Title
PRESENTATION OF REVENUE SHARE TO SEDGWICK COUNTY FOR 2013 FROM INTRUST BANK ARENA.
Presented by: Ron Holt, Assistant County Manager.
RECOMMENDED ACTION: Receive the check.
Body
The Management Agreement between Sedgwick County and SMG, dated August 1, 2007 for the operation of the County owned INTRUST Bank Arena located in downtown Wichita, calls for SMG to be solely responsible for any net operating losses incurred in any given year. As compensation to SMG for providing the services outlined in Sections 2.2 and 2.3 of the agreement, the net operating profit is distributed to the parties in the following order of priority:
- First, to the extent that SMG has funded net operating losses in any prior fiscal year, net operating profits shall be distributed to SMG until SMG has fully recouped such losses.
- Second, the next (or first, if there is no distribution under the first condition) $450,000 of net operating profit shall be retained by SMG.
- Third, net operating profits shall next be distributed to the County to cover the cost in excess of $250,000 for capital improvements and/or capital equipment purchases paid for by the County.
- Fourth, the next $450,000 of net operating profit shall be retained by the County.
- Fifth, any net operating profit in excess of the amounts detailed above shall be allocated sixty percent (60%) to the County and forty percent (40%) to SMG.
The net operating profit for the Arena for Fiscal Year 2013 was $705,678. In accordance with the conditions of the agreement outlined above, SMG retains $450,000 and the County receives the remaining $255,678.
Alternatives:
Financial Considerations: The revenue will be deposited in the Arena's revenue administration fund center, 57001-550. No adjustments to the Arena's 2014 budget are needed.
Legal Considerations:
Policy Considerations:
Outside Attendees:
Multimedia Presentation: