REPORT TO COUNCIL
SUBJECT
Title
Action on the Santa Clara Convention Center FY 2023/24 2nd 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 2nd quarter ending December 31, 2023 (attached). This report is unaudited and, therefore, subject to change.
As OVG's 2nd quarter report indicates, there were 56 events hosted at the SCCC, 2 less than the budgeted 58 events. There were 22 events in October 2023, 20 events in November 2023, and 14 events in December 2023.
The second quarter followed its historical pattern of a strong start gradually tapering off towards the holiday season. Based on event needs, OVG staffing levels varied from 31-32 throughout the quarter.
Financial Summary
Quarter Ended December 31, 2023
Quarter Ended December 31, 2022
Budget
Actual
Overage
(Underage)
Budget
Actual
Overage
(Underage)
Gross Revenue
$3,902,446
$5,535,047
$1,632,601
$3,990,335
$3,664,200
($326,135)
Total Expense
$3,893,918
$4,672,472
$778,554
$3,764,452
$3,306,462
($457,990)
Net Income
$8,528
$862,575
$854,047
$225,883
$357,738
$131,855
For the 2nd quarter ending December 31, 2023, OVG reported a net operating gain of $862,575, compared to a net operating gain of $357,738 for the 2nd quarter of FY 2022/23.
Total revenues for F...
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