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Five Flags SMG_Annual ReportTHE CITY OF Dui Masterpiece on the Mississippi TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Five Flags 2012 Annual Report and Activities Update DATE: January 14, 2013 Dubuque kital All- America City II h/ 2012 Leisure Services Manager Marie Ware is transmitting the Annual Report for Five Flags. Five Flags Manager Joyce White, who is employed by SMG, the private management company for Five Flags, will make a presentation to the City Council on the update of activities in the current fiscal year and plans for the future. htit44 Michael C. Van Milligen MCVM:jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Teri Goodmann, Assistant City Manager Marie Ware, Leisure Services Manager Joyce White, Five Flags Civic Center Manager THE CITY OF Dui Masterpiece on the Mississippi TO: Michael C. Van Milligen, City Manager FROM: Marie L. Ware, Leisure Services Manager DATE: January 7, 2013 SUBJECT: Five Flags 2012 Annual Report and Activities Update Dubuque had All- America City ' I I' 2007 INTRODUCTION The purpose of this memorandum is to request the opportunity for SMG to make a presentation to the City Council that is the Annual Report for 2012 and updates of activities in the current fiscal year and plans for the future. BACKGROUND SMG was hired as the private management company for Five Flags in 2004. Effective in 2009, the contract was extended for another five years. Each year the SMG manager shares the Annual Report with the Council. I have asked Joyce White, SMG's Manager to present to the Council activities in FY 2013 to date and plans for the future. The Five Flags Center is an important part of our community as you will see. SMG Management has and continues to work hard as our partner. After hearing Joyce's presentation, I think you will agree the future of Five Flags is bright. ACTION TO BE TAKEN I request time on the Council agenda for Joyce to share the Annual Report. Prepared by: MLW et cc: Joyce White 7' FIV LAGS CENTER "If it's tinportant, it's at Five Flags; if it's at Five Flags, it's important." YEAR IN REVIEW JANUARY - DECEMBER , 2012 Five Flags Civic Center, 405 Main Street Dubuque, Iowa 52001 WbVWWWC tnwnmmCnt one (Partition Venue Management THREE YEAR FINANCIAL COMPARISON FY10 -FY12 For the purpose of this report, financial data reflects information from the FY12 Operating Budget - Event Activity reflects activity and programming from calendar year January - December 2012 Five Flags Civic Center, Dubuque's oldest convention center, arena, and performing arts center, opened in 1979 and is located at 405 Main Street. The addition of the convention /meeting space and arena to the iconic and historic Five Flags Theatre has provided a city block of vibrant activity to generations of Dubuque residents. The arena can provide flexible, configured seating arrangements in order to bring a variety of sporting events, concerts, social events, meetings and conventions to Dubuque. Owned by the City of Dubuque, Five Flags Civic Center is obliged to grow economic activity and provide community infrastructure for future generations. In 2004, the City awarded a five year management contract to SMG, the world leader in private venue management, marketing and development. The management contract was extended in July, 2009 and SMG is currently in the fourth of a five year extension. Five Flags operating subsidy is tied to the CPI All Urban which declined between 2009 and 2010. Consequently, Five Flags operating subsidy remained flat for both FY09 and FY10. Modest increases in the CPI were experienced in both FY 11 and FY12. The entertainment industry's recovery since the economic crash of 2008 is consistent with, and a reflection of, the rest of the economy and continues to show signs of improvement. Five Flags has held its own throughout the second year of operation without ice revenue while continuing to re- define its business model. While new programming has been introduced to the event calendar, the nature of the events tends to be labor intensive and zero or revenue neutral. Management has responded to and operated within the City's allocated subsidy to consistently come in under budget for seven consecutive years (every year except year one in FY05.) FIVE' FLAGS CENTER 1,000,000 - co co 500,000 J SUBSIDY a Budgeted 781,882 797,520 826,230 OActu al 768,191 783,573 803,791 FY10 FY11 FY12 600,000 - 400,000 200,000 - (200,000) (400,000) (600,000) (800,000) (1,000, 000) (1,200, 000) (1,400, 000) REVENUE I (EXPENSES) OREVENUE 391,898 260,159 242,980 OEXPENSE (1,158,088) (1,043,732) (1,046,771) FY10 FY11 FY12 FIVE FLAGS MANAGEMENT "Five Flags Center proudly serves the City of Dubuque and the Tri -State area by enhancing its cultural and economic environment through the presentation of a wide variety of sporting, entertainment, and community events — in a fun, friendly, and safe environment. " — Five Flags Mission Statement Joyce White is in the seventh year as General Manager of Five Flags Civic Center; a total of twelve years with SMG. An industry veteran, prior experience in venue and event management includes five years at the Carlson Center, Fairbanks, Alaska, 10 years with the University of Arkansas Razorback Athletic Department, and eight years with the Sam Walton College of Business at the University of Arkansas. FIVE FLAGS CENTER Don Howes, Director of Finance /HR Dan Holtkamp Technical Director Ali Levasseur, Marketing Ron Swift Coord. ADMN Su • • ort Set -u • Su • ervisor Bob Richardson Alyson Tasker Maintenance Supervisor Box Office Manager Not Pictured: John Richardson, Operations Manager FIVE FLAGS EXPANDS SOCIAL MARKETING STRATEGIES FIVE FLAGS CENTER In June, 2012, management contracted with Social Sense, a Dubuque consulting firm to review current marketing practices and to develop new ways to promote and market Five Flags events by incorporating social networking platforms. Primary objectives were: • Attracting events that will generate greater attendance, both ticketed and non - ticketed • Increasing concessions revenues • Reviewing promotional opportunities with Ticketmaster • Increasing sponsorships of events Social Sense performed a SWOT analysis of Five Flags marketing practices and designed and conducted a survey of Five Flags ticket buyers to evaluate customer experience. Results of the SWOT analysis and the survey were used by management to improve existing marketing practices and to implement new social networking initiatives. In the last half of 2012: • The Five Flags website was redesigned and launched • The number of posts and content to Facebook were increased • A Five Flags Twitter account was established • A Four Square platform was created and prizes established for users • Pinterest boards were created for weddings and maintained by an intern Additionally, an effort to develop promotional partnerships with local businesses was launched and resulted in partnering the national sponsor of Mannheim Steamroller with Dubuque based Doland Jewelers whose owner presented a Pandora bracelet to a winning ticket holder at the group's December performance at Five Flags. You V;� Tubi EVENT PROGRAMMING CATEGORIES FIVE FLAGS CI ;N I'ER Sports Community /Other Meetings /Conv January — December 2012 Notable Events ■ 7 Events of all types are hosted at the Five Flags Civic Center: ENTERTAINMENT Professional Bull Ride Championships Eastern Iowa Outlaws Roller Derby USARS Regional Roller Derby Tourney Night Storm Teen Dance Club Donzilla "Comedy Monster" FAMILY Harlem Globetrotters George Carden Circus Sesame Street Bixby's Inflatable Rainforest Dock Dogs World Championships DKC Dog Show Photo courtesy of Tho Proof Booth and DockDogs. All rights monied. •�.�.��....i 123 i�....., :SESAME STREET LIVE.: • A VEE CORPORATION PRODUCTION 1M.0 2010 SFArne Wak511011. P19MiNM.,wd January — December 2012 Notable Events (continued) SPORTS PROGRAMMING MMA — Pinnacle Combat Rumble by the River Wrestling Tournament Loras College Open Wrestling Tournament Dubuque Soccer Association MPA (Midwest Pool Players Association) PERFORMING ARTS JDIFF (Julian Dubuque International Film Festival) Multicultural Center presented "Native Spirit Dancer" Jim McDonough Holiday Grande 2012 Jim McDonough Spring Concert Dubuque Symphony Orchestra Dubuque Symphony Orchestra Youth Ensemble Dubuque Symphony Orchestra Arts Trek Dubuque Dance Studio Studio 5 -6 -7 -8 Rising Star Theatre Company — "Hairspray" Rising Star Theatre Company — "Pinocchio" Walhert High School Musical — "Zanadu" Hempstead Variety Show Fly -By -Night Productions h�i�!rsGrayl THEATRE COMPANY FIVE FLAGS CENTER M P H O N Y O R C H E S T R A WRHLERG CRtHOLIC HIGH SCHOOL PRESERRS: vm:PXN MIMS AMER REMIE LYRICS BY Lynn 1 1 January December 2012 Notable Events (continued) CONCERTS Mannheim Steamroller Gaelic Storm January — December 2012 Events (continued) FIV FLAGS CENTER Community and Other Events Colts Drum and Bugle Corp Dubuque Senior High Graduation Dubuque Hempstead High Graduation Rising Star Theatre Company Summer Workshop THE CITY OF DUB Multicultural Center — "Taste of the World" Girl Scouts Dream Event Capri Style Show City Expo City Spirit Luncheon City Civil Service Testing City Management and Other Meetings Jaycees Toy for Kid's Weddings Masterpiece on the Mississippi Meetings and Conventions January — December 2012 Five Flags Center continues to inject itself into the marketplace of meetings and conventions after almost a decade absence. Management reviews and responds to bid opportunities through Dubuque Conventions and Visitor's Bureau in addition to participating in the CVB's FAM tours. The Holiday Inn and Five Flags continue to compliment one another's business model. Exploring and booking other meeting business is continuous. Five Flags is proud to have offered meeting and /or vendor space to the following organizations: • Dubuque Area Labor Management Council - "Career and Technology Fair" • Dubuque Public Schools "Kinderpalooza" FAM Site Visits (Familiarization Visits) FIVE FLAGS CENTER Dubuque Communi Schools To inspire and challenge Excellence in Education Featured Special Event - DALMC "Career and Technology Fair" FIVE FLAGS CENTER On November 6 and 7, 2012, Five Flags Civic Center served as the host site of Dubuque Area Labor and Management Council "Career and Technical Fair ". Sophomores from the area high schools interacted with local professionals and employers including John Deere. Students received experience on a simulator which included operating a front - end loader. Other problem solving experiences included a timed exercise in dismantling and reassembling a computer. Community Relations FIVE FLAGS CENTER SMG management understands the Civic Center's role to facilitate various groups and non - profit organization and assist them in their contributions to individuals and the community at large. Five Flags participated in this effort by providing complimentary tickets, program ads, golf hole sponsorships, venue usage, etc. for numerous organizations fundraising efforts, including those listed below: • Colts Music on the March Program • Children Affected by Cancer Event • Dubuque Chamber of Commerce • Dubuque Main Street • Dubuque Symphony Orchestra Program • Irish Hooley • Images & Information Breast Cancer Awareness Fundraiser • Mercy Health Foundation of Dyersville • McGraw Hill Holiday Giving Project • Holy Ghost , Resurrection, St. Joe, and St. John Churches • Shalom Retreat Center • Seaton School • Dubuque Catholic Worker, save Hope House • Tri -State Christian School • Riverview Center • Opening Doors Maria House and Theresa Shelter • Relay for Life • March of Dimes of North Eastern Iowa • Various meetings for the City of Dubuque, Boards, and Commissions Staff Participated Various Boards and Organizations including: • Rotary Club of Dubuque • Chamber of Commerce (Board and Executive Board) — CVB Advisory Board Chair and CVB Sales Committee — Dubuque Ambassadors • Dubuque Jaycees • Dubuque Main Street Board and Executive Board • Tri- States Human Resources Association • Leadership Dubuque Alumni Network • American Legion Local Post No. 6 • Dubuque County Fine Arts Society, Voices from the Warehouse • Carnegie Stout Public Library Art @ Your Library • DMS— Falling Into Art Gallery Tour MULTIPLE USE VENUE - PICTORIAL ESSAY and TIMELINE The "Facility and Event Management" industry is exciting and demanding. Frequently, event programming can require a complete building "change- over," within a twenty four hour timeframe, in order to accommodate load -in and staging of multiple, consecutive events. Below is a pictorial essay and timeline reflecting four consecutive weeks of Five Flags events between November 10 and December 8, 2012. Girl Scouts.. Nov 10 i 14 -18 19 -21 10 -11 S Y M P H O N Y O R C H E S T I. 17 Olt Multicultural Family Center I UUIUQUI i 23 -25 30 22 Thankgiving th 25 i 6 Dec 1 -2 S Y M P H C N Y O R C H F S I R A 8 ((iTr your child.. DUBUQUE: I QUE: DAN(.i: ,4•r1 :l)It, n 4i YMNASI'IC. cLL'ft