HomeMy WebLinkAbout4/5/2000 - STAFF REPORTS (9) DATE: April 5, 2000
TO: City Council
FROM: Dallas J. Flicek, Interim City Manager
CHANGE OF OWNERSHIP OF LMI RELATIVE TO AGREEMENT FOR TOURISM
SERVICES
RECOMMENDATION:
It is recommended thatthe City Council approve the change of ownership of Leisure
Management International ("LMI"), a Texas Limited Partnership, to SMG, a
Pennsylvania General Partnership, and SMG/LMI, L.L.C., a Delaware Limited
Liability Company.
BACKGROUND:
On April 15, 1998, the City of Palm Springs entered into an agreement with
LMI/HHI, Ltd., a Texas Limited Partnership,dba Leisure Management International
("LMI"), for tourism services, as a part of the City's privatization of some of its
operations. Since LMI was already managing the City's Convention Center, it
became one of the firms strongly considered for operating the City's tourism
services, which had been operated by a City department.
That Agreement for tourism services is fora term of five (5)years,terminating June
30, 2003, with no provision for contract extension. Section 6.3 of the Agreement
requires that a change of ownership of more than 25% of LMI must be approved in
writing by the City.
On March 16, 2000, we were informed by letter(copy attached)that LMI and SMG
have "merged" their companies. Essentially, the ownership interest in LMI has
been transferred to SMG, a Pennsylvania General Partnership, which acquired all
of the Limited Partnership interest of LMI. SMG/LMI, L.L.C.. A Delaware Limited
Liability Company,, which is an affiliate of SMG, acquired the General Partnership
interest of LMI. As a result of the transaction, LMI remains in existence, but its
ownership has changed, as indicated above.
SMG was formed in 1988 to fill the need for professionally managed public
assembly facilities, such as arenas, stadiums, theaters, and convention and trade
centers. SMG is a closely held joint venture company with two equal principals:the
Hyatt Hotel chain and ARAMARK Corporation,one of the world's largest companies
servicing sports and entertainment centers,teams, parks, etc. As of December 31,
1999, SMG's assets totaled $68.8 million. SMG oversees the operations of 26
convention centers, 24 arenas, 9 theaters, 8 stadiums, and one food and beverage
operation. A company profile of SMG and SMG's Consolidated Balance Sheets for
1998 and 1999 have been provided to the City Council and are available in the
office of the City Clerk. It has been stated that this business combination of SMG /09
and LMI has created the largest public assembly facility management company in
the world.
April 5, 2000
Change of Ownership of LMI Relative to Agreement for Tourism Services
As a result of the transaction, as mentioned before, LMI continues to exist, but
under different ownerships,and hence,the existing contracts between the City and
LMI for tourism services, as well as convention center services, will remain with
LMI.
Attached is a proposed Minute Order approving this change of ownership.
APPROVED ��
Interim City Manager
ATTACHMENTS:
1. Minute Order
2. LMI Letter dated 3/16/00
�1)AX
N L M 1
Leisure Management International
March 16, 2000
Mr. Dallas Heck, City Manager and
Authorized Representative
City of Palm Springs
P.O. Box 2743
Palm Springs, California 92263
Re: Agreement for Tourism Services, dated April 15, 1998 (the "Agreement"), by and between
the City of Palm Springs, a municipal corporation (the "City") and LMI/HHI, Ltd., a Texas
limited partnership d/b/a Leisure Management International ("LMI°)
Gentlemen:
As I shared with you during our telephone conversation this morning, LMI and SMG have
"merged" their companies. As you may know, SMG has nationally recognized expertise in the
management and operation of public multi- purpose sports, entertainment, and public assembly
facilities.
As part of the transaction with SMG, the ownership interests in LMI have been transferred to SMG
(which is a Pennsylvania general partnership) and to an affiliate of SMG. The "combined" LMI and
SMG will manage and operate a substaritially larger portfolio of public assembly/leisure facilities
than that managed by LMI prior to the transaction. Like LMI, SMG has extensive experience in the
management and operation of facilities and programs similar to yours and can offer a comparable
level of quality of services that LMI has provided to you over the years.
Importantly, the financial net worth of LMI will remain strong and will ultimately have greater
resources as a result of the transaction.
As you may know, Section 6.3 of our Agreement, states that transfers to any person of more than
twenty-five percent(25%) of the ownership and/or control of LMI may not be accomplished without
the prior written approval of the City. In that the transaction referenced above entails the transfer
of greater than that amount, the transaction with SMG appears to require the consent of the City
pursuant to the Agreement.
As such, LMI hereby requests that the City consent to the above-discussed transaction,that it waive
any Event of Default resulting therefrom (including, without limitation, any Event of Default
pursuant to Section 6.3 of the Agreement) and any termination rights that it may have as a result
Eleven Greenway Plaza,Suite 3000
Houston, 7X770461105, USA
Pb 713 GP 1603
Fax 713 622-4132�4134
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thereof or any other termination of the Agreement as a result thereof. It has of course been our
understanding (as particularly set forth in Section 6.3 of the Agreement) that the experience,
knowledge, capability, and reputation of LMI and its business principals and employees have been
a substantial inducement for the City to enter into the Agreement.
Importantly, LMI will remain the Manager under the Agreement and will not be relieved from any
obligations as a result of the transaction with SMG.
We are enclosing background material and financial statements of SMG to facilitate your review in
this regard.
In light of the foregoing discussion and enclosed information, we hereby request that you please
countersign below where indicated on behalf of the City to evidence the City's consent to the
transactions described in this letter.
If you need additional information or have any questions, please feel free to contact us.
Thank you for your attention to this matter.
Very truly yours,
LMI/HHI, LTD., a T as limited partnership
By.
David Bobo, Vice-
President
The City hereby executes below, in accordance with Section 6.3 of the Agreement, to
evidence its acceptance and approval of the transactions set forth above in this letter.
ATTEST: CITYOFPALMSPRINGS, amunicipal corporation
By.
city clerk City Manager
APPROVER By YHE CITY COUNCIL /DAY
By,o. NO. (, U____��
rno
N5D-Z?
i
April 5, 2000
To: City of Palm Springs
City Manager
City Council Members
On behalf of the Palm Springs Hotel&Hospitality Association, I wish to
recommend the signing of our city contract for Tourism with SMG. From my discussions
and research, I feel that we will be well served by having the largest convention center
management firm in our corner.
We all have seen the continual improvement of the situation with our Convention
Center the past few years under LMI. The one year improvement of T.O.T of 13% and
the resulting million dollars that it added to the general fund, not to mention the well
needed shot in the arm to all of our city hotels and inns, was nothing less than
phenomenal.
Now, as our new partner, SMG has all of their considerable recourses combined
with the knowledge and the personnel of LMI to continue to make Palm Springs the best
known vacation destination the world over.
I strongly urge you to welcome our new tourism partners. It will only keep getting
better.
Xc tfull your
Raymond L. Lovato
nler
all
re Arena
d State Convo ati n Center
Columbus Con en ion Center
Veterans Memorial Coliseum
ide Arena
ven Veterans Memorial Coliseum
na
h Civic Arena
'land Convention Center
d Coliseum
vers Stadium
er's Centrum Centre
Stadium
ouge Riverside Centroplex
County Convention Center
yers Hall
leason Theater
ille Veterans Memorial Coliseum
ebles Stadium
a Superdome
is Cook Convention Center
each Convention Center
Civic Center
Convention Center
leans Arena "o
Osborn III Convention Center
h Int'I Trade and Convention Center
ce Palace
nion Center for the Performing Arts
Park
re Expocenter
Hall
apids Grand Center
onvention Center
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•
• COMPANY HISTORY
SMG is the world leader in its industry — the management of
public assembly facilities. The company was formed in 1988
• immediately signaling the beginning of a new era for the
industry. Today, the facilities operating under SMG's banner
benefit from the company's depth of resources and its
unparalleled expertise, leadership, and creative problem-solving.
•
THE SMG STORY
SMG was created in response to a market need for professionally
managed public assembly facilities including arenas, stadiums,
• theaters and convention, exhibition and trade centers. Our
successful growth has been built on the many partnerships we
have developed with our clients — both municipal and private.
• Our ownership — and our team of dedicated corporate support
personnel — make us unparalleled in the field of private facility
management.
• SMG benefits from solid ownership. Ours is a closely held joint-
venture company with two equal principals:
The Hyatt Hotel chain is recognized worldwide for first-class
• hotels and resorts. With 75,000 employees in 33 countries,
Hyatt was recently named by The Wall Street Journal as one of 60
key companies shaping the 1990s.
ARAMARK Corporation is one of the world's largest service
• ='---♦ � � ��� � companies. ARAMARK's Sports and Entertainment portfolio
• �1/V`f/Y�f11�K includes 120 accounts featuring professional sports teams, plus
numerous convention centers, national parks, resorts, and
racetracks.
•
COI RIGHT JULY 1999
PR..... .n ,SMGAtt R...T.R....1eo
•
•
• SMG - A HISTORY OF SUCCESSFUL GROWTH
Our company has a history of continued growth in new accounts.
Thirteen new venues were added to our roster over the last three
years. SMG-managed facilities grossed more than $700 million
in 1998, compared with $200 million in 1988. In 1988, SMG
facilities hosted 2,452 events and attracted more than 19 million
patrons. In 1998, the number of events grew to more than 8,800
and attendance to more than 30 million people—for 359%
•
growth in events and 54% growth in attendance.
SMG FACILITY GROWTH
TOTAL NUMBER OF SMG-MANAGED FACILITIES BY YEAR SINCE 1989
•
70-' bb
60- 56 5B
52
50. 44 47mm..
• 39
40-
• UR EXPERIENCE WITH SMG AS A 30- 27
FACILITY MANAGEMENT COMPANY IS 22
UNPARALLELED.THE SMG STAFF IS 20- 16
NOT ONLY WELL-TRAINED IN
10-
• OPERATIONS, BUT ALSO TAKES
EXTRAORDINARY INTEREST IN THE 0
WELLBEING OF ITS CUSTOMERS,AND 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
IS CONSTANTLY SEEKING NEW WAYS
TO ANTICIPATE AND SATISFY
CUSTOMER DEMANDS."
• SMG HAS EXEMPLARY FINANCIAL RESOURCES
BEVERLY A. MORDEN
FORMER PRESIDENT AND CEO
SOUTHEX EXHIBITIONS The 1998 audited results represent the best financial year in
SMG's history as new records were established for revenues and
net income. The trend will continue for 1999, as projections are
• expected to surpass the 1998 levels by more than 1096. SMG's
balance sheet is reflective of its sound financial condition. As of
December 31, 1998, assets totaled $70.7 million.
e
COI R...1.'Ju�Y 1999
Prtona�eenev—SMG A....R�axic Reeertvev
t
SMG
Consolidated Balance Sheet
For The Period Ended December 31,1999
DRAFT
1999 1998
ASSETS
Current Assets
Cash&Cash Equivalents 13,971,578 21,899,456
Accounts Receivable 19,840,859 18,615,636
Prepaid Expenses&Other Assets 3,012,910 1,620,206
Total Current Assets 36,825,347 42,135,298
Property&Equipment
Furniture&Fixtures 11,206,992 10,491,457
Leasehold Improvements 3,065,231 2,907,009
14,272,223 13,398,466
Less: Accum. Depreciation&Amortization 9,224,671 8,892,457
5,047,552 4,506,009
Intangible Assets
Contract Rights 25,059,462 23,914,170
Lease&Other Acquisition Costs 369,057 1,845,227
25,428,519 25,759,397
Less: Accum. Amortization 10,130,363 9,809,491
15,298,156 15,949,906
Investment In Affiliate 10,695,559 5,475,675
Other Assets 907,251 1,127,314
Total Assets 68,773,864 69,194,202
LIABILITIES AND STOCKHOLDER'S AND PARTNERSHIP EQUITY(DEFICIT)
Current Liabilities:
Accounts Payable 15,730,359 14,566,123
Related Party Payables 136,833
Accrued Expenses 9,972,512 12,921,094
Deferred Revenue 8,212,606 11,240,234
Total Current Liabilities 34,052,310 38,727,451
Deferred Revenue 3,250,000 3,550,000
Total Liabilities 37,302,310 42,277,451
STOCKHOLDER'S AND PARTNERS EQUITY(DEFICIT)
Partner's Equity 31,460,820 26,879,410
Accumulated Other Comprehensive Income 10,735 37,341
Total Stockholder's and Partner's Equity(Deficit) 31,471,555 26,916,751
Total Liabilities and Stockholders'and Partners Equity(Deficit) 68,773,864 69,194,202
i
SMG
Consolidated Balance Sheet
December 31, 1998
ASSETS
Current assets:
Cash and cash equivalents $ 21,899,456
Accounts receivable, net of allowance for doubtful accounts
of$2,266,000 18,615,636
Prepaid expenses and other assets 1,620,206
Total current assets 42,135,298
Property and equipment:
Furniture and fixtures 10,491,457
Leasehold improvements 2,907,009
13,398,466
Less accumulated depreciation and amortization 8,892,457
4,506,009
Intangible assets:
Contract rights 23,914,170
Lease and other acquisition costs 1,845,227
25,759,397
Less accumulated amortization 9,809,491
15,949,906
Investments in affiliates 5,475,675
Other assets 1,127,314
Total assets $ 69,194,202
LIABILITIES
Current liabilities:
Accounts payable $ 14,566,123
Accrued expenses 12,921,094
Deferred revenue 11,240,234
Total current liabilities 38,727,451
Deferred revenue 3,550,000
PARTNERS' CAPITAL
Partners'capital 26,879,410
Accumulated other comprehensive income 37,341
Total partners' capital 26,916,751
Total liabilities and partners'capital $ 69,194,202
The accompanying notes are an integral
part of the consolidated financial statements.
THE NEWSLETTER FOR SMG CONVENTION CENTERS WINTER 1999 - 2000
L -01__ ,ls�� AR
SMG Welcomes
Two New Facilities
F
Myriad Convention Center and Arena in Oklahoma City, OK and
Ontario Convention Center and Convention and Visitors Bureau
in Ontario, CA are now under SNIG Management. Ontario
Myriad Convention Center and Arena Football League.The team plans to According to Stroh,there are two
On October 19,1999,Oklahoma City relocate to Oklahoma City in 2000, advantages to the management arrange-
Council unanimously approved a 5-year playing in the Myriad Arena until the ment in Ontario.First,it combines the
management agreement with SMG for new arena opens. functions of the Bureau and the Center,
operation of the Myriad Convention The new arena is part of a major reducing the subsidies needed to accom-
Center and Arena beginning November 1, downtown renewal project that includes plish the mission of attracting visitors to
1999.Mayor Kirk Humphreys in an the expansion and renovation of the the City. Second,it is very convenient for
interview for Daily Oklahoman remarked Convention Center. When completed the meeting planners shopping for sites.
that it was"the ultimate compliment"that facility will be state-of-the-art,making it Normally,planners work through a Bureau
City Council passed the contract unani- Oklahoma's premier meeting and with limited authority to block space or
mously and without debate. convention facility. quote rates for a convention center. But in
The management contract includes the New General Manager Gary Ontario,the sales department has the
16,000-seat Myriad Arena and the Myriad Desjardins said it is an exciting time to authority to handle all aspects of the sales
Exhibit Hall with 100,000 square feet of be in the City."Oklahoma City is I process, including rate negotiations,
space, divisible into 9 spaces for conven- experiencing a real renaissance and the 1 saving the customer a great deal of time.
tions,trade or consumer shows.SMG will Convention Center and Arena are a big Under the current arrangement, Stroh
also provide consulting services for the part of it,"said Desjardins. points out, it is important to make sure the
new 20,000-seat arena to open downtown Located in downtown Oklahoma City members of the Bureau feel they are well
in the year2002. adjacent to the I.M.Pei designed Crystal represented and that their dues are being
Myriad Arena is home to the CHL Bridge Botanical Conservatory and used for the benefit of the entire commu-
Blazers who hold a lease on the Arena until Myriad Gardens,the Myriad is only nity,not just for the Convention Center.
next year.At that time the City may fifteen minutes from Will Rogers "As we go forward,we are sensitive to
consider switching to an IHL tenant. International Airport. this issue,"Stroh comments,"and we look
Because of SMG's experience with team Ontario Convention Center and CVB forward to a growing membership."
negotiations and with both leagues, the Under a five-year contract that began Opening in December 1997,the
City has asked SMG to help evaluate September 1, 1999,SMG has contracted Convention Center boasts the latest
which league makes more sense for with the City of Ontario,California,to technology and telecommunications and
Oklahoma City. privatize the operation of the Convention more than 250,000 total square feet,
The Arena is also the future home of Center and the Convention and Visitors including 70,000 square feet of exhibit
the Portland Forest Dragons of the Arena Bureau.According to Ty Stroh,General space;24,000 square feet of meeting
Manager for the facility space;and 20,000 square feet of ballroom
Myriad Convention Center and Arena and CVB,"Operating the space.Only minutes from Ontario Intema-
Bureau function is a new tional Airport and within walking distance
opportunity for SMG. of 1,900 hotel rooms,the facility's
This may open up similar location offers Southern California's
management opportunities largest outlet mall and over fifty attrac-
for SMG in the future." tions less than an hour away.
k
Tzars and Ships, Treasures and Tragedies
Artifact Shows Offer Opportunities
Currently two artifact shows are daily increase trade for local businesses.
booked into SMG facilities—Nicholas I There are advantages for the facility as
l e e and Alexandra: The Last Imperial Family well.For one thing,Nicholas and
eW P,� 'Q of�TsaristRtnssin,at the Mobile Civic Alexandra is a turnkey operation that
`3tt"% YWW,a tIF eCOlSd pPdeefor -,. Center and Titanic: The Exhibition at the handles its own ticketing, staffing and
R fl Better Living Centre in Toronto's 1 xhibi- volunteers.Also,the exhibit and the Civic
Tres er,�' sS Mety,O OCl2ttgt<S A` tion Place.Both shows provide long-tern Center have done some cross-promotion of
EXG w eS spd"nsorr th' tenants for underused exhibit halls and events.Finally,the capital improvements
# tnteOnmpettbofY reCo�F1.ILt g offer a number of other opportunities to made to accommodate the show(the City
eXCe11ence,In6marketingLauraPurdy the facility and the community. invested$700,000)will add to the attrac-
irectOrofSalPSand NTarketing for`' NICHOLAS AND ALEXANDRA tion of building after the show closes.
'NTC aCC2Ptedthe aW2fdSOn behalf AT MOBILE CIVIC CENTER TITANIC;THE EXHIBITION
Of the Centre and The City Of TOrorlt0, AT THE BETTER LIVING CENTRE
- According to Jay Hagerman,General
♦ San Francisco s M6 cone Center; ' Manager of Mobile Civic Center,artifact In Toronto the National Trade Center
has led mandated Clty efforts to Cut I shows can work well in a facility like the (NTC)is very heavily booked,but another
Waste,and Was recently_recognized Mobile Civic Center.In most cases the building under the same management
by:the Califotnia Board of Integrated ,".:� show will run for 4 or 5 months,and it contract—The Better Living Centre—is
Waste, ,Managementfor`eliminating can bring a lot of people to the facility. often undemsed. Since September The
half its garbage volume and saving "For Nicholas and Alexandra, we see Better Living Centre has hosted the Titanic
$250,000 in annual Waste costs. a lot of senior citizens and a lot of school exhibition.Promoted by SFX Entertain-
"SMG is committed to setting the children."The promoters offer a study ment,it is the world's largest exhibition of
standard for convention center guide to teachers so that the exhibit can authentic artifacts from the Titanic's wreck.
recycling,"said Dick Shaff,General easily be worked into lesson plans. According to Laura Purdy,Director of
Manager and SMG's Vice President Between 1,000 and 1,500 students stream Sales and Marketing at NTC,another
of Operations for the western region. through the doors two days per week. advantage of having a long-term tenant is
Mayor Brown called the Moscone's Push pins on a map above the guest that it creates more opportunities for food
efforts"exemplary." book indicate that attendees are coming and beverage events at the facility. Christ-
♦ Second place in the'98-'99 APEX from all over the country."The building mas parties and receptions are being
Awards went to the Greater Colum- sees a lot of people come through here marketed to corporations.Packages include
bus Convention Center.The award, that we would not have seen,"remarks food and beverages in the lobby area and
which is presented by Black Meetings Hagerman.The tour buses that arrive private viewing of the exhibit.
&Tourism,recognizes sensitivity and
diversity in advertising,promotions
and marketing. GreaterColumbus
♦ Worcester's Centrum Centre wasConvention Center
recently honored by Massachusetts Lost ty '
alitenclarim at the Greater
Department of Health&Human Columbus Convention Center (GCCC) � 41,
Services for efforts to employ indi-
viduals with disabilities,particularly exaa4eded 1.5 million and those
the mentally ill.General Manager k
nuflUcinforilhe
Sandy Dunn and Operations Manager million
George Sedares were recognized at expeirLsionffmtvWllhxreasethesizefrom
the 6th Annual National Healthcare
facility is undergoing a $77
Quality Week Awards Ceremony.
expanded complexwill have96 meeting
♦ Closing the books in September, mornsandthree ballrooms. At the ,
Mobile Convention Center's staff John Christie,Chairman of the Board, project , uneareqft ,
reports that the'98-'99 fiscal year is Franklin County Convention Facilities Dir. , Finance Cheryl Patterson, Dir ,
the best year on record since the Authority presided over the ground- Operations
Convention Center opened in 1993. breaking ceremony an June 11th.'1he Management Joseph Shaw, SMG v Sr. Vice
The facility attributes its record overwhelming successafthelacility has Presidentfor Convention Centers Thom
breaking year to successfully increas- more than exceeded any of our Connors, General Manager
ing both total event days and total expectations,"saidChristle. and Assistant General Manager Dittie Guise.
activities at the facility this year.
South Towne Exposition Center Breaks Ground
At the September 2, 1999 ground breaking for South Towne _ „{
Exposition Center in Sandv City; Utah, are (right to left) Robert ! '6191
Sullivan, Owner and Chief Chef of Utah Foods (caterer for Salt a
Pi ass
Palace Convention Center[SPCCJ);Salt Palace General Manager _
Ron King; Contract AdnninistratorJulie Peck; and other Salt Lake
County officials.
SMG and Salt Lake County signed an addendum to the current
management contract to include the new South Towne facility to be ,
completed by November 2000, The facility will handle consumer shows, leaving SPCC
free for more national convention Opportunities.
Moscone Center Food &
Out with the Old at Memphis Beverage Breaks Record in
Cook Convention Center Food Sales Revenues
__ In July Microsoft's conference and
The 75-year•-old Ellis Auditorium „yaw, " ` corporate meetings were a huge success for
and Concourse Hall were imploded Moscone's Food & Beverage Operations
on Oct. 10, 1999 to make way for the (F&B)with record breaking revenues in food
expansion of the Memphis Cook sales. The events ran for 7 consecutive days,
Convention Center (MCCC). The serving 2 and 3 meals for7,000 people per day
facility will add a 30,000 square foot permeal.
ballroom, a 35,000 square-foot So what does that mean for logistics?
exhibition hall,10nneeting roans and photo courtesy of The Commercial Appeal According to Nick Tiemo,General Man-
a 2,000-seat pefornning arts center ager of F&B at Moscone,"It's crazy! The
A $1.9 mullion three-year marketing plane and a nationwide sales effort are underway on-going feast required 300 regular staff
to spotlight the expansion. "Me are already beginning to see significant results," said and about 200 temporary staff members."
DebbieFoshee,DirectorofSales and Ma•ketingfo-MCCC. The OrganizationforAnnerican Tiemo estimates that the event required
Historians has already booked the Memphis facility for 2003, and the Composite more than 100,000 cans of
Fabricators Association has selected Mio nphis fbr its meeting site for three years. soda;3,000 gallons of coffee;
6,000 bottles of wine;60,000
cookies and desserts,55,000
6,500 Motorcyclists Ride Into bags of chips and snacks;
Atlantic City Convention Center 10,000 lbs.of chicken;7,000 al e
The 8th Annual Toy Run brought 6,500 lbs.of pasta;3,000 lbs.bacon
motorcyclists to Atlantic City Convention and 36,000 eggs.
Center- bearing toys for Christmas to Closing night brought the challenge of
brighten the lives of children in need. The three separate banquets going on simulta-
event on October 9th was sponsored by the neously,each with an elaborate theme and
Pleasantville Police Department and the menu. Gourmet pastries (photo above right)
ACORA Foundation. The toys were finished the feast,and for the facility,the
r distributed through local charities. event was a sweet success.
DENVER CONVENTION CENTER DOUBLES IN SIZE `
On Nov. 2nd Denver voters approved a $268 million expansion of [he Denver Convention
Center that will double the size of the facility.The expansion is slated for completion by early 2003
and will add 292,000 sq:ft. of exhibit space; 60,000 sq ft. of meeting space;a new 20,000 sq.ft.
ballroom,a 5,000-seat auditorium and a 1,000-space parking garage.According to Eugene Dilbeck,
President and CEO of Denver Metro CVB, after the expansion Denver will be the sixth largest
convention center west of the Mississippi and 151h largest in the country.
Before the Convention Center was built in 1987,a team of meeting planners was consulted on - '
the design.The result was one of the most user-friendly facilities in the country.The same process
will be used to design the expansion. Construction begins in early 2001 on the site of Currigan
Exhibition Hall which will be removed to make room for the expansion.
SMG ER INDEPENDENCE 11 MARKET STREET - PHILADELPHIA, PA 19106
During the final stages ofmoi e-m for Miller Freeman Outdoor 2emi/er Sumner.Wnrket
Tornado Hits Salt Lake City Facility Management Worldwide
Known Jor the greatest snoii o i earth, Salt Lake City deals with weather ol'most kinds—
but never,a tornado.
UNITEDSTATES Mobile Convention
August 11, 1999—SaitPalace Center
employees will remember that day for a 11,',Darrell Denny, 'Executive Vice Northeast Savannah,GA
longwhile.During the lunch hour a President Miller Freeman, Inc., Savannah International
g Albany,NY Trade and Convention
tornado whirled through downtown,first thanked Salt Palace General Pepsi Arena center*
hitting the Delta Center,home of the NBA Manager Ron King staring that his Atlantic City,NJ Tampa Bay,FL
Utah Jazz,next striking the Wyndham ability "to work in conjunction with Atlantic City Inc Palace
Convention Center,
Hotel and the Salt Palace and then the many working crews on site at the Convention Han Midwest
crossing the street and demolishing one of Salt Palace was integral to on?-ability on the Boardwalk
Baltimore,MA Chicago,IL
two outdoor pavilions that exhibitors had to restore a sense of normalcy." soldier Field
Baltimore Arena
been setting up for the next days show. Claremore,OK
One person was killed. Seventy-three county officials worked quickly and the Cleveland,OH Claremore Expocenter
P l y Cleveland State
others were Salt Palace was deemed safe and stnictur- University convocation Oklahoma City,OK
inured. al] sound.Miller Freeman met with their center Myriad Arena,*
)' Myriad Convention
Don Price of management and key exhibitors and with Columbus, OH Centel.
Greater Columbus
Salt Palace's only a one-day delay decided to open the Convention center, Grand Rapids,MI
a parking depart- show.Vendors helped displaced exhibitors Nationwide Arena* Grand Center,
P o P P P Van Amid Arena
meat was picked by sharing exhibit space inside SPCC. Long Island,NY Nassau Veterans Topeka,Kansas
up and dropped in When the doors opened on Friday, all Memorial Coliseum Kansas Expocentre
his booth (photo at effected vendors had a home to sell from. New Haven,CT Peoria,IL
right).Fortunately, John Adams,General Manager of New Haven Coliseum Peoria civic center
Price has recovered from his injuries and Denver Convention Center and Tim Putsburgh, PA West
has already been able to return to work. Comey,Director of Operations at Pittsburgh civic Arena,
Three Rivers Stadium Denver,CO
The Convention Center sustained Moscone Convention Center flew in to Providence,RI Denver Convention
approximately S500,000 worth of damage. help with the damage claims. Rhode Island Complex,
Overall,we were lucky.Loss of life and The show was a success but carried Convention Center Mile High stadium
HonoluHI
damages could have been much worse. with it a new-found respect for the Richmond,VA. Bmwai'in, on
g P Richmond Colseum Hawaii Convention
Following the tornado,City and outdoors,for people,and for priorities. Center
Worcester,MA Lang Beach,CA
Worcester's Centrum Long Beach Convention
Centre &Entertainment Center
BE RR EB
I 1 Southeast Oakland,CA
Network Associates
Baton Rouge,LA Coliseum,
R Riverside Centro lex
_ P The Arena in Oakland
ON OR R Fort Lauderdale,FL Ontario,CA
':` ' - r R •R - ' Brmvard County
Ontario Convention
Convention Center Center
Jacksonville,FL Salt Lake,UT
H 1 R R Ante[ Stadium, Salt Palace Convention
Jacksonville Times Union Center
rxe so TRusrees , R R Center for the
newness On THE eweslcee.ENv.L AESOCIATION _ Performing Arts, San Francisco,CA
laveWISH 1. rxANss r t r R Jacksonville Veterans Moscone Convention
ro T s HE cB.EseosreOFLE on HAWAYI s R R R R Complex
PI von THEIR HOSUUT.AND SPIRIT OF ALONAI Memorial Coliseum, om P
Prime F.Osborn III
THE ADA wlsxes TO Recacxae Convention Center, INTERNATIONAL
THE BUnnosr or Txe s ' ' ' Wolfson Park
HAwAI'HNSITCRE AND CONVENTION BUREAU _ London,England
AND R ' ' ' New Orleans,LA London Arena
rxe OUTSTANDING FACILITIES AT THE R Louisiana Superdome,
AAWA'I CONVENTION CENTER THAT CONTRIBUTED R New Orleans Arena Oslo,Norway
TO THE success OF THIS IIRTH ANNUAL SESSION Oslo Spcktrum
Memphis,TN
we HAVE
OSITYABUTIS EEAVtt.TH N.EsSeTHE
r r Memphis Cook Toronto, Trade
THE cenenosln AND THE essexce of rxe uunos a National Trade Centre
Convention Center
D ecur:ONs WITH YOU
AN.we Axncowre nre A RETIIRn �� r Miami Beach,FL Aquarium Food &
TO YOUR LOVELY ISLANDS Miami Beach
Beverage Operations
Convention Center,
MAHALO Jackie Gleason Theater Long Beach,CA
TO ALL OUR New FRIENDS I * Mobile,AL Long Beach Aquarium of
E Ladd Memorial Stadium, the Pacific
Mobile Civic Center, * Under Construction
•
THE GUIDING PRINCIPLES OF AN INDUSTRY LEADER
•
THE 5MG COMPANY PHILOSOPHY:
Our on-going success in each community we serve is
• SMG'sMnnagementCredo attributable to our ability to tailor our services to our
clients. This personalization is driven by SMG's
eG:„esn,fl,�o„
N.NrM W�.fwF.mup.4alb. .
commitment to its philosophy of excellence maintained
fliul[.NtouXubs:y_MM1OR^barv11RN^'WR^^'R1�
_¢ by our President and employees throughout our facility
r m.�„i,mvu�s�roRy,,,i„Ia,R+Ru,:
""° rkWM9wRk network.
,NCR. SMG is continually committed to conducting all
company and municipality business with the utmost
integrity and according to the highest ethical
r f::nrmw¢M1u¢w-"¢ Rn..mu...IR.l.mar.,m.l.
• ���„�„�,,,,,�..I.¢+R�^^�"'""`""" standards. We know the very heart of our business is
the faith our clients have in us. We, as a company and
as individuals, must never do anything to compromise
aid.,�ersmnS:me
that trust. That is why SMG implemented a Business
Conduct Policy and Management Credo embodying
• these principles.
OUR MANAGEMENT APPROACH
• The marketing and management of a facility affect its fiscal
performance more than any other factor. That's why we focus on
improving operational efficiency, cash flow and fiscal
accountability while maximizing event activity, attendance and
• service quality. SMG, as a result, has an enviable history of
recording substantial fiscal improvements and consistent
customer satisfaction.
In today's dynamic public facility management business, near
term decisions have long-term implications. Our clients must be
able to rely on an operator who understands operational realities
and maintains a leadership position in the marketplace. SMG is
equipped to meet that challenge.
L
COA'NIONi JULY 1999
PRoaRICTARY-9MG AI.1.RIaNi¢R[¢CR VCo
•
•
OMPANY PROFILE
SMG - MANAGEMENT SERVICES
•
Through our headquarters in Philadelphia and key field
personnel, SMG supports its facilities with a variety of services
and knowledge base, including:
• • ACCOUNTING . LABOR RELATIONS
ADVERTISING SALES • MAINTENANCE PROGRAMS
BUDGET PREPARATION . MANAGEMENT INFORMATION SYSTEMS
CAPITAL EXPENDITURE PLANNING • MARKETING SERVICES
• CASH MANAGEMENT - MEDIA RELATIONS
• • CRISIS MANAGEMENT . NATIONAL SALES SUPPORT
CUSTOMIZED CLIENT REPORTING . PERIPHERAL REAL ESTATE ASSISTANCE
CUSTOMER SERVICE TRAINING . PUBLIC RELATIONS
EVENT BOOKING • PURCHASING
EVENT MANAGEMENT . RISK MANAGEMENT
• EVENT SOLICITATION/CREATION rt SPECIAL EVENTS/OPENINGS
• • FOOD & BEVERAGE PROGRAMS rt SPONSORSHIP SALES
rt FF&E TECHNICAL SERVICES rt TRANSITION PLANNING
INTERNAL AUDIT
•
SMG - THE LEADER IN PRIVATELY MANAGED
MAKE A LOT OF DECISIONS
AS MAYOR OF MOBILE. PUBLIC ASSEMBLY FACILITIES
CHOOSING SMG TO MANAGE
OUR CIVIC CENTER WAS I
ONE OF THE BEST." SMG currently oversees the
• operations of:
MIKE DOW
MAYOR, MOBILE, AL
25 CONVENTION CENTERS
=
24 ARENAS L
• 9 THEATERS
S STADIUMS ti
1 AQUARIUM FOOD &
BEVERAGE OPERATION
The following pages list SMG's Facility Network as broken down
by product and including management commencement, number
of seats, and square footage. All of these facilities are under full-
service management contracts.
CarvR..X JYLV 1999
Paartrt�eiartY—SMG All RlaM,e ReccMveo
•
•
AIPW
CONVENTION CENTERS
•
92% of the publicly owned exhibition space in the United States
operated by private companies is managed by SMG. The
majority of our convention center network is located in primary
ADI markets.
BEEN
L SMG's convention and exhibition facilities include more than 5.6
million square feet of exhibition space. These facilities range in
• size from 30,000 square foot exhibit halls with adjacent active
sports arenas to the one million square foot National Trade
Centre in Toronto. SMG has management experience in all types
of convention and trade show facilities.
•
More than 12 million people attended more than 4,500
convention and exhibition events at our facilities last year. These
included consumer shows, trade shows, conventions, corporate
meetings, product launches and other special events.
•
E HOLD CONVENTIONS IN NUMEROUS SMG vs. THE COMPETITION*
CENTERS ACROSS THE COUNTRY. . . BREAKDOWN BY SQUARE FOOTAGE OF EXHIBITION SPACE OF
WHERE SMG'S PROFESSIONALISM AND PRIVATELY MANAGED CONVENTION CENTERS
SERVICE LEVEL FAR EXCEEDS THAT OF
• OTHER CENTERS.THERE IS A DECIDED
DIFFERENCE IN SMG FACILITIES."
ROSEMARY A. HALL
MC x•rl>aAW
SPECIAL EVENTS MANGER,
MARY KAY, INC. ^'•^ '•
�w
•
None of SMG's key competitors operate a venue in excess of
• 100,000 square feet. SMG by comparison, operates eighteen
(18).
COPYRICJULV 1999
Peava¢rwav—SMG p,,RloxT.rc Rcceav[o
•
•
OMPANY PROFILE
• SQUARE MANAGEMENT
CONVENTION CENTERS FEET COMMENCEMENT
NATIONAL TRADE CENTRE, TORONTO 1,050,000 1997
MIAMI BEACH CONVENTION CENTER 503,000 1991
ATLANTIC CITY CONVENTION CENTER 487,000 1997
• MOSCONE CONVENTION CENTER COMPLEX ** 442,000 1981
ATLANTIC CITY CONY. HALL ** 413,000 1995
DENVER CONVENTION COMPLEX ** 400,000 1993
GREATER COLUMBUS CONVENTION CENTER ** 309,000 1997
SALT PALACE CONVENTION CENTER ** 254,000 1990
• LONG BEACH CONVENTION CENTER 225,000 1982
HAWAI'1 CONVENTION CENTER 200,000 1996
MYRIAD (OK) CONVENTION CENTER 200,000 1999
LOUISIANA SUPERDOME * 165,000 1977
BROWARD COUNTY CONVENTION CENTER 150,700 1991
• MEMPHIS COOK CONVENTION CENTER ** 150,000 1992
GRAND RAPIDS GRAND CENTER ** 117,000 1994
MOBILE CONVENTION CENTER 100,000 1992
ONTARIO CONVENTION CENTER (CA) 100,000 1999
RHODE ISLAND CONVENTION CENTER 100,000 1992
SAVANNAH INT'L TRADE AND CONV. CENTER ** 100,000 1998
• WORCESTER'S CENTRUM CENTRE * 100,000 1982
AM IMPRESSED WITH PRIME F OSBORN III CONV. CTR. (JACKSONVILLE) 78,500 1992
SMG'S RESULTS AT THE KANSAS EXPOCENTRE * 67,000 1992
COLORADO CONVENTION PEORIA CIVIC CENTER * 63,700 1991
CENTER.THIS IS A GOOD
• EXAMPLE OF REINVENTING NASSAU COLISEUM * 60,000 1980
GOVERNMENT, USING BATON ROUGE RIVERSIDE CENTROPLEX * 30,000 1995
PRIVATE INDUSTRY TO CUT
RED TAPE AND BEING ABLE
TO ACHIEVE RESULTS WHICH
PROVIDE A BETTER DEAL TO
• THE CITY AND ULTIMATELY
THE TAXPAYER."
WELLINGTON WEBB
MAYOR, DENVER, CO
_`a f
t
INDICATES MULTIPURPOSE FACILITY
— EXPANSION PLANNED, UNDER CONSTRUCTION,OR NEW
• ���\/(j���/�/�/) FACILITY UNDER CONSTRUCTION
All
RmI cxT JYLY 1999
Peortrtie'rwav—SMG xx Reseavco
•
•
ARENAS
•
SMG's arenas/civic centers in the United States and Europe host
virtually every type of arena-oriented event imaginable, from
professional and collegiate sporting events to family shows such as
Ringling Bros. and Barnum & Bailey Circus. SMG-managed arenas
• host numerous NCAA events, including several Men's and
Women's Basketball Conference Championships and NCAA Post-
Season Tournaments. Eight Division I Men's basketball teams play
their home games in our arenas. Three National Hockey League
• teams, two National Professional Soccer League Teams, twelve
minor league hockey teams, one National Basketball Association
team and two Arena Football League teams are tenants in our
buildings.
•
NUMBER MANAGEMENT
ARENAS OF SEATS COMMENCEMENT
TAMPA ICE PALACE 20,500 1995
NATIONWIDE ARENA** 20,000 1999
NEW OKLAHOMA CITY ARENA** 20,000 1999
• THE ARENA IN OAKLAND 19,200 1998
LL IN ALL,THIS KIND OF NEW ORLEANS ARENA** 19,100 1998
MANAGEMENT(AS PROVIDED BY NASSAU VETERANS MEMORIAL COLISEUM * 18,100 1980
SMG)APPEARS TO OFFER THE PITTSBURGH CIVIC ARENA 17,850 1991
SALT PALACE AND SALT LAKE ALBANY PEPSI ARENA * 17,500 1990
• AREA TAXPAYERS THE BEST OF MYRIAD(OK)ARENA 16,000 1999
BOTH WORLDS...A LARGE, CLEVELAND STATE CONVOCATION CENTER 15,000 1999
EXPERIENCED AND AGGRESSIVE WORCESTER'S CENTRUM CENTRE * 15,000 1982
NATIONAL ORGANIZATION TO RUN BALTIMORE ARENA 14,000 1999
THE FACILITY WHILE COSTING
THE TAXPAYERS LESS MONEY." LONG BEACH ARENA 'A 14,000 1982
RICHMOND COLISEUM 13,100 1985
• EDITORIAL, LONDON ARENA, UNITED KINGDOM 12,500 1994
SALT LAKE CITY VAN ANDEL ARENA 12,000 1996
DESERET NEWS BATON ROUGE RIVERSIDE CENTROPLEX '" 12,000 1995
PEORIA CIVIC CENTER ARENA * 11,800 1991
JACKSONVILLE VETERANS MEMORIAL COLISEUM 11,700 1992
NEW HAVEN VETERAN'S MEMORIAL COLUSEUM 11,200 1999
MOBILE CIVIC CENTER ARENA `I' 11,100 1990
KANSAS EXPOCENTRE * 10,000 1992
OSLO SPEKTRUM, NORWAY 10,000 1992
GRAND RAPIDS GRAND CENTER * 4,500 1994
• '`w�,'/L/iyl.�/�/J CLAREMORE EXPOCENTRE ** 3,500 1999
�J *INDICATES CONSTRUCTION,
MULTI-PURPOSE FACILITY
* UNDER CONSTRUCTION, EXPANSION PLANNED,OR NEW
FACILITY UNDER CONSTRUCTION
COP
PwopRl[TARY—SMG ALL RIGHTS RESERVED
•
•
OMPANY PROFILE
• THEATERS
-- SMG currently manages and provides services to theaters with a
total of over 30,000 seats. All of them have seen an increase in
the attendance and the number of events held. We are proud to
• assist numerous arts-oriented and nonprofit community groups
in presenting their events in these facilities.
NUMBER MANAGEMENT
• THEATERS OF SEATS COMMENCEMENT
SAN FRANCISCO CIVIC AUDITORIUM 7,000 1981
MEMPHIS DIXON-MYERS HALL 4,360 1991
LONG BEACH TERRACE THEATER 3,973 1982
TIMES UNION CENTER FOR THE PERF. ARTS 3,200 1992
. MIAMI BEACH JACKIE GLEASON THEATER 2,705 1990
GRAND RAPIDS GRAND CENTER x 2,446 1994
BATON ROUGE RIVERSIDE CENTROPLEX * 2,200 1995
PEORIA CIVIC CENTER THEATER • 2,184 1991
MOBILE CIVIC CENTER THEATER 1,950 1990
•
MG SUPPORTS LOCAL ARTS
GROUPS WHOLEHEARTEDLY AND AQUARIUM FOOD AND BEVERAGE OPERATIONS
UNDERSTANDS THE IMPORTANCE (1
OF A STRONG ART COMMUNITY In 1997, SMG successfully responded to two proposals to
. WITHIN ANY GIVEN CITY" provide food and beverage operations for Aquarium operations.
MARY NEWKIRK This represents a growing expertise in another specialized service
EXECUTIVE DIRECTOR, area.
LONG BEACH
SYMPHONY ORCHESTRA
AgUARIUM FOOD AND ESTIMATED ANNUAL MANAGEMENT
BEVERAGE OPERATIONS ATTENDANCE COMMENCEMENT
LONG BEACH AQUARIUM OF THE PACIFIC 2,200,000 1998
•
*INDICATES MULTI-PURPOSE FACILITY
•
COP T.,ULY,999
Pvovp,cinRv-SMG ALL RTGMT R,oxrc Re¢[wv[o
•
•
• STADIUMS
SMG manages eight stadiums, with a total of more than
461,750 seats. These facilities play host to six National Football
gid�nw• I z League teams, two NCAA football bowl games, two NCAA WI III l i Yii I'I f`' � II
Division I Football teams, two Major League Baseball teams, two
Major League Soccer Teams and one Minor League Baseball
Team.
•
In 1997, SMG-managed stadiums hosted more than 350
sporting events, family shows, concerts, conventions and trade
shows. These events attracted over seven million people and
generated over $100 million in gross ticket sales.
•
NUMBER MANAGEMENT
STADIUMS OF SEATS COMMENCEMENT
DENVER'S MILE HIGH STADIUM 76,100 1998
• LOUISIANA SUPERDOME x 76,000 1977
JACKSONVILLE'S ALLTEL STADIUM 73,000 1992
MG HAS MANAGED THE
SUPERDOME ALMOST SINCE CHICAGO'S SOLDIER FIELD 66,950 1994
THE DAY IT FIRST OPENED ITS NETWORK ASSOCIATES COLISEUM 62,S00 1998
DOORS. OUR EXPERIENCE WITH PITTSBURGH'S THREE RIVERS STADIUM 60,000 1983
• SMG HAS BEEN EXTREMELY
GRATIFYING. SMG HAS PROVEN LADD MEMORIAL STADIUM, MOBILE 40,000 1998
ITSELF TO BE A VERY PROFES- JACKSONVILLE'S WOLFSON PARK 7,200 1992
SIONAL, EXTREMELY COMPE-
TENT AND CLIENT-ORIENTED
PARTNER."
• INDICATES MULTIPURPOSE FACILITY
ALAN ZAUNBRECHER,
CHAIRMAN
LOUISIANA STADIUM &
EXPOSITION DISTRICT
•
•
may"
C.IRICRT J V LV 1999
PEoPRIETAnV—SMG ALL RloHTS RESERVED
•
•
• SMG SPORTS & ENTERTAINMENT
The SMG Sports & Entertainment division produces, packages,
manages and markets live sports, family entertainment and
• special events such as holiday or seasonal spectaculars, concerts,
cultural presentations and extravaganzas to increase or
supplement the number of events brought to our buildings. We
have become extremely active in joint ventures and the perusal
of various avenues to increase event activity at our facilities.
This division within SMG enjoys an excellent reputation with
national entertainment promoters and close relationships with
family shows to assist facilities and local promoters in securing
• acts and attractions. In 1998, SMG Sports & Entertainment
produced more than 50 events, grossing more than $6 million in
ticket sales.
By actively being part of the event process, SMG Sports &
• Entertainment is able to assist the promoter/producer in securing
acts and attractions. As a risk-taking entity, SMG is also able to
joint venture or co-promote with an existing partner, thus
enabling both parties to utilize joint resources while sharing
• financial risks and rewards.
HE ADDITION OF SMG HAS NOT ONLY SMG Sports & Entertainment exists not to compete with
ADDED STABILITY, BUT ABILITY...THE
promoters/producers, but to assist and nurture those currently in
ABILITY TO DRAW MAJOR ACTS AND
WORLDWIDE ENTERTAINMENT." the marketplace. For example, SMG Sports combined with the
• Black Coaches Association to host the annual "Classic" Hoops
EDITORIAL
THE CAPITAL-JOURNAL Event on ESPN.
TOPEKA, KS
SMG Sports & Entertainment also oversees the SMG
Entertainment Connection which is composed of Event Specific
• Focus Groups dedicated to maximizing our event bookings.
Our extensive industry relationships and the ability to negotiate
for all of our arenas and stadiums at the same time provides us
with bargaining leverage that is unsurpassed in the business.
•
Coeva�ceT Juw 1999
PrtortE�erwav—SMG Au Rle.—RE...v10
•
•
OMPANY PROFILE
SMG PROFESSIONAL MAJOR AND MINOR LEAGUE
AND COLLEGIATE SPORTS TENANTS
• Major League Baseball East Coast Hockey League
Our facilities hnit numerous
professional and collegiate sports Oakland A's Baton Rouge Kingfish
Pittsburgh Pirates Mobile Mystics
teams. Our venues hove hosted the
1994 World Cup (Soldier Field), Richmond Renagades
• MLB's 1994 All-Star Game in National Football League Jacksonville Lizard Kings
Putrburgh, and the 1997 Super Jacksonville Jaguars _ Peoria Rivcrmen
Bowl in New Orleans. In 1992 Denver Broncos New Orleans Brass
and 1994,_SMG hosted the Chicago Bears
• NCAA Women's Final Four, the New Orleans Saints International Hockey League
1993 Men'.r Final Four at the g s Lon Beach Ice Do
Pittsburgh Steelers g
Superdome and several regional Grand Rapids Griffins
fiat and second round basketball Oakland Raiders p
events. Me also hors annual
� college football bowl games in National Basketball Association ----American Hockey League-- � -�
_
Jacksonville, N[emphir and New Golden State Warriors Worcester I ceCats
Orlean r.
Albany River Rats
National Hockey League
Central Hickey League
New York Islanders Topeka Scarecrows
• Tampa Bay Lightning
Pittsburgh Penguins Ice Hockey Superleague
London Knights
National Professional Soccer League
• Baltimore Blast - British Basketball Association
Cleveland Crunch London Leopards
National Lacrosse League Continental Basketball Association
Baltimore Thunder Grand Rapids Hoops
Major League Soccer Collegiate Teams NCAA (Division I and II)
Denver Rapids Football
Chicago Fire Annual Garet Bowl, Sugar Bowl and Senior Bowl
• Jacksonville University
Arena Football League Tulanc University
Tampa Bay Storm Basketball
Albany Firebirds University of Pittsburgh
• Grand Rapids Rampage Siena College
Bradley University
Minor League Baseball Virginia Commonwealth University
Jacksonville Suns Cleveland State University
University of California, Berkeley
•
OMPANY PROFILE
• �= NETWORK INTERNATIONAL*
z■ ssi:�
i n t e r n a t i o n a l
Network International, a wholly-owned affiliate of SMG,
specializes in the sale of advertising, product rights, and facility
• and event sponsorships for the sports and entertainment industry.
Our expertise includes the marketing and selling of products that
1� are vital to the sports and entertainment industry, such as suites,
�., '. 'IS I• premium (club) scats, VIP packages and naming rights.
•
® Network's ongoing success is attributable to our ability to meet
S our clients needs. We offer complete services to our customers,
which include design, development, pricing, and sales strategies
for the revenue producing products we sell. In addition, our
• national and local leverage helps ensure our customers that they
will reach their target markets. As a result, Network
International generated more than $8 million in 1998 revenues
for SMG facilities.
•
ETWORK INTERNATIONAL By working directly with facility management and its tenants,
HAS GIVEN COCA-COLA Network International is uniquely positioned to understand and
CREATIVE WAYS TO ENHANCE
PRODUCT SALES IN ARENAS effectively place advertising within eachSMG facility. From the
• AND STADIUMS.THE KEY integration of advertising opportunities in the initial design of a
INGREDIENT IS ALWAYS facility, to creatively developing additional revenue enhancing
COMMUNICATION AND
SERVICING,AND NETWORK opportunities or negotiating product packages, Network provides
WORKS HARD TO KEEP the experience and expertise necessary to generate revenue for
COKE UPDATED ON ALL
• DEVELOPMENTS IN THEIR our facilities.
PROPERTIES."
WALTER DUNN, Network International offers such services as:
FORMER CEO • Imaginative signage advertising packages;
COCA-COLA • National contacts for product serving rights;
• • Consumer sampling opportunities;
* AVAILABLE ON A • Special event sponsorships;
SEPARATE FEE BASIS. • Financing through advertising Of scoreboards and marquees;
• Suite and luxury seat pricing, marketing analysis and sale;
• Naming rights value analysis and sale;
• Official facility sponsorship development and sales.
91, It
Caavwlcn't J.,1999
PROEiuETARY SMG ALL RIGHTS RESERVED
•
•
• CONVENTION CENTER DIVISION Our Convention Center Division strives to provide corporate
sales, marketing and promotional support to all SMG-managed
convention facilities to generate new business and enhance the
010— image of SMG facilities within the marketplace.
These objectives are accomplished through the following strategies:
• Development and maintenance of a national event database
which profiles trade and consumer shows and corporate business
• utilizing SMG-managed facilities.
• Maintain corporate relationships with the top convention trade
and consumer show management firms who have the potential of
block booking events through SMG facilities.
• • Participation in national industry trade shows and conventions
which highlight the network of SMG facilities. Particular
emphasis is placed on the Professional Convention Management
Association (PCMA), International Association of Exposition
• Managers (IAEM), Meeting Planners International (MPI), and
AM PLEASED TO RECOMMEND National Association of Consumer Shows (NAGS) in which SMG
THIS ORGANIZATION TO ANY has committed to maintain major presence.
CITY...SMG OPERATES IN A
• Creation of corporate sales and marketing collateral materials
MOST PROFESSIONAL MANNER
• AND THEY ARE HIGHLY which support the sales efforts of our targeted markets.
RESPECTED BY THE MANY Additionally, "packaged" advertising programs which highlight
ASSOCIATIONS AND CORPO-
RATE CLIENTS THEY SERVE." SMG facilities are inserted in trade industry publications, such as
Tradeshow Week and Convene, reinforcing the advertising efforts
JOHN A. MARKS, of the CUBS.
• PRESIDENT
SAN FRANCISCO • Identification of co-promotional and joint-venture opportunities
CONVENTION AND with show managers producing events in SMG facilities.
VISITORS BUREAU
• Continued development and enhancement of customer relations
programs which provide consistent levels of excellent customer
• service among all SMG-managed facilities.
• Development and operations of special community events such as
"The Food Network's Book and the Cook Fair", which hosted
over 21,000 people at the Pennsylvania Convention Center in
• March 1999.
AIL Rl c"T't Juba.V9
Prtortrt�e*tav—SMG axc Ncccpv[.
•
•
OMPANY PROFILE
• SMG PROJECT DEVELOPMENT CONSULTING
AND PRE-OPENING SERVICES
SMG offers a full range of development services to assist during
the planning, construction, expansion or renovation of facilities.
• These services are led by a knowledgeable and experienced
corporate team.
NATIONWIDE ARENA (OPENS IN FALL 1999)
Pre-Opening and Development Services include:
_ c • Plan Design Review— Consult with project architect on site
Wig
selection and the functional analysis of the current design and
v
overall operations design. This includes: square footage planning,
space planning, utility services review, telecommunications,
interior finishing, security system, signage and hanging point
•
analysis, kitchen/concession, HVAC and operational report
COLISEO OLYMPICO DE PUERTO RICO reviews, rigging and load in/out.
(OPENS IN WINTER 1999-2000)
• Operating Budget Preparation and Audit — Consult with
• project finance consultants on development and/or audit of
MG'S PERFORMANCE BEFORE, operating budgets and cash flow forecasts based on market and
DURING AND AFTER THE EXPAN- facility characteristics and our extensive database.
SION WAS VERY IMPRESSIVE . . .
THEIR KNOWLEDGE OF THE
. INDUSTRY WILL BE VERY IMPOR- • Revenue Enhancement — Utilize our extensive facility network
TANT TO THE NEXT PHASE OF
DEVELOPMENT." and operations expertise to maximize income potential in all
areas of operations including analysis of operating systems and
d L PA PECK, CHAIR
SAALTT PALACE EXPANSION facility design as it affects event profitability.
L
• OVERSIGHT COMMITTEE
• Pre-Opening Marketing and Booking — Develop marketing
and event booking strategies and relationships, and increase
project awareness in the community, both regionally and
. nationally.
• Advertising Inventory and Sales — Develop inventory
specifications, revenue forecast, and planning of sales and
financing programs for inventory, plus pouring, product and
• naming rights, sponsorships planning and sales consultation.
AVAILABLE ON A SEPARATE FEE BASIS
COPRTSHTS RES 1999
PrtoPnminnv—SMG ALL R,axTe Reeeavm
•
•
OMPANY PROFILE
"' • Anchor Tenant Solicitation/Negotiation — Target potential
• al j3 i- `' tenants and league affiliations. Solicit and negotiate lease
agreements.
• Luxury Seating Marketing and Leasing — Develop target
• '' market, pricing and sales strategy and implement direct sales
programs.
Policies and Procedures Development — Initiate facility
services and profit centers, operations and event services, service
• and supply programs, finance and personnel programs, affirmative
action programs.
• F F & E Technical Support Services — Utilize our operating
• experience and significant buying power to scope, procure and
install entire inventory of furniture, fixtures and equipment.
STAGES OF THE
TAMPA ICE PALACE Includes:
- Programming and Conceptual Design — Recommend and
• develop inventory based on size and needs, including hard and
soft costs. Prepare submittals for review and acceptance by
MG WILL ALSO IDENTIFY
BIDDERS, EVALUATE owner and project contractor/architect.
PROPOSALS AND NEGOTI- - Specifications — Review and provide technical specifications
ATE AND IMPLEMENT and incorporate special municipal requirements into the bid
• CONTRACT SERVICES FOR
ALL THIRD PARTY VENDORS documents. Includes local vendor and MBE/WBE/DBE
INCLUDING FOOD SERVICE,
coordination.
PARKING AND SECURITY,
AMONG OTHER SERVICES. - Procurement — Act as purchasing agent to coordinate, issue,
receive and negotiate bids.
• - Installation/Delivery Coordination — Oversee delivery and
installation including labor, warehousing, training and
payment.
• Peripheral Real Estate Services — SMG offers a full range of
Real Estate Development Services which can be applied to
peripheral or nearby development opportunities, adaptive re-use,
or repositioning and renovations of existing facilities. These
services include: Master Planning; Site Analysis; Programming,
• Financial Analysis; RFP Proposal Process; Anchor Tenant
Solicitation; Leasing; Marketing; and
Public Programming.
COP � JULY 1999
Ppartq;[inrtv—SMG All Rl RIO.,HTG R[c[rtv[o
•
•
OMPANY PROFILE
• CORPORATE SERVICES
Through our headquarters in Philadelphia, SMG provides a team
of dedicated corporate support unparalleled in the industry.
These professionals have the expertise, leadership and creative-
problem solving abilities needed to successfully market and
manage public facilities.
At SMG Corporate, we are continually committed to providing
• the highest quality service to our clients. To ensure that we meet
those high standards, we offer a variety of professionals available
to assist our clients in areas such as MIS, Accounting, Graphics
and Presentation Services, Human Resources, Advertising Sales,
• Pre-Opening Services, Marketing, Risk Management, and
Training.
For more information on SMG and the services we provide,
please contact us at our Philadelphia corporate office.
•
•
•
•
•
< *AW
COP 4TJ N999
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MINUTE ORDER NO. 6595
APPROVING CHANGE OF OWNERSHIP OF LEISURE
MANAGEMENT INTERNATIONAL("LMI"), Pt1RSU7ANTTO
S-EE-T-10".3-OF-AGREEMENT N0-3964-,-AGREEME-N-T-
FOR TOU.RI$MSERV4CES, TO SMG, A PENNSYLVANIA
GENERAL PARTNERSHIP, AND SMG/LMI, L.L.C., A
DELAWARE LIMITED LIABILITY COMPANY (AN
AFFILIATE OF SMG)
I HEREBY CERTIFY that this Minute Order, approving Change of Ownership of Leisure
Management International ("LMN), pursuant-to-Ssetiee-63-Qf-Agreement--N0.-3964—
Agreemen for Tourism Services to SMG, a Pennsylvania General Partnership, and
SMG/, 1R.C., a Delaware Limited Liability Company(an affiliate of SMG),was adopted
by the City Council of the City of Palm Springs, California, in a meeting thereof held on the
5th day of April, 2000.
PATRICIA A. SANDERS
City Clerk
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