Title
PRESENTATION OF REVENUE SHARE TO SEDGWICK COUNTY FOR 2012 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 any Net Operating Losses in any prior Fiscal Years, Net Operating Profits shall be distributed to SMG until SMG has fully recouped such funded losses.
-Second, the next (or first, if there is no distribution under the above condition) $450,000 of Net Operating Profit shall be retained by SMG.Operating Profits shall be next distributed to the County to cover the amounts in excess of $250,000 spent by the County on such improvements and equipment purchases.
-Third, the next $450,000 of Net Operating Profit shall be retained by the County.
-Fourth, to the extent that the County expends funds to pay for Capital Improvements and/or Capital Equipment purchases pursuant to Section 5.8 of the agreement in any prior Fiscal Year in excess of Two Hundred Fifty Thousand Dollars ($250,000), Net Body
-Any Net Operating Profit in excess of the amounts covered 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 2012 was $703,260. In accordance with the conditions of the agreement outlined above - SMG retains $450,000 and the County receives the remaining $253,260.
Alternatives:
Financial Considerations: The revenue will be deposited in the Arena's revenue administration fund center, 57001-550. No adjustments to ...
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