor of Global Spectrum. Festival will take the leading role in the programming and • marketing of the grand opening and the creation of an annual series featuring nationally recognized artists. Global Spectrum will take the leading role in the day-to- • day operation of the building. Virginia Arts Festival Experience Virginia Arts Festival was founded and incorporated • in December 1995. First full Season was in the spring of 1997. The Virginia Arts Festivals mission: •’ Present the worlds finest performing artists in cities ’ ? throughout Southeastern Virginia Enrich the lives of Hampton Roads children through the ? arts Promote the Hampton Roads region as a rising cultural ? destination throughout the Mid-Atlantic in order to generate cultural tourism and its resulting positive economic impact on the area. Virginia Arts Festival Record of Success •Artistic success -worlds greatest artists, world premiers, national radio broadcasts, national and international media coverage •Education program -dramatic increase in the quantity and quality of educational experiences through the arts •Economic impact of $50,000,000+ on the region. Out-of- market visitation has increased from 10.8% to 22% •Fiscal responsibility -nine years without accumulating a deficit VAFs Relationships ’ with Touring Artists Reputation as one of the countrys leading presenters •’ Close relationship with all of the nations major artist •’ agencies such as CAMI, IMG, ICM, and William Morris Priority given when major national and international • tours are being planned. This will insure that the Sandler Center for the Performing Arts hosts a line- up of the worlds finest artists every year ’ OVERVIEW OF CONTRACTS PRE-OPENING SERVICES CONTRACT •Review of Facility design & construction Hardware schedules, interior finish schedules, graphics and ? signage, recommend FF&E, coordinate transitions from construction project to operating facility •Fine tune operating pro-formas •Develop operating & maintenance manual •Book & schedule events (as outlined in Booking Policy) •Develop reporting system & accounting systems •Develop marketing plan & advertising campaign •Plan Grand Opening events •Hire staff Pre-Opening Services Management Fee: (April 2006-August 2007) = $99,000 Direct Operating Expenses = $531,000 MANAGEMENT CONTRACT •Manage all aspects of Facility: To include managing events, purchasing, payroll, fire prevention, ? security, crowd control, routine repairs, preventive maintenance, janitorial services, promotions, advertising, energy conservation, box office, and admission procedures •Book & schedule events (as outlined in Booking Policy) •Maintain detailed, accurate financial and other records •Submit monthly reports to City •Manage & operate concessions FY08 Management Fee: $120,000 + (incentive fee) CITY’S RIGHTS & RESPONSILBITIES City’s Rights: ? Monthly reporting and oversight by City’s Contract Administrator ? Annual report to City Council through City Manager ? Periodic reports through Council liaisons ? Office space for City staff ? Use of Center by City & Schools City’s Responsibilities: ? Capital needs ? Net operating costs & management fee COSTS INVOLVED TOTAL ESTIMATED COSTS Pre-Opening Costs FY06FY07FY08 Management Fee $ 15,000$ 72,000$ 12,000 Operating Costs $ 0$ 351,000$ 184,000 Total $ 15,000$ 423,000$ 196,000 Management Contract Management Fee N/AN/A$ 125,000 Operating Loss N/AN/A$ 499,334 * Total N/AN/A$ 624,334 *Excludes grand opening and special service costs (est.) $500,000: Capital reserves may be necessary “COMING ATTRACTIONS” [NEXT STEPS] COMING ATTRACTIONS August 8, 2006: Execute Pre-Opening Services Contract Fall 2006: Execute Management Contract Fall 2007: Grand Opening Events PLAZA VIEW