REPORT TO COUNCIL
SUBJECT
Title
Action on the Santa Clara Convention Center FY 2024/25 1st Quarter Financial Status Report
Report
COUNCIL PILLARS
Promote and Enhance Economic, Housing and Transportation Development
Enhance Community Engagement and Transparency
Promote Sustainability and Environmental Protection
BACKGROUND
On February 5, 2019, the City of Santa Clara approved an agreement with Global Spectrum L.P. dba Spectra Venue Management (Spectra) to operate the Santa Clara Convention Center (SCCC). Spectra began management of the SCCC on March 18, 2019. In November 2021, Spectra merged with Oak View Group (OVG) but continues to operate under the same legal entity.
Staff is transmitting OVG's SCCC status report to City Council for compliance with agreement terms.
DISCUSSION
This Report to Council transmits OVG's SCCC Financial Status Report for the 1st quarter ending September 30, 2024 (attached). This report is unaudited and, therefore, subject to change.
OVG's report provides an overview of the SCCC's financial, operational, and strategic performance for the first quarter for FY 2024/25.
The financial summary of the report indicates that OVG exceeded net income goals by $131,248, netting $13,007 rather than the projected loss of $118,241. This was a result of implementing operational cost control measures, and an increase in other revenue (i.e. partnership funds from the new AV provider, cancellation fees and interest). Gross revenues and total events hosted were lower than projected due to event cancellations, and the rescheduling of an event to a future date which impacted the timing of the revenue recording (these revenues fell outside of the projected quarter). The Q1 results are not atypical, in that historically, July, August, and September are the slowest months for event bookings at the SCCC.
The rolling forecast included in the report is the Q1 estimate of financial results for the fiscal year and is based solely on the number of 'defini...
Click here for full text